RBI advises commercial banks to adopt Education Loan Scheme

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

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