What is the maximum loan amount for education loans that

Solution

As per RBI circular on Collateral Free Loans - Educational Loan Scheme, it is mandatory that banks should not obtain collateral security in the case of education loans up to ₹4 lakh. According to RBI guidelines under Model Education Loan Scheme (MELS) set by the Indian Banks’ Association (IBA): • Loans of up to INR 4 lakhs are entirely collateral-free. • For loans between INR 4 lakhs and INR 7.5 lakhs, students need to provide a guarantor. • Loans exceeding INR 7.5 lakhs require tangible collateral.