Detailed presentation on education loan system in India- eligibility criteria, application process, rate of interest charged and repayment options. Advantages and disadvantages of borrowing loan.
This document summarizes the key details about education loans provided by banks in India. It covers topics like expenses covered by education loans, eligible loan amounts, repayment terms, interest rates and concessions, tax benefits, required documents, consequences of defaulting, advantages and disadvantages of education loans, and how loan terms differ between banks. The document provides information to help students understand and apply for education loans to fund their higher education goals.
The document discusses key concepts related to banking. It defines a banker as someone who accepts deposits that can be withdrawn by cheque and uses those deposits to make loans and investments. It also defines a customer as anyone who maintains a bank account. The relationship between banker and customer is described as debtor-creditor, principal-agent, and other specialized relationships like bailee-bailor and mortgagor-mortgagee. The document also outlines key obligations of bankers like honoring checks, maintaining confidentiality, and handling accounts of deceased customers.
RBI guidelines stipulate that every meritorious student should be given access to better education. Accordingly banks are now offering educational loans for courses in India and abroad. The only eligibility is that the student should have secured admission through an entrance test or other such selection exams. The amount of loan a student can take is Rs 7.5 lakh for education in India and Rs 13 lakhs for education abroad. University fees, caution deposit, library fee among others become eligible for a loan advance. This type of loan has to be repaid within 1 year after the conclusion of the course.
This is the most comprehensive presentation on Indian Banking System. It starts with an introduction to the Financial system and role banks plays as Financial Intermediary. Post this the presentation touches on basic of banking like CRR SLR CASE and then money market and instrument cover. There is a comprehensive section of the evolution of Indian Banking system from pre-independence to 2018 in may phases. There is a dedicated section on the structure of Indian Banking system like PSU, Private & Foreign banks, Payment Banks, Small Finance Banks, NBFI, NBFC, AIFI, Co-operative segment. The presentation ends with current banking data as 2018 capturing the growth Deposit, Credit, Interest income & other income for Indian Banks.
Note:
Pls, reach to me on a.v.deshmukh@gmail.com if you wish to host a presentation on this.
This document provides an overview of education loans in India. It defines education loans and outlines their purpose of helping students pay for higher education costs. It discusses eligibility criteria, documents required, expenses covered, loan amounts and interest rates. It also analyzes trends in education loan disbursal and non-performing assets. Key factors to consider when choosing an education loan like interest rates, repayment periods and security requirements are also summarized. The conclusion emphasizes the importance of education loans while advising students to carefully compare loan options.
State Bank of India (SBI) is the largest bank in India in terms of revenue, assets, and market capitalization. As of March 2012, SBI had over 14,000 branches across India and 173 branches globally. SBI offers education loans to help students fund tuition, books, and living expenses for higher education. While SBI, Bank of India (BOI), and HDFC Bank all offer education loans, they differ in interest rates, processing times, fees, and the types of courses covered. Overall, SBI appears to be the best option among the three banks compared due to its size, widespread network, and competitive terms for education loans.
The document provides information about current bank accounts in India. It discusses that current accounts are deposit accounts that allow for convenient withdrawing and depositing of funds and are commonly used by businesses. Key features of current accounts mentioned include no interest earned, ability to make instant fund transfers, use of debit cards, and access to services like RTGS and NEFT. The document also outlines eligibility requirements, required documents, available facilities like overdraft, and responsibilities and advantages of holding a current account.
A detailed guide about the education loan from NBFCs. What are NBFCs?, their examples and features,advantages and disadvantages of borrowing from NBFCs and a lot more valuable information.
This document summarizes the key details about education loans provided by banks in India. It covers topics like expenses covered by education loans, eligible loan amounts, repayment terms, interest rates and concessions, tax benefits, required documents, consequences of defaulting, advantages and disadvantages of education loans, and how loan terms differ between banks. The document provides information to help students understand and apply for education loans to fund their higher education goals.
The document discusses key concepts related to banking. It defines a banker as someone who accepts deposits that can be withdrawn by cheque and uses those deposits to make loans and investments. It also defines a customer as anyone who maintains a bank account. The relationship between banker and customer is described as debtor-creditor, principal-agent, and other specialized relationships like bailee-bailor and mortgagor-mortgagee. The document also outlines key obligations of bankers like honoring checks, maintaining confidentiality, and handling accounts of deceased customers.
RBI guidelines stipulate that every meritorious student should be given access to better education. Accordingly banks are now offering educational loans for courses in India and abroad. The only eligibility is that the student should have secured admission through an entrance test or other such selection exams. The amount of loan a student can take is Rs 7.5 lakh for education in India and Rs 13 lakhs for education abroad. University fees, caution deposit, library fee among others become eligible for a loan advance. This type of loan has to be repaid within 1 year after the conclusion of the course.
This is the most comprehensive presentation on Indian Banking System. It starts with an introduction to the Financial system and role banks plays as Financial Intermediary. Post this the presentation touches on basic of banking like CRR SLR CASE and then money market and instrument cover. There is a comprehensive section of the evolution of Indian Banking system from pre-independence to 2018 in may phases. There is a dedicated section on the structure of Indian Banking system like PSU, Private & Foreign banks, Payment Banks, Small Finance Banks, NBFI, NBFC, AIFI, Co-operative segment. The presentation ends with current banking data as 2018 capturing the growth Deposit, Credit, Interest income & other income for Indian Banks.
Note:
Pls, reach to me on a.v.deshmukh@gmail.com if you wish to host a presentation on this.
This document provides an overview of education loans in India. It defines education loans and outlines their purpose of helping students pay for higher education costs. It discusses eligibility criteria, documents required, expenses covered, loan amounts and interest rates. It also analyzes trends in education loan disbursal and non-performing assets. Key factors to consider when choosing an education loan like interest rates, repayment periods and security requirements are also summarized. The conclusion emphasizes the importance of education loans while advising students to carefully compare loan options.
State Bank of India (SBI) is the largest bank in India in terms of revenue, assets, and market capitalization. As of March 2012, SBI had over 14,000 branches across India and 173 branches globally. SBI offers education loans to help students fund tuition, books, and living expenses for higher education. While SBI, Bank of India (BOI), and HDFC Bank all offer education loans, they differ in interest rates, processing times, fees, and the types of courses covered. Overall, SBI appears to be the best option among the three banks compared due to its size, widespread network, and competitive terms for education loans.
The document provides information about current bank accounts in India. It discusses that current accounts are deposit accounts that allow for convenient withdrawing and depositing of funds and are commonly used by businesses. Key features of current accounts mentioned include no interest earned, ability to make instant fund transfers, use of debit cards, and access to services like RTGS and NEFT. The document also outlines eligibility requirements, required documents, available facilities like overdraft, and responsibilities and advantages of holding a current account.
A detailed guide about the education loan from NBFCs. What are NBFCs?, their examples and features,advantages and disadvantages of borrowing from NBFCs and a lot more valuable information.
This presentation discusses personal loans, which are unsecured loans that can be used for personal needs. Personal loans can be used for purposes like weddings, travel, home renovations, and debt consolidation. They offer benefits like flexible repayment terms of 1-5 years and loan amounts between 20,000-20 lakhs rupees. To qualify, salaried individuals need over 17,500 monthly income and 1 year work experience, while self-employed need 3 years in business and profits over 1-2 lakhs. The process involves applying online or with documents at CreditNation for fast, transparent personal loans in India.
The document provides information about various foreign banks operating in India such as Citibank, HSBC, Standard Chartered Bank, and ABN AMRO Bank. It discusses their history, products and services offered, and key facts. Some of the major points covered are that Citibank was the first foreign bank to start operations in India in 1902, HSBC provides personal banking, business banking, and corporate banking services, Standard Chartered Bank originated from a merger in 1969 and was the first to issue a global credit card in India, and ABN AMRO Bank has been present in India since 1920 and focuses on corporate banking and transaction services.
The document provides information about personal loans, including what a personal loan is, the sources and process for obtaining a personal loan, the various documents required, terms included in the loan contract such as interest rates and repayment schedules, and factors to consider when taking out a personal loan such as annual percentage rates and credit scores.
It is a bank regulation that sets the minimum reserves each bank must hold by way of customer deposits and notes. These deposits are designed to satisfy cash withdrawal demands of customers. CRR is also called the Liquidity Ratio as it seeks to control money supply in the economy.
Emerging Trends of Banking in India.pptxSumeshJohn5
The banking sector in India has undergone significant changes in recent decades due to economic reforms and advancements in digital technology. Key trends include a large increase in deposits and credit, widespread digitalization and electronic banking services, bank consolidation through mergers, and the adoption of universal banking models. New regulations have also led to new types of banks obtaining licenses while open banking initiatives like UPI have increased payment options. Growing non-performing assets, fraud prevention measures, and the implementation of international banking standards additionally reflect changes in the Indian banking system.
This document discusses various technologies used in banking. It describes Inter Bank Mobile Payment System (IMPS) and how it allows customers to transfer funds between banks via mobile devices. It also discusses online banking, use of analytics for segmentation and understanding customer preferences, convergence of storage and computing infrastructure, mobile banking, electronic bill payment, electronic fund transfer, electronic cheques, Real Time Gross Settlement (RTGS) system, and Automatic Teller Machines (ATMs). The benefits of these technologies for customers, banks and employees are reduced costs, immediate access to accounts and transactions, increased productivity and efficiency. The challenges are costs of implementation, risk of technology failures, penetrating rural areas and upgrading workforce skills.
Commercial banks are for-profit financial institutions that accept deposits, grant loans, and offer other financial services. There are three main types of commercial banks in India: public sector banks controlled by the Reserve Bank of India, private sector banks registered as limited companies, and foreign banks headquartered abroad. The primary functions of commercial banks are accepting deposits, advancing loans, and creating credit, while secondary functions include cheque clearing, fund transfers, and agency services like collecting payments. Commercial banks also offer electronic banking services like debit cards, credit cards, and internet banking. The largest commercial banks in India are State Bank of India, ICICI Bank, and Punjab National Bank.
This document discusses internet banking. It begins with a brief history of internet banking starting in 1981 with four major New York City banks offering early home banking services. It then defines internet banking as conducting bank transactions online instead of in person. The document outlines the types of internet banking, services provided, how it works involving web servers and security, advantages like lower costs and convenience, disadvantages like security risks, and concludes that internet banking aims to provide valuable services to consumers by utilizing the internet.
The document discusses new trends in the Indian banking system, including increased use of technology and digital services. It outlines how banks have adopted technologies like core banking solutions, customer relationship management, electronic payments, real-time gross settlement, electronic fund transfer, electronic clearing systems, ATMs, telebanking/mobile banking, point of sale terminals, and electronic data interchange to automate operations, improve efficiency, and enhance customer service. The trends have redefined banking operations and allowed customers to access services anytime from anywhere. Foreign direct investment is also said to ensure better risk management and capitalization in the Indian banking sector.
The document provides a history of banking in India from the 1800s onwards in three phases. It discusses the key events like the establishment of presidency banks, creation of the Imperial Bank of India, nationalization of SBI and other banks. It also explains the basic functions of a bank like accepting deposits, lending money through various loan products, and services like letters of credit. The functions of current, savings and term deposits are described.
KYC (Know Your Customer) procedures require banks to verify customer identities and monitor transactions to combat money laundering and terrorist financing. RBI (Reserve Bank of India) mandates that banks follow KYC guidelines under the Banking Regulation Act of 1949. Banks must have customer identification and verification procedures in place when opening accounts or conducting high-value transactions to comply with KYC regulations. Failure to properly implement KYC norms can result in penalties imposed by RBI as some banks were fined for opening accounts without proper verification that enabled fraudsters to steal money from customer accounts.
This document discusses the major types of bank deposits in India including savings accounts, recurring deposits, fixed deposits, and current accounts. It provides details on the key features of each type of account such as interest rates, minimum balance requirements, withdrawal limits, and purposes. Additionally, it mentions some newer deposit products introduced by banks that combine elements of different traditional accounts.
Banking involves accepting deposits from the public and using those funds to issue loans. This provides a safe place for savings and supplies liquidity to fuel economic growth through business and consumer lending. Over time, the Indian banking system has evolved from indigenous banks to direct government intervention through nationalization, liberalization with the entry of private banks, and now includes foreign banks. The major types of banks in India are public sector, private sector, cooperative, rural, and foreign banks that all work to mobilize savings and facilitate transactions.
A collecting banker undertakes to collect amounts from cheques and bills for customers by presenting them to the paying banker. As an agent of the customer, the collecting banker has duties to exercise reasonable care and diligence in the collection process. They must present cheques and bills promptly to avoid losses from insolvency, provide timely notice if an item is dishonored, and present bills for acceptance at an early date to fix the maturity date. If the collecting banker fails in these duties and a loss occurs, they are responsible to the customer.
This document provides an overview of the banking sector in India. It discusses the definition of a bank according to Indian law and the history of banking in India in phases from the 18th century to present day. It also classifies the different types of banks in India including the Reserve Bank of India, public sector banks, private sector banks, cooperative banks, and development banks. The roles of commercial banks and investment banks are explained. Finally, it discusses modern modes of banking transactions such as e-banking, ATMs, debit cards, and credit cards.
This document provides an overview of home banking and its key features. Home banking allows customers to access banking services remotely without visiting a branch by using the internet or telephone. It describes the main types of home banking and the facilities available, such as viewing account details, electronic funds transfer, bill payment, and online trading. The document also discusses the advantages and limitations of home banking.
Non-performing assets (NPAs) refer to loans that are in default or close to being in default. NPAs have become a major issue for Indian banks and financial institutions, totaling over Rs. 1.1 trillion. The origin of rising NPAs lies in poor credit risk management practices in banks. To resolve NPAs, the government established asset reconstruction companies (ARCs) to purchase NPAs from banks and resolve them to enable banks to focus on core operations and lending. ARCs operate under the legal framework of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act of 2002.
The document summarizes various banking innovations including new technologies like e-banking, debit/credit cards, internet banking, ATMs, and electronic fund transfers. It discusses these innovations and how they have modernized banking by allowing customers to perform transactions remotely without visiting a branch in person. Traditional banking is compared to e-banking and various electronic delivery channels like ATMs, smart cards, telephone banking, and internet banking are explained.
This document provides information about debit and credit cards in India. It introduces when debit and credit cards were introduced in the 1970s by Corporation Bank and Andhra Bank respectively. It describes debit cards as plastic cards that provide an alternative payment method to cash and allow for instant withdrawals of cash. Credit cards allow users to borrow money for purchases and pay it back later with interest. The document outlines the different types of debit and credit cards and parties involved in transactions. It discusses trends of increased debit and credit card usage in India. Finally, it compares features and fees of cards from SBI and HDFC Bank and identifies problems faced by card holders like unauthorized purchases, privacy breaches, and identity theft.
This document discusses cash credit, which is a financing facility provided by banks to fund working capital needs. It defines cash credit and explains how banks determine cash credit limits based on factors like production, sales, inventory and past utilization. Banks typically sanction limits equal to 60-70% of current stock and 60-70% of debtors up to 180 days. Interest is charged monthly on the actual amount utilized. Cash credit functions like a current account with an overdraft limit. Stocks and debtors are usually hypothecated to the bank as security. Commitment charges may also be levied on unutilized portions of the limit.
Education Loans Take Over | Refinance Education Loan | GyanDhanYogender Panchal
The document discusses education loan refinancing in India. It explains that students can refinance their education loans to get a lower interest rate and better terms from a new lender. Some key benefits of refinancing include lowering interest costs, consolidating multiple loans, and extending repayment terms. The best time to refinance is after graduating when repayment risk is lower. The process involves applying to the new lender and having them pay off the original loan. Refinancing can save on total interest costs if charges are lower than savings on the new loan.
An educational loan is financial support provided by banks and financial institutions to students for pursuing higher education. The document outlines the process for applying for educational loans including filling out an application, providing documents, undergoing approval or denial, and loan disbursal. It also discusses repayment options, interest rates, tax benefits, consequences of defaulting, and details specific educational loan programs from the State Bank of India and ICICI Bank.
This presentation discusses personal loans, which are unsecured loans that can be used for personal needs. Personal loans can be used for purposes like weddings, travel, home renovations, and debt consolidation. They offer benefits like flexible repayment terms of 1-5 years and loan amounts between 20,000-20 lakhs rupees. To qualify, salaried individuals need over 17,500 monthly income and 1 year work experience, while self-employed need 3 years in business and profits over 1-2 lakhs. The process involves applying online or with documents at CreditNation for fast, transparent personal loans in India.
The document provides information about various foreign banks operating in India such as Citibank, HSBC, Standard Chartered Bank, and ABN AMRO Bank. It discusses their history, products and services offered, and key facts. Some of the major points covered are that Citibank was the first foreign bank to start operations in India in 1902, HSBC provides personal banking, business banking, and corporate banking services, Standard Chartered Bank originated from a merger in 1969 and was the first to issue a global credit card in India, and ABN AMRO Bank has been present in India since 1920 and focuses on corporate banking and transaction services.
The document provides information about personal loans, including what a personal loan is, the sources and process for obtaining a personal loan, the various documents required, terms included in the loan contract such as interest rates and repayment schedules, and factors to consider when taking out a personal loan such as annual percentage rates and credit scores.
It is a bank regulation that sets the minimum reserves each bank must hold by way of customer deposits and notes. These deposits are designed to satisfy cash withdrawal demands of customers. CRR is also called the Liquidity Ratio as it seeks to control money supply in the economy.
Emerging Trends of Banking in India.pptxSumeshJohn5
The banking sector in India has undergone significant changes in recent decades due to economic reforms and advancements in digital technology. Key trends include a large increase in deposits and credit, widespread digitalization and electronic banking services, bank consolidation through mergers, and the adoption of universal banking models. New regulations have also led to new types of banks obtaining licenses while open banking initiatives like UPI have increased payment options. Growing non-performing assets, fraud prevention measures, and the implementation of international banking standards additionally reflect changes in the Indian banking system.
This document discusses various technologies used in banking. It describes Inter Bank Mobile Payment System (IMPS) and how it allows customers to transfer funds between banks via mobile devices. It also discusses online banking, use of analytics for segmentation and understanding customer preferences, convergence of storage and computing infrastructure, mobile banking, electronic bill payment, electronic fund transfer, electronic cheques, Real Time Gross Settlement (RTGS) system, and Automatic Teller Machines (ATMs). The benefits of these technologies for customers, banks and employees are reduced costs, immediate access to accounts and transactions, increased productivity and efficiency. The challenges are costs of implementation, risk of technology failures, penetrating rural areas and upgrading workforce skills.
Commercial banks are for-profit financial institutions that accept deposits, grant loans, and offer other financial services. There are three main types of commercial banks in India: public sector banks controlled by the Reserve Bank of India, private sector banks registered as limited companies, and foreign banks headquartered abroad. The primary functions of commercial banks are accepting deposits, advancing loans, and creating credit, while secondary functions include cheque clearing, fund transfers, and agency services like collecting payments. Commercial banks also offer electronic banking services like debit cards, credit cards, and internet banking. The largest commercial banks in India are State Bank of India, ICICI Bank, and Punjab National Bank.
This document discusses internet banking. It begins with a brief history of internet banking starting in 1981 with four major New York City banks offering early home banking services. It then defines internet banking as conducting bank transactions online instead of in person. The document outlines the types of internet banking, services provided, how it works involving web servers and security, advantages like lower costs and convenience, disadvantages like security risks, and concludes that internet banking aims to provide valuable services to consumers by utilizing the internet.
The document discusses new trends in the Indian banking system, including increased use of technology and digital services. It outlines how banks have adopted technologies like core banking solutions, customer relationship management, electronic payments, real-time gross settlement, electronic fund transfer, electronic clearing systems, ATMs, telebanking/mobile banking, point of sale terminals, and electronic data interchange to automate operations, improve efficiency, and enhance customer service. The trends have redefined banking operations and allowed customers to access services anytime from anywhere. Foreign direct investment is also said to ensure better risk management and capitalization in the Indian banking sector.
The document provides a history of banking in India from the 1800s onwards in three phases. It discusses the key events like the establishment of presidency banks, creation of the Imperial Bank of India, nationalization of SBI and other banks. It also explains the basic functions of a bank like accepting deposits, lending money through various loan products, and services like letters of credit. The functions of current, savings and term deposits are described.
KYC (Know Your Customer) procedures require banks to verify customer identities and monitor transactions to combat money laundering and terrorist financing. RBI (Reserve Bank of India) mandates that banks follow KYC guidelines under the Banking Regulation Act of 1949. Banks must have customer identification and verification procedures in place when opening accounts or conducting high-value transactions to comply with KYC regulations. Failure to properly implement KYC norms can result in penalties imposed by RBI as some banks were fined for opening accounts without proper verification that enabled fraudsters to steal money from customer accounts.
This document discusses the major types of bank deposits in India including savings accounts, recurring deposits, fixed deposits, and current accounts. It provides details on the key features of each type of account such as interest rates, minimum balance requirements, withdrawal limits, and purposes. Additionally, it mentions some newer deposit products introduced by banks that combine elements of different traditional accounts.
Banking involves accepting deposits from the public and using those funds to issue loans. This provides a safe place for savings and supplies liquidity to fuel economic growth through business and consumer lending. Over time, the Indian banking system has evolved from indigenous banks to direct government intervention through nationalization, liberalization with the entry of private banks, and now includes foreign banks. The major types of banks in India are public sector, private sector, cooperative, rural, and foreign banks that all work to mobilize savings and facilitate transactions.
A collecting banker undertakes to collect amounts from cheques and bills for customers by presenting them to the paying banker. As an agent of the customer, the collecting banker has duties to exercise reasonable care and diligence in the collection process. They must present cheques and bills promptly to avoid losses from insolvency, provide timely notice if an item is dishonored, and present bills for acceptance at an early date to fix the maturity date. If the collecting banker fails in these duties and a loss occurs, they are responsible to the customer.
This document provides an overview of the banking sector in India. It discusses the definition of a bank according to Indian law and the history of banking in India in phases from the 18th century to present day. It also classifies the different types of banks in India including the Reserve Bank of India, public sector banks, private sector banks, cooperative banks, and development banks. The roles of commercial banks and investment banks are explained. Finally, it discusses modern modes of banking transactions such as e-banking, ATMs, debit cards, and credit cards.
This document provides an overview of home banking and its key features. Home banking allows customers to access banking services remotely without visiting a branch by using the internet or telephone. It describes the main types of home banking and the facilities available, such as viewing account details, electronic funds transfer, bill payment, and online trading. The document also discusses the advantages and limitations of home banking.
Non-performing assets (NPAs) refer to loans that are in default or close to being in default. NPAs have become a major issue for Indian banks and financial institutions, totaling over Rs. 1.1 trillion. The origin of rising NPAs lies in poor credit risk management practices in banks. To resolve NPAs, the government established asset reconstruction companies (ARCs) to purchase NPAs from banks and resolve them to enable banks to focus on core operations and lending. ARCs operate under the legal framework of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act of 2002.
The document summarizes various banking innovations including new technologies like e-banking, debit/credit cards, internet banking, ATMs, and electronic fund transfers. It discusses these innovations and how they have modernized banking by allowing customers to perform transactions remotely without visiting a branch in person. Traditional banking is compared to e-banking and various electronic delivery channels like ATMs, smart cards, telephone banking, and internet banking are explained.
This document provides information about debit and credit cards in India. It introduces when debit and credit cards were introduced in the 1970s by Corporation Bank and Andhra Bank respectively. It describes debit cards as plastic cards that provide an alternative payment method to cash and allow for instant withdrawals of cash. Credit cards allow users to borrow money for purchases and pay it back later with interest. The document outlines the different types of debit and credit cards and parties involved in transactions. It discusses trends of increased debit and credit card usage in India. Finally, it compares features and fees of cards from SBI and HDFC Bank and identifies problems faced by card holders like unauthorized purchases, privacy breaches, and identity theft.
This document discusses cash credit, which is a financing facility provided by banks to fund working capital needs. It defines cash credit and explains how banks determine cash credit limits based on factors like production, sales, inventory and past utilization. Banks typically sanction limits equal to 60-70% of current stock and 60-70% of debtors up to 180 days. Interest is charged monthly on the actual amount utilized. Cash credit functions like a current account with an overdraft limit. Stocks and debtors are usually hypothecated to the bank as security. Commitment charges may also be levied on unutilized portions of the limit.
Education Loans Take Over | Refinance Education Loan | GyanDhanYogender Panchal
The document discusses education loan refinancing in India. It explains that students can refinance their education loans to get a lower interest rate and better terms from a new lender. Some key benefits of refinancing include lowering interest costs, consolidating multiple loans, and extending repayment terms. The best time to refinance is after graduating when repayment risk is lower. The process involves applying to the new lender and having them pay off the original loan. Refinancing can save on total interest costs if charges are lower than savings on the new loan.
An educational loan is financial support provided by banks and financial institutions to students for pursuing higher education. The document outlines the process for applying for educational loans including filling out an application, providing documents, undergoing approval or denial, and loan disbursal. It also discusses repayment options, interest rates, tax benefits, consequences of defaulting, and details specific educational loan programs from the State Bank of India and ICICI Bank.
The document summarizes the long term loan policy of Punjab and Maharashtra Bank. It discusses the types of long term loans offered which include home loans, mortgage loans, business loans, personal loans, and education loans. For each loan type, it provides details on eligibility, loan amount, interest rates, repayment periods, required collateral and guarantees. It concludes with a graphical representation showing the growth in long term loans advanced by the bank from 2009 to 2013.
The document summarizes the long term loan policy of Punjab and Maharashtra Bank. It discusses the types of long term loans offered which include home loans, mortgage loans, business loans, personal loans, and education loans. For each loan type, it provides details on eligibility, loan amount, interest rates, repayment periods, required collateral and guarantees. It concludes with a graphical representation showing the growth in long term loans advanced by the bank from 2009 to 2013.
The Ultimate Guide to Student Loan RepaymentAnik Khan
This presentation is designed for the 44M Americans with student loans. It provides a comprehensive overview of student loan repayment options from pausing payments to income-driven repayment plans and refinancing. It also demonstrates how to objectively evaluate different repayment options and gives tips on how to think about repayment in the context of other financial objectives and decisions.
The document discusses the structure and functions of Indian financial institutions, specifically commercial banks. It outlines commercial banks' primary functions of accepting various types of deposits like fixed deposits, recurring deposits, and demand deposits. It also discusses banks' role in advancing loans through overdrafts, cash credits, term loans, and other types of loans. Secondary functions of commercial banks include collecting payments, paying bills, and dealing in foreign exchange.
Comparative study of interest rates on education loans conducted at pnbProjects Kart
The document discusses various types of education loans available in India including student loans, parent loans, and private loans. It provides details on the eligibility, expenses covered, quantum of finance, margin requirements, security, interest rates, and processing for education loans offered by Punjab National Bank. Key points include:
1) Education loans are available for a variety of degree and professional courses in India and abroad.
2) Loan amounts are needs-based up to Rs. 10 lakhs for studies in India and Rs. 20 lakhs for abroad, with higher amounts allowed on a case by case basis.
3) Security requirements range from co-obligation of parents only for loans up to Rs. 4
The document provides information and advice about smart student borrowing. It discusses why students borrow for college and things to consider when making borrowing decisions, such as career earnings and debt-to-income ratios. The document outlines the student loan process, including applying, promissory notes, disbursement, repayment options, and avoiding default. Resources for financial aid information and textbook purchasing are also listed.
Taking an education loan for abroad studies is a difficult choice to make. This guide will tell you how an education loan can help, what’s the right amount to borrow, what types of loans are there, and much more. Read on!
Need an education loan to fund your abroad studies? Avanse provides education loan for students planning for their higher studies abroad. To know more visit : http://www.avanse.com/studying-abroad/
Best Education Loans For Abroad Studies PPT.pptxabroadstudyloan
Introduction
For many students, taking out a loan for their education is the only way to finance their higher studies. But with so many different options available, it can be difficult to know which one is right for you. In this blog post, we'll explore the different types of education loans available and help you decide which one is best for your needs. We'll also provide some tips on how to manage your loan repayments and keep your debt under control.
What is an Education Loan?
An education loan is a sum of money borrowed from a financial institution to pay for educational expenses. It is also known as a student loan or a student financial aid.
The purpose of an education loan is to help students meet the costs of their higher education, such as tuition fees, books, and living expenses. Education loans are available from a variety of sources, including banks, credit unions, and private lenders.
Most education loans must be repaid with interest. The terms of repayment vary depending on the lender, but typically include a grace period after graduation during which repayment can be deferred.
Education loans are an important source of funding for many students, but they should be used responsibly. Borrowers should only borrow the amount they need and make sure they understand the terms of their loan before signing any paperwork.
Who Can Apply for an Education Loan?
Education loans are available for Indian citizens who wish to pursue higher education in India or abroad. The loan can be availed for full-time courses like regular/correspondence degree/diploma courses, post-graduate degree/diploma courses, executive management programs etc. Part-time courses like CAs, ICWAs, company secretaries etc. are also covered under education loans. Loans can also be availed for pursuing higher education through correspondence or distance learning provided the course is approved by AICTE/UGC/DEC/Government etc.
The main criteria for eligibility for an education loan are:
-The applicant should be an Indian citizen.
-For loans up to Rs 4 lakhs, the age limit is 35 years and for loans above Rs 4 lakhs, the age limit is 40 years.
-The applicant should have secured admission to a full time course in an institute which has been recognised by the government or any other statutory body.
-Courses offered by Open University or Distance Education institutions approved by DEC, UGC, AICTE etc are eligible under the scheme.
-Applicants should have a regular source of income to repay the loan amount within the specified period of time.
Types of Education Loans
There are two main types of education loans: federal and private.
Federal student loans are issued by the government and typically have lower interest rates than private student loans. They also may offer more flexible repayment terms. The four main types of federal student loans are Direct Subsidized Loans, Direct Unsubsidized Loans, PLUS Loans, and Perkins Loans.
Private student loans are issued by banks,
Short term loans are essentially cash advances that are given to people in times of immediate need of cash and that is one of the main reasons why these loans are becoming increasingly popular.
This document provides information about education loans, including the types of loans available, interest rates, tax benefits, and application process. There are two main types of education loans: federal loans which are backed by the government and have more flexible terms, and private loans which are not government-backed. Interest rates on education loans average around 8% but can be as low as 4-5%. Borrowers in India can deduct up to Rs. 1.5 lakh from their taxes for interest paid on loans. The application process involves researching loan options, comparing rates, filling out forms, and providing documents like transcripts, admission proof, and bank statements.
Guide to Education Loans from Banks in Indiarotary15502
The document provides information about education loans available from banks in India, including details on the government's interest subsidy scheme. It explains how education loans work, with an example of borrowing Rs. 400,000 over 4 years for a course costing Rs. 105,250 per year. It outlines the key features of education loans for higher studies and skill/vocational loans, including eligible amounts, repayment periods, interest rates and subsidies. It also provides links to some major banks' education loan pages.
This document provides information on education loan management systems. It outlines eligibility criteria for education loans, including courses and expenses covered, loan amounts and margins, repayment terms, and other conditions. Key points covered are:
- Education loans are intended to provide financial support for deserving students pursuing higher education.
- Loans of up to Rs. 10 lakhs are available for studies in India and up to Rs. 20 lakhs for abroad, with margins required above Rs. 4 lakhs.
- Eligible courses include degrees, diplomas, and professional certifications approved by government bodies. Expenses like fees, books, equipment are covered.
- Loans are repaid over 5-7 years after a 1
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Central Government facilitates education loans through nationalized banks to help students fund their education. Education loans can be used for any level of education, including school, graduation, post-graduation, and doctorate programs in India or abroad. To qualify for an education loan, applicants must be Indian citizens with admission to a course and meet certain academic criteria. Banks approve loans based on the course, institution, loan amount needed, academic performance, repayment capacity, family income, and assets. Loans cover tuition and other education-related expenses. Interest rates are typically between 10-15% with a grace period after graduation to find employment before repayment begins.
(1) The document discusses loans against property, where a borrower uses a property they own as collateral to secure a loan. (2) It outlines the types of borrowers eligible, required documents, purposes loans can be used for, and structuring options. (3) Key requirements for individuals include being under age 60, having minimum income, and income double the monthly payments; for businesses, a strong track record and minimum profits are required.
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This document defines important terms related to student loans. It explains key loan concepts such as principal, interest, grace periods, deferment, forbearance, and default. It also defines the differences between subsidized and unsubsidized loans, as well as private and federal loans. Various fees and repayment schedules are also outlined. The glossary provides clarity around complex loan terminology for student borrowers.
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2. Contents
■ Introduction
■ Education loan scheme study by IBA
■ Features of Education loan
■ Factors of education loan
■ Banks offering education loans in india
■ Comparative analysis of banks considered-SBI,
ICICI, HDFC
■ Advantages and disadvantages of education loan
■ Factors to be considered while applying for an
education loan
3. What are education loans?
■ Education is central to the Human Resources Development and
empowerment in any country. The scope of education has widened
both in India and abroad covering new courses in diversified areas.
■ Development of human capital is a national priority and it should be
the endeavor of all that no deserving student is denied opportunity to
pursue higher education for want of financial support.
■ An education loan is a type of loan designed to help students pay for
post-secondary education and the associated fees, such as tuition,
books and supplies, and living expenses.
■ It came into existence in 1995 started by SBI Bank and after that
many banks started offering student loan.
4. Education loan scheme study by IBA
■ The Finance Minister in a meeting with the Chief Executives of the public
sector banks on 13 June 2000 had highlighted the role of commercial
banks in facilitating pursuit of higher education by poor, but meritorious
students.
■ In pursuance thereof, the Indian Banks’Association constituted a Study
Group under the chairmanship of Shri R. J. Kamath, Chairman &
Managing Director of Canara Bank to examine the issue in detail.
■ Based on the recommendations of the Study Group, a comprehensive
model educational loan scheme was prepared by the Indian
Banks’Association for adoption by all banks.
■ The Scheme aims at providing financial support from the banking system
to meritorious students for pursuing higher education.
■ The scheme was announced in the Union Budget for 2001-2002 &
discussed in the meeting the Finance Minister had with the Chief
Executives of banks on 7 April 2001.
5. Features of education loans:
■ Any individual aged between 16 and 35 years can avail an education loan to
pursue studies at any approved university abroad.
■ Students can procure education loans for management courses, engineering
courses, medicine, and graduate and post graduate degrees, arts,
architecture, pure science, hotel management, etc.
Maximum loan limit –
■ Studies in India-Maximum Rs.10,00,000.
■ Studies abroad-Maximum Rs.20,00,000.
These are the ceilings fixed by RBI. But banks are free to re-consider this limit
if the course offers higher than these limits like IIM, ISB etc.
Margin requirements – It is a part of educational loan to be paid by the
applicant.
■ Up to Rs.4,00,000-Nil
■ Above Rs.4,00,000-Studies in India 5% and for studies abroad 15%.
This margin includes Scholarship/ assistantship. Margin may be brought-in on
year-to-year basis as and when disbursements are made on a pro-rata basis.
6. Security–
i. No security has to be submitted for education loans taken up to Rs. 4
lakhs.
ii. Up to Rs.4,00,000-parents need to be joint borrowers, but security is not
required.
iii. Above Rs.4,00,000 and below Rs.7,50,000-besides parent's joint
borrower condition, you need to bring collateral security in the form of
suitable third-party guarantee will be taken. But if banks satisfied with
financial condition of the borrower then they may waive the condition of
third-party collateral.
iv. Above Rs.7,50,000-parents as joint borrower and any tangible asset of
suitable value acceptable by banks and assignment of future income of
the student for repayment of installments.
7. Rate of Interest–
■ Interest rates will be charged at the rates linked to base rate of banks.
Simple rate of interest will be applicable till the period of study and
commencement of repayment.
■ Paying of interest during these period is optional. But after this period
while fixing EMI, this existing interest will be considered as principal. 1%
concession will be provided if interest is regularly paid during study period
and before commencement repayment.
■ The Central Government has also introduced an interest rate subsidy
scheme for repayments done during the moratorium period for the benefit
the weaker section of the society
■ Education loans can be repaid in monthly instalments through ECS or via
post-dated cheques to the bank.
8. Loan approval process–
■ You can apply either physically or through online mode. After receiving
the applications, banks will issue you the acknowledgement number. This
number includes the bank official contact person in case of delay or more
information.
■ Loans are either sanctioned or rejected within 15 days of submitting all the
documents with the duly filled form. Usually future financial generation of
the student will be considered for loan approval.
■ If loan is rejected, then banks need to provide the reasons for rejection.
You can apply for the loans in banks nearest to your stay or your institute.
But future transactions will be nearer to your educational institutes.
■ Loans will be usually disbursed in installments based on the educational
need.
9. Loan repayment–
■ Repayment will be after one year of course completion or 6 months after
getting job, whichever is earlier. Two years extension will be provided if the
courses not completed within the time period. But course is not completed
within this period then depending on banks own decision they may extend
this extension period. If student discontinue the course, then after consultation
with student and parent’s appropriate repayment will be fixed.
>Tenure of repayment of loan will be as below:
■ For loans up to Rs.7,50,000-Max 10 years.
■ For loans more than Rs.7,50,000-Max 15 years.
■ Usually earning capacity of person is low during the start of career. Hence to
make EMI smooth, banks provided stepping of EMI facility. In this facility
usually EMI will be lesser during the starting but will goes on increase as the
period passes.
■ No penalty on early repayment of loan.
10. ■ Processing Charges-Usually banksdo not charges any processing fees
for this type of loan. But banks may charge fee for abroad study loans, will
be refunded once student takes up the course.
■ Other Features–
■ Banks may issue financial capability certificate based on the financial
condition of the student, which is required while studying abroad.
■ Existence of education loan may affect other student’s loan availability
within the same family.
■ No age restriction to avail this loan.
■ Top up loan will be available if further study commence during
the moratorium period. Repayment will commence after completion of the
further study.
■ Usually parents or guardian will be joint borrower. But in case of married
student either spouse or parents/parents-in-law may be joint borrower.
11. What Happens When One Defaults In
Education Loan Repayment
■ The bank allows a moratorium period to start
education loan repayment of about 6 months from
getting a job or 1 year of completion of a course,
whichever is earlier. Upon continuous EMI defaults,
the bank may take serious action against the borrower.
However, before taking harsh action, it may allow the
borrower a chance to clear the outstanding balance.
12. What Steps Can One Take As A Borrower
■ Request Bank To Extend The Loan Tenure
If you have a genuine reason for not being able to payback, take your
bank’s branch manager into confidence and share the reason for not
paying the loan back. If the bank is convinced that it is an authentic
reason they may restructure your loan and allow you to pay the lower
EMI. The maximum loan repayment tenure can be increased up to 10
years for a loan amount lower than 7.5 lacs and 15 years for an amount
more than 7.5 lacs.
■ Option To Repay The Outstanding Loan In Part Payment
You can always ask for a deferment period. Deferments allow you to
stop making payments for a certain period of time if you have a genuine
reason that can show you qualify for the same. For instance, you may
be able to get a deferment if you can show economic hardship, are
returning to school, are unemployed, or looking for a job.
13. Impact Of Non-repayment of loan-
■ CIBIL score- CIBIL is the summary of your credit records. You cannot avail
a loan from any banks or NBFC or get a credit card with a low CIBIL score. An
unpaid loan can bring down your CIBIL score significantly, which decreases
your credit worthiness, which means you won’t be able to borrow from any
bank for the longest of time. Also, recovering a CIBIL score is a rather time-
consuming process and requires ton of efforts.
■ Collateral: If it is a secured loan the bank can liquidate your asset to recover its
losses. You will lose the rights over your property which can be auctioned by
the bank to pay the bad debt. Not a situation you’d want to be in.
■ Interest: The interest rate on the loan will keep increasing making the
repayment amount huge. Not to forget, the bank will add fines as well until you
pay.
■ Co-signer: If unfortunately you cannot repay the loan, the burden of repaying
the loan falls onto your co-borrower. Not just that, the CIBIL score of the co-
borrower will go down as well, thus jeopardising their future prospects as well.
■ Legal: You’ll be treated as an NPA (non-performing asset), and once
announced as one, frequent calls and emails from banks would follow. Owing
to the increasing number of NPAs, banks now have ‘collection companies’
whose only job is to get the money back. Once you make it to their list, legally,
you’ll be in a lot of trouble.
14. Rising NPA in education loan
According to the data released by the Indian Banks'Association (IBA)
revealed that-
■ In the educational loans segment, the default in repayment has risen
to 7.67 percent of the outstanding amount at March-end, 2017 from
5.7 percent two years ago. Further, the total outstanding education
loan at end of the fiscal 2016-17 was Rs 67,678.5 crore, of which Rs
5,191.72 crore could be categorised as NPA.
■ The data further revealed that the NPA in the aforementioned
segment compared to the percentage of total loan has been
constantly increasing. In 2014-15, the figures reported were 5.7
percent in 2014-15, 7.3 percent in the following fiscal and 7.67 percent
in the last financial year.
■ However, the government had earlier modified the IBA's Model
Education Loan Scheme to reduce the incidence of NPAs in the
segment by giving extension of repayment period to 15 years and
the launch of credit guarantee fund scheme for education loan
(CGFEL) for up to 7.5 lakh Rupees.
16. Eligibility criteria-
■ Indian resident, between 16 and 35 years of age
■ Co-applicant is mandatory for all full-time programs – co-
applicant could be parent/guardian, or spouse/parent in law
■ Student should have secured admission to a higher education
course in recognized institutions in India or Abroad through
Entrance Test/ Merit Based Selection process
■ Approved courses leading to graduate/ post graduate degree and
P G diplomas conducted by recognized colleges/ universities
recognized by UGC/ Government/ AICTE/ AIBMS/ ICMR etc.
17. Courses Eligible in India and
Abroad-
■ Studies Abroad
i. Graduation: Reputed universities.
ii. Post-graduation: MCA, MBA, MS and other courses as
shall be declared from time-to-time.
iii. Other courses such as CIMA - London, CPA in USA, CFA,
CISA, and other approved courses as shall be declared.
Degree/Diploma course like aeronautical, pilot training,
shipping, etc. provided these are recognized by competent
regulatory bodies abroad for the purpose of employment in
India/abroad.
18. ■ Studies in India
i. Post-Graduation Courses: Masters and Ph.D. from accredited institutions.
ii. Professional Courses: Engineering, Medical, Agriculture, Veterinary,
Law, Dental, Management and Computer Sciences.
iii. Other professional courses such as CA, ICWA, CS, and CFA.
iv. Masters and Diploma Management Programs.
v. Other courses leading to degree/diploma conducted by
colleges/universities approved by UGC / Govt. / AICTE / AIBMS /
ICMR, etc.
vi. Regular Degree/Diploma course like aeronautical, pilot training,
shipping, nursing or any other discipline approved by Directory General
of Civil Aviation / Shipping / Indian Nursing Council or any other
regulatory body as the case may be, if the course is pursued in India.
vii. Any other course as shall be declared from time-to-time.
21. Expenses covered
■ Fee payable at college/ school/ hostel
■ Examination/ library/ laboratory fee
■ Travel expenses/ passage money for studies overseas
■ Insurance premium for student borrower
■ Caution deposit, building fund/ refundable deposit supported by
institution bills/ receipts
■ Purchase of books/ equipment's/ uniforms/ instruments
■ Purchase of computer at reasonable cost if required for completion
of the course
■ Any other expense required to complete the course like study tour,
project work, thesis.
https://www.icicibank.com/Personal-Banking/loans/education-loan/courses-expenses-
covered.page?#toptitle
22. Banks offering education loans in
India-
■ State Bank of India
■ Punjab National Bank
■ Bank of Baroda
■ Allahabad Bank
■ Corporation Bank
■ Canara Bank
■ IDBI Bank
■ Union Bank of India
■ Vijaya Bank
■ Axis Bank
■ HDFC Bank
■ ICICI Bank
■ Avanse Financial services
23. Comparative analysis of banks considered-
Comparison factors SBI ICICI HDFC Credila
1. Rate of interest 8.65% to 10.70%* Starts at 11.5 %** 9.45% to 14.1%***
2. Processing fee Rs. 10,000 (payable
at the bank directly)
+ legal and
valuation charges
1 % of Loan Amount
+ GST
1% of the loan amount or
INR 1000 whichever is
higher.
3. Repayment
period
15 years maximum Up to 15 years Up to 15 years
4. Max. amount of
loan
Above Rs. 20 lacs &
Upto Rs 1.5 Cr
Rs.1 crore (With
Collateral)
Rs. 40 Lakhs
(Without Collateral)
NA (secured)
35lacs (unsecured)
*SBI-- depending upon the education loan and the loan amount you opt for. The bank also
offers concessions for girl students and to students availing SBI Rinn Raksha or any other
existing policy assigned in favor of SBI, as per the selected SBI education loan
**ICICI-- For loan amount above INR 4 Lacs, the RoI charged is 14.6%.
***HDFC– depending upon the loan amount
24. Analysis-
■ SBI is a public sector bank, public banks offer education loans at a lower rate
of interest but they need collateral and you have to pay a certain percentage
of the tuition fees that is margin money. The approval rate is low and the
approval process is too slow. They do not provide 100% coverage of all
living expense. With SBI, one is eligible for an education loan for various
courses in the house as well as overseas, as long as the student is an Indian
National.
■ ICICI Bank levies 11.5% interest rate on their education loans, wherein the
maximum loan amount that ICICI offers to its customers is Rs 50,00,000, for
domestic educational course whereas going up to Rs 1 crore for studies
abroad. The bank has a loan repayment tenure between 5-8 years+ 6 months,
subject to course duration. With collateral, however, the tenure stretches to
maximum of 15 years.
25. ■ HDFC Credila is an NBFC, NBFCs provide different better
services than banks but at a higher rate of interest. But they don’t
provide 100% coverage & the interest rates are higher among
NBFCs.
This private bank benefits its customers with education loans up
to Rs 10,00,000 for courses in India. To be eligible for an education
loan with HDFC bank, one needs to fall between the ages of 16 to 35
years and be a resident Indian. HDFC Bank charges its customers an
interest rate of an average of 11.93%. The processing fee that one
has to pay to avail the education loan from HDFC Bank is 1% of the
loan amount + GST. The repayment period is maximum of 10 years
for loans below Rs 7.50 lakhs and 15 years for loan amount above
Rs 7.50 lakhs according to HDFC Ban
26. Advantages of Education loan
■ Makes education accessible
■ Repayment moratorium
■ Interest rate benefit
■ 80 E Tax Benefit
■ Self Independence/ Parent rescued from burdens
27. Disadvantages of Education Loan
■ Repayment pressure
■ Inability to change course
■ Getting into debt at early age
■ Poor credit scores
■ Other criteria
28. Factors to be considered while
choosing education loan
■ Collateral and co-applicants
■ Down payment
■ Interest rate
■ What it should cover?
■ Repayment period