Many banks have special education loan schemes for meritorious and needy students. Some banks have tie-ups with educational institutes to offer comprehensive student loan packages to save students the procedural hassles in getting the loan sanctioned.
- SBI has tie-ups with the Indian Institutes of Technology (IITs) and the Indian Institutes of Management (IIMs) while HSBC has tied up with the Indian School of Business.
- Allahabad Bank offers loans at interest rates that are 200 basis points lower than the PLR for students of IIMs, IITs and professional courses.
- For those looking to study abroad, SBI has an interesting education loan package. It has a tie-up with Thomas Cook and offers instant wire transfers, foreign currency drafts, travellers cheques, pre-paid cards and insurance along with the student loan.
Scheduled Caste/ Scheduled Tribe students get privileges, in terms of eligibility and margin money, for educational loans. For example, the eligibility criteria for them may be a pass class instead of a first/ second class. And sometimes, the margin money is nil, or lower than the normal amount. However, only nationalised banks offer these privileges. Even in the case of nationalised banks, it’s a good idea to check with them beforehand.