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Education Loan A loan to fulfill your Child Dreams

Basic education is guaranteed to one and all by the government of India. There are government aided schools and colleges that are spread across every region in this country. Children happen to the flag bearers of our country and so it is extremely important that they are well educated. After receiving the basic education, when young adults pursue higher education, especially they opt for professional courses like MBA, Engineering or Medicine; they largely bank on education loans. A student loan is designed to assist students for paying their tuition fees, books and also living expenses. It differs from other loans as the interest rate for education loans is considerably low.   These courses are highly expensive and too little financial support is available through scholarships. Most of the young adults or their parents bank on education loans for higher education. The best of banks that can be of immense help regarding education loans are Syndicate Bank and State Bank of India.

 Currently the fees of colleges are sky rocketing and it is extremely difficult to hunt for a well paying job. Some of the private banks are a little skeptical to grant education loans to students and they come up with various excuses. It is best to approach a nationalized bank for an education loan in the area that one resides in. If they also shy away from assisting you, then you can definitely lodge a written complaint to the higher authorities in the website. Syndicate Bank is one such organization, whose association with education dates back to ages. Syndicate Bank has a comprehensive Education Loan Scheme which is known as SyndVidya.

Education loans should be student responsive and parent friendly. The education loans available in Syndicate Bank cover every aspect of education apart from any exterior tuition fees. A liberal amount of ten lakhs is given for education within the country and twenty lakhs for education abroad. Syndicate Bank’s loan education loan calculator is such that, for loans up to rupees four lakhs, security deposits are not required; however loans ranging from above four lakhs   to seven lakhs fifty thousand, collateral in the form of satisfactory third party guarantee are acceptable by the bank. For loans above this amount, a collateral security deposit with 25% margin of the total loan amount and assignment of future income of the applicant will be applicable. The rate of interest that is applicable on education loans is 13.25%, the girl students belonging to the minority community are entitled to an additional discount on the applied PLR.

The State Bank of India is flexible and grants loans for a wide spectrum of education. Normally banks do not grant loans if one opts for a diploma course outside India, but State Bank grants loans for vocational training and education. For a loan of four lakhs the interest rate is 3.50% above base amount and presently 13.205 per annum, and for amount higher than seven lakhs fifty thousand, 1.75% above base rate is charged.  It is definitely beneficial for a girl to take education loan as the EMI that she has to pay receives a discount. The EMI that one has to pay for education loan is less and therefore it is beneficial to the borrower. SBI does not have an online version of an EMI calculator; they have an online calculator which is difficult to hunt for. There are however a lot of information available in the net that helps you to calculate the EMI and also mentions the exact date on which one has to pay the EMI.

It is quite easy to get an education loan. Some of the factors like nationality of an individual, overall academic record, the total income of both the parents are invigilated on. Parents and a third party stand as guarantors for a loan of a higher amount.

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