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Security

Equitable mortgage of property or other security having market value of 150% of loan amount Or Pledge of Bank Deposits/ NSC/ Kisan Vikas Patra or any other Government Securities with face value of not less than 100% of the loan amount Or Should be a mortgage of property/ pledge of securities. Insurance cover for the student borrower in addition.

For Further information visit:
http://www.idbibank.com/educatio.html#loan

Points to remember before applying for a loan

The tenure
A longer repayment tenure would mean more interest payments on your loan. Before you set out to complete the paperwork for a loan calculate the Equated Monthly Installments (EMI) to know how much you are expected to pay and whether you have the capacity to pay that in time.

The Loan Costs
Never forget the fee charged for disbursing a loan to you. Some banks have a higher fees than others. You need to take care of this important component of loan disbursements.

The Prepayment Dilemma
Many public sector banks do not charge you a penalty for prepayment of loans whereas many private banks ask for a penalty payment. Check this out upfront.

The Fixed Interest Rate
You need to know well in advance that interest rates do not fluctuate. If they fluctuate the choice is yours. There are quite a few fixed interest rate loans and if you are worried about variable interest rates then the best option is to go for a fixed interest rate to avoid suprises.

Monthly or Annual Repayments?
You need to check out the repayment burden on yourself and see if an annual payment suits you. If not then go for the monthly plan.

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