Is education loan return mandatory?
Also required are the income documents such as salary slips or income-tax returns (ITR) of the co-applicant. The banks can finance up to 100\% of the loan depending on the amount. For loans above Rs 4 lakh up to Rs 7.5 lakh, a third-party guarantee is required.
Can education loan be taken over?
It is very much possible to transfer your existing education loan from one bank to another bank, and actually financially gain from such a transfer. Apart from lowering your interest rate you also can get a larger amount of loan.
What are the education loan repayment rules for government and NBFCs?
Due to the nature of education loans offered by them, government banks and NBFCs have extremely different policies education loan repayment rules. Government banks generally lend secured loans, which involves pledging of collateral security against education loans. NBFCs lend unsecured loans or education loans without collateral security.
Which banks offer payment-free moratorium for education loan repayment?
Only certain banks like the Oriental Bank of Commerce or the Syndicate Bank have this policy. Most prominent banks like the SBI, Bank of Baroda, etc., offer a payment-free moratorium period. How Long Is The Education Loan Repayment Period Granted by Government Banks?
When does the education loan repayment of unsecured education loans begin?
However, unlike government banks, this period is not payment-free for those who have borrowed unsecured education loans to study abroad. So, ideally, the education loan repayment of unsecured education loans borrowed from prominent NBFCs begins once candidates receive the first disbursement of their education loan.
What are the different types of Education Loan providers in India?
As is common knowledge, there are two major categories of education loan providers in India; Government banks and NBFCs (Non-Banking Finance Companies). Due to the nature of education loans offered by them, government banks and NBFCs have extremely different policies education loan repayment rules.