October 7, 2017

Education Loan

MSDO Education Loan meets the specific needs of clients who wish to improve their chances of economic success by pursuing educational achievements.  The product’s specific qualities allow for use with almost any need related to education.
Education is central to the Human Resources Development and empowerment in any country. National and State level policies are framed to ensure that this basic need of the population is met through appropriate public and private sector initiatives.

MSDO student loan is designed to help students pay for university tuition, books, and living expenses. It may differ from other types of loans in that the interest rate may be substantially lower and the repayment schedule may be deferred while the student is still in education. It also differs in many countries in the strict laws regulating renegotiating and bankruptcy.

Expenses considered for loan :

  • Fee payable to college/ school/ hostel.
  • Examination/ Library/ Laboratory fee.
  • Travel expenses/ passage money for studies abroad.
  • Insurance premium for student borrower, if applicable.
  • Caution deposit, Building fund/refundable deposit supported by Institution bills/receipts.
  • Purchase of books/ equipments/ instruments/ uniforms.
  • Purchase of computers – essential for completion of the course.
  • Any other expense required to complete the course – like study tours, project work, thesis, etc.


The key features of our Education Loan are as follows:

Upto Rs 30,000*Loan Size
Guarantor Requirement INR 15, 000: one guarantor from outside the household
Installment Frequencydaily or weekly
Loan Processing Fee1% of the loan amount
Interest Rate26% p.a. on a reducing balance
12 - 24 months*Term

* This depends on the client’s preference and cash flow.


* A guarantor may be an income earning member of the same household other than a parent.  


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