)
Most banks give up to Rs 10 lakh for Indian colleges and up to Rs 30 lakh for foreign courses. NBFCs typically give higher amounts.
What is the margin required
In case of loans up to 4.5 lakh no margin is required, that is the bank will give you 100 per cent loan. But in case of higher amounts, the margin is five per cent for Indian course and 15% for studies abroad. This is the amount the student will have to arrange from his own funds.
Some banks have a list of premier institutions for which they are willing to sanction 100% loan. These are the top ranked medical, engineering or management colleges or universities in India.
What is the security required
For loans up to Rs 4 lakh only parent/ guardian is required as co-borrower. For loans between Rs 4-7.5 lakh in addition to parents/guardian as co-borrower, banks may also ask for collateral security in the form of third party guarantee. For loans above Rs 7.5 lakh, banks may ask for a tangible collateral security, such as property to be mortgaged, etc.
Who can be co-borrower
In case of most students it is parent/guardian. In case of married person, co-obligator can be either spouse or the parent(s)/ parents-in-law.
