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    Question

    A Scheduled Commercial Bank offers education loans

    without requiring any collateral. According to Indian banking norms, what is the maximum loan amount allowed under this provision?
    A ₹4 lakhs Correct Answer Incorrect Answer
    B ₹5 lakhs Correct Answer Incorrect Answer
    C ₹7.5 lakhs Correct Answer Incorrect Answer
    D ₹10 lakhs Correct Answer Incorrect Answer
    E ₹15 lakhs Correct Answer Incorrect Answer

    Solution

    As per the Indian Banks' Association (IBA) Model Education Loan Scheme, loans up to ₹7.5 lakhs for studies in India do not require collateral or third-party guarantee. Loans beyond this require security or co-obligation.

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