Many corporate companies, medias, news papers had started conducting education fairs. These education fairs are conducted only for their self – motive. Education fairs are important and foremost reason for more number of education loan denials .
Recently even The Hindu also published the education loan rules which stated that management quota also eligible for education loan. But there is clear note on IBA guidelines which states “Note: It would be in order for banks to consider a meritorious student (who qualifies for a seat under merit quota) eligible for loan under this scheme even if the student chooses to pursue a course under Management Quota.” -(This is an extract from IBA guidelines disclosed in September 2012)
It clearly says that who qualifies for seat under merit quota & chooses to pursue under management quota and says it is also Bank’s decision. So one has to definitely go for counselling and then getting letter from counselling centre that the seats in desired college is not available and will go for Management quota. Only these management quota students who attends counselling first and go for management quota are eligible for Education Loan under IBA scheme.
But what’s happening in Education Fair’s ?
They will brain wash and offer you spot admission saying we arrange for bank loans. So there you lose the eligibility of Interest Subsidy Scheme of education loan. Even many banks will be present at the Education fair. They will promise you the education loan if you join that college even in management quota. But atlast they will provide Regular Education loan (Non-IBA)
What is the difference between IBA scheme and Non-IBA Scheme ?
|IBA SCHEME||NON – IBA SCHEME|
| Interest Subsidy for the Moratorium period.
Moratorium period is study period + 1 year or study period + months if he get job
|There is no interest subsidy in this scheme. Interest will be applied from the date of delivering the education loan|
|Repayment starts after the completion of course + 1year or completion of course + 6 months if he/she gets job
||Repayment period starts next month from the date of delivering the Education loan|