1. When do I need to apply for a loan?
Once the student has secured a confirmed admission in an institute he/she can approach a bank for an educational loan. |
2. Who is eligible for an educational loan?
Any student who is graduates & have a secured admission in Post Graduate program in Business Management in AEGIS (ICEM) |
3. What is the Minimum and maximum amount that can be availed under educational loans?
Minimum Loan amount should be Rs. 1,00,000/-*
Maximum Loan amount would be 15,00,000/- or course Fees whichever is lower*
*Loan amount eligibility would be at sole discretion of the bank. |
4. Is it necessary to have an account with the bank to avail of an educational loan?
It is preferred to have a bank account with Dhanlaxmi Bank. |
5. Which all expenses are covered under educational loans?
Following expenses are covered in the Education loan
- Admission Fee payable to college
- Tuition Fees payable to college
- Hostel Charges
- Mess Charges
- Building funds/Non refundable deposit supported by institution bills / receipts
*Extent of expense consideration for Education Loan would be at sole discretion of the bank |
6. Is the student's age a consideration while applying for an educational loan?
No Student age is not a major consideration while applying for an educational loan. |
7. Can a minor avail of an educational loan?
Yes, a minor can avail of an educational loan. But his parents/guardians who satisfy the eligibility criteria can do so. In this case parent will be the borrowers, Bank assess the individual's repaying capacity at the time of disbursing the loan* |
8. What are the documents required for an educational loan?
Following documents are required
- Application with Photograph
- Address Proof (For all Applicant)
- Photo Identity (For all Applicant)
- Signature Verification (For all Applicant)
- Details of Collateral, (wherever required)
- Family Income Proof :
- 6 Months Bank Statement
- RTR for loan currently Running
- ITR / Salary Slip (latest)
- Admission Fee structure
- Fees Structure
- Collateral details wherever required (LIC policy/ Share certificates/ Units of UTI etc. Valuation certificate from Bank's approved panel valuer and legal opinion from Bank's panel advocate in case of land/buildings)
- Margin (Details regarding source of funds for meeting the margin furnished along with documentary evidence)
- Declaration/affidavit stating that no Educational Loan is availed from any other bank by the applicant and his parent
- Assets& Liability statements of the student/ parent/ guardian/guarantor & Details of securities
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9. What is the interest rates for educational loans and how are they calculated?
The interest rates vary basis Prime Lending Rate of the bank, It would be confirmed at the time of loan disbursement. Currently interest rate is 14.75% subject to change |
10. Which all investments are accepted as security for the loan?
The security can be in the form of land/ building/ Govt. securities/ Public Sector Bonds/Units of UTI, NSC, and KVP, life policy, gold, shares/mutual fund units/debentures, bank deposit in the name of student / parent / guardian with suitable margin. |
11. When are the disbursement made?
Disbursement of Education loan will happen in stages as per the demand/requirement directly to the Institutions/ Vendors of books/ equipments/ instruments |
12. Why does the repayment of education loans taken for school/high school/graduation studies start immediately?
In the case of educational loans taken for school/high school/graduation courses, the student is not the borrower; his/her parents or guardians are. And since it is assumed that they have a steady source of income, the loan repayment can start immediately without any holiday period. Hence the repayment starts immediately. |
13. Why are guarantors required?
Guarantors are essential for sanctioning of loans. Usually, a guarantor is required so that if the applicant fails or becomes incapable of repaying, the guarantor will be responsible for clearing the debt. |
14. How are my term tuition & hostel fees going to be disbursed?
The fees for all the terms will be disbursed to the college/institute directly. Initially, while applying for a loan, the bank will verify the tenure of the course, and determine the cost of the entire course, as applicable at that point of time. Then, at the beginning of every term, the applicant is required to submit a form available from the bank that gives the details of the money required, and then the bank directly disburses the loan to the college/institute. |
15. What Income Tax (IT) relief's can be claimed for repayment of educational loans?
Under Section 80 E of the IT Act, a deduction will be allowed in respect of repayment of loan taken for higher education, subject to the following conditions: In computing the total income of an assessee, being an individual, these shall be deducted, in accordance with, and subject to, the provisions of this section: any amount paid by him in the previous year, out of his income chargeable to tax, by way of repayment of loan, taken by him from any financial institution or any approved charitable institution for the purpose of pursuing his/her higher education, or interest on such loan, provided that the amount that may be so deducted shall not exceed Rs 25,000. The deduction specified above shall be allowed in computing the total income in respect of the initial assessment year and seven assessment years immediately succeeding the initial assessment year or untill the loan referred to above, together with the interest thereon, is paid by the assessee in full, whichever is earlier. |
16. What is an interest portion and EMI?
The interest portion is the amount paid by the student during the time of his course that starts immediately from the month following the loan disbursal. During the tenure of his course, he/she keeps paying interest to the bank, whereas the main principal is only paid at the end of the holiday period. EMI or Equated Monthly Installment` is the amount payable by the student after the end of the holiday period that includes a certain portion of interest and principal. |
17. What happens if I take a break from my studies?
If, for any untoward reason, you are unable to complete the course, you will have to start paying the EMIs immediately. |
17. What is a holiday / moratorium period?
A holiday period is the maximum time given to the student before he/she needs to start paying back the principal loan in Equated Monthly Installments (EMIs). In other words, it is the period between the student's final examination in the course for which the loan was availed and when he/she actually starts paying the EMIs. |
18. How much Moratorium Period can one avail with Education loan?
Holiday/ Moratorium periods is up to 12 months. Take note, however, that if the student starts working immediately after completing the course, he does not enjoy a holiday period. Repayment usually starts six months after the course completion or the commencement of a job, whichever is earlier. |
