SIB Global Education Loan

About the SIB Global Education Loan

The SIB Global Education Loan is a South Indian Bank education loan, designed to help you pursue your undergraduate, postgraduate, doctoral, and professional courses abroad. The education loan covers various expenses, including tuition fees, accommodation, travel costs, examination fees, and other related charges necessary for completing a higher education programme abroad. 

SIB Global Education Loan - Rate of Interest

The interest rate for the SIB Global Education Loan is a floating rate, structured as follows:

• Base Rate: RBI Repo Rate + Operating Cost + Spread, currently around 12.54%. 

• Additional Charges: For loan tenures exceeding 7 years (excluding moratorium period), an extra 0.25% is applicable on the interest rate.

• Upfront Fee: 1% of the loan amount plus applicable GST.

• Concessions: These are available based on South Indian Bank’s prevailing policies.

Note: The rates are updated per South Indin Bank's latest terms as of 19 June 2025. These may change based on RBI Repo Rate movements or bank lending policy updates.

Features of the SIB Global Education Loan Scheme

Below are the main features of the SIB Global Education Loan, outlining important details and benefits related to the loan:

• Tax Benefits: Interest paid on the education loan qualifies for tax deductions under Section 80E. To assess the post-tax impact, use an income tax calculator.

• Child Investment Support: The loan helps you create and manage child investment plans, ensuring better financial preparedness for your child’s education and future goals.

• Flexible Loan Tenure: The repayment period is between 7 and 15 years after completion of the course.

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Eligibility of the SIB Global Education Loan

The following criteria must be met to apply for the SIB Global Education Loan:

• Citizenship: Must be an Indian citizen.

• Admission Letter: Valid admission letter from a recognised foreign institution.

• Age Limit: 18 to 30 years (up to 40 years allowed in special cases with a limited repayment period). 

• Guardian or Co-borrowers: Depending on income consideration, parents or guardians may act as guarantors or co-borrowers.

• Insurance: Mandatory life insurance under the SIB EDUGUARD scheme. 

• Minimum Income Norms (combined gross income of parents/guardians):

  • Up to ₹50 Lakhs: ₹40,000/month combined gross income

  • ₹50–75 Lakhs: ₹50,000/month combined gross income

  • ₹75–100 Lakhs: ₹60,000/month combined gross income

  • Above ₹100 Lakhs: ₹1,00,000/month combined gross income

Documents required for the SIB Global Education Loan

Here are the documents needed to apply for the SIB Global Education loan:

• Identity Proof: Passport, Voter ID, PAN Card, or Driving Licence of the student and parent.

• Address Proof: Ration Card, Utility Bill, Lease Agreement, Passport, Trade Licence, or Sales Tax Certificate

• Photographs: Recent passport-sized photos of the applicant and the guardian

• Education Records: Marksheet of the qualifying examination

• Income Proof: Financial documents of the guardian

• Fee Structure: Detailed breakdown of admissible course-related costs

• Admission Proof: Evidence of confirmed admission to the selected course

• Property Related Document: If a Residential or Commercial Built-up property is kept as security collateral for the education loan, then the document related to such property shall also be required.

Most Important Terms and Conditions

Here are the key terms and conditions of the SIB Global Education Loan:

• Loan Amount & Tenure:

  • ₹7.50L–₹75L: Repayment up to 10 years

  • ₹75L–₹150L: Repayment up to 15 years

• Moratorium Period: Study period + 6 months; interest is compounded during this period

• Collateral: 125% for built-up property; 150% for vacant land (max 20 cents)

• Margin: 15% of total cost, after excluding scholarships/sponsorship.

• Reimbursement: Past year’s fees and accommodation can be reimbursed with valid proof

• Tax benefits: Tax benefits may apply under Section 80E

• Other Charges: Legal, valuation, inspection, and CERSAI fees apply. 

To understand how taxes will affect your income, use an income tax calculator to estimate your post-tax earnings.