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Get desi education with NRI loan!

Last updated on: August 26, 2010 16:32 IST

Image: NRIs can opt for education loans.
Photographs: Illustration: Uttam Ghosh/

Mr Sharma has been living in the Dubai for several years. His daughter, Neetu has completed her 12th standard. Mr Sharma now wants his daughter to pursue her higher education in India.

Neetu welcomed his decision thanks to the credibility of the Indian education system and she believes institutions here are particularly sought after.

Educational institutions in India have a quota system for non resident Indians (NRIs). But the catch is that the fees are higher than what resident students pay.

If that is an area of concern, go for a educational loan for NRIs.

What is an NRI education loan? ...

Get desi education with NRI loan!

Image: A loan helps.
Photographs: Illustration: Uttam Ghosh/
The education loan allows the NRI to educate his son/daughter in India in recognised schools and colleges by taking a loan.


The objective is to meet the tuition and admission fees, cost of books, equipment and other maintenance costs. Deposits can also be financed under the scheme.


  • For studies in India, an amount of around Rs 400,000-20,00,000 will be available.
  • Indian nationals and students who have passed the entrance test or secured admission for the course will be eligible.
  • Eligible courses include computer courses conducted by institutes given due accreditation by the department of electronics, all technical and professional courses, graduate, post graduate and or doctorate degree studies in recognized schools, colleges and institutions. For e.g. course in medicine, agri sciences, veterinary science, dental science, architecture, computer science, industrial management, business administration among others

Get desi education with NRI loan!

Image: Loan eases your burden.

Costs covered under the loan would include fees payable, examination fees, library fees, cost of books, equipments, instruments and uniforms, refundable deposit to the building fund, purchase of computer essential for the course, and other expense related to the course such as project work, thesis, and tours among other things.


Holiday/moratorium period (course period + 6 months after completion of the course.) If the student gets employed within 6 months after completion of the course, the repayment should start immediately after the expiry of one month from the date of employment.

Maximum repayment period of loan

The loan to be repaid in 5-7 years after commencement of repayment. If the student is not able to complete the course within the scheduled time extension of time for completion of course may be permitted for a maximum period of 2 years.

If the student is not able to complete the course for reasons beyond his control, sanctioning authority may at his discretion consider such extensions as may be deemed necessary to complete the course.

Margin up to Rs 400,000 in most cases is nil and above Rs 400,000 is 5 per cent.

Collateral security

Upto Rs 400,000 - No Security
Above Rs 400,000 up to Rs 750,000 - Suitable Third Party Guarantee
Above Rs 750,000 and up to Rs 20,00,000 - 100 per cent collateral in any of the form of Immovable property/NSC/ Units of UTI/LIC policy/RBI Bonds or any transferable government securities

Get desi education with NRI loan!

Image: Do not default repayment.
Any irregularity or default in repayment will attract penal interest which can be in the range of 1 per cent and 2 per cent p.a. over and above the above rate of interest charged on the loan.

The loan will be disbursed in stages as per the requirement of the institutions/vendors of books/equipments/instruments.

Documents to be submitted include

  • Application (student and parent or guardian jointly)
  • Two copies of passport size photos
  • Proof of admission to course
  • Schedule of expenses for the course
  • Copy of salary certificate/statement (other proof) of Income of parent/guardian
  • Copy of passport of parent/guardian and student (if applicable)
  • Repayment of the loan will begin 12 months after the completion of the course or 6 months after getting job whichever is earlier and it is to be paid in monthly installments which is typically for 60 months.
  • If you are an NRI and want to send your child back to India for studies and you are in need of funds, NRI educational loan could solve your hassle.

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