The Indian Bank was set up in the year 1907. It is one of the top performing public sector banks in the country. The bank has a total of 2836 branches all over the world, including operations in over 75 countries. It offers various services and products to its customers. It is headquartered in Chennai, India. The Education Loan provided by the bank is a highly sought after one in the student community of India due to its attractive features and student-friendly incentives.
The terms and conditions of the Indian Bank Education Loan along with the education loan details have been explained in detail in the table of content listed below
- Indian Bank Education Loan
- Expenses covered by Indian Bank Education Loan
- Eligibility Criteria for Indian bank education Loan
- Documents Required for education loan in Indian Bank
- Repayment of Education Loan in Indian Bank
- Indian Bank Bala Vidya Scheme
- Indian Bank loan for Vocational Education and Training
Indian Bank Education Loan
Indian Bank has developed strong customer relations over these years with its products including a vast loan portfolio consisting of home loan, car loan, personal loan, agricultural loan, and the popular student loan scheme.
Indian Bank education loan can be availed by meritorious students aspiring for higher studies from recognized educational institutions in India or abroad. All they have to do is to meet the bank’s representatives, read the brochures, understand the terms and conditions, and apply for the loan.
The loans details provided by the bank are as follows:
The maximum loan amount provided for studying in an Indian college is 15 lakh rupees and for a college abroad the maximum amount allocated is 25 lakh rupees.
The interest rate is 10.60% for all the loan amounts borrowed.
Margin Requirement - is 100% for loans below Rs. 4 Lakhs and 95% for loans above Rs 4 Lakhs
The maximum tenure after the moratorium period is 7 years for all loaners.
Loans for reputed institutions
- They also provide loans for students who aspire to study in reputed institutions such as IIT, IIM, or ISB.
- The maximum loan amount allocated is Rs 10 Lakhs
- The interest rate is 8.60% for all the loan amounts borrowed
- Margin Requirement is 100% for loans above and below Rs 4 Lakhs both.
- The maximum tenure after the moratorium period is zero years.
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, uniform, 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 deemed necessary for the completion of the course.
Some of the key features and scope of the Indian Bank education loan are as follows:
- 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 a student going abroad and wherein the insurance is mandatory the Insurance premium is covered under the scope of Educational loan offered by Indian Bank
Eligibility Criteria for Indian Bank Education Loan
The education loan eligibility for Indian Bank is listed below and the applicants are requested to go through every point with attention.
The age-limit for non-employed applicants is 35 years and it is 45 years for the employed applicants.
The applicant should be a citizen of India.
If you are an employee who has been working in an organization and have secured the admission into a recognized university for pursuing your higher studies, then you will be considered eligible for the education loan.
For amounts below Rs. 4 Lacs, neither the collateral security nor a third-party guarantee will be required.
For loans up to Rs. 7.5 Lacs a third-party guarantee with an assurance for future income is necessary.
For loans above Rs. 7.5 Lacs, 100% collateral is required.
There will no prepayment charges on these loans.
- UG and PG courses in Engineering, Medical, Para Medical, Agriculture, Veterinary Science, Law, Dental, Management, and Computer Science.
- PG Diploma courses approved by the AICTE (All India Council of Technical Education) and UGC (University Grants Commission)
Documents Required for Education Loan in Indian Bank
There is a slight difference in the documents required based on where the student is pursuing his or her study.
Education in India
- Address Proof - Documents such as ration card, voter’s ID, and passport will be required
- Academic records - Xth / XIIth 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 or Pension certificate or Auditor's certificate for businessmen with regards to the IT Returns filed
- Admission details - Admission letter along with a bonified study certificate or student certificate from the College/University
- Fee details - Letter or Certificate 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
- Margin requirement - 5% margin is required along with documentary evidence for the source of funds to meet the margin amount
- Declaration or affidavit - is required declaring that no Educational Loan is availed from any other bank by the applicant and his parent
- Other Documents - A & L of the student, parent, guardian or the guarantor along with details of securities and collateral.
For Abroad Education
- Address Proof - Documents such as ration card, voter’s ID, and passport will be required
- Academic Proof - Xth and XIIth mark lists for UG students and degree mark list or provisional certificate for PG students
- Age Proof - Passport, Mark Sheet or a Transfer Certificate From the Institute
- Income Proof - Salary certificate or Pension certificate or Auditor's certificate for businessmen with regards to the IT returns filed
- Admission details - Certificate from the College/University
- Fee details - Certificate from the College/University
- Passport and VISA - Copies of both are required
- Guarantee and Co-obligation details - Parent's or a Guardian's Co-obligation is a must
- Collateral requirement - LIC policy or Share certificates or Units of UTI or a Valuation certificate and a legal opinion from the bank in case of land or buildings
- Margin requirement - 15% margin is required coupled with documentary evidence for the source of funds to meet the margin amount
- Declaration or affidavit - is required declaring that no educational loan is availed from any other bank by the applicant and his parent
- Other documents - A & L of the student or a parent or that of guardian or guarantor along with the details of securities and collateral.
Repayment of Education loan in Indian Bank
The loans should 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 interest on the loans can be paid after the disbursement of the first installment of the loan.
The repayment period for educational courses in India as well as the abroad 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 the admission fees, term fee, cost of books, uniforms, computer fee, transportation cost and so on. But in order to procure it, one must duly and mandatorily get certified by the respective school authority on a yearly basis
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 minimum 3 years of satisfactorily operated SB account with Indian Bank.
- Amount of Loan is the net actual expense, however, the maximum amount could only be Rs 30,000 per family.
- The processing fee is charged at Rs. 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 the progress of a student 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 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 definitely acts as a small but important initiative towards improving the efficiency of labor force whilst boost the economy of the country.
Education loan Subsidy - This 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.
Eligibility: The education loan eligibility criteria for this loan are given below:
- Any Indian National individual.
- He / She should have secured admission to professional or technical courses in India or abroad either through Entrance Test or through Merit based selection process.