Make college memories that last a lot longer than your student loan payments.

Indian Bank Education Loan

Indian Bank offers several education loan schemes at attractive interest rates and a repayment tenure of up to 15 years. Students can avail a loan for studies in India as well as abroad. The process to apply for an education loan is simple and can be completed online.

Feature & Benefits of an Indian Bank educational loan:

The main features and benefits of the education loan scheme offered by Indian Bank are mentioned below:

  • Indian nationals can apply for an education loan.
  • Individuals must have secured admission at a recognised university/college.
  • The repayment tenure is up to 15 years.
  • The holiday period is the duration of the course plus 1 year.
  • You must apply for an education loan on https://www.vidyalakshmi.co.in/Students/.
  • Interest subsidy may be available under certain guidelines.

Rate of Interest:

  • RLLR Linked: 7.75% p.a. to 10.05% p.a.
  • MCLR Linked: 8.80% p.a. to 10.30% p.a.

Loan Margin:

  • Up to Rs.4 lakh: Nil
  • Above Rs.4 lakh:
    • Studies Abroad: 15%
    • Studies in India: 5%

Quantum of Loan:

Indian Bank sanctions loan amounts up to Rs 15 lakhs for admissions in India and up to Rs 25 lakhs for students applying for institutions abroad.

Loan Repayment:

Indian Bank offers a repayment tenure of up to 15 years. The holiday period offered by the bank is the duration of the course plus 1 year.

Insurance Cover:

Indian Bank also provides life insurance coverage to student borrowers under the 'New IB Jeevan Vidya' scheme.

Security:

  • For loans amounts below Rs 4 lakhs, the bank does not require applicants to submit any form of security and the parents’ co-obligation would suffice.
  • For loan amounts ranging between Rs 4 lakhs and Rs 7.50 lakhs, the co-obligation of the parents along with collateral in the form of third-party guarantee is required.
  • Borrowers taking education loans above an amount of Rs 7.50 lakhs require the co-obligation of parents or guardian along with collateral security of suitable value, assuring the future income of the student for repayment of the loan.

Eligible courses:

Education in India:

  • Students applying for diploma, undergraduate or postgraduate courses regardless of the discipline are eligible to avail an Indian Bank education loan.
  • Education loans can also be availed for computer certificate courses from institutions accredited to The Department of Electronics.

Education Abroad:

  • Indian Bank educational loans are offered for job-oriented professional or technical courses offered by universities.
  • Students applying for an MBA, MCA, MS and courses conducted by CIMA - London and CPA in USA are also eligible to avail an Indian Bank educational loan.

Documentation Required:

Documents

Education in India

Education Abroad

Residence Proof

Ration Card/ Voter’s ID/ Passport/Electricity bill/ Telephone bill

Ration Card/ Voter’s ID/ Passport/Electricity bill/ Telephone bill

Academic record

Xth / XIIth mark lists for UG students.

Degree mark list/provisional certificate for PG students

Xth /XIIth mark lists for UG students.

Degree mark list/provisional certificate for PG students

Age Proof

SSLC/TC/Any mark list

SSLC/TC/Any mark list/Passport

Community

Community Certificate

Community Certificate

Family Income Proof

Salary certificate/Pension certificate/Auditor's certificate for businessmen/IT Returns

Salary certificate/Pension certificate/Auditor's certificate for businessmen/IT Returns

Admission details

Admission letter

Bonifide student certificate from the College/University

Certificate or I 20 from the College/University

Fee details

Letter or Certificate from the College/University

Certificate or I 20 from the College/University

Passport and VISA

Not required

Copies of both are required

Guarantee/Co-obligation details

Parent's or a Guardian's Co-obligation is required

Parent's or a Guardian's Co-obligation is required

Collateral requirement

LIC policy /Share certificates / Units of UTI / Valuation certificate and legal opinion from the bank in case of land or buildings

LIC policy /Share certificates / Units of UTI / Valuation certificate and legal opinion from the bank in case of land or buildings

Margin Requirement (Above Rs.4.00 lakhs)

5%

Documentary evidence for source of funds to meet the margin amount

15%

Documentary evidence for source of funds to meet the margin amount

Declaration or affidavit declaring that no Educational Loan is availed from any other bank by the applicant and his parent

Required

Required

Other documents

A & L of the student/parent/guardian/guarantor

Details of securities and collateral

A & L of the student/parent/guardian/guarantor

Details of securities and collateral

Eligibility:

  • All applicants are required to be Indian citizens.
  • Students who apply for an Indian Bank education loan should have secured admission to professional or technical courses in India or abroad through an Entrance test or a merit-based selection process.

Subsidy Scheme for Indian Bank Education Loans:

The Central Subsidy scheme from the HRD Ministry provides a full interest subsidy for students availing Indian Bank education loans from the weaker sections of the society with a maximum parental annual family income of Rs. 4.50 lakhs. The subsidy is valid for the entire course period plus one year after course completion or six months after getting a job, whichever is earlier. The Indian Bank education loan subsidy scheme is applicable for undergraduate or postgraduate studies in technical and professional courses in India and can be availed only once. The interest rates that will be charged on an Indian Bank educational loan will be as per the BPLR or the base rate. The subsidy scheme can be used by students applying for courses in UGC/AICTE recognized institutions, IIMs and other Central or State Government institutions.

Eligible Courses

Non-Eligible Courses

UG and PG courses in -

1. Engineering

2. Medical

3. Para Medical

4. Agriculture

5. Veterinary

6. Law

7. Dental

8. Management

9. Computer Science

PG Diploma Courses approved by

AICTE/UGC

Courses pursued abroad or without completing Class XII.

Non-Professional and Non-Technical UG and PG courses in

· Arts

· Science

· Commerce

· Sociology

· Music

Diploma Courses

Teacher Training Courses

Skill Development

Vocational Training courses

Indian Bank Education Loan FAQs:

  1. Does Indian Bank require the parents of the applicant to fall under a particular income category?
  2. No, Indian Bank does not have preset conditions regarding an applicant’s parental income or repayment capability.
  3. At what locations can an Indian Bank education loan be availed by an applicant?
  4. An Indian Bank education loan can be availed at any branch in or near the applicant’s place of domicile.
  5. Does Indian Bank have a ‘Holiday period’ on an education loan repayment?
  6. Yes, Indian Bank borrowers can start repaying their education loans after the completion of the course and up to a year after they have found permanent employment.
  7. Does the Indian Bank education loan extend to all types of degrees and disciplines?
  8. Indian Bank education loans can be taken for diplomas, undergraduate and postgraduate courses which offer professional and technical degrees.
  9. Does the interest rate concession for female candidates apply under the non-IBA scheme?
  10. No, the interest rate concession for educational loans is not applicable under the non-IBA scheme.

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Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

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