What is the maximum amount that can be availed under educational loans? / How is the maximum loan amount calculated?
The maximum loan amount varies from bank to bank, but, most importantly, it depends on the course for which the loan is sought and the institution chosen. For example, the loan amount for an M.B.A. course would be different for different institutes–the fees at I.I.M.’s would be approximately Rs 2 Lac, whereas at Somaiya it would be Rs 80,000. Hence the loan amount will vary drastically. But many banks have a margin criterion, which means that they would provide up to 75 per cent or 90 per cent of the total cost of the course, while the balance has to be paid by the applicant. The loan amount can also depend on the borrower’s parents/guardians net monthly salary. The loan amount could also be calculated as being six or 10 times the monthly salary of the parent. Ultimately, however, the loan amount would depend on the discretion of the bank.
Related Questions
- I did not borrow the maximum in Stafford Loans. How can I borrow more and what is the deadline for applying for additional loan funds?
- What is the maximum amount that can be availed under educational loans? / How is the maximum loan amount calculated?
- What is the maximum loan amount and repayment time for LOANs given by DMFB?
