InvestorQ : Is there a margin on education loans?
Tanya Mehta made post

Is there a margin on education loans?

Anusha Savla answered.
2 years ago

Most education loan providers do not charge a margin on education loans equal to or less than Rs. 4 lakhs. For higher loan amounts of up to 7.5 lakhs, banks and NBFCs have a margin of around 5% i.e. they provide loan amount equal to 95% of the course cost and the rest must be borne by the applicant. In case of higher loan amounts, the lender may decide to set margins on a case by case basis according to internal policies.