Educational is no longer all about merit and performance. Parents should have their pockets full to help their lads to receive education from the best institutes. However, when education has become pricey, recession too have hit middle class household. Education loan offered by banks has come to rescue hence.

Bandhan Financial Services, has become the first microfinance institution n the country to win a bank licence. One of the youngest entrants in the banking space. Bandhan has loan schemes Sushiksha for education sector, among others. It also runs the Bandhan School of Development Management.

Medical education is another field of study that has become much expensive over the years especially after the mushrooming of private medical colleges. In India however, joining an MBBS course is the most sought after career option after engineering and the rush for securing a medical seat is never less.

Several top banks have extended helping hands to parents to finance medical studies by the way of offering education loans. Education Today lists down 5 banks where you can avail education loan the most convenient way

SBI Education Loan:

This government bank provides educational loans for medical students up to an amount of Rs.10 Lakhs and Rs 30 lakh for students wanting to study abroad. The interest rate or SBI above Rs.4 Lakhs is 3.5% and above Rs.7 Lakhs is 2% above the stated base rate. Repayment tenure ranges from 10 years to 12 years depending upon the loan amount getting a job or 6 months after the course completion.  Parent/ Guardian can be co-borrower and Collateral security in the form of suitable third party guarantee.  The loan bears tuition fees, examination, library, laboratory fees, travel expenses, expenses for study material like books and even cost of two wheeler upto Rs 50,000

IDBI Bank Education Loan:

With IDBI Bank, one can avail educational loan for medical courses upto Rs 10 lakh. The bank puts no loan margin up to an amount of Rs. 4Lakhs but above for applying loan above Rs 4 Lakh, 5 per cent is applied to the total expenditure on the course if a student studies in India. For students studying abroad, the bank loan bears all possible expenses from college tuition fees, examination, library, laboratory fees, travel expenses, expenses for study material like books, caution deposits, travel expenses, , computers and even insurance premium for any student borrower. The  student taking the loan have to repay the loan  after getting a job or +1 years after the course completion.

HDFC Bank Student Loan:

The bank provides education Loan upto Rs. 10 lakh and unsecured lending upto Rs. 7.5 lakh. No collateral will be required for loans upto Rs. 7.5 lakh. For applying for a loan above Rs 7,5 lakh, the bank provides a wide range of bank approved collateral securities like Residential Property, HDFC Bank Fixed Deposit, LIC, NSC or a KVP policy.The maximum repayment tenure  of the loan is upto 15 years after getting a job or +1 years after the course completion.

Education Loan of Punjab National Bank:  

All basis expenses like costs of books, tuition fees, lodging expenses, caution deposits and the like are covered under the educational loan that can be availed upto a maximum limit of Rs. 10 lakhs. Repayment period for loans upto Rs.7.50 lakh is 10 years and for loans    above Rs.7.50 lakh upto 15 years. Tangible collateral security of suitable value is required with the assignment of future income of the student for payment of installments for loan above rs 7.5 lakhs.

Bank Of Baroda Educational Loan:

Bank of Baroda provides educational loans for medical students under the scheme Baroda Gyan. They provide loans, the limit of which is specified up to Rs.10 lakhs. The loan margin is provided above Rs.4 lakhs, which is 5 per cent and above Rs 4 lakh it is 15 per cent. Students wanting to study abroad can availd loan upto Rs 20 lakhs.  There is no need of collateral or security for loan upto rs 4 lakhs. For loan above 7.5 lakh, a t angible collateral security equal to 100 per cent of the loan amount along with assignment of future income of the students is required. The loan has to be repaid in 120 maximum Installments for loan amount upto Rs 7.50 lakhs and in 180 maximum Installments for loan amount above Rs 7.50 lakhs. Interest counted on loan is calculated on the loan amount over a base rate.

Date: April 3rd, 2014

Source: India Today