Season 2008 is coming to an end. Barring the big I’s, the IIT’s , SPJ, MDI & IMT (they dont plan to declare results this year. Kiddin), almost all the results are out. So, this is the time to go loan shopping, if you wanna apply for one that is. Thanks to Indian governments emphahsis on education, all Nationalised banks are forced to give away education loans. Following are some of the standard loan conditions.

Loan amount you can avail of

• Upto Rs. 4 lacs - No Security
• Above Rs. 4 lacs to Rs. 7.50 lacs - Collateral security in the form of suitable third party guarantee.
• Above Rs. 7.50 lacs - Tangible collateral security of suitable value, along with the assignment of future income of the student for payment of installments.

Margin money and Expenses covered
All banks require you to bear certain amount of expenses yourself. This amount is called margin money and it depends upon the loan amount. For SBI education loan 5% of total loan amount is to be paid up as margin money for MBA in India. Following will be covered under your education Loan,

• Fee payable to colleges/ schools/ hostels
• Examination/ Library/ Laboratory fees.
• Purchase of books, equipment, instruments and uniforms.
• Passage fare for travel abroad.
• Purchase of computers needed to complete the course.
• Any other expense to complete the course like study tours, project work, thesis etc.

Loan Repayment
Applicant gets a moratorium period during the entire programme duration and a year after that (or after six months into job).Applicant gets an option to pay simple intrest during the moratorium period, By doing that the overall rate of intrest comes down by 1%.

Example : If loan is approved at 13%, you can pay 130 Rs per 1000 Rs of loan amount during moratorium period, that would entitle you to 12% rate of intrest during repayment period.

Some Bank Sites
Most of the banks give you an option to apply online. Generally loans applied online are processed faster, subject to completion of documents.

• State Bank of India Loan Details | SBI Loan application form
• Andhra Bank (.doc)
• Corporation Bank
• Punjab National Bank
• Dena bank |Download Form
• Bank of India | Apply online
• Canara bank apply online

Important Note
Some of the institutes tie up with banks for faciltating loan disbursal. In such cases it is advisable to go for the bank identified by the institute.