The Reserve Bank of India has advised all Scheduled Commercial Banks to adopt Education Loan Scheme, formulated by Indian Banks Association.
Salient features of the Scheme includes:
- Loan upto Rs 10 lakh for study in India and upto Rs 20 lakh for study abroad.
- Collateral free loans upto Rs 7.5 Lakh under the Credit Guarantee Fund Scheme for Education Loans (CGFSEL).
- No Margin for loan up to Rs 7.50 Lakh.
- Repayment period of 15 years.
- One Year Moratorium for repayment after completion of studies in all cases.
- Moratorium taking into account spells of unemployment/under employment, say two or three times during the life cycle of the loan.
- Moratorium for the incubation period if the student wants to take up a start-up venture after graduation.
Static/Current Takeaways Important For ESIC/EPFO Mains:
- RBI 25th Governor: Shaktikant Das; Headquarters: Mumbai.
- Founded: 1 April 1935, Kolkata.
Source: The Press Information Bureau