Indian bank education loan basic interest rate is 8.50%. The maximum loan amount for studies in Indian is INR 15 Lakh. However, for abroad studies, the maximum amount allocated is INR 25 lakh.
The Indian Bank education loan with an introductory lending rate of 8.50% is availed by a number of students for studies in India & abroad. The Indian bank with almost 2836 branches worldwide, including operations in over 75 countries, offers several education loans at different interest rates and repayment tenure of upto 15 years.
As mentioned earlier the Indian Bank offers an introductory lending rate is 8.50%. And the terms and conditions of the Indian Bank Education Loan and the education loan details have been explained in detail in the article below.
Indian Bank Education Loan Details
Indian Bank has developed strong customer relations over these years with its products, including a vast loan portfolio consisting of home loans, car loans, personal loans, agricultural loans, and the popular student loan scheme.
Indian Bank education loans can be availed by meritorious students aspiring for higher studies from recognized educational institutions in India or abroad. To avail loan, you have to meet the bank's representatives, read the brochures, understand the terms & conditions, and apply for the education loan.
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Loans for Reputed Institutions
Indian Bank also provides loans for students who aspire to study in reputed institutions such as IIT, IIM, or ISB.
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Expenses Covered by Indian Bank Education Loan
Education Loans aim to cover almost all of the expenses that can be incurred by students while pursuing a certain course.
The expenses covered by the Indian Bank Education Loan include:
- The purchase of books, uniforms, stationery
- The purchase of laptops, tablets (as per the demand of the course)
- Examination, library, and hostel fees
- Travel expenses/ passage money for studies abroad.
- Additional costs are deemed necessary for the completion of the course.
Features of Indian Bank Education Loan
As a popular method of financing higher studies in India or abroad, the Indian Bank student education loan gained importance to meet the rising education cost for the Indian youth.
For abroad studies, where the insurance is mandatory, the Insurance premium is covered under the scope of Educational loan offered by the Indian Bank.
The few attractive features are the repayment tenure is up to 15 years. And the holiday period is the duration of the course plus one year.
Indian Bank Education Loan Eligibility Criteria
The applicants are requested to go through every point with attention before applying for an Indian Bank education loan.
The education loan eligibility in Indian Bank is listed below.
- The age limit for non-employed applicants is 35 years, and it is 45 years for the employed applicants.
- The student must be an Indian citizen.
- If you are an employee who has been working in an organization and have secured admission into a recognized university for pursuing your higher studies, then you will be considered eligible for the education loan.
- For amounts below INR 4 Lakhs, neither the collateral security nor a third-party guarantee will be required.
- For loans up to INR 7.5 Lakhs, a third-party guarantee with an assurance for future income is necessary.
- For loans above INR 7.5 Lakhs, 100% collateral is required.
- There will be no prepayment charges on these loans.
Indian Bank Education Loan Courses Eligibility
There are certain UG and PG courses that are eligible for Indian Bank education loans.
UG and PG courses eligible for IB loans are,
- Engineering
- Medical, Dental, and Para-medical
- Agriculture
- Veterinary
- Law
- Management
- Computer Science
- PG Diploma Courses approved by AICTE/UGC.
IB Loan Non-Eligible Courses
The courses that are not eligible for IB loans are,
- Courses pursued abroad or without completing class 12.
- Non-professional and non-technical UG and PG courses in Arts, Science, Commerce, Sociology, and Music
- Diploma Courses
- Teacher Training Courses and Skill Development
- Vocational Training Courses
Documents Required for Education Loan in Indian Bank
There is a slight difference in the documents required based on where the student is pursuing their study, India or abroad.
Below are the documents required for the Indian Bank education loan for both domestic and international studies.
- Address Proof: Documents such as ration card, voter's ID, and passport will be required.
- Academic Records: 10th/ 12th mark lists for UG students and the degree mark list, and the provisional certificate for PG students.
- Age Proof: Mark sheet or a transfer certificate from the institute.
- Income Proof: Salary certificate, Pension certificate, or Auditor's certificate for business people regarding the IT Returns filed.
- Admission Details: Admission letter along with a bonafide study certificate or student certificate from the College/University.
- Fee Details: Certificate or Recommendation Letter from the College/University.
- Guarantee and Co-obligation Details: Parent's or a Guardian's Co-obligation is required.
- Collateral Requirement: LIC policy or Share certificates or Units of UTI or Valuation certificate and a legal opinion from the bank in case of land or buildings.
Documents Required for Indian Bank Education Loan
Listed below are all the documents required to apply for an Indian Bank education loan for studies in India.
- Margin Requirement: 5% margin is required, and documentary evidence for the source of funds to meet the margin amount.
- Declaration or Affidavit: It is necessary declaring that no Educational Loan is availed from any other bank by the applicant and their parent.
- Other Documents: A & L of the student, parent, guardian, or guarantor and details of securities and collateral
Documents Required for Indian Bank Education Loan for Abroad Studies
Listed below are all the documents required to apply for an Indian Bank education loan for abroad studies.
- Margin Requirement: 15% margin is required coupled with documentary evidence for the source of funds to meet the margin amount.
- Declaration or Affidavit: It is necessary to disclose that no educational loan is availed from any other bank by the student applicant and their parents.
- Other documents: A & L of the student, a parent, or guardian or guarantor along with the details of securities and collateral
Repayment of Education loan in Indian Bank
The loans can be paid either in quarterly installments or monthly installments. The repayment period commences after 1 year of the course; during this period, the applicant should secure a job.
The Indian bank education loan interests can be paid after the first installment of the loan. The repayment period of India bank educational loan for abroad studies and Indian studies is 7 years.
Indian Bank Bala Vidya Scheme
This Indian Bank education loan scheme is directed towards serving the financial requirement of a child enrolled in school.
The purpose of this scheme is to cover every aspect of the cost incurred, such as the admission fees, term fees, cost of books, uniforms, computer fees, transportation cost, and so on. But to procure it, one must duly and mandatorily get certified by the respective school authority every year.
The key prerequisites and terms of this Indian Bank education loan are as follows:
- It is available for salaried employees in the public sector or in reputed companies (private) or professionals who are self-employed with a minimum of 3 years of satisfactorily operated SB account with the Indian Bank.
- The loan amount is the actual net expense; however, the maximum amount could only be INR 30,000 per family.
- The processing fee is charged at INR 300 per application.
- No donation or capitation fee can feature under the purview of this loan scheme.
- Children studying between LKG to class 12 in any recognized school, government-aided schools, and other approved boards of education are eligible.
- For cases where a student's progress is laudable and up to the bank's satisfaction, the student loan scheme can be rolled over.
- The acceptable security for the scheme could be either employer sponsorship or a salary account with the Indian Bank with the letter of authorization.
Indian Bank loan for Vocational Education and Training
The Indian bank loan for vocational education and training provides an impetus towards India's expanding skill mission. This initiative of the Indian Bank acts as a small but important initiative towards improving the efficiency of the labor force while boosting the country's economy. Indian bank education loans play a major role here.
Education Loan Subsidy
The loan/scheme adheres to the subsidy scheme initiated by the Ministry of Human Resource development by providing a complete waiver of an interest rate for students belonging to the economically weaker section of the society.
The education loan eligibility criteria for this loan are given below:
- Any Indian National individual.
- They should have secured admission to professional or technical courses in India or abroad through the Entrance Test or the Merit-based selection process.
