Time Limit for Repayment of Educational Loans
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
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 loans taken 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?
(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