Indian Bank Education Loan

Indian Bank stands tall as a reliable partner in your academic journey with its comprehensive education loan scheme. Boasting competitive interest rates starting at 10.25%. With its commitment to affordability, accessibility, and transparency, Indian Bank walks alongside you, step by step, ensuring your child’s academic aspirations have the wings they need to fly.

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We are rated~
rating
6.7 Crore
Registered Consumers
51
Insurance Partners
3.4 Crore
Policies Sold

About Indian Bank Education Loan

The Indian Bank education loans are schemes designed to support students in pursuing their educational aspirations. With attractive low-interest rates, the Indian Bank offers flexible repayment options extending up to 15 years, providing borrowers time to repay their loans. 

These loans cater to students undertaking both domestic and international courses, making education accessible to a diverse range of applicants. The application process is streamlined, allowing students to apply for loans conveniently through an online platform, ensuring a quick and efficient experience.

What are the Features and Benefits of the Indian Bank Education Loan?

Below are the features and benefits of Indian Bank Education Loan:

  • Open to Indian Nationals: Accessible to all Indian citizens.

  • Recognized Institutions: Applicable for admissions to recognized universities/colleges.

  • Flexible Repayment: Up to 15 years, allowing borrowers to plan repayments wisely.

  • Holiday Period: Course duration plus one year, easing the post-education transition.

  • Convenient Application: Apply online at https://www.vidyalakshmi.co.in/Students/.

  • Interest Subsidy: Potential subsidy available under specified guidelines.

India Bank Education Loan Schemes

Schemes Maximum Loan Amount Interest Rates
Indian Bank Skill Loan Rs.1.5 lakh 9.55%
Indian Bank Scholar Loan Rs.40 lakh 8.95% to 9.25%
Indian Bank Student Loan Rs.20 lakh 10.05%
Indian Bank Global ED-Vantage Rs.1.5 crore 10.05%
Indian Bank Take Over of Education Loan Rs.1.5 crore 10.05%

What are the Eligibility Criteria to Apply for Indian Bank Education Loan?

  • Applicants must be Indian citizens.

  • Students applying for an Indian Bank education loan should be enrolled in professional or technical courses.

  • The courses may be pursued in India or abroad.

  • Admission should be secured through an entrance test or a merit-based selection process.

What are the Courses Eligible Under Indian Bank Education Loan?

Under the Indian Bank Education Loan scheme, various courses are eligible for financial assistance. Here's an overview:

  1. Full-time Graduate/Postgraduate Degree Courses:

    • Loan Amount: Up to Rs. 20 lakhs

    • Repayment Tenure: Up to 15 years post-course completion

  2. PG Diplomas Courses:

    • Loan Amount: Up to Rs. 10 lakhs

    • Repayment Tenure: Up to 10 years post-course completion

  3. Professional Courses (ICWA, CA, CFA, etc.):

    • Loan Amount: Up to Rs. 20 lakhs

    • Repayment Tenure: Up to 7 years post-course completion

  4. Courses from Premier Institutes (IIMs, IITs, IISC, XLRI, NITs, NIDs, NIFTs, etc.):

    • Domestic Courses:

      • Loan Amount: Up to Rs. 20 lakhs

      • Repayment Tenure: Up to 15 years post-course completion

    • Foreign Courses:

      • Loan Amount: Up to Rs. 40 lakhs

      • Repayment Tenure: Up to 7 years post-course completion

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  5. Specialized Courses (Aeronautical, Pilot Training, Shipping, etc.):

    • Domestic Courses:

      • Loan Amount: Up to Rs. 1.5 crores

      • Repayment Tenure: Up to 15 years post-course completion

    • Foreign Courses:

      • Loan Amount: Up to Rs. 2 crores

      • Repayment Tenure: Up to 7 years post-course completion

  6. Courses by Reputed Foreign Universities in India:

    • Domestic Courses:

      • Loan Amount: Up to Rs. 40 lakhs

      • Repayment Tenure: Up to 15 years post-course completion

    • Foreign Courses:

      • Loan Amount: Up to Rs. 1.5 crores

      • Repayment Tenure: Up to 7 years post-course completion

  7. Executive Management Program/Executive MBA:

    • Eligibility: Graduate with 3 years of work experience

    • Institutes: Premier and Prime Plus categories

    • Nationality: Resident Indian, NRI, PIO, OCI, Student Born Abroad (Restricted to studying in India)

    • No Age Restriction

Other Eligible Courses:

  • Full-time and approved part-time/distance education courses in India.

  • Studies abroad, including job-oriented professional/technical courses.

  • Courses recognized by regulatory bodies for employment in India/abroad.

**Note: Diploma in Teacher Training course is not eligible under this scheme.

What are the Expenses Considered for an Indian Bank Education Loan?

  1. Tuition Fees:

    • Charges for attending classes and accessing learning resources.

  2. Hostel Fees or Lodging and Boarding Charges:

    • Expenses related to staying in a hostel or rented accommodation, including meals.

  3. Travel Expenses or Passage Money:

    • Coverage for travel to and from the educational institution.

  4. Living Expenses:

    • Coverage for necessities such as food, transportation, and other living costs.

  5. Insurance Premium:

    • Coverage for the loan amount in case of unforeseen events.

  6. Caution Deposit, Building Fund, or Refundable Deposit:

    • Coverage for any required deposits or funds specified by the institution.

  7. Purchase of Books, Equipment, Instruments, or Uniforms:

    • Coverage for essential course materials.

  8. Purchase of a Computer (if required for completion of the course):

    • Coverage for the cost of purchasing a computer.

  9. Other Expenses Required to Complete the Course:

    • Academic and maintenance fees, study tours, project work, thesis, etc.

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Other Important Things to Know About Indian Bank Education Loan

  1. Margin Requirements:

    Margin refers to the percentage of the total education cost a student must fund independently, with the rest covered by an educational loan. The margin varies for Study in India and Studies Abroad categories, as well as Executive Management Programs.

    • Study in India:

      • Loan up to ₹4 lakhs: 0% margin

      • Loan ₹4 lakhs to ₹7.50 lakhs: 5% margin

      • Loan above ₹7.50 lakhs: 15% margin

      • Executive Management Program/Executive MBA: 25% margin

    • Studies Abroad:

      • Loan up to ₹4 lakhs: 0% margin

      • Loan ₹4 lakhs to ₹7.50 lakhs: 15% margin

      • Loan above ₹7.50 lakhs: 20% margin

  2. Quantum of Finance:

    The maximum loan amount depends on the total education cost and the margin requirement.

    • Study in India and Abroad: Quantum of finance is need-based, subject to margin.

    • Executive Management Program/Executive MBA: Maximum loan amount: ₹ 25 lakhs.

  3. Repayment Period:

    The repayment period varies based on the type of education program.

    • Study in India, Abroad: Up to 180 EMIs over a maximum of 15 years.

    • Executive Management Program/Executive MBA: Up to 120 EMIs over a maximum of 10 years, with a floating interest rate.

  4. Credit Guarantee Cover:

    Credit Guarantee Fund Scheme for Educational Loans (CGFSEL) provides safety without collateral for loans up to Rs. 7.50 lakhs.

    • No collateral is required.

    • 75% guarantee cover for defaults.

    • Annual guarantee fee: 0.50% absorbed by the bank.

  5. Collateral Security:

    Varies based on loan amount and institute.

    • Studies in Premier Institutes:

      • No collateral for loans up to ₹30 lakhs.

      • 100% collateral for amounts exceeding ₹30 lakhs.

    • Prime Plus & Other Institutes:

      • 100% collateral required.

    • CGFSEL Eligibility:

      • No collateral or third-party guarantee is required under CGFSEL.

  6. Life Insurance Cover:

    A life insurance policy is essential to cover the outstanding loan amount in case of the borrower's demise.

    • Premium is based on the borrower's age, loan amount, and tenure.

    • The policy should cover the entire loan amount and interest.

    • Documents required for availing life insurance.

What are the Documents Required for the Indian Bank Education Loan?

Documents Required To Study in India  To Study Abroad
Age Proof  SSLC/TC/Any mark list  SSLC/TC/Any mark list/Passport 
Residence Proof  Ration Card/ Voter’s ID/ Passport/Electricity bill/ Telephone bill  Ration Card/ Voter’s ID/ Passport/Electricity bill/ Telephone bill 
Academic record  10th/12th marksheet for UG students. Degree mark list/provisional certificate for PG students  10th/12th marksheet for Undergraduate (UG) students. Degree mark list/provisional certificate for Post Graduate (PG) students 
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, student certificate from the College/University  Certificate or I 20 from the College/University 
Fees detail  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 ₹4 lakhs)  5% Documentary evidence for the source of funds to meet the margin amount  15%Documentary evidence for the 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/guarantorDetails of securities and collateral  A & L of the student/parent/guardian/guarantorDetails of securities and collateral 

What is the Subsidy Scheme for Indian Bank Education Loans?

Subsidy Scheme  Eligibility Criteria  Loan Limit  Moratorium Period  Interest Subsidy 
Central Scheme to provide Interest Subsidy to Educational Loan (CSIS)  Pursuing approved technical and professional courses in recognized institutions in India.  Up to ₹10 lakhs  Up to the moratorium period  Available for the interest charged up to INR 10 lakhs only. 
Padho Pardesh Subsidy  Pursuing Masters/M.Phil/Ph.D. courses abroad.  Up to ₹20 lakhs  Up to the moratorium period  Available for the interest charged up to INR 20 lakhs only. 
ACSISOBCEBC Subsidy  Pursuing Masters (including PG Diploma), M.Phil, and Ph.D. courses abroad under IBA scheme only.  Up to ₹20 lakhs  Up to the moratorium period  Available for the interest charged up to ₹20 lakhs only. 

FAQ's

  • Can a student request an Indian Bank Education Loan without a co-applicant or collateral security?

    Yes, students can apply for loans up to Rs. 7.5 lakhs without requiring collateral or a co-applicant. However, for amounts exceeding Rs. 7.5 lakhs, a co-applicant and collateral security may be necessary, based on the loan amount.
  • Is there a processing fee for Indian Bank Education Loan?

    Yes, Indian Bank charges a processing fee for handling loan applications, calculated as a percentage of the loan amount, and is subject to periodic adjustments.
  • What is the repayment duration for Indian Bank Education Loan?

    The repayment period varies based on the loan amount and course duration, ranging from 5 to 15 years, inclusive of the moratorium period.
  • Is there a specific income category that the parents of the applicant must fall under for Indian Bank's approval?

    No, Indian Bank does not impose predefined conditions regarding the parental income or repayment capacity of the applicant.

*All savings are provided by the insurer as per the IRDAI approved insurance plan.
*Tax benefit is subject to changes in tax laws. Standard T&C Apply
#The lumpsum benefit is calculated if policyholder invested ₹10000 monthly for 10 years in the fund with a policy term of 20 years. This Point To Point past performance data of last 10 years has been used to illustrate a scenario for the customers benefit. It is assumed that the past 10 years returns would have also been delivered in last 20 years. This is not guaranteed and not in anyway indicative of what the customer may actually get 20 years from now. The investment is subject to market risk and the risk is borne by the policyholder.
+Returns Since Inception of LIC Growth Fund
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.

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