Education loans play an important role for an individual as it opens up opportunities to get the desired education. After all, to get a decent job these days means having to fulfill eligibility requirements pertaining to educational background. Almost all banks in India advance education loans for pursuing higher education.
But, the rising school fees and uncertainty in economy, is leading many parents to approach banks for loans to pay the school fees of their wards. After all, every parent wants to ensure that a temporary inconvenience of life does not hamper the kid's future.
Though, there are many banks which provide education loans, only a few out of these have education loan schemes for paying school fees. This article provides a brief survey of education loan schemes meant for school kids, provided by banks in India.
Education loans for school kids from leading banks in India
- Indian Bank - IB Balavidhya Scheme
- Central Bank of India - Cent School
- Allahabad Bank - AllBank Gyan Dipika Scheme
- Bank of Baroda - Baroda Vidya
- Tamilnad Mercantile Bank - Short Term Study Loan
- Jammu and Kashmir Bank - Budshah Primary Education Finance
Indian Bank - IB Balavidhya Scheme
Indian Bank provides education loans for paying school fees under the IB Balavidhya Scheme. The loan is for students studying in any recognized or Government aided schools, from LKG to XII standard. The loan is extended to salaried or self employed individuals, who have been maintaining an account with the bank for a minimum period of 3 years. The bank sanctions the loan to a maximum of Rs. 30,000 for one family, which is a low amount as compared to other banks providing loans under the same segment.
The loan covers expenses such as admission fees, cost of books, uniforms and computer fees. The bank covers transportation costs only if it is provided by the school, and it has to be duly certified by the school annually. Donation fee is not covered by the bank.
The bank charges nominal interest rate for the loan. Borrowers need to repay the loan in 10 monthly installments, which will be divided equally. The processing fee is Rs. 300 per loan application. Salary account of the borrower with the bank or his/her employer's sponsorship is treated as security by the bank.