Loans for entrance test coaching classes soon.
The increasing rush to get admission in a reputed engineering or medical college has led to mushrooming of coaching centres, but has also opened a new avenue for banks to increase their customer base. Banks are now offering loans to pay the fees of coaching classes for competitive exams.
Currently, Central Bank of India and Corporation Bank offer this product.
These loans are of shorter tenure than educational loans as the moratorium period (the time after which the loan repayment starts) is lesser than that of a regular education loan. The repayment commences three months after the last disbursement of the loan. The maximum repayment period is 36 months or three years, including a moratorium period of three months.