Click to play videoMumbai: An MBA at IIM-A might be costlier now, but it may not keep students away after all. That's because banks are coming to the rescue.
In a significant development, banks have done away with the clause seeking collateral for student loans. They are also giving more leeway and are no longer seeking a guarantor for sanctioning student loans.
IIM-A Director, Sameer Barua says, "Two students can guarantee each other's loan. Like if I'm a student and you're a student, I can guarantee your loan and you can guarantee mine. And banks are willing to accept that. Parents are out of the picture and the burden of guaranteeing also doesn't fall on the parents. This is ensure that no student is denied admission due to lack of funds."
This form of guarantee, however, is not available to students opting for the flagship post-graduate programme. But the helping hand doesn't stop there. Banks are also considering increasing student loan limits.
SBI is now offering Rs 14 lakh, against the earlier limit of Rs 10 lakh. Andhra Bank is in talks to hike its limit to Rs 12-13 lakh, and Axis Bank already offers Rs 15 lakh.
However, some banks are willing to make repayment easier for students. For instance, if a student joins an NGO after the course, the payment period is extended by two more years. And with all that, students are now looking forward to getting loan pamphlets along with their admission letters.
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