Banks contemplating extension of education loans repayment period
By Neelima Shankar
Sep 7, 2012
Print    Email    RSS   

Students applying for education loans may get relief from the banks as banks are about to increase the repayment period of education loans. Indian Banks' Association has issued a circular stating that the tenure of student loans will be extended to10 years or even to 15 years in cases of higher loan amounts. At present, students are required to pay off the loan within a period of seven years.

The finance Minister had recently urged banks to make education loans available to students on easy terms and conditions and at lower interest rates. In addition to this, banks have also been advised to advance short term education loans between Rs. 20, 000 to Rs. 1, 50, 000 to students who need funds for vocational courses.

However, in cases of defaults in repayment, the effect of the defaults on the student's credit profile will be negative.The credit profile of an individual has an effect on the interest rates offered by banks to him on various loans.  Explaining this, Mr. Arun Thukral, managing director of CIBIL said, "If a student defaults on the education loan, it will negatively impact her credit history and score and may impact the chances of getting a loan in the future like the dream home or the car she aspires."

(Comments Posted : 0) Post Your Comments
Show All Comments
 Select a product:

 Select a product:

Complete Guide to NRI Education loan
A chronicle of excesses by loan recovery...
J&K Bank raises PLR
Claim tax deduction on education loan
Model Educational Loan Scheme: the new...

Where is Dissertation Help India whose email is...
ROPAR: CaℒL Giℛℒ In Kurali 09855660911...
Why Pitampura Tutors (Ph:- 9911742311) & Private...

Banks to look forward to hire students from IIT/IIM Feb 18, 2015
Union Bank of India hiring for the post of specialist officers Feb 16, 2015
Canara bank launched scholarship Scheme Feb 13, 2015
AXIS bank started ‘My idea of progress’ Campaign Feb 12, 2015
RBI inviting applications for the guard post Feb 11, 2015
News Archive