The Reserve Bank of India (RBI) has provided an important update for Overseas Citizens of India (OCI) cardholders. The new information states that OCI cardholders who are living in India can now apply for education loans from Indian banks to study abroad. This decision has cleared up previous confusion among lenders, who had been seeking direction from the RBI about the Model Education Loan Scheme. For OCIs living in India, this is a positive development as they can now access loans for their international education aspirations. This change opens up new opportunities for those wanting to study overseas, making it easier for them to finance their education.
On the other hand, OCIs who reside outside of India are limited to applying for loans only for educational purposes within India. This distinction is important for those living abroad who wish to borrow from Indian banks. The RBI’s clarification also addressed concerns from banks about whether these loans should be subject to the Liberalized Remittance Scheme (LRS), confirming that there are no restrictions on using domestically borrowed funds for education-related expenses under LRS.
The Reserve Bank of India (RBI) has shared a significant update for Overseas Citizens of India (OCI) cardholders.In the financial year 2024, there was a remarkable increase in education loan accounts at public sector banks, showing a 17% growth. Alongside this, the total amount of loans given out rose by 14.8%, reaching an impressive ₹28,699 crore. Although there is no specific information on loans for Overseas Citizens of India (OCIs), the RBI’s announcement is expected to create a smoother and more effective process for these individuals.
This initiative by the RBI represents progress for OCIs seeking financial support for their education, making it easier for them to pursue their academic goals.
