For people regardless of age, who are studious enough to pursue professional courses with high employability, things have been made easy to get financial assistance from banks in the form of educational loan.
The IBA has come up with a new set of guidelines for the banks in this regard.
The vocational courses that are offered at ITI, ITCs, polytechnics and other technical institutions are covered under the scheme. These courses were never covered under any loan scheme of banks so far.
The loan amount that can be sanctioned to a candidate ranges from Rs.20,000 to Rs.1.50 lakh. The bank can also sanction a higher amount looking into the case and after due consideration.
Such loans do not carry service charges. Besides no collateral security or third party guarantee is required. The interest rates are fixed at ‘reduced’ level. The rate depends on the base rate of the bank lending the amount.
Source: The Hindu