Education loans by Indian Banks

'Knowledge is power' , who is not aware of the famous axiom? However, now money has become more powerful than knowledge. Many poor students are in doldrums because they are unable to meet their expenditure of their education.

Education is becoming very expensive in the global world of today, making it very difficult to opt for the middle class students who have high ambitions and have strong urge to prove their mettle. It is indeed unfortunate that due to a high fees structure they are unable to fulfill their dreams of becoming an MBA , a doctor or an engineer.

Fortunately, the banks have recognized their condition and are trying to extend their helping hand to the youngsters who have a burning desire to succeed. The parents are the happiest ones since they don't have to feel dejected for not able to provide their ambitious children with the required fees.A number of nationalized and private banks have come forward to give loans to the students.I believe , State Bank Of India is the most sought after bank by the students.

The fees for professional courses such as Medicine, Engineering, MBA
is very high and is beyond the reach of many students.A quite a lot of them are knocking at the doors of these banks.Moreover, because of globalization, some students also plan to go abroad and get admission in some of the prestigious universities for their post graduation. The USA, the UK, Australia, New Zealand and Germany are the most preferable destination for the Indian students. Indian banks also give loans to them.


The amount of Education loans vary from below three lacs to even twenty lacs depending upon the caliber as well as the security given by the students.These loans are given to them without much delay. This is another relief. If the documents are perfect, the students don't have to run from pillar to post , knocking at the doors of rude government officials .

To avail the loan, the students have to approach the college which they desire to join and after the college decides to give them admission , they have to take the letter given by the college, advising the bank about the fees. This letter has to be presented to the bank along with their academic results . I believe, if the amount is below four lacs , the bank doesn't need any security of the property. However, if the amount is more than that, the students have to show their/or their parent's asset as security. One of parents and the student must have a joint account in the bank, which is providing them with the loan.

The interest rate charged depends on the bank which may vary .It may be 10.5% or above.

Now , let us find out about the repayment. The student can start re- paying the borrowed amount with interest after completing the course. The student may even start paying the interest after six months of completing the course.

Literacy is one of the main factors for development of a country and the Indian government has understood it very well. Today's younger generation are the future of our country and it is very vital that they get solid education to make our country a super power. And Indian banks are acting as their mentors.

I salute the banks and hope they continue to support the students for many ,many decades to come and help our country produce innumerable doctors, engineers and managers.

Radha Muralidhar.
They alone live who live for others (Swami Vivekananda)