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of <h1>Indian Banks Offer Life Insurance for Student Loans Under Model Educational Loan Scheme; Covers Loan if Student Dies.</h1> Education loans in India are provided under the Model Educational Loan Scheme by the Indian Banks Association, allowing banks to offer life insurance policies for students with loans. If a student dies, the insurance covers the outstanding loan amount. The scheme is periodically updated with input from stakeholders, including the Indian government, with the latest revision in September 2012. This information was disclosed by the Minister of State for Finance in a written response to a question in the Lok Sabha.
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