What is Rajiv Gandhi Education Loan?
Rajiv Gandhi Education Loan is a financial scheme launched by the Government of India to provide financial assistance to students who wish to pursue higher education in India. The scheme is named after former Prime Minister Rajiv Gandhi. The scheme was introduced in the year 2000 and provides education loans up to Rs.10 lakh for studies in India and up to Rs.20 lakh for studies abroad. The loans are available at a concessionary rate of interest and are offered to students from economically weaker sections of society. The scheme has been a great boon for students from economically weaker backgrounds, allowing them to pursue higher studies without financial worries.
Eligibility and Benefits of Rajiv Gandhi Education Loan
To be eligible for the Rajiv Gandhi Education Loan, a student must have secured admission to a recognized educational institution in India or abroad. The student must also have a good academic record, and must have secured at least 50% marks in the qualifying examinations. The loan can be taken for full-time courses in approved institutions such as universities, colleges, professional courses, technical courses, and post-graduate courses.
The main benefit of the Rajiv Gandhi Education Loan is that it is provided at a concessional rate of interest. The interest rate on the loan is between 8% and 12%, depending on the amount of the loan. The loan is also offered for a period of up to 15 years. The repayment of the loan is subject to a moratorium period of up to 2 years, which means that the repayment of the loan can be delayed until the student completes the course and starts earning.
Documents Required for Rajiv Gandhi Education Loan
To apply for the Rajiv Gandhi Education Loan, the student needs to submit certain documents. These documents include the admission letter from the educational institution, the latest mark sheet of the student, the fee structure of the institution, and the student’s identity proof. The student also needs to submit a letter from the institution stating the amount of the loan taken and the repayment schedule.
In addition, the student needs to submit a guarantor’s form, which is a surety bond between the student and the bank. The guarantor’s form needs to be signed by two guarantors, who must be of the same income group as the student. The guarantor’s form also needs to include the details of the guarantor’s income and assets, as well as the details of the guarantor’s employment.
How to Apply for Rajiv Gandhi Education Loan
Students who wish to apply for the Rajiv Gandhi Education Loan can do so by visiting the nearest branch of the bank in which they have an account. They need to submit the documents required and fill out the loan application form. The bank will then process the application and approve the loan amount. Once the loan is approved, the student can start repaying it according to the repayment schedule.
The repayment of the loan can be made in the form of EMIs (equated monthly installments). The EMIs are calculated based on the loan amount, the interest rate, and the repayment period. The student can also choose to make a one-time repayment at the end of the loan period.
Conclusion
Rajiv Gandhi Education Loan is a great scheme that allows students from economically weaker sections of society to pursue higher education without financial worries. The loan is available at a concessional rate of interest and can be taken for full-time courses in approved institutions. To apply for the loan, students need to submit certain documents, such as the admission letter from the educational institution, the latest mark sheet of the student, and the fee structure of the institution. The repayment of the loan can be made in the form of EMIs or a one-time repayment at the end of the loan period.
