Education loan allows students to pay back the loan over a period of time after they have completed their studies and found employment.
NEW DELHI: An education loan is a type of loan. It is specifically designed to help students. An education loan pays for students’ college education, including tuition, fees, books, and other education-related expenses. It can be provided by governments, financial institutions, or private lenders. The loan amount is usually repayable after the student has graduated or completed their studies. The terms and conditions of education loans vary bank to bank. But students typically require a credit check and may require a co-signer.
The State Bank of India (SBI) has emerged as the largest Education Loan provider in the country, providing financial assistance of Rs. 10,291 crores to 76,301 students during the financial year 2021-22.
Significant Boost in Loan Approvals for Female Students
The bank reports that 40% of loans were granted to female students, a rise from 37% recorded in March of 2021.
SBI has taken several steps to enhance its education loan services and improve customer satisfaction. The bank has shortlisted 235 top-rated premier institutions for extending Education Loans under the Scholar Loan scheme at relaxed norms and concessional interest rates.
The bank’s Global Ed-vantage Education Loans product, which provides financial assistance for studies abroad, has also been improved with doorstep services being extended to select cities.
The bank has integrated its Loan Origination System (LOS) with the Government of India’s Vidya Lakshmi Portal (VLP) to ensure better tracking of loan applications and faster loan.
SBI remains committed to serving society by being the most prominent Home Loan provider in the country and the largest dispenser of Education Loans.
To ensure better tracking of loan applications and faster loan sanctioning, your Bank’s Loan Origination System (LOS) was integrated with GOIs Vidya Lakshmi Portal (VLP).
The purpose of an education loan is to provide financial support to students and their families to cover the costs of higher education. The education loan enables students to pursue their educational goals without the burden of paying large amounts upfront. It allows them to pay back the loan over a period of time after they have completed their studies and found employment.
(India CSR)
