Eduation loans are usually provided by public sector banks in India. Two famous public sector banks which give education loans include State Bank of India and the Punjab National Bank. A person can apply for education loans online. The person can go to the nearest branch of the bank that provides education loans with the relevant documentation. The education loan is usually within three days from that date. However, if the loan amount is more than Rs. 7.5 lakhs, then collateral security is required.
The questions arises why private education loans are less. For courses that are geared towards an unconventional or a new career, banks are hesitant to gie education loans because they are primarily concerned about the financial viability of the education program. Also education loans for such kind of programs or loans for a high amount requires some collateral security which makes it difficult for people to pay. There needs to be an independent financial body that gives its opinion to the banks about the financial viability of courses.
Thursday, September 11, 2008
Education loans, why private banks shy away frome education loans
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