Gone are the days when a typical Gurukul, students were more than welcome, but it had nothing to offer his Guru Dakshina respected as Guru.
With the cost of training, especially for students and growing every day, there is a clear need for financial assistance to students deserve.
This need is particularly acute in the case of students who are either professional courses that are offered by major universities in India and abroad.
Here, banks, private and nationalized come into play.
Roughly speaking, make the most of the banks after the Reserve Bank (RBI) guidelines on the interest in India, etc., and minor changes and extend loans to the student community. According to a recent report in the industry (Indian Group) 80% of loans for education by the demands of the domestic banks will be made available. And the rest is financial support for students studying abroad.
The Indian government has to develop, in consultation with the Reserve Bank of India and the Bankers Association of India prepared a plan and complete student loans. The goal of this program is to ensure that no deserving candidates are deprived of education, he / she earns on every level.
In general, the guidelines are as follows established. While these vary from time to time, depending on government policy and the extent of need, the basic spirit and criteria for the liquidation of the loan is not much talk about change.
The provisions of -
(A) loans up to Rs 7.5 lakh to pursue higher education in the country and RS 15 lakh for studies abroad are available.
(B) For loans up to Rs lakh no collateral or margin 4 is necessary, and require no more interest than the prime rate (PBR)
(C) For loans over the interest rate will not be more than one percent of DPP.
(D) The loans are for a period of 5 to 7 years off with the provision of a grace period of one year after completion.
Repayment of student loans is deductible under § 80E of the Income Tax Act. The annual ceiling on the deduction of Rs 40 000 r / - (for the interest and principal payments). Loans are only for higher education - full-time education in all science subjects undergraduate or graduate, professional and of pure and applied - can make the deduction. The deduction is for a maximum of eight years starting from the day you pay.
Allahabad Bank, Oriental Bank of Commerce, the State Bank of India, Punjab National Bank, Dena Bank of Baroda, Bank of Maharashtra, Canara Bank, Central Bank of India, Corporation Bank, Indian Bank, Bank of India abroad, the State Bank of Hyderabad, are State Bank of Travancore, Syndicate Bank, Union Bank of India, ICICI, HDFC etc some of the big banks
Besides these banks there are many private lenders are active in remote areas of India. Although some of them are authentic, it is advisable to loans by banks should be recognized. Since there are cases expose, in which students had to half of their studies, as the contributions outstanding loan never came to have.
Meanwhile, there is a thought in the government that the Planning Commission is seriously considering a proposal where students, including graduates, you may cancel your student loans are for a time in a government agency.
This movement, while the details are not yet complete, it was done to check the exodus of the country.
The Planning Commission, a National Student Loan Society, a guarantee of safety for the students of certified institutions offers depend on a bank loan. The measure will allow the banks to lend without collateral.
According to the Reserve Bank of India (RBI) data, there was an increase of 51 percent in education loan of Rs 9.962 million rupees at the end of March 2006 Rs 15 000 crore at the end of March 2007.