Other features on Model Educational Loan Scheme includes quick appraisal of the application (within 15 days).
- The loan would be directly disbursed to the educational institution.
- Repayment of the loan doesn't take place till the holiday period/moratorium, which is one year plus the course duration or 6 months after getting a job, whichever being earlier.
- If the borrower services the interest during the moratorium, he/she receives 1% subsidy in interest rate when the repayment commences.
- Repayment tenure of 10 to 15 years depending upon principal amount.
- No prepayment penalty to be charged by the bank in case of foreclosure of the loan.