Indian Bank Scholar Loan

About the Indian Bank Scholar Loan

The Indian Bank Scholar Loan is offered to Indian students pursuing full-time professional or technical degree programs in India or abroad. This education loan is designed to support academically strong students by covering essential educational expenses such as tuition fees, hostel charges, exam fees, and other related costs.

This loan aligns well with long-term education planning goals. Whether you're building a child investment plan or preparing for future academic costs, it offers structured financial support to help students focus on their studies.

Indian Bank Scholar Loan Interest Rates

Interest rates under the Indian Bank Scholar Loan are competitive and generally lower for students admitted to elite institutions. Rates may also include concessions for female students or prompt repayment.

• Minimum Interest Rate: 7.30% per annum

• Maximum Interest Rate: 10.40% per annum

Note: The above rate is based on the updated interest terms as of June 25, 2025, and is subject to change by RBI guidelines or internal lending policies.

Features of the Indian Bank Scholar Loan

Here’s what makes the Indian Bank Education Loan attractive for ambitious students:

• High Loan Limit: Loan amounts are need-based, with a maximum limit of up to ₹25 lakh, depending on the course, institution, and estimated expenses..

• No Collateral: Loans up to ₹7.5 lakh may be offered without collateral, provided the student is admitted to eligible institutions

• Flexible Repayment Options: Repayment tenure is up to 15 years for studies in India or abroad, starting after the moratorium. For Executive programs, it's up to 10 years with no moratorium.

• Tax Benefits: Interest paid on this education loan qualifies for deductions under Section 80E of the Income Tax Act.

• Support for Long-Term Goals: Ideal for integrating into a child education allowance, making it a practical option for future-focused education planning.

Investment

Secure

Secure your child’s future with or without you

Start Investing

₹10,000/Month

& Get

₹1 Crore^*

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Eligibility for Indian Bank Scholar Loan

To apply for the Indian Bank Scholar Loan, the student must meet the following criteria:

• Nationality: Indian Nationals, including NRIs, PIOs, and OCIs, are eligible. NRI/PIO/OCI students can apply only for studies in India (subject to RBI rules).

• Admission & Courses: Must have confirmed admission in full-time professional or technical courses in India or abroad, including approved programs like MBA, MS, CA, CFA, pilot training, etc.

• Executive Programs: Graduates with 3+ years of work experience can apply for part-time or distance Executive MBA/Management programs. Bank staff need internal approval.

• Meritorious Students: Students admitted through merit-based selection or common entrance exams are considered eligible.

Documents Required for Indian Bank Scholar Loan

To apply for this Indian Bank education loan, applicants need to provide:

1. Student (Applicant):

   • Admission Proof: Admission letter from the recognised institution.

   • Academic Records: Marksheets from Class 10 onward.

   • KYC Documents: Aadhaar, PAN, passport-size photographs.

   • Address & ID Proof: As per standard KYC norms.

   • Cost of Study: Fee structure and schedule of expenses from the institution.

   • Passport: Mandatory for studies abroad.

2. Co-applicant (Parent/Spouse/Guardian):

   • KYC Documents: Aadhaar, PAN, passport-size photographs.

   • Address & ID Proof: As per standard KYC norms.

   • Income Proof: For assessing loan repayment capability.

Most Important Terms and Conditions

Let’s take a look at the essential conditions of the Indian Bank Scholar Loan:

• Single Use Only: The loan is intended for one course at a time. You cannot reuse the same loan for another program under this scheme.

• Moratorium Benefit: No repayment is required during the course and for up to a year after completion, giving students time to secure employment.

• Interest & Guarantee Fee: Simple interest applies during the moratorium. A 0.50% annual guarantee fee is charged on the outstanding amount but is fully borne by the bank.

• Margin Requirements: Students must cover part of the course cost: no margin up to ₹4 lakh, 5–15% for mid-range loans, and up to 25% for Executive MBA. Scholarships are included, and margins apply per disbursement.

• Life Insurance: A life insurance policy is mandatory for the full loan term. Premiums for eligible plans like IB Jeevan Vidya or IB Vidyarthi Suraksha can be included in the loan.