Changing face of education loans
By Neelima Shankar
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Education has become a costly affair in the present time. The need for making education affordable for all is increasingly gaining priority in the Government's checklist of prime concerns. In this context, the Government has come up with many proposals for modifications in the existing education loan system.

While one scheme aims to grant education loans at rates as low as 4% another aims at slashing interest payment during moratorium period and still another gives tax concession on education loans for all streams of study including vocational courses.

The recent scheme which the Government is planning to bring about is one which would facilitate borrowers to access loans at as low as 4% rate of interest. The scheme has been chalked out by the Ministry of human resource development (HRD).

New features of education loan

Rate of interest: According to the proposed scheme, the rate of interest charged to different borrowers would depend on the income level of their parents. Compare current Education Loans here.

Students whose parents have an annual income of less than 4.5 lakhs would be granted loans at 4%.

The interest rate would be 7% for those students whose parents' income is more than the 4.5 lakh threshold but the loan amount sought is less than Rs. 12 lakhs. Loans amounting to more than Rs. 12 lakh would be charged an interest of 9%.

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(Comments Posted : 4) Post Your Comments
1. dear p.vanitha i can help you but can u tell me when and from which paper did you get this info
ranjit (Posted: Jul 9, 2013)
2. I had received a loan of 3 lakhs from PALANI SBI BRANCH.I could paid the interest of my loan amount from when i am studying and now also i have paying monthly 10,000 to the bank of SBI PALANI BRANCH.BUT my parent year earning is below 3lakhs.But they put more then 9% interest and also increasing the taxes inbetween 2 or 3 months when they have a chance.I received a news from the paper that is no interest for below 4.5 lakhs of year earning.Our branch manager have not responding to this information.SO PLEASE GIVE SOME IDEA TO ME AND WHAT CAN I DO?

Thank you
P.Vanitha (Posted: May 16, 2013)
3. I have availed educational loan of Rs. 100000 from SBI for my studies in Politechnics for my Diploma in Electronics and comunication Engineering. I have completed my 3 years diploma course with 90% marks

As per the agreement after completion of my studies I have to repay the loan after one year. Since I want to continue my studies in B.E. which is 4 years course. Can I avail further loan to complete my B.E. studies.

What will the obligation of repayment of already availed loan please clarify. Thanking you, Sir.MADONNA
MADONNA (Posted: Jun 25, 2012)
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