Education and Career Forum

I am interested to study MBA in IIM. For this, I am preparing CAT so that I can secure excellent percentile and secure admission in IIM. But my problem is, I wouldn’t able to bear the expenses. For this I want to apply an education loan and I have heard about the Naini Shiksha Education Loan scheme which is provided by Nainital Bank. Can you please provide me the details of this loan scheme?

Yes, sure. The Naini Shiksha Education Loan Scheme is offered by Nainital Bank to provide financial assistance to students who want to pursue higher education in India or abroad. Here are the details of this loan scheme for MBA-IIM aspirants:

Eligibility:

• The applicant should be an Indian national
• He/she should have secured admission to MBA course in IIM
• He/she should have a good academic record
• The applicant should have a co-applicant who should be a parent, spouse, or guardian

Loan Amount:

• The maximum loan amount is Rs. 25 lakhs for studying in India and Rs. 50 lakhs for studying abroad
• The loan amount covers tuition fees, hostel fees, exam fees, etc.

Interest Rate:

• The interest rate is floating and varies as per market conditions.
• The interest rate ranges from 9.50% to 10.50% per annum.

Repayment:

• The repayment period is up to 15 years.
• Repayment starts after the moratorium period which is the course period plus 1 year or 6 months after getting a job, whichever is earlier.
• There is no penalty for prepayment.

Security:

• For loans up to Rs. 4 lakhs, no security is required.
• For loans above Rs. 4 lakhs and up to Rs. 7.5 lakhs, third-party guarantee is required.
• For loans above Rs. 7.5 lakhs, collateral security is required in the form of property or any other acceptable security.

Processing Fee:

The processing fee is 1% of the loan amount, subject to a maximum of Rs. 5,000.

I hope this information helps you in making an informed decision about your education loan.