Question

A student takes ₹6.8 lakh education loan for studies in India. Parents argue that no margin is required as it is a government supported scheme. The bank has to apply IBA Model Education Loan Scheme. What margin is applicable?

A No margin up to ₹7.5 lakh
B 5% margin above ₹4 lakh
C 10% margin on full amount
D Margin only for foreign studies
E Margin waived for all SC/ST
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