Dhanlaxmi Bank offers Education Loan to students so that they might pursue higher education without having to worry about the necessary finance requirement. A loan is provided to students to pursue higher studies either in India or abroad as the case may be. The Dhanlaxmi Bank education loan is one of the best schemes for students to pursue their dreams of higher education from the best educational institutions in India and abroad without any financial obstacle. The student loan scheme also focuses on customising their services and personalising their relationship with the customers. Before, we dive down into what Dhanlaxmi Bank offers for students; let us try to understand why an education loan from Dhanlaxmi bank makes sense.
Let us take a look at the features and benefits of Dhanlaxmi Bank Education Loan Scheme offered by the bank:
Education Loan – a loan granted to individuals for pursuing higher education either in India or abroad. The features of the loan are as follows:
- The loan covers expenses for admission or tuition fees payable to school or college, examination / library / laboratory fee, hostel fees and boarding expenses, purchase of books /equipment / instruments / uniforms or study material, personal computers or laptops required to complete the course, caution deposit or building fund or refundable deposits supported by institution bills or receipts up to a maximum of 10% of the total tuition fees, insurance premium for student borrower,
- For studies abroad, expenses on air travel, incidental charges, purchase of outfits like clothing and other equipment are also covered under the scope of loan
- For loans up to Rs. 4 lakh, there is no requirement of pledging a collateral security. But for loans above Rs. 4 lakh, security is required by the bank. For loans above Rs. 4 lakhs, collateral security in the form of a satisfactory guarantee is accepted. Approved shares or insurance policies with surrender value, National Savings Certificates (NSCs), IVP, Bank Deposits, etc. or collateral security like land or building which should be equivalent to the loan amount is accepted as collateral security by the bank.
- Courses opted for in India should be for a maximum duration of 5 years and courses opted abroad should have a maximum duration of 3 years to be eligible for the loan. A loan is not granted for courses whose durations increase the maximum specified limit as prescribed by the bank.
- The repayment holiday or the moratorium period applicable for Education Loan is the total duration of the course plus 6 months or getting a job whichever is earlier. After the moratorium period, the repayment shall start and the borrower would be required to pay off the regular Equated Monthly Instalments payable under the loan.
- There is no processing fee which is required to be paid upfront for availing of the loan and the loan is sanctioned easily without the extra expense or charge.
- Dhanlaxmi Bank vocational education and training started recently after the Indian Bank’s Association came up with model loan scheme for vocational education and training.
Eligibility
For studying the India, the following are the education loan eligibility criteria that should be met by the student:
- The student should be of Indian Nationality whether he is a minor or major at the time of loan application.
- Parents can also act as co-borrowers and apply for the loan with the student to make the repayment easier through their existing source of income
- The eligible courses for which loan can be availed include graduation or post-graduation degree or diploma courses in medical, engineering, agriculture, veterinary, dental science, pharmacy, computer science, etc. P.G courses in science, arts, management and general commerce from recognised universities and colleges and a post-graduate diploma in computer application from recognised colleges having a good reputation like APTECH, NIIT, SSI, BIOTECH etc.
- The applicant or the student should have passed the qualifying examination securing a position eligible for admission to the course opted for studying.
For studying abroad, the following criteria should be met by the student:
- The student should be an Indian National over 18 years of age.
- The applicant or the student should produce a copy of the Result of the qualifying or mandatory examination such as TOEFL, GRE, SAT, AGRE, GMAT, etc. along with a copy of the valid passport, proof of admission to the college or university and a copy of the Visa or Form I-20.
- The eligible courses for which loan can be availed for foreign education include undergraduate courses in biological and natural sciences, computer sciences, engineering, post-graduate courses in the above disciplines and business administration. The applicants are required to submit a brief report on the prospect of the course.
Rate of interest
An interest rate on education loan is slightly higher than a home loan but lower than a personal loan. Interest on education loan is generally fixed, though some banks do offer a floating interest rate on the education loan amount. The rate of interest for the Dhanlaxmi Bank Education Loan scheme is one year MCLR + 3.75% at a floating rate. The current MCLR is 10.35% which results in a floating rate of 10.35% + 3.75% = 15.10%.