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  • South Indian Bank Education Loan

    South Indian Bank Education Loan
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    Overview:

    South Indian Bank is one of the leading banks with 823 branches spread all across India. The bank provides education loan which helps the students to pay the upfront amount required while admission to any college like tuition fees, hostel charges etc. Students can avail loans to pursue any discipline of their choice in India and abroad. South Indian Bank education loans are categorised under three schemes:

    • Vitjnan Pradhan Scheme
    • SIB-Excellence
    • Vidyanidhi Scheme

    Purpose of loan:

    Students can not only pay their college and hostel fees, but can also use the loan amount provided by South Indian Bank to pay their library charges, laboratory and examination fees. They can use the loan amount to purchase instruments, books, equipment etc. required during the course of their study. Costs such as caution deposit, travel and other essentials are covered by the loan. Students can also use the education loan for project work, thesis and study tours.

    Vitjnan Pradhan Scheme:

    South Indian Bank Vitjnan Pradhan Scheme provides education loan for students pursuing higher studies in India and abroad.

    Minimum margin:

    • Up to Rs. 4 lakh – Nil
    • Above Rs. 4 lakh – 5% for studies in India and 15% for studies in foreign countries

    Security:

    For a loan of up to Rs. 4 lakh, no security is required but parents need to be co-obligators when the student applies for the education loan. For loans above Rs. 4 lakh and up to Rs. 7.5 lakh, parents or guardians of the student need to provide collateral security in the form of third party guarantee. For a loan amount above a loan amount of Rs. 7.50 lakh, parents or guardians need to provide collateral security and assign future income of the student for payment of the education loan instalments.

    Penalty:

    There is a penalty of 2% charged on loans above Rs. 2 lakh for the overdue period and amount.

    SIB-Excellence:

    South Indian Bank-Excellence provides education loans to students pursuing higher studies in top educational institutions in India like IIMs, IITs, etc.

    Amount of loan:

    A maximum amount of Rs. 10 lakh can be availed through SIB-Excellence education loan scheme.

    Margin:

    Up to an amount of Rs. 4 lakh the margin is nil. However, there is a 5% margin for an education loan amount above Rs. 4 lakh. Scholarships and assistantships can be incorporated in the margin.

    Mode of payment:

    It is preferable to make the payments directly to the institutions, hostel, etc. through Real Time Gross Settlement (RTGS) systems.

    Security:

    Parents or guardians can provide life insurance policy in the form of guarantee, which must be equal to the loan amount. The life insurance policy should be assigned in the name of South Indian Bank.

    Repayment:

    The repayment starts after six months of employment or one year after the completion of the course, whichever is earlier. The education loan is to be paid in sixty equated monthly instalments (EMI). There is no penalty charged for repayment of the education loan amount.

    Vidyanidhi Scheme:

    Vidyanidhi scheme under South Indian Bank education loan system is extremely helpful for students seeking higher education in the renowned institutes of Kerala. This education loan scheme helps the students to pay the refundable deposit charged by an educational institution.

    Rate of interest charged by South Indian Bank education loan:

    Loan amount up to Rs. 4 lakh

    Base rate + 5.80%

    Loan amount more than Rs. 4 lakh

    Base rate + 6.30%

    Vidyanidhi loan scheme

    Base rate + 5.20%

    SIB-Excellence up to Rs. 10 lakh

    Base rate + 1.10%

    SIB-Excellence above Rs. 10 lakh

    Base rate + 2.10%

    Base rate is 10.20%

    Eligibility and Documentation:

    All students applying for South Indian Bank education loan schemes must be residents of India. They should provide all education certificates starting from matriculation to their latest qualifications. Along with these, students must provide results of qualifying entrance examinations held by different educational institutions.

    South Indian Bank education loan FAQs:

  • What is the minimum margin for an education loan amount of Rs. 4 lakh provided by South Indian Bank?
  • There is no margin for a loan amount up to Rs. 4 lakh provided by South Indian Bank.
  • What is the maximum amount of loan that can be availed through SIB-Excellence education loan scheme?
  • A maximum amount of Rs. 10 lakh can be availed through SIB-Excellence education loan scheme.
  • What is the preferable mode of payment to colleges under SIB-Excellence Scheme?
  • The preferable mode of payment to colleges under SIB-Excellence Scheme is through Real Time Gross Settlement (RTGS) systems.
  • What is the repayment schedule for South Indian Bank education loan?
  • The repayment starts after one year of the completion of the course or six months of employment, whichever is earlier.
  • What is the maximum tenure that can be availed to repay the education loan?
  • Maximum of 15 years can be availed to repay South Indian Bank education loan amount.
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