Case of availing 2 education loans for 1 course
Question:
Not being able to take a loan from 2 diff banks for the same course, why is this a problem?
Answer: (Courtesy NK)
While applying for an educational loan, in the student educational loan form there is an undertaking which we have to sign. It explicitly states that ¡§I have not taken any other loan for funding this course. That makes it impossible to apply for more than one loan for the same course. Had it been allowed otherwise then everyone would take loans worth 5 lakhs from four different banks. This way we would save a lot of money also, since the interest rate charged increases proportionately with the loan amount. The only other option is to give a false undertaking i.e sign that part of the form and still take loan from some other bank. How ever I would strongly advice against it as there is every possibility of this matter coming to the banks notice. Under such a situation the undertaking is considered "fraud" and the offender is liable to be tried under law.
Not being able to take a loan from 2 diff banks for the same course, why is this a problem?
Answer: (Courtesy NK)
While applying for an educational loan, in the student educational loan form there is an undertaking which we have to sign. It explicitly states that ¡§I have not taken any other loan for funding this course. That makes it impossible to apply for more than one loan for the same course. Had it been allowed otherwise then everyone would take loans worth 5 lakhs from four different banks. This way we would save a lot of money also, since the interest rate charged increases proportionately with the loan amount. The only other option is to give a false undertaking i.e sign that part of the form and still take loan from some other bank. How ever I would strongly advice against it as there is every possibility of this matter coming to the banks notice. Under such a situation the undertaking is considered "fraud" and the offender is liable to be tried under law.
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