SIB VITJNAN PRADHAN SCHEME

About SIB VITJNAN PRADHAN SCHEME (VPS)

SIB Vitjnan Pradhan Scheme (VPS) is a type of South Indian Bank education loan that offers monetary assistance to deserving students for quality education. It helps students enrolled in graduate, postgraduate, or PG diploma courses linked to approved universities or colleges in India and abroad. It also backs job-focused professional and technical diplomas and degrees taught overseas, so learners at home and abroad can tap its financial aid.

Depending on the education loan requirements and course conditions, the applicant may be eligible for the loan with or without collateral. For parents maintaining a child investment plan, the VPS scheme can be utilised to meet long-term education savings objectives.

SIB VITJNAN PRADHAN SCHEME (VPS) Rate of Interest

The SIB Vitjnan Pradhan Scheme (VPS) interest rate starts from the REPO (Repurchase) rate plus 4.74%. Only simple interest is charged during the moratorium period (the course duration plus 12 months). Students can choose to either pay this interest during the moratorium or allow it to accumulate.

Note: The rates shall be applicable as of 19 June 2025. But these may vary depending upon the amount of loan applied for, the collateral offered, and the applicant's profile, including academics.

Features of SIB VITJNAN PRADHAN Scheme(VPS)

SIB Vitjnan Pradhan Scheme (VPS) carries several features. Some of them include:

• Coverage of Expenses: Loans are provided for tuition fees, examination fees, books, hostel charges, and overseas travel expenses related to studies.

• Moratorium and Repayment Period: The moratorium period includes the period of training plus 1 year, and the maximum tenure available shall be up to a total of 15 years.

• Prepayment Flexibility: Borrowers can make early repayments without any prepayment charges.

• Top-Up Loan Facility: Students can apply for a Top-up loan during the moratorium period of the earlier course.

• CSIS Subsidy Applicability: The loan is eligible for the Central Sector Interest Subsidy (CSIS) scheme.

• Parental Financial Planning Benefit: It allows parents in salaried services to set up a child education allowance plan for their financial planning in their child's academic future.

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Eligibility of the SIB VITJNAN PRADHAN Scheme(VPS)

The conditions of eligibility have been kept as simple as possible to incorporate a wide base of students.

• Nationality Requirement: Applicable in case of an Indian National and NRI with an Indian passport.

• Joint Borrower Requirement: In such cases, parents or guardians should become the joint borrowers.

• Academic Merit: The admission is based on academic merit in states where there are no entrance tests, with 80% marks as the minimum in the qualifying subjects, 75% being the aggregate marks in HSC (10+2 or equivalent). The institution prescribes 75% as the minimum marks obtained or as the bare minimum by the undergraduate.

• Standard Admission Process: Admissions will have to be through the usual process of selection by undertaking either an entrance test or a group discussion (GD), or an interview, as applicable.

Documents Required for SIB VITJANAN PRADHAN SCHEME

The following documents would be required to apply for the SIB Vitjnan Pradhan Scheme(VPS):

• Identity and Address Proof: Valid photo ID and an address document for both the student and the parent or guardian. For instance, an Aadhaar card, voter ID, or passport. 

• PAN Cards: The PAN cards of the student and the parent or guardian are needed for verification and tax checks.

• Academic and Admission Documents:

  • Offer or admission letter from the college or university

  • Copies of mark sheets and certificates from earlier studies

  • Scorecard of any entrance or qualifying exam, if relevant.

• Course and Fee Details: The college's detailed fee list Documents showing the institution is officially recognised and approved.

• CSIS Eligibility Documents: An income certificate from the parent or guardian to prove eligibility for the Central Sector Interest Subsidy scheme.

• Collateral Documents: if required, papers linked to the property, for loans larger than ₹7.5 lakh.

Most Important Terms and Conditions

Below are some important points to keep in mind before applying:

1. CSIS Document Submission Timeline

   • Post-sanction, there is a 45-day window for the submission of income proofs or other relevant documents establishing CSIS subsidy eligibility.

2. Margin Requirements

   • No margin money is chargeable for a loan up to ₹4 lakh.

   • For loans above ₹4 lakh, the margin may vary between 5 and 15%.

3. Security Norms

   • No collateral or third-party guarantee is required for loans up to ₹7.50 lakh.

   • For loan amounts above ₹7.50 lakh, 100% Collateral Cover is compulsory.

4. Life Insurance Requirement

   • The borrowers are required to take life insurance in the student's name under this loan scheme.