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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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