Secured Education Loan For Higher Studies in India and Abroad

Introduction

As we all know higher education is one of the most financially demanding sectors in any country, and students find it difficult to fund their dreams in top-notch institutions. In fact, tuition fees consume more than half of the total expenditure for a typical higher education program. When you compare the expenses of an undergraduate student in India to that of a student studying abroad, you may come to realize that the cost of higher studies in India is lesser than that required to study abroad. However, the tuition fees alone would constitute quite a considerable amount even for higher studies in India. This is the reason why a lot of students take help from financial institutions to fulfill the financial prerequisites of studying in India and abroad.

This article lists some of the education loan schemes of prominent lenders which are meant for higher studies in India. Today’s article will give you information about various aspects of a typical education loan for higher studies in India, like interest rates, processing fees, maximum education loans, collateral education loans for abroad studies, etc. Before trying to understand the details mentioned above, let us try and understand the two different types of loans available for higher studies in India.

Types of Education Loan for Higher Studies in India

Education loans are categorised into two different types based on the requirement of collateral. In order to borrow an education loan in India, it is essential to have sufficient information on both types of abroad education loans.

1. Secured Education Loan: Education loans lent on the basis of collateral security are known as secured education loans for abroad studies. In this type of education loan, students are required to pledge collateral to borrow an education loan in India. These loans are lent by all prominent government/public banks in India. One of the biggest benefits of secured student loans borrowed from government banks is the moratorium period which is a loan holiday granted to all candidates before the repayment period begins. This moratorium period buys enough time for other students to find employment and begin their education loan repayment.

2. Unsecured Education Loan: Unsecured education loan is basically an education loan without collateral. These loans do not require any form of collateral. They are mainly lent by private financial companies called NBFCs (Non-Banking Finance Companies) and a few other private banks. Government banks lend unsecured education loans of up to Rs.7.5 Lakhs too. Unlike government banks, NBFCs and private banks do not offer the benefits of a moratorium period to loan applicants.

The entire process of getting both types of education loans abroad is explained in great detail in many of our previous articles in this blog, as well as Loanflix episodes. The WeMakeScholars team believes that no student who is in need of an education loan should be denied or unable to borrow one under any circumstances. To know more about how we help students with the abroad study loan, do reach out to our financial officers at the earliest.

Now that you have had sufficient information about the various education loans in India, let us take a look at the education loan schemes offered by prominent lenders in India.

SBI Education Loan - Student Loan Scheme or Higher Studies in India and Abroad Details

This SBI education loan scheme is a secured student loan scheme that is majorly aimed at providing financial assistance to students who wish to pursue higher studies in India, as well as abroad.

SBI Student Loan Scheme Details	Values
Eligibility	A term loan granted to Indian Nationals for pursuing higher education in India or abroad where admission has been secured.
Collateral requirement/Security	Upto Rs. 7.5 Lakhs: No Collateral Security or third-party guarantee Above Rs. 7.5 Lakhs: tangible collateral security
Co-applicant requirement	Upto Rs. 7.5 Lakhs: Only Parent/ Guardian as co-borrower. No Collateral Security or third-party guarantee Above Rs. 7.5 Lakhs: Parent/ Guardian as co-borrower and tangible collateral security
Margin	Up to Rs 4 Lacs - Nil Above Rs 4 Lacs - 5% for studies in India, 15% for studies in abroad
Repayment	upto 15 years after Course Period + 12 months of repayment holiday
Processing Charges	Loans upto Rs. 20 lacs : Nil Loans above Rs. 20 lacs: Rs. 10,000 (plus taxes)
Loan Amount	Maximum upto INR 50 Lakhs Medical Courses: Upto INR 30 Lakhs Other Courses: Upto INR 10 Lakhs
Education Loan Interest Rate	11.15% - For male students 10.60% - For female student
Interest rate type	Fixed Interest rate
Concession	0.50% concession in interest for girl students and 0.50% concession for students availing of SBI Rinn Raksha

SBI Education Scholar Loans (IITs, IIMs , NITs etc.)

This SBI education loan scheme is aimed at students who are enrolled for higher studies in India in some of the top-ranked educational institutions in the country like the IITs, IIMs, and NITs. The highest education loan amount under this SBI education loan scheme varies depending on the category of the institution into which students are enrolled. Some of the other features of this education loan for higher studies in India are provided in the table below.

SBI Education Scholar Loans	Values
Eligibility	A term loan granted to Indian Nationals for secured admission to Professional/Technical courses in Select Premier Institutions through Entrance Test/Selection process
Collateral requirement/Security	Upto Rs. 7.5 lacs to Rs. 20 lacs- No Security Above Rs 20 lacs- Collateral required
Co-applicant requirement	Upto Rs. 7.5 lacs to Rs. 20 lacs-only Parent/ Guardian as co-borrower Above Rs 20 lacs- Parent/ Guardian as co-borrower (In case of married person, co-applicant can either be spouse or parent/ parent-in-law)
Margin	Nil, 100% Financing by the bank
Repayment	upto 15 years after Course Period + 12 months of repayment holiday
Processing Charges	No Processing Fee

Category	Without Security (parent or guardian as co-signer)	With Security (& with parent/guardian as co-signer)
List AA	Rs. 40 lacs	-
List A	Rs. 20 lacs	Rs. 30 lacs
List B	Rs. 20 lacs	-
List C	Rs. 7.5 lacs	Rs. 30 lacs

Institutions are categorised as AA, A, B, and C, depending on their overall ranking. The final education loan amount depends on these ranks.

SBI Scholar Education Loan Interest Rates

List	Institution	Effective Interest Rate	Rate Type
AA	ROI	8.55% (with co-borrower)	Fixed
AA	ROI	8.60% (with co-borrower)	Fixed
A	All IIMs & IITs	8.55%	Fixed
A	Other institutes	9.05%	Fixed
B	All NITs	9.05%	Fixed
B	Other institutes	9.55%	Fixed
C	All NITs	9.05%	Fixed
C	Other institutes	10.05%	Fixed

SBI Global Ed-Vantage Scheme

SBI Global Ed-Vantage Scheme	Values
Eligibility	Students who wish to pursue full-time regular courses at foreign colleges/universities for regular Graduate Degree/Post-Graduate Degree/Diploma/Certificate/Doctorate Courses in any discipline
Collateral requirement/Security	Tangible collateral security or Collateral security offered by Third Party (other than parents) can also be accepted
Margin	Scholarship/assistantship to be included in margin.
Repayment	Repayment will commence 6 months after completion of course Repayment upto maximum of 15 years
Processing Charges	Rs. 10,000/- per application
Loan Amount	Minimum Loan Amount: Above Rs. 7.50 Lacs Maximum Loan Amount: Rs. 1.5 Cr
Education Loan interest rate	Above Rs. 20 lacs & Upto Rs 1.5 Cr- 9.30%
Interest rate type	Fixed Interest rate
Concession	0.50% concession in interest for girl students and 0.50% concession for students availing of SBI Rinn Raksha

SBI Skill Loan Scheme

SBI Skill Loan Scheme	Values
Eligibility	A term loan granted to Indian Nationals for pursuing Skill development courses in India
Collateral requirement/Security	No collateral or third-party guarantee will be taken
Co-applicant requirement	Parent/ Guardian will execute loan documents along with the student, as joint borrower (co-borrower). Spouse will be included as co-applicant wherever applicable, in addition to Parent/ Natural Guardian
Margin	Nil, 100% Financing by the bank
Repayment	Loans upto Rs 50,000: Upto 3 years Loans between Rs 50,000 to Rs 1 lakh Upto 5 years Loans above Rs. 1 lakh: Upto 7 years
Processing Charges	No processing fee
Loan Amount	Minimum Loan Amount: Rs. 5000 Maximum loan amount: Rs. 1,50,000
Education Loan interest rate	10.65% for all students
Interest rate type	Fixed Interest rate
Concession	No Further Concession

SBI Takeover of Education Loans SBI Takeover of Education Loans Value

SBI Takeover of Education Loans	Values
Eligibility	With SBI Take-over of Education Loans, you can switch your existing high-cost Education Loan to SBI and reduce your monthly EMIs.
Collateral requirement/Security	The collateral security acceptable to the bank to be a minimum of 100% of the value of the proposed loan
Repayment	Flexible repayment tenure upto 15 years
Processing Charges	No Processing Fee
Loan Amount	Minimum: Rs. 10 Lakhs Maximum: Rs. 1.5 Crores
Education Loan interest rate	11.15%
Interest rate type	Fixed interest type
Concession	0.50% concession for girl students

These are the few schemes provided by SBI Education Loans. However, the interest rates mentioned in the article are the latest on the date of publishing. Interest rates are subject to change with the change in market conditions. Therefore, it is recommended to get in touch with your financial officer to know the latest interest rates and to inquire about all the requirements of the scheme in detail.

Bank of Baroda Education Loan For Higher Studies in India and Abroad

Bank of Baroda Scholar for Study Abroad

In order to avail of this education loan in India, the student must have secured admission to a notified institute and course. The loan limit for the universities which come under the prime category is Rs. 1.5cr and for the universities which come under the non-prime category is Rs. 60 lakhs.

Bank of Baroda Scholar for Study Abroad	Values
Eligibility	Applicant must be Indian National/ Secured admission to professional/technical courses Abroad through Entrance Test / Merit Based Selection process.
Collateral requirement/Security	Loan amount must be below or 100% of collateral value.
Repayment	Up to Rs.7.5 lakh: Moratorium period + 10 years Above Rs.7.5 lakh: Moratorium period + 15 years
Margin	Nil
Processing Charges	Rs.10,000 + GST (Rs.10,000 refundable)
Loan Amount	Prime Universities: Rs.1.5cr Non-Prime Universities: Rs.60 lakh
Interest rate	For Prime Universities- 10.60% for boys, 10.10% for girls, For Non-prime Universities- 11.25% for boys, 10.75% for girls
Concession	0.50% Concession in rate of interest to loans for girl students

Baroda Gyan (For Higher Study in India)

This scheme is specifically designed for students who aim to pursue graduation, post-graduation, or any other professional courses in India. In order to avail of this loan, the student must have secured admission to the course.

Baroda Gyan (For Higher Study in India)	Values
Eligibility	Students pursuing Graduation, Post-Graduation, Professional, and other courses in India
Collateral requirement/Security	Up to RS. 4.00 lacs: Co-obligation of parents- No Security required Above RS. 4.00 Lacs and up to RS. 7.50 lacs- Third party collateral or tangible collateral required Above RS. 7.50 lacs- Tangible collateral security equal to 100% of the loan amount required
Repayment	Up to Rs.7.5 lakh: Moratorium period + 10 years Above Rs.7.5 lakh: Moratorium period + 15 years
Margin	Up to RS. 4.00 lakhs: Nil Above RS. 4.00 lakhs: 5%
Processing Charges	Rs.10,000 + GST (Rs.10,000 refundable)
Loan Amount	Maximum RS.80.00 Lakh for Medical & Aviation Education Maximum RS.10.00 Lakh for others
Interest rate	11.05% for boys and 10.55% for girl students
Concession	0.50% Concession in rate of interest to loans for girl students

Baroda Education Loan to Students of Premier Institution

Baroda Education Loan to Students of Premier Institutions is given to Indian Nationals who have secured admission into top-notch education institutes in India. The loan amount depends on the categorization of the institute (AA, A, B, C).

Baroda Education Loan to Students of Premier Institutions	Values
Eligibility	Full time regular Courses conducted by the Premier Educational Institutions
Collateral requirement/Security	List AA- Up to RS. 40.00 Lakh No Security: Above RS. 40.00 Lakh collateral required List-A- Up to RS. 20.00 Lakh No Security: Above RS. 20.00 Lakh Collateral required List-B and List-C: Up to RS. 7.50 Lacs No Security: Above RS. 7.50 Lacs Collateral required
Repayment	Up to Rs.7.5 lakh: Moratorium period + 10 years Above Rs.7.5 lakh: Moratorium period + 15 years
Margin	Nil
Processing Charges	Rs.10,000 + GST (Rs.10,000 refundable);
Loan Amount	List AA Secured:Rs.80 Lakhs, Unsecured:Rs.40 Lakhs List A Secured: Rs.80 Lakhs, Unsecured: Rs. 20 Lakhs List B & C Secured:Rs.80 Lakhs, Unsecured:Rs. 7.50 Lakhs
Concession	No special concession for girl students under this scheme

Bank of Baroda Education Loans for Executive Development Programme (EDP) being offered by Premier Institutions Abroad

In Bank of Baroda Education Loans for Executive Development Programme (EDP) are given for executive development programs abroad and up to Rs. 80 lakhs only. A student should be gainfully employed and would continue to be in gainful employment during the study.

Bank of Baroda Education Loans for Executive Development Programme (EDP)	Values
Eligibility	Students pursuing Executive Development Programmes(Part Time /Online programmes/Distance Learning) being offered by Premier Institutions abroad, as listed under List of Premier Institutions
Collateral requirement/Security	Up to RS. 4.00 lacs: Co-obligation of parents, no security required Above RS. 4.00 Lacs and up to RS. 7.50 lacs (any security required) Above RS. 7.50 lacs- Tangible collateral security equal to 100% of the loan amount
Repayment	Up to Rs.7.5 lakh: Moratorium period + 10 years Above Rs.7.5 lakh: Moratorium period + 15 years
Margin	Up to RS. 4.00 lakhs: NIL Above RS. 4.00 lakhs: 5%
Processing Charges	1.00% of Loan amount (maximum ₹ 10,000/-) to be recovered upfront which will be refundable on availment
Loan Amount	Maximum Rs. 80.00 Lakh

These are the few schemes provided by Bank of Baroda Education Loans. However, the interest rates mentioned in the article are the latest on the date of publishing. Interest rates are subject to change with the change in market conditions. Therefore, it is recommended to get in touch with your financial officer to know the latest interest rates and to inquire about all the requirements of the scheme in detail.

The Punjab National Bank Education Loan For Higher Studies in India

PNB Pravasi Shiksha Loan

PNB Pravasi Shiksha Loan is the education loan scheme for Overseas Citizens In India (OCI)/ Person Of Indian Origin (PIO) i.e. students born abroad and willing to pursue higher education in India. The main objective of this scheme is to provide opportunities for meritorious students to pursue their education in India by seeking financial support from the banking system with affordable terms and conditions.

PNB Pravasi Shiksha Loan	Values
Eligibility	Overseas citizen of India (OCI)/ students who are born to Indian parents during their stay abroad
Collateral requirement/Security	Equitable/Registered Mortgage of Immovable Property in India in the name of Guarantor(s) with value at least 125% of the loan amount or Liquid Security with value at least 125% of loan amount
Repayment	Maximum 10 years (excluding moratorium period)
Margin	20%
Interest rate	11.25%
Processing Charges	1% of the loan amount, Minimum Rs.10,000/- (Non-refundable)
Loan Amount	Need based

PNB Saraswati

PNB Saraswati Education Loan Scheme aims to provide financial support to meritorious students for pursuing higher education in India.

PNB Saraswat	Values
Eligibility	Student should be an Indian national and should have secured admission to a higher education course in recognized institutions in India through Entrance Test/ Merit Based Selection process, Cases of Management Quota may be considered on a merit basis
Collateral requirement/Security	Upto Rs. 7.50 lacs: No security required Above Rs.7.50 lacs: Security required
Repayment	Maximum upto 15 years
Margin	Up to Rs. 4 lac - Nil Above Rs. 4 lac - 5%
Interest rate	10.75%
Processing Charges	For Studies in India- Nil
Loan Amount	Need based- Finance subject to repaying capacity of the parents/students

PNB Pratibha

PNB Pratibha aims to provide financial support to students who aim to study in top premier institutes in India. Premier institutes, including Business Schools, Engineering Colleges, Medical Colleges, and other reputed Institutes, are eligible to avail loans under PNB Pratibha Scheme.

PNB Pratibha	Values
Eligibility	Should be an Indian national. Secured admission in Regular full time Degree /Diploma courses of Premium Institutes covered Premier institutes which includes Business Schools, Engineering Colleges, Medical Colleges and other reputed Institutes are eligible
Co-applicant requirement/Security	Co-obligation of parents/guardian as joint co-borrowers
Repayment	maximum upto 15 years
Margin	(a) Scholarship/Assistantship be included in margin (b) Margin may be brought-in on a year-to-year basis as and when disbursements are made on a pro-rata basis
Interest rate	Based on the institution
Processing Charges	For Studies in India- Nil
Loan Amount	Need based- Finance subject to repaying capacity of the parents/students

PNB Udaan

PNB Pratibha aims to provide financial support to students who aim to pursue their higher education abroad.

PNB Udaan	Values
Eligibility	Student should be an Indian national and should have secured admission to a higher education course in recognized institutions in India through Entrance Test/ Merit Based Selection process
Collateral requirement/Security	Upto Rs. 7.50 lacs: no collateral security Above Rs.7.50 lacs: collateral required
Repayment	maximum upto 15 years
Margin	Up to Rs. 4 lac - NIL Above Rs. 4 lac - 15% (a) Scholarship/Assistantship be included in the margin (b) Margin may be brought in on a year-to-year basis as and when disbursements are made on a pro-rata basis
Interest rate	10.75%
Processing Charges	For Studies abroad- 1% Minimum Rs.10000/- (Refundable after 1stDisbursement)
Loan Amount	Minimum Rs.5000/- Maximum Rs 1,50,000/-

PNB Kaushal

The PNB Kaushal scheme aims to provide financial support to students who are willing to pursue skill development courses.

PNB Kaushal	Values
Eligibility	Student should be an Indian national and should have secured admission to a higher education course in recognized institutions in India through Entrance Test/ Merit Based Selection process
Collateral requirement/Security	No collateral is required
Repayment	For Loans upto Rs. 50,000 - Upto 3 years. For Loans between Rs. 50,000 to Rs. 1 lakh - Upto 5 years For Loans above Rs. 1 lakh - Upto 7 years
Margin	Nil
Interest rate	10.25%
Processing Charges	For Studies in India- Nil
Loan Amount	Minimum Rs.5000/- Maximum Rs 1,50,000/-

PNB Honhaar

The PNB Honhaar Scheme aims at providing financial support to students who are willing to pursue higher education in Delhi.

PNB Honhaar	Values
Eligibility	Student should be an Indian national and should have secured admission to a higher education course in recognized institutions in India through Entrance Test/ Merit Based Selection process
Collateral requirement/Security	No tangible Security and /or 3rd party guarantee is required.
Repayment	Max 15 years
Margin	Nil
Interest rate	11.25%
Processing Charges	Nil
Loan Amount	Max Rs 10.00 lacs

These are the few schemes provided by Punjab National Bank Education Loans. However, the interest rates mentioned in the article are the latest on the date of publishing. Interest rates are subject to change with the change in market conditions. Therefore, it is recommended to get in touch with your financial officer to know the latest interest rates and to inquire about the scheme's requirements in detail.

Canara Bank Education Loan For Higher Studies in India and Abroad

IBA Model Education Loan Scheme for Pursuing Higher Studies in India and Abroad

IBA Model Education Loan Scheme aims to provide financial support to students who are willing to pursue higher studies in India or abroad.

IBA Model Education Loan Scheme	Values
Eligibility	Indian National
Collateral requirement/Security	up to Rs.7.50 Lakhs: No collateral Security required above Rs. 7.50 Lakhs: Tangible Collateral security required
Repayment	maximum of 15 years excluding the moratorium period
Margin	Upto Rs.4.00 Lakhs - Nil Above Rs.4.00 Lakhs - Studies in India - 5% Studies abroad - 15%
Interest rate	10.65%
Loan Amount	Need-based finance
Concession	0.50% concession in ROI extended to girl students 0.50 % concession for repayment of interest during the moratorium

IBA Skill Loan Scheme

IBA Skill Loan Scheme aims to provide financial support to students who are willing to pursue skill development courses. It has been developed to support national initiatives for skill development.

IBA Skill Loan Scheme - Education Loans	Values
Eligibility	Indian National
Collateral requirement/Security	No collateral or third-party guarantee is required; Based on the future earning potential of the student
Repayment	Loan amount up to Rs 50000: up to 3 years Loan amount above Rs 50000 and up to Rs 1 Lakh: up to 5 years Loan amount above Rs 1 Lakh: up to 7 years
Margin	Nil
Interest rate	10.65%
Loan Amount	Rs.5000 to Rs.1,50,000/-

Vidya Turant Education Loan Scheme

Vidya Turant Education Loan Scheme aims to provide financial support to students who are willing to pursue their higher studies in select institutions, especially in selected IIMs/IITs/NITs/IISc /ISB (Hyderabad & Mohali) and other reputed institutes.

Vidya Turant - Education Loans	Values
Eligibility	Indian National
Collateral requirement/Security	No collateral Security up to limits for institutions designated category wise
Repayment	maximum of 15 years excluding the moratorium period
Margin	Up to Rs. 4.00 lakhs – Nil Loan above Rs. 4.00 lakhs - 5%. Scholarship/assistantship will be included in margin
Interest rate	9.25%
Loan Amount	Category A Institute: Limit up to Rs 25.00 lacs Category B institute: Rs 40.00 lacs Category C institute: Rs 20.00 lacs

To know the university you selected falls under which category, connect with our team at WeMakeScholars. Our financial officer will guide you through the entire loan process. WeMakeScholars is an organization funded and supported by the Government of India that focuses on International Education finance. As this initiative is under the Digital India campaign, it’s free of cost.

Vidya Shakthi Education Loan Scheme

Vidya Shakthi Education Loan Scheme aims to provide financial support to students who are willing to pursue special device courses in India. The main objective of this scheme is to assist the PWD (Physically disabled) category students who are in need of education loans. Also, they also provide education loans for abroad studies as per the guidelines of the IBA Model Education loan/Skill loan scheme.

Vidya Turant - Education Loans	Values
Eligibility	Student must be an Indian National with physical disability to the extent of 40% or more.
Collateral requirement/Security	No collateral Security up to a limit of Rs 7.5 lakhs
Repayment	a maximum of 15 years excluding the moratorium period
Margin	Up to 4 lakhs: nil Above 4.00 lakhs: 5% Scholarship/ assistantship if any, will be considered as margin.
Interest rate	9.25%
Loan Amount	For degree Courses : Max: Rs 7.5 lakhs Vocational/Certificate/Diploma courses/Skill loan: Max Rs 1.50 lakhs.

Vidya Sahay Education Loan Scheme

Vidya Sahay Education Loan Scheme aims to provide financial support to students who are in need of the down payment that has to be made to the CET/counseling Authorities at the time of selection/counseling.

Vidya Sahay Education Loan Scheme	Values
Eligibility	Student must be an Indian National and should have cleared the previous qualifying exam.
Collateral requirement/Security	No collateral required
Repayment	Loan is to be cleared after sanction of regular education loan
Margin	Nil
Interest rate	11.25%
Loan Amount	Maximum Rs.1 Lakh

These are the few schemes provided by Canara Bank Education Loans. However, the interest rates mentioned in the article are the latest on the date of publishing. Interest rates are subject to change with the change in market conditions. Therefore, it is recommended to get in touch with your financial officer to know the latest interest rates and to inquire about the scheme's requirements in detail.

Education Loan FAQs

I'm planning to study abroad, but I don't have any collateral to offer. Can I still get an education loan?

Yes, you can still get an education loan even if you do not have any collateral to offer. This type of loan is called an unsecured education loan. However, the interest rates on unsecured loans are generally higher than secured loans. In addition, the loan amount may also be lower compared to secured loans. The eligibility criteria for unsecured education loans may vary from bank to bank.
I'm planning to take a break of two years after completing my graduation. Will I still be eligible for an education loan when I decide to pursue further studies?

Yes, you may still be eligible for an education loan even if you take a break of two years after completing your graduation. However, the eligibility criteria may vary from bank to bank, and you may need to provide additional documents such as a gap certificate, and income proof of yours or your co-applicants to prove that you can repay the loan.
What are the chances of getting a loan for studying in a top-ranked foreign university?

The chances of getting a loan for study in a top-ranked foreign university depend on various factors such as the reputation of the university, the course you are applying for, your academic background, and the bank's policies. It is advisable to check with the WeMakeScholars team regarding eligibility criteria, loan amount, and other queries before applying for the loan.
What is the maximum loan amount that I can get for studying abroad?

The maximum loan amount that you can get for studying abroad depends on various factors such as the course you are applying for, the institute you are planning to attend, and the bank's policies. Generally, the loan amount can range from a few lakhs to a few crores. It is advisable to check with our experts regarding eligibility criteria, loan amount, and other queries before applying for the loan.
Can I transfer my education loan from one bank to another?

Yes, you can transfer your education loan from one bank to another. This is known as loan transfer or refinancing. The eligibility criteria and policies for loan transfer may vary but generally, the borrower must have a good credit score and a steady source of income to be eligible for this type of loan. To ease the process you should call our financial officers they will guide you as per your convenience.

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