Yes, certainly! Thanks for A2A. Yes, you can get an education loan of INR 12 lakhs to study in India. You will have to pledge collateral for this amount as banks give education loans without collateral only up to INR 7.5 lakhs.
Considering this, can I get 20 lakhs education loan without collateral?
Collateral Required for Education Loan
20 lakhs. Guidelines show that loan taken up to Rs. 4 lakhs does not require collateral security. It is only when the loan exceeds a specified amount as set by the bank that collateral will be required as well as third-party guarantee.
Additionally, can I take 2 education loans?
Well, the answer to the above question is – Yes, a student can be eligible for a second education loan. For this, they can either apply for a second education loan from the bank they already have taken their first loan from or they can apply to a different bank.
Can we cancel SBI education loan?
Yes, a student loan can be cancelled.
The State Bank of India is one of the country’s leading nationalized lenders. SBI generally offers upto 7.5 lakhs for SBI education loan without collateral. SBI also grants subsidies on interest rates for female candidates as well as a 0.5% discount on Rinn Raksha Credit Life Insurance policyholders.
How to Pay Education Loan Early?
- Begin Early. One of the primary considerations while looking for an education loan is repayment calculation. …
- Create Income. You can start a part-time job and save a lot of money before the repayment period. …
- Save More. …
- Choose a Relatively Shorter Loan Tenure. …
- Consider Balance Transfer.
However, you can get an education loan without pledging any security. The Credit Guarantee Fund for Education Loans (CGFEL) Scheme provides a guarantee for education loan dispersed by banks under the Model Education Loan Scheme of Indian Banks’ Association (IBA).
A one-time settlement is offered by the banks to the borrower to settle the outstanding loan balance at a negotiable amount.
|Banks||State Bank of India (SBI)|
|Loan Amount||Up to INR 1.5 Crore|
|Interest Rate||6.90% – 9.30%|
|Maximum Tenure||15 years|
One of the most prominent factors considered by NBFCs and private banks before approving any education loan application is an applicant and their co-applicants CIBIL score. Most of the NBFCs which function in India require loan applicants as well as their co-applicants to have a CIBIL score to be above 700.
The repayment of education loan commences one year after the completion of the course, SBI said. … The documents required along with the application of SBI education loan include self-attested documents from the student applicant and the co-applicant/guarantor.
If you are unable to make repayment on your education loan, then you will receive notices and warnings from the lender. If you fail to comply with the same, then the lender is legally entitled to the assets you mortgaged. Your property or asset can be auctioned or used by the lender.
Third-party guarantor means any Person other than the Applicant (including, without limitation, a parent, affiliate or subsidiary of the Applicant) who guarantees either the bonds or the underlying security for the bonds. Sample 1. Third-party guarantor means an issuer of a Third-Party Guarantee on behalf of a Borrower …
Third-party guarantees are one form of securing loans, where the guarantor is liable for the outstanding debt including interest in case the borrower defaults. … Social norms, such as a perceived moral obligation to support family members and friends, can influence one´s decision to grant a guarantee.
As most students have no previous credit history, the parent or guardian has to co-sign for an education loan as a guarantor. Moreover, education loans also require key lender approved collateral such as property documents, fixed deposits, etc.