As per Indian Banks’ Association (IBA) Model Scheme, approved courses leading to graduate/ post graduate degree and P G Diploma conducted by Colleges/ Universities recognized by the University Grants Commission, the All India Council for Technical Education, the Indian Council of Medical Research, etc. are eligible for education loan. Model education loan scheme covers recognized non professional courses.
Complaints regarding educational loans, as and when received by the Government, are taken up with banks concerned for corrective action. As informed by Public Sector Banks, during 2016-17 (upto December, 2016), 2608 complaints related to education loans were received, out of which 2497 were disposed off.
Vidya Lakshmi Portal
In order to facilitate easy processing and disbursal of loans, Government has launched a web-based portal namely, Vidya Lakshmi Portal. Students can view, apply and track the education loan applications online by accessing the portal.
Credit Guarantee Fund Scheme for Education Loans (CGFSEL)
All education loans upto Rs 4 Lakh are collateral free as per RBI guidelines. Further, Government of India has launched a Credit Guarantee Fund Scheme for Education Loans (CGFSEL) wherein collateral free loan is given upto Rs.7.5 lakh.
IBA Model Scheme
As per IBA Model Scheme, Education Loan Limit is Rs 10 Lakh for studies in India and Rs 20 Lakh for abroad studies. However, Banks may consider capping stream wise/ institution wise cap on education loan amount by taking into account reputation and placement history of the education institution concerned. Banks may consider higher quantum of loan on course to course basis.
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