Running short on funds to support your education abroad? Well, worry not because banks in India have designed various schemes to benefit students who wish to pursue higher studies in India as well as abroad. The Government of India has made it mandatory for banks to pass loans for education purposes now. To help students pursue their dreams of higher studies, Standard Chartered Bank launched the Standard Chartered Education Loan scheme. Its purpose is to ensure that no student is left behind from pursuing their goals. The Standard Chartered Education Loan aims to provide loans to students at minimal interest rates and maximum benefits to help them get closer to their dreams. In this blog, you will get to know in detail about Standard Chartered Education Loan.
Also Read: Best Study Abroad Scholarships for Indian Students
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Standard Chartered Education Loan: Key Features
Standard Chartered Education Loan offers exciting rewards for those available for the education loan. Listed below are the key features of the Standard Chartered Education loan
- It offers attractive & competitive interest rates depending upon the amount of loan.
- The moratorium period extends up to a maximum of 3 years or course duration whichever is earlier.
- Standard Chartered provides a loan amount of a minimum of NPR 1 million and a maximum of up to NPR 10 million.
- In addition, an amount of NPR 0.5 Mil is provided to cover miscellaneous expenses (conditions apply).
- The tenure of the loan is from 1-10 years, which is repayable on an EMI basis after the moratorium period.
Eligibility for Standard Chartered Education Loan
Students who wish to apply for Standard Chartered Education Loan must meet the eligibility criteria that have been specified by Standard Chartered. Let’s have a look at the eligibility criteria given by the bank –
- Applicants must be Indian citizens.
- Applicants must have secured at least 50% in the last appeared exam for, XIIth or graduation.
- The maximum age must be 62 years (or retirement age whichever is earlier) at loan maturity.
- Applicants must have secured admission in India or abroad through a proper entrance test. Or the selection should have been merit-based selection.
- The loan is sanctioned by Standard Chartered in the name of the parents.
- Parents must show a reliable source of income for repayment of EMI.
- Applicants can pursue one of the degrees – Undergraduate, Postgraduate, or Professional.
- Applicants must possess documents that show regular income is mandatory for the co-applicant.
Education loans are available in the following circumstances:
- Graduate, postgraduate, diploma, and professional courses are recognised by the University Grant Commission, the All India Council for Technical Education (AICTE), and the Government of India’s Indian Council for Medical Research.
- Professional or technical courses from reputable education institutes abroad, for example.
- Vocational courses or skill development courses that are recognised or approved by the government.
- Courses offered by IIM, IIT, IISC, XLRI, NIFT, and others
- Reputable foreign universities offer courses in India.
- Other courses leading to a diploma/degree, etc., offered by colleges/universities that have been approved by the UGC/Government/AICTE/AIBMS/ICMS, etc.
Standard Chartered Bank has also listed a number of documents that applicants must possess while availing of education in India or abroad. The document requirements vary depending upon the status of the applicant and the disbursement schemes, however, we have listed the basic documents that applicants must have for applying for the education loan scheme-
- Recent Passport size Photographs of parents and student
- Offer Letter from College/University
- Copies of letters conferring scholarship, if any.
- Schedule of expenses for the course from College/University
- “No Objection Letter” from the Ministry of Education which is required in case of abroad study and at the time of remittance
- Land ownership document copy
- Transfer deed copy
- Copy of Citizenship –parent and student
- Relationship Certificate
- Marriage Certificate (where applicable)
- BluePrint of Land and building completion certificate from Municipality/VDC
- Land revenue Tax Receipt
- Income certifying document (Salary letter, Audited balance sheet, rental agreement, etc.)
- Firm/company registration and PAN in case of income from a business source.
Must Read: Documents Required for Education Loan
The Standard Chartered Education Loan is available for the following purposes:
- Fees payable to College/Hostel – This includes admission fees, tuition fees, examination fees, laboratory fees, library fees, etc.
- The amount required for the purchase of books, equipment, and instruments required for the course, and the cost of passage, for studies abroad.
- It also covers the boarding and lodging expenses only for hostels recognized by the institutions.
- The loan is directly disbursed to the colleges, universities, and institutions as per the fee structure specified.
- The drawdown of the loan amount is specified in tranches as per the fee schedule over the course duration.
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How to Avail the Standard Chartered Education Loan?
- For availing of the Standard Chartered Education Loan, applicants must make sure they know they have all the documents required and they know all the requisites beforehand.
- Applicants may go to their nearest bank branches to collect the application form.
- The complete application form must be submitted along with all the documents asked for.
- Once the form has been submitted successfully with all the documents, applicants must patiently wait for the verification process.
Repayment of Loan
You must repay the loan in accordance with the agreed-upon instalments. Your facility letter contains information about the instalments. In some cases, we may give you one month’s notice and require you to repay the entire outstanding balance in full.
Prepayment of Loan
- You may request that the outstanding balance of your loan be prepaid.
- You may repay the entire outstanding balance, not just a portion of it. We may agree to your request if you agree to the conditions we may impose. We charge you a fee for prepayment.
Mode of Repayment
- Post-Dated Cheque (PDC): A PDC is a check that the borrower gives to the bank in advance. They will be for future occasions. The cheque will be deposited by the bank on the date specified on the cheque. Borrowers used to use this mode when there were no online repayment options available. This mode is no longer popular and is used by a small number of borrowers.
- Electronic Clearance System (ECS): This mode is very popular, and the majority of borrowers used it to repay their loans. It is a method of electronically transferring the EMI from the borrower’s bank to the lender’s bank.
- National Automated Clearing House (NACH): NACH is a service provided by the National Payment Corporation of India (NPCI) that allows for the online transfer of funds on the due date. Many people prefer this system, which was recently implemented. This mode has the advantage of allowing transactions to be processed in real time.
- Standing Instruction (SI): This is an order or instruction given to the bank by the account holder to pay a fixed amount to another bank/account on a regular basis. Many borrowers use it to pay EMIs because EMIs are fixed amounts. SI is not appropriate for variable amounts.
Ans. According to Indian Banks’ Association guidelines, Standard Chartered Bank provides loans of up to Rs 10 lakh for courses in Indian colleges and up to Rs 20 lakh for studies abroad. The amount of a loan is determined by the course and the institution that offers it.
Ans. If you intend to study full-time, you will need someone to sign a surety and cover the monthly interest and fees (with a minimum income of Rs 3,000pm). To qualify as a part-time student, you must earn a minimum monthly income of Rs 5,000.
Ans. 1.33% – 2% p.m.
So, this was all about the Standard Chartered Education Loan. We hope that you must have found this blog useful and answered all your questions. Still, have doubts? Get in touch with Leverage Edu experts today and get your queries related to study abroad loans and finances sorted.