Innovative education loan scheme for IIM aspirants
By Neelima Shankar
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The most important factors a person considers while taking an education loan are:

• Need of collateral security

• Repayment and moratorium period

• Interest rate charged by the financing firm

An innovative product in this field has been recently introduced by Union Bank of India (UBI). Union Bank of India has launched a special education loan scheme which would cater to the requirements of students pursuing MBA in the prestigious and expensive B-schools. The loan is titled 'Union Education (Special Education Loan Scheme)'.

Characteristics of the 'Union Education (Special Education Loan Scheme)'

Interest rate

The scheme provides a fixed interest rate of 10.50% and also a concession of 50 basis points (0.50%) for female aspirants. The loan would be offered for a maximum of Rs. 15 lakh. This would thus encompass the high fees set by the B-schools.

Repayment and moratorium period

The repayment period of the loan is also high. The bank provides a repayment period of seven years for the loan whereas other banks on an average offer around four years. The moratorium period for the loan is the degree/course period plus one year or 6 months after attaining employment whichever is earlier.

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(Comments Posted : 1) Post Your Comments
1. Every body knows that today's life seems to be very expensive, however we require money for various issues and not every one gets enough cash. So to get some loans and car loan should be good solution.
PennyMAY (Posted: Jun 28, 2012)
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