Three nationalised banks and the Adi Dravida Welfare Department have put up stalls to provide education loans during the ongoing counselling at Anna University.
The loans are offered at an interest rate of 11.40 per cent for up to Rs. 7.5 lakh with the repayment tenure of up to 15 years and a moratorium/holiday repayment period till the candidate gets a job.
Officials manning the stalls say the university is among prime institutions, but is ranked below IITs and IIMs. The interest rate for the other institutions is only 9.5 to 9.45 per cent.
Another nationalised bank is offering loans up to Rs. 15 lakh for the students of premier institutions, whereas for Anna University the limit is Rs. 10 lakh.
“We select institutions based on placement criteria,” explained an official at the Indian Bank stall, which offers in-principle sanction, provided candidates produce the relevant certificates.
Loans are available for some well-established institutions and for certain streams (where placement is better).
An interest subsidy for smaller loans is also available, he said. Most of the business happens in the first 10 days of counselling.
For Adi Dravida students, the department is distributing pamphlets with details of the government stipend and subsidy.
An official here said the stall will start receiving visitors closer to the end of the session, which is exclusively devoted to SC/STs.
Loans carry an interest of 11.40% with repayment tenure extending
up to 15 years
