No guarantee is required if the education loan amount is 4 lakhs or lesser than that. In today’s situation, most of the courses will be requiring a loan not more than this amount so parents who are needing an educational loan don’t have to worry about guarantee.
Education Loan Guarantee
If the loan amount goes from Rs. 4 lakhs up to 7.5 lakhs, either one of the parent or a third person’s individual guarantee will be required. If the required loan amount is more than Rs. 7 lakhs, you will have to pledge any of your property as a guarantee. This applies to both students studying within India and Indian students those who study in foreign counties.
Which expenses will fit in the education loan?
Attention in your Studies are Important
It is important for those students who study under the educational loans need to concentrate in their studies completely. It is because, in every six months interval the semester exam mark list has to produced to the bank manager.
There are chances of declining of any further amount from the loan if you fail in any one of the subjects. The education loan can be expected further only upon passing out the particular subject or paper.
Discontinuing the college studies in between or any misconduct in the institution which leads to termination are occasions where the education loan will be stopped. When happens so, the loan amount whatever that has acquired till then has to be repaid along with interest.
Education Loan Highlights
Information have come out that the government is starting a separate bank to deal with education loan alone.
Also, it has been told that when you are provided with the college certificate, it will be mentioned there about the bank from where you have obtained the education loan. So, upon employment, the employer will contact the concerned bank and will take actions to repay the education loan amount that a student has availed during the period of his/her education.