Even as public sector banks are being encouraged to sanction more and more education loans, ICICI Bank, the country's largest private sector lender, has been going slow in increasing the portfolio under the segment.

K V Kamath, chief executive officer of ICICI Bank, at the 14th AGM held at Vadodara last month, said the bank was 'hesitant' to get into increasing quantum of education loans because it was difficult to handle it in the context of collection. Find out each 'n every information about icici education loan here to clear your doubts before finalizing a study loan.

The observation on the education loan portfolio was a part of the minutes of the AGM posted on the Bombay Stock Exchange last week.

It is part of the overall strategy where the bank sees more opportunities in corporate business vis-à-vis retail, he had said. "The growth in the retail business has been impacted by higher levels of interest rates and property prices in cases of mortgage loans," Kamath added. At present, education loans carry an interest rate of about 12%.

Earlier during the month, finance minister P Chidambaram had said that India was the only country where education loan was given on such a large scale, to about 14 lakh students. About Rs 20,000 crore had been given as education loans last year, he had said.

As on March 31, 2008, the total outstanding education loans stood at Rs 20,547 crore against Rs 15,209 crore as on March 2007, a growth of 35%. The portfolio of education loan is likely to see high growth as education cost in the country is increasing.
According to a survey conducted by an industry chamber, school expenses for a single child, excluding tuition fees, have shot up from Rs 25,000 to Rs 65,000 per annum since 2000.

School costs have shot up at more than double the rate of present inflation level, which is at a 13-year high of over 12%, prompting parents to plan early for their child's education, the survey added.

The government has taken many steps to make education loans accessible to a wide section of students.

One of the major hurdles faced by students, especially those from financially weaker background, is the collateral and co-applicant clause attached with education loans in the country.

Most banks, if the loan amount exceeds Rs 4 lakh, ask for collateral, such as property, fixed deposits or any other instrument that is found suitable.

I am a retired Central Government employee. For the financial year 2007-08, I have only interest income from bank and post office for which tax has been deducted at source.

Am I eligible for claiming deduction under Section 80C in respect of the investments made by me in PPF account and NSC?

My previous employer who has deducted tax on the CPF interest amount paid to me during the financial year 2007-08 has not given the TDS certificate. What is the remedy available to me in respect of the same? - Anonymous

The interest income from bank and post office will be chargeable to tax in your hands under the head income from other sources.

You will be able to claim deduction under Section 80C in respect of investments made by you in PPF account and in NSCs. Since you are a retired Central Government employee, you are also likely to have a pension, which would be assessable under the head salaries. Credit can be claimed for tax deducted at source on such incomes. Here you can easily each 'n every information about Education Loan India and also the latest updated chart of interest rates of all major Indian banks.

As regards the failure to receive TDS certificate from your previous employer, your only remedy may lie in informing the concerned joint commissioner who may initiate penal action for such failure under Section 272A(2).

This may at best work as some kind of a threat which may induce the former employer of yours to issue the TDS certificate. You may, however, note that Section 205 of the Act makes a specific prohibition on the recovery of taxes already deducted by the payer, from the payee, which would apply even if the payer has not remitted the tax so deducted or has not issued a TDS certificate.

This view is also supported by the decision of the Gauhati High Court in ACIT v Om Prakash Gattani [2000] 242 ITR 638 (Gau).

I am working in the US on work permit (H1 Visa). I would like to transfer some money to my savings account in India.

Do I need to pay tax for the money that I transfer to India, as I am already paying tax in the US? - Upendra S.

No tax will arise merely on the transfer of money from the US to India. You will have to examine your residential status under the Income Tax Act.

If you are a resident and ordinarily resident in accordance with Section 6 of the Act, the income earned by you will be taxable in both countries.

It may also be that the income is taxable in both countries in accordance with the Double Taxation Avoidance Agreement between India and the US, if you are a resident of India in accordance with the said agreement.

If the income is taxable in both countries, even on the basis of the Double Taxation Avoidance Agreement between India and the US, you may take the benefit of Article 25, which provides that the taxes paid in the country of source will be allowed as a credit in the country of residence. You will have to examine based on facts as to whether you are a resident of India or of the US as per the Double Taxation Avoidance Agreement and claim credit in the country of residence, the tax paid in the country of source on the doubly-taxed income.

You may note that under the Double Taxation Avoidance Agreement you are most likely to be a resident of India in which case credit should be allowed in India in respect of the tax paid in the US on the doubly-taxed income.

You may also note that the credit that would be allowed in the country of residence will be the lower of the tax payable in the country of source or in the country of residence on such doubly-taxed income.

If, however, you are a resident but not ordinarily resident or non-resident in accordance with Section 6 of the Income Tax Act, the income earned by you in the US will not be taxable in India. All these provisions will apply whether or not you transfer money into India.

I purchased a land for Rs 4 lakh on June 5, 2007, and donated the same a week later to a corporation, which is notified and approved.

Is this donation in kind eligible for deduction under Section 80G of the Income Tax Act? - Shanky Bhandari

You have in the query not stated whether the donation was made to a public charitable trust. You have stated that the donation was made to a corporation.

A donation made to a corporation will not qualify for deduction under Section 80-G, even otherwise a donation in kind will not qualify for such deduction.

Education loan portfolio of banks, which saw a growth of about 30-40 per cent in 2007-08, is set to witness a growth of about 40 per cent in 2008-09, according to senior bank officials. so check out the latest education loan rates here of all major Indian Banks to choose the best option which suits your budget.

Bankers attribute the healthy growth in the portfolio to the ever-increasing demand among the younger generation and the lower number of non-performing assets.

Banks have adopted various schemes to facilitate the growth of the education loan portfolio. Apart from tying up with several institutes and offering interest rate discounts, they also accord online sanctions and ensure speedy disbursal of the loan.

State Bank of India, a major player in this field, recorded a growth of 35 per cent in educational loans and grew by Rs 1,000 crore in 2007-08, Mr P. Nandakumaran, Chief General Manager, Personal Banking, SBI, said. "We plan to sustain the growth at 35 per cent this year," he said. Here you can go through the SBI education loan also their security criteria.

The NPAs are almost negligible usually in the range of 0.50-0.80 percent.

According to Mr V K Dhingra, Executive Director, UCO Bank, the competence of the younger generation in bagging a good job with a decent salary after the completion of their education ensures timely repayment of the loan. "The job market is also highly buoyant, so repayment is not a problem," he said.

UCO Bank's educational loan portfolio was at Rs 333 crore as on March 31, 2008. The bank plans to take it to Rs 476 crore in 2008-09, a growth of about 43 per cent.

Allahabad Bank has witnessed 30-per cent growth at Rs 150 crore as on March 31, 2008 and plans to expand it to Rs 300 crore in 2008-09. "Usually April--July is the best period for the sanctioning of loans and the actual disbursements begin post-July," said a senior bank official at the bank.

The bank's educational loan sanctions have almost doubled in the first quarter of the current financial year, against the corresponding quarter of the previous year. The average ticket size of these loans is about Rs four lakh and almost 80 per cent of it is without collaterals, said the official.

Andhra Bank has set a target to grow by 20-25 per cent this year. The current exposure is at Rs 1,800 crore. "We have tied up with a number of universities such as ICFAI, IIBM and some universities in Pune. We offer some discount on interest rate for students in these universities," said a senior bank official.

State Bank of India, the country's largest public sector bank, has reduced interest rates on educational loans.

New rates for loan amounts less than Rs4 lakh have been reduced from 12.25% to 11.75%. Rates for loan amounts above Rs7.50 lakh have been reduced from 13.25% to 12.25%. Interest rates for amounts between Rs4 lakh and Rs7.50 lakh have remained unchanged at 13.25%.

Other banks may follow suit. Says M.P. Murugan, assistant general manager, Allahabad Bank: "We are the leader in the educational loan space. We already have special lower interest rates for IIT and IIM students, at 11.25%. However, if the need arises, we may look into reducing our rates as well.
N.R. Shet, general manager, Corporation Bank, says: "We do not have immediate plans to reduce educational loan rates, but you cannot rule out the possibility of us doing so. Our rates are not that high, so we will wait and watch."
Any cut is, of course, good news for students. Hsoc Matthai, 17, a student from Mumbai, says: "Educational loans are necessary. My brother and I are planning to go for professional courses this year. Even a small decrease in interest rates makes a lot of difference. We would rather go to a bank that offers lower rates."

Education loans have been classified as priority sector lending. Banks have, to date, disbursed Rs 20,000 crore for education loans and 12.5 lakh students have benefited from this initiative.

Funding your education out of your parents' pockets is no longer an easy option, what with the rising cost of education and aspirations to study abroad. If getting admission into a private college is a costly affair, things are worse now with even premier government institutes such as the IITs and IIMs hiking their fees.

Education loans have been classified as priority sector lending. Banks have, to date, disbursed Rs 20,000 crore for education loans and 12.5 lakh students have benefited from this initiative.

Why not consider an education loan to foot the bill for your course? Here's how you go about getting one.

First, approach banks with whom your institution/college has a tie-up; these banks may offer loans at lower rates and may be more responsive. If you can't find such options, consider the bank in which your parent/ guardian has an account or the banks that are in your locality.

The process of applying for education loans has also been made easier. Many banks have started accepting online applications wherein you need to fill your details and the bank representative will get back to you.

Eligibility for an education loan: India's largest bank, SBI, has the following eligibility criteria for education loans:

The candidate should be an Indian National.

All courses having employment prospects are eligible for an education loan.

Graduation courses/ post-graduation courses/professional courses/other courses approved by UGC/Government/AICTE.

Loans are subject to the merit of the student and his place of permanent address. The criteria is more or less the same for most banks. A few banks, such as Bank of India and Union Bank of India, however, only consider students who have secured admission to professional/ technical courses through entrance test/selection process.

When it comes to education, All India Congress Committee (AICC) secretary Meenakshi Natarajan stressed that the gap between urban and rural India needs to be bridged.

Natarajan was the chief guest at the daylong seminar organised by the National Students' Union of India (NSUI) to discuss "Education in India: Achievements and Challenges".

"Students need to be strong and united. NSUI has always raised its voice for students' rights and the equal opportunities for all. But we need to bridge the gap between India and Bharat, and reduce the glaring differences between our metros and smaller towns. Tribal populace of Jharkhand cannot be deprived of rights in their own land," she said.

She added that Rajiv Gandhi's dream project of Navodaya Vidyalayas have done a lot in this direction. Many students are doing better than those of public schools.

Thus, no more Eklavyas have to give sacrifices to the Dronacharyas of today.

She further went on to say that the education system of Lord Macaulay's times has become redundant today and recommendations of the National Knowledge Commission needs to be implemented along with the elimination of criminal activities from college campuses.

Nadeem Javed, the NSUI national president, was also present and under Natarajan's leadership and discipline, transparency was brought in.

"We need to do bring in social justice and focus on real issues like the creation of more technical institutions in Jharkhand," said Javed.

Sanjay Paswan, the president of Ranchi University's NSUI wing, said: "We are moving on the path of youth empowerment as envisioned by Swami Vivekananda. But some other student bodies like ABVP having a very myopic view of the world.

In a move to simplify education loan formalities, six to seven banks in the country would provide "Online loan application" facility from this academic year, Finance Minister P Chidambaram said.

Inaugurating the 1327th branch of the Oriental Bank of Commerce today, he said the facility will be extended to all the banks in the course of this year itself.

The nationalised banks in India created a world record in the last financial year when they provided education loan to 12,51,692 students to the tune of Rs.19,771 crore, he said.

"It is world record that a country holds. In no other country, such large number of students have been given education loan. I am not including the education loan extended by the private banks when I mention it is a world record. It is also a historic achievement. The loans help the middle class and poor people," Chidambaram said.

The scholarship for pursuing school education after the eighth standard, which was planned for one lakh students for this year, would be extended to two lakh students next year, the Finance Minister said.

The scheme was being introduced for the best and meritorious students who could not pursue their education. The Rs 6000 per year scholarship scheme for poor meritorious students was decided during the cabinet meeting held on May 9.

Besides, he said, a separate pre-matric scholarship for the wards of those engaged in "menial jobs" to pursue higher education or ITI or diploma courses was also being implemented.

He said the 'Scheduled Caste meritorious students' scholarship scheme has been extended to 15,370 students,while the financial assistance for the minorities to pursue their education would benefit 20,000 students.The government also planned to encourage students to pursue pure science and research activities and give special incentives for them.

Almost every farmer across India's arid cotton-bearing central plateau is a hostage, in one way or another, to a profitable mega-business of illegal moneylending.

Families have lost land, farmers have been asked to prostitute their wives to pay off debts and, when all else has failed, borrowers have killed themselves to end their misery.

An inescapable cycle of debt is fuelling one of the worst agrarian crises facing India, a crisis that has seen some 150,000 farmers commit suicide since 1997. Yet the public image of menacing debt collectors does not entirely reflect the views of the region's three million farmers. The rapacious moneylender, who plugs the gaps in rural financial services, is also the man they can turn to in times of need.

Last month, India's government announced a $15-billion loan waiver for small farmers borrowing from banks, but experts say the efficacy of the scheme is badly diluted because it leaves out those borrowing from moneylenders.

"Moneylenders are now an inextricable part of the rural economy," said S. Parasuraman of the Tata Institute of Social Sciences. "So much so the bank has become secondary, or even redundant, for a small farmer."

Union Minister of state for Commerce, Jairam Ramesh on Saturday said that fixing of minimum support price (MSP) for tea alone would not be a permanent solution to the crisis being faced by small tea growers, particularly in Nilgiris in Tamil Nadu.

The growers should concentrate on producing quality teas, organic and orthodox, which have good market in foreign countries, Ramesh told reporters on the sidelines of a function got up to disburse education loan to children of small growers at Coonoor.

However, the Government, which had already fixed MSP for two agricultural produces, would consider the issue of fixing floor prices for Nilgiris tea, he said.

He said that green tea leaves, which quoted Rs four per kg some four years ago, were fetching Rs 10 to Rs 14 per kg now.

Saying that Self Help Groups in Kenya and Sri Lanka were engaged in producing and marketing tea, Ramesh said that this could be emulated by SHGs in India also.

Finance Minister P Chidambaram today said the public sector banks are required to clear education loans within 15-30 days and they should also institute an on-line system to clear such loans. Run-up to Budget 2008-09

"As per the norms prescribed under the Model Education Loan Scheme, the banks are required to dispose of loan applications within a period of 15 days to 1 month," Chidambaram told Rajya Sabha in a written reply.

In order to provide better services to students across the country, he said, the government has advised the banks to institute an on-line system of loan applications.

This will enable students to download the loan application form, apply online and learn the status of their loan application, he said adding the facility is now provided by all major public sector banks.

Referring to information provided by the Reserve Bank, Chidambaram said educational loans worth Rs 18,992 crore were outstanding as on November 23 this fiscal, sanctioned by the public sector banks.

Declining to give state-wise information about the amount of educational loans sanctioned, the Finance Minister said, data on amount of educational loans sanctioned by the PSBs and the number of applications received were not recorded bank-wise across each state.

Public sector banks will soon start offering insurance-linked education loans. The insurance premium will be a part of the expenses for the loan. The Indian Banks' Association (IBA) has put together a model education loan scheme that entails a higher quantum of loan. Even as the scheme becomes more expensive, lending standards will become tighter for loans for overseas education.

The loan limit has been increased from Rs 7.5 lakh to Rs 10 lakh for studies in India and from Rs 15 lakh to Rs 20 lakh for studies overseas. Further, there will now be a provision of top-up loan for students for further studies. A cap of sorts has been fixed for the cost of such loans - the rate of interest should not exceed the benchmark prime lending rate (BPLR) for loans up to Rs 4 lakh. For loans over this limit, the rate of interest, should not be more than 100 basis points over the BPLR.

Some banks including the State Bank of Hyderabad and the Union Bank of India are offering special rates of interests for girl students availing educational loans.

Under the scheme, life policies and mutual fund units will now be treated as permissible security for the loan. Banks can now lend multiple loans to a single family. Education loan in india will now be offered for aeronautical engineering, pilot training, shipping training as part of eligible courses.

Hundreds of students from the region go to different countries across the globe every year to study various courses. The lure of foreign degrees and subsequent PR (permanent residency) makes it an enticing proposition. However, the number of foreign universities trying to woo students is increasing with each passing day. Instead of students vying for admissions, the universities are queuing up to admit them.

Economics at work
The reason why foreign universities want to lure students from the country is purely economic. The universities generate a large amount of revenue from the Indian students. The fee charged far from is high. By rough estimates, the fee paid by one student from here helps partially finance the education of more than five students of the native country.
The Indian economy is one of the fastest growing economies in the world. As a result of this, the residents have surplus money to send their children to foreign shores.
The population in many developed countries has become negative. Skilled people are required for the functioning of the economy.
Amar Manchanda, Director, AIIMS Global Education, said, "The Asian market is at its zenith. India has the one of the youngest populations in the world. Not many students in foreign countries opt for university education. The universities then pick up bright brains from our country. Skilled and talented human resources are required for the smooth running of their countries also."
The expenses incurred on the courses vary depending on the courses and the country. For example, the cost for various courses in Canada varies from $6600 to $12000. The fees for diploma courses are less than the ones that come with a degree. Australia, Canada, Syria, New Zealand and US are amongst the top destinations of students.

Quality of Education
Indian education is recognized in many foreign universities. Some give equivalence to the courses done here.
Andrew Bird, International Strategic Development Manager at Oxford Brookes University, UK, says, "The Indian education system is strong. Education is accorded high value here. In fact, a majority of Indian students want to pursue higher education. The students are proficient in English language. Our university gives equivalence to the courses pursued by students here. The courses that we provide are in niche areas which are not largely present in universities in India."
Bird was in the city to give a presentation to the students of Department of Laws, Panjab University, on the various options available for pursuing post graduation. The university had around 125 Indian students on its campus. The fees varied from 12000 to 15000 pounds.
The universities are holding education fairs at regular intervals in the city. The aim is to bring the students face to face with the university representatives. They get to know about the courses available. In some cases acceptance letters are given to the students on the spot.

Incentives to students
Students interested in pursuing courses in any of the universities do not have to worry too much about finances. Education loans in India are available for the purpose. The Reserve Bank of India had issued instructions to scheduled commercial banks to sanction educational loans to deserving and meritorious students. For loans up to Rs 4 lakh the banks may not insist on security. loans ranging from Rs 4 lakh to Rs 7 lakh can be granted on third party guarantee. While educational loan between Rs 7.5 lakh to Rs 20 lakh can be sanctioned after third party guarantee and property mortgage.
Manchanda further says, "The banks make loans available for degree courses more easily than diploma courses. However, the loans should be given on basis of merit of the course. There are some diploma courses that are more beneficial for students."
Merit-based scholarships are also offered by various universities. For admission to some universities in Canada, the students scoring 80 per cent and above in CBSE exams can get scholarship up to 75 per cent of the course fees.
The Government of India offers the facility of Overseas Citizenship of India. For the students desirous of acquiring citizenship of the country they are staying in and still wanting to maintain ties with their home country this is an advantage. OCI allows multi entry, multi purpose visa to visit India. Parity with NRIs in financial, economic and educational fields is also given.
The students from the region also gel with the culture of the countries they opt for their education. Anita Abbi, Manager of IDP Education said, "The students from the region have an advantage as they already have relatives staying in different countries. They also tend to adapt to different cultures faster. They also tend to excel in the courses that they are pursuing. In Australia, education is becoming the biggest revenue generator."

Taking a cue from the Reserve Bank of India, state-run Canara Bank, Corporation Bank and Allahabad Bank cut lending rates on Tuesday, while other public sector players are expected to followith similar moves over the next few days.

Allahabad Bank has also revised interest rates on fixed deposits of certain maturities by one percentage point. Lending rates were cut by 50-100 basis points for housing loan, loans for consumer durables, car loans and education loans.

The country's third largest public sector lender Canara Bank cut interest rates on existing and new housing loans by 25 basis points. The cut will be effective from Friday. The cut in interest rate is irrespective of loan amount and for all tenures up to 25 years, the bank said in a statement.

The revised rates for loans up to Rs 20 lakh will be 10%for five year tenure, 10.25% for 10 years and 10.5%for loans of 10-25 years. Processing charges on home loans has also been reduced by 50 per cent up to March three, 2008.

Corporation Bank's rate cut of 25 basis points was, however, directed at small enterprises, the bank said.

Tuesday's rate cuts were the first by public sector banks after last week's move by HDFC after the RBI indicated that banks needed to move ahead with rate cuts instead of parking funds in safe instruments like government bonds.

Last month, finance minister P Chidambaram too had indicated his desire to public sector bank chiefs to cut both lending and borrowing rates but the bankers opted to wait for cues from RBI before following the government's wish.
Chidambaram had said that banks needed to cut rates for lending to sectors like consumer goods which had seen sluggish sales in recent months, pulling down overall industrial sector output. It was not clear if the finance ministry had asked banks to follow HDFC and effect rate cuts.

The Finance Minister P Chidambaram has stated that more than 12 lakh students all over India have taken benefits of an education loan and the more than Rs. 16,000 crore were disbursed to the needy students. He disclosed this information while inaugurating the 1008th branch of Vijaya Bank Rangiyam in Tirumayam taluka. The Minister praised the bank's efforts towards achieving fast growth and expansion of its branch network.

Making the education loans accessible to a wide section of students has been one of the priority areas of Government of India and it has taken many steps in this regard. One of the major hurdles faced by students, especially the poor ones is the collateral and co-applicant clause attached with education loans in India. Since, a student who applies for an education loan in India has little or no income, banks more or less ask for a co-applicant with suitable repayment capacity to stand as the guarantor for the loan.

In case the loan amount exceeds Rs. 4 lakhs ( for most banks), a collateral is also demanded by banks. It can be anything like property, fixed deposits or any other instrument, which the banks find suitable. Poor students generally are not able to provide these and therefore are denied an education loan. Government of India (GOI) has asked the banks and lending institutions to do away with these collateral and co-applicant requirements for education loans.

GOI has also proposed to set up an authority called the Higher Education Loan Guarantee Authority (HELGA), which will take care of the interest rate payments of education loan during the moratorium periods. It will also devise means to help the needy and students from deprived section of the society to avail education loans in a hassle free manner.

The Ministry of Human Resource Development (MHRD) has also proposed a special scheme, which will provide education loans to students belonging to poor sections of the society at a subsidized interest rate of 4 percent. Students who belong to families, which have a total family income below Rs. 2.5 lakh per annum can avail this loan. There will be no caste considerations in this scheme and the education loans will be available to all the needy students. Currently, education loans carry an interest rate of around 12 percent. Expecting to cost the exchequer a sum of Rs. 3,250 crore over the 11th five year plan this scheme will be offered only on professional courses of both government and private recognized universities and institutions. GOI will act as the guarantor for the loan and so there will be no need for any collateral or co-applicant.

With more and more private banks entering the field, it will be easier for students to get loans to study abroad. V. Kumara Swamy reports

When Sandeep Banerjee won a fellowship to do PhD in the US, he was ecstatic. Now all he needed was the air fare and his living expenses. He decided to approach a bank for an education loan but that, he says in retrospect, was a bad idea.

"The people handling the loan application at a bank in south Calcutta weren't even aware that a PhD in the US takes 5-7 years to complete," says Banerjee, who is doing his doctorate in English at Syracuse University, New York, after arranging for the money from other sources. Another bank finally agreed to grant him a loan, but it was of no use to him. "They said they could not give me the whole amount at one go but in instalments. Now, that wasn't of any help," Banerjee recalls.

More often than not, students, especially those seeking loans to study abroad, have similar experiences. Education loans has been designated as a priority sector by the government, but procedures to obtain educational loans continue to be long winded and "outright moronic" in Banerjee's words. The dice it seems is especially loaded against those who seek loans to study abroad.

Banks are cautious about disbursing education loans because of the high default rate. Public sector banks currently dominate this sector and the schemes offered by all of them are very similar. The upper limit for a loan to study abroad is pegged at Rs 15 lakh in most state-owned banks, although the State Bank of India does offer up to Rs 20 lakh.

On the eve of the New year Bank of Maharashtra has launched online sanction of Education Loans.

With a view to provide impetus to education, quick financing to the younger generation, the Bank has launched an On-line sanction of Education loan through its select branches across the country. Any student can apply for education loan by logging on to the Bank's website and submitting the application online. The student will get auto reply and sanction in principle On- line. The student can avail the loan after completing the formalities at the concerned branch.

Under Education loan scheme, a student can avail upto Rs.10.00 lacs for studies in India and upto Rs.20.00 lacs for studies abroad.

Bank of Maharashtra with its motto- 'One family One Bank' takes up this task of providing an opportunity to the family for providing education to their children.

Coincidently, this has come at a time when the Honorable Prime Minister on Friday the 28th December 2007 termed the 11th year plan as 'India's educational plan'.

source: Indiaprwire

India is to set up a Higher Education Loan Guarantee Authority (HELGA) that will make it easier for needy students to secure bank loans for education and also pay the interest till they complete their course.

Currently, the interest of the loan is added to the principal amount and thus the compound interest puts a lot of burden on students.

The mega plan, orchestrated by the Planning Commission and the human resource development ministry, will help students with annual family income of Rs.250,000 or less to avail of the loan.

"Every year, banks are providing study loans worth Rs.150 billion. We are setting up a Higher Education Loan Guarantee Authority to help needy students cross the hurdle," said a Planning Commission member who is closely associated with the project.

The authority will have a mandate to pay the interest incurred due to the study loan till the candidate completes the course. The member said this would put a burden on government to the tune of Rs.6.5 billion annually.

source: khabrein.info

Financing costly professional courses is set to become cheaper for students from modest middle class homes. A Rs 4,000-crore plan is in the works that will enable the government to take over the interest burden on education loans during the 'moratorium period' - the time when students are pursuing academics and have not yet begun earning.

As things stand, education loans come with a clause that allows students not to pay interest during their academic life. The interest for this period is added to the principal and payments begin once the student starts working.

But now, according to a mega scheme being finalised by the Planning Commission, the Prime Minister's Office and the ministry for human resource development, the government will take over the interest burden for the moratorium period - estimated at around Rs 650 crore a year, assuming that five lakh students from families earning Rs 2.5 lakh a year or less avail of the loans. To qualify for the scheme, the student's household income must not exceed Rs 2.5 lakh per annum. The scheme will be open for professional and technical courses at the undergraduate or postgraduate levels.

Broadly, this means students from families with monthly income of around Rs 20,000 or less would get an interest waiver while they pursue medicine, engineering, architecture, management or other such courses recognized by the Medical Council of India, University Grants Commission or All India Council for Technical Education, among others.

S.K. Sharma, Adviser, Department of Ayurveda, Yoga & Naturopathy, Unani, Siddha and Homoeopathy (AYUSH), New Delhi, has said that the Government will provide a loan of Rs. 2 crore to private Ayurveda colleges, which intend to upgrade their infrastructure.

He was speaking at a conference on Shalya, Shalakya and Prasooti Tantra at %uF793Soushruthi 2007%uF794, organised by the SDM College of Ayurveda, as part of its golden jubilee celebrations, here on Friday.

Mr. Sharma said the only condition for the loan was that the institution should put in an equal amount. The repayment period for the loan is five years.

He said that the department had chosen SDM college under its quality improvement programme. Under this programme, the college would be given Rs. 5 crore with which it could upgrade its facilities. The money would be provided during the 11th Plan period. Mr. Sharma said the Government would start an All India Institute of Ayurveda (AIIA), on the lines of All India Institute of Medical Sciences (AIIMS) in New Delhi, at a cost of Rs. 250 crore. The land for the proposed AIIA had been purchased and construction would start shortly, Mr. Sharma said.

Jayaprakash Narayan, vice-president of Central Council for Indian Medicines (CCIM), New Delhi, released a souvenir. S.S. Badrinath, founder of Shankar Netralaya, Chennai, inaugurated the Sri Dharmastala Mathrushri Ratnamma Memorial Golden Jubilee Building. MLC V.S. Acharya inaugurated the Bhava Prakasha Auditorium.....

source: http://mangalorean.com/news.php?newstype=local&newsid=60991

In the last few years the property market in India has undergone a major transformation, and in some ways aligned itself with global standards. The developer community has become more professional, ensuring better quality and timely delivery. Besides the residential sector, the commercial and retail sectors have also grown at a healthy rate.

However, there is still a huge demand-supply gap in the housing sector. Consequently, the real estate market that has grown at a galloping pace in the past is expected to maintain the momentum in the future. Most of the times we compare education loan rates to compete the various banks and exclusive offers given by them.

The mindset of the Indian customer, as far as taking a loan is concerned, has undergone a change. Unlike the cautious or even negative outlook on loans a few years ago, today, the consumer has a far more positive and open outlook on taking a loan. He feels that taking a loan enforces on him a sense of greater financial discipline, as he is bound to use a part of his salary to pay the Equated Monthly Installments (EMI), rather than spending on things on an ad-hoc basis. He also prefers it to other options such as borrowing from friends and relatives, because in his mind, taking a loan is about being self-reliant, and this gives him a greater sense of self-respect.

Although anyone thinking about taking a loan out needs to give careful consideration to affordability and necessity, often taking out a loan in order to fund your further education can be looked upon as an investment.

In the India you will find a number of lenders that are able to offer education loans and career development loans, and these can prove to be an effective and valuable solution to paying for a better education and improving your skills, knowledge, and ultimately your job prospects.

An education or career development loan can be used to fund a number of courses. You may wish to pursue your further education full time by going back to college, you may be looking to study on a distance learning basis, or you may be looking to attend a course such as IT. It sometimes become necessary to compare education loan rates before deciding a right path for your career. Whatever you are looking to do in terms of improving your skills, knowledge, education, and qualifications, you will find a number of solutions open to you including the availability of standard bank loans in addition to specialist educations loans and career development loans.

Rising college costs are making it necessary for more college bound students to include student loans in their education financing plans . The majority of students who apply for these loans are not well versed in financial matters, and can find navigating through the many student loan options available to them quite confusing. While college financial aid offices will help the prospective student through the process, students should not depend on others to determine which loans are in their best interests. Also, financial aid offices often recommend a limited selection of student loan products, giving the student a smaller range of options to explore in the search for the best rates and terms. Taking a student loan is a serious financial decision that will have an impact on the student's life for years to come, making it well worth the time and effort it takes to become an informed consumer.

Competition is growing in today's market for those Compare education loan, a fact that a savvy borrower can use to his or her advantage. However, with the growing field of lending options this competition brings, an ill informed or unwary consumer can find themselves paying more than necessary for student loans. While student loans are designed to assist the struggling student financially, companies and financial institutions that provide and service student loans are in business to make a profit, a fact that should be kept in mind while shopping for education financing or student loan consolidation products.

IT education provider NIIT on Monday signed an agreement with Oriental Bank of Commerce (OBC) to offer loan facilities to students enrolling for its courses.

As per the agreement, OBC would provide financial assistance to NIIT students in the form of educational loans of up to Rs 1.24 lakh for career programmes of over one-year duration.

The loan would be sanctioned as per the educational loan scheme of OBC and would also come with a free personal accident insurance of up to Rs 15 lakh.

Besides, the bank also offers loans of up to Rs 2 lakh to working executives for management programmes from NIIT Imperia.

Higher education is expensive. Just about anyone who has applied for college lately can attest to that fact. The depressing news is that costs for all forms of higher education will continue to rise, and these costs will affect many individuals as they consider whether or not they can afford to go to school. These increasing costs makes finding the best student loan programs imperative for many would-be students as well as for those who are already enrolled.

Education loan in India is simply a form of financial aid to help pay for the costs of attending a college or university. This money must be repaid (with interest) which is why it is a loan and not a grant or a scholarship. Grants and scholarships usually do not have to be repaid.

There are three main types of student loans: Private student loans which are also known as alternative student loans; parent loans such as the PLUS student loan programs, and then there are the more traditional and well known student loans such as the Stafford and Perkins loans.

These are the primary types of student loans, but there is one other off-shoot type of loan that is commonly known as a student consolidation loan. This type of loan takes place after a student has received his or her primary loans. The consolidation loan simply bundles all (or some) of the primary loans into one loan with one monthly payment.