Not everyone can afford to pay the fees to attend these institutes. For those students who are financially back warded, there are many banks in India providing education loan to purse CA. Here in this article we are giving very useful information gathered from various banks.
Education loan for CA students
ICAI has made tie-up with the following Banks under the “Join CA Educational Loan Scheme” to provide the Education loan to its aspiring students to meet out the Course fees etc.
1. Bank of Maharashtra (BOM):
Eligibility: Maximum Amount of loan: Rate of Interest : Security: Margin : Up to Rs. 4 lakhs – Nil Above Rs. 4 lakhs – 5% for studies in India & 15% for studies abroad
2. Corporation Bank:
Eligibility: Eligible expense: Amount of Loan: Security:
- Up to Rs.4.00 Lakh : Co-obligation of Parent/s or Grand Parent/s (if parents are deceased)
- Above Rs.4.00 Lakh & up to Rs.7.50 Lakh: Co obligation of Parent/s, Grand Parent/s (if parents are deceased) together with collateral in the form of suitable third party guarantee with a net worth of at least equal to loan amount.
- Above Rs.7.50 Lakh: Co- obligation of Parents/Grand Parents (if Parents are deceased) together with tangible collateral security along with the assignment of future income of the student for payment of instalments. Loan shall be fully secured after maintaining prescribed margin on respective securities offered. Margin for various securities: Margin : Studies abroad – 15% No Processing Charges for studies in India Rs.2000/- +Tax in case of studies abroad refundable once the loan is availed. However the amount of Tax should not be refunded. Repayment of the loan: Repayment holiday is the course period + 1 year OR 6 months after getting the job whichever is earlier Recommended Articles
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3. Oriental Bank of Commerce:
Eligibility: Eligible expense: Amount of Loan: Margin: 15% For studies Abroad Rate of interest : Penal interest: 2% over the normal rate of interest shall be charged on loan above 4 Lacs on overdue amount for the overdue period. Security clause:
- Loan up to Rs.4 Lakhs:
No security.Parents or guardian to be joint borrowerCo-obligation of spouse or parents-in-law in case of married women.
- Loan of Rs 4 – 7 lakhs:
Parents or guardian to be joint borrowerCo-obligation of spouse or parents-in-law in case of married women. AND Collateral security in the form of one suitable third party guarantee, preferably of other family member or close relative. In case of commercial pilot course Life Insurance policy shall be obtained.
- Loan above Rs 7 lakhs:
Parents / guardian to be joint borrowerCo-obligation of spouse/ parents-in-law in case of married womenMortgage of immovable property or any other tangible security having value equivalent to 100% loan amount or Extension of charge or 2nd charge on unencumbered portion of land and building already mortgaged with Bank or other Banks provided the residual value of the property is equivalent to the proposed amount of loan and the conduct of honoring the existing loan is satisfactory.
Repayment:
4. IDBI:
- This bank offers very low amount of loan among all the 4. It sanctions maximum Rs 2 lakhs
- Co-applicant is mandatory. Loan document should be executed by the co-applicant along with the student.
- Expenses covered:
Loan amount covers only initial registration for each course/stage.Purchase of Computers/ Laptop, essential for completion of the course, will be allowed only after passing IPCC/ PCC. The Loan amount not to exceed Rs.40, 000.Coaching fees will not be covered under the educational loan
- Collateral security: Nil
- Margin : Nil
- Rate of interest: Base rate + 3%
- Repayment: Repayment of loan should be completed in Maximum of 84 months after commencement of repayment. Recommended Articles
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