Education Loan
Education Loan
A bank provides an education loan to cover the costs of pursuing higher education, which is paid back over a period of time with interest. It is a popular way for students to finance their education when they cannot pay for it upfront.
Features
Loan amounts | Up to 10 Million (Without Collateral) | Above 10 Million (With Collateral) |
Period of the facility | Up to 5 years | |
Repayment Method | Monthly EMI System | |
Minimum Monthly Income | 1,000,000 MMK | |
Age of the borrower | Must not be under 21 years old. Must be at most 57 years old. |
Loan Eligibility
- Loan is eligible only to deserving students.
- The bank will cover up to 80% of the total study cost. The applicant is responsible for raising the remaining 20% of the total study cost.
Eligible Borrowers
- A student who wants to continue their education with Diploma, Bachelor or Master’s in external private Institutions and Universities.
- Those who want to study in overseas Universities.
Personal Guarantee
- Student along with father or mother as joint borrower.
- If father and / or mother is no longer alive, the closet blood relative and the person who made the recommendation should be joint borrowers.
Collateral Security
- 1 Mn MMK – 10Mn MMK (Nil)
- Above 10Mn MMK (Must have collateral security of land, house, a car owner’s book, and a fixed deposit.)
Fees & Charges
Interest rates | Up to 12.5 % p.a |
Service Charges | 1% on loan amount |
Early Repayment | Nil |
Requirement Documents
- Completed application form
- Passport photo + copy of NRC
- Copy of Household Census
- Original Testimonial Letter from Ward Administration Office
Salary Employee
- Salary Slip (minimum 6 months)
- Employment Confirmation Letter
- Bank Statement (minimum 6 months)
Self Employed
- Business or Company Registration Documents
- Income/ Financial Statement (Operating Account)
- Tax Receipts
Related Education Documents
- Copy of admission letter or offer letter of the Institute/University along with Fees schedule, course duration and fees.
- Copy of the mark sheet and certificates for the most recent degree obtained
- Details about the university or college or school where the student will be studying
- Any other relevant documents to verify qualification