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With the rising costs of education for graduate and postgraduate courses, it is becoming increasingly difficult for parents of students belonging to the middle and lower strata of the economy to come up with the requisite funds to cover education expenses. This is where student loans from various banks and financial institutions can come to your rescue.
Almost all banks offer student loans to those with a provable track record of performance in the academic field. Most banks are ready to offer upto Rs.10 lakh to finance the education of a student. If you are an IIM aspirant, however, this amount won’t be enough to cover the bulk of your fees. So quite a few banks offer special loan facilities for students qualified for admission at IIMs.
The various Indian Institute of Management institutes are undoubtedly some of the finest in India and have some of the steepest tuition fees for their flagship programs. In the past 2 years, 7 out of the 19 IIMs have hiked their fees between 5% and 29.6%.
The fee structure at IIM Ahmadabad for its basic PGP course is currently Rs.19.5 lakh, Rs.18.7 lakh at IIM Bangalore and Rs.19 lakh at IIM Calcutta. These numbers do not account for peripheral costs like hostel fees, mess fees, taxes etc. which can shoot up the cost even further.
Getting a loan to cover your expenses at IIMs, therefore, is a better idea than paying lakhs at a time. Most IIMs have a list on their websites of financial institutes that offer loans for studying at their institute.
|Bank/Loan||Max Amount||Rate of Interest||Security||Margin||Moratorium Period||Repayment Period||Processing Fees|
|IDBI Bank Premier Education Loan||Rs.20 lakh||Base rate = 9.50%||
||5% above Rs.4 lakh||Course duration + 1year/6 month of getting a job, whichever earlier||
|OBC’s Customized Education Loan Scheme IIMs, IITs & XLRIs||Rs.20 lakh||MCLR = 9.70%||Parents/Guardians as co-borrower||Nil||Course period + Grace period based on predefined conditions||
|SBI’s Scholar Loan||Rs.30 lakh||MCLR + 0.45% = 9.35%||Parents as co-borrower||Nil||Course period + 1 year||15 years||Nil|
|Vijaya Bank’s Education Loan to the students of Premier Central Institutions||Rs.20 lakh||MCLR + 0.2% = 9.65%||
||Above Rs.4 lakh - 15%||Course period + 18 months or immediately after getting a job, whichever earlier||7 years||Above Rs.10 lakh - 0.75% + GST|
|CBI’s Special Education Loan Scheme to IIM Students (Cent Vidyarthi for IIM Students)||Rs.20 lakh + more on providing 100% tangible collateral||MCLR + 0.50% = 9.00%||Assignment of future income||Nil||Course period + 1 year||15 years||Nil|
|BOI’s Exclusive Education Loan Scheme for Students of Premier Educational Institutions||Rs.20 lakh Rs. 30 lakh with 100% tangible collateral||MCLR = 9.25%||Assignment of future income + parents as co-borrower||Nil||Course period + 1 year||15 years||Nil|
|Union Bank’s Special Education Loan Scheme||Rs.30 lakh||MCLR = 9.40%||Parents as co-borrower||Nil||Course period + 1 year||15 years||Nil|
|Axis Bank’s Education Loan||Rs.20 lakh||8.85%||Collateral or guarantor depending on case-to-case basis||5% above Rs.4 lakh||Course period + 1 year||15 years||Nil|
|UCO Bank’s Super Premier Educational Loan Scheme||Rs.30 lakh||9.45%||Nil||Nil||Course period + 1 year||15 years||Nil|
The interest rate of premier education loans is actually less than the rates for Type B or C institutions. Almost all banks offer premier loans on zero margin, making not just the tuition fees, but the accommodation and other necessities affordable as well. So if you are thinking of giving up on your dream of studying at any of the IIMs, remember that loans for IIM students are just a click away.