Time Limit for Repayment of Educational Loans

Written By Admin on 15 December 2013 | Sunday, December 15, 2013

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

LOK SABHA

UNSTARRED QUESTION NO 428

ANSWERED ON 06.12.2013

TIME LIMIT FOR REPAYMENT OF EDUCATIONAL LOANS

428 . Shri R. THAMARAISELVAN

Will the Minister of FINANCE be pleased to state:-

(a) the existing time limit fixed by the Government/Reserve Bank of India (RBI) for repayment of educational loanstaken by students to pursue higher studies abroad;
(b) whether the Government proposes to expand the said time limit; and
(c) if so, the details thereof and the reasons therefor?

ANSWER

(MINISTER OF STATE IN THE MINISTRY OF FINANCE) (SHRI NAMO NARAIN MEENA) 

(a) : As per revised Model Education Loan Scheme of Indian Banks’ Association (IBA), the students are allowed repayment period of 10 years for education loans upto Rs 7.50 lakh and 15 years for loans above Rs 7.50 lakh.

Students are allowed repayment holiday/moratorium during course period plus 1 year or 6 months after getting the job which ever is earlier.

(b) & (c) : No such proposal is under consideration of the Government at present.

Source: Lok Sabha