MUMBAI (India CSR): The Reserve Bank of India (RBI) has advised all Scheduled Commercial Banks to adopt the Education Loan Scheme, formulated by the Indian Banks’ Association (IBA), vide Circular RPCD.PLNFS. BC. NO.83/06.12.05/2000-01 dated April 28, 2001.
Govt informed that IBA has formulated and circulated to all Member Banks including the State Bank of India (SBI) a ‘Model Education Loan Scheme’ for providing financial support to meritorious students for pursuing higher education in India and abroad.
Salient features of the Scheme inter-alia include:
- Loan up to Rs 10 lakh for study in India and up to Rs 20 lakh for study abroad.
- Collateral-free loans up to Rs 7.5 Lakh under the Credit Guarantee Fund Scheme for Education Loans (CGFSEL).
- No Margin for loans up to Rs 7.50Lakh.
- Repayment period of 15 years
- One 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
- The moratorium for the incubation period if the student wants to take up a start-up venture after graduation.
