Education Loan at Indian Bank

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.

 Sr. No.

Title 

 Education Loan at Indian Bank

 Expenses covered by Indian Bank Education Loan

 Eligibility Criteria and Requirements

Repayment of loans 

 


Education Loan at Indian Bank

The bank provides loans for students who choose to study in India as well as for students who opt to study in universities abroad. The loans provided by the bank are as follows:

Particulars

Colleges in India

Colleges Abroad

Max. Loan Amount

Rs. 15 Lac

Rs. 25 Lac

Interest Rates

10.60% for all the loan amounts borrowed

10.60% for all the loan amounts borrowed

Margin Requirement

100% for loans below Rs. 4 Lacs and 95% for loans above Rs 4 Lacs

100% for loans below Rs. 4 Lacs and 85% for loans above Rs 4 Lacs.

Max Tenure after moratorium period

7 years

7 years

 They also provide loans for students who aspire to study in reputed institutions such as IIT, IIM, or ISB.

Particulars

Details

Max. Loan Amount

Rs. 10 Lac

Interest Rates

8.60% for all the loan amounts borrowed

Margin Requirement

100% for loans below Rs. 4 Lacs and loans above Rs 4 lacs as well.

Max Tenure after moratorium period

0 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. 


Eligibility Criteria and Requirements

  • 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.

Courses Eligibility

Eligible Courses

Non-Eligible Courses 

  • UG and PG courses in -

    • Engineering

    • Medical

    • Para Medical

    • Agriculture

    • Veterinary

    • Law

    • Dental

    • Management

    • Computer Science

  • PG Diploma Courses approved by AICTE/UGC

  • Courses pursued abroad or without completing Class XII.

  • Non-Professional and Non-Technical UG and PG courses in

    • Arts

    • Science

    • Commerce

    • Sociology

    • Music

  • Diploma Courses

  • Teacher Training Courses

  • Skill Development

  • Vocational Training courses

Documents Required

Documents

Education in India

Education Abroad

Address Proof

Documents such as ration card, voter’s ID, and passport will be required

Documents such as ration card, voter’s ID, and passport will be required

Academic record

  • Xth / XIIth mark lists for UG students.

  • Degree mark list/provisional certificate for PG students

  • Xth /XIIth mark lists for UG students.

  • Degree mark list/provisional certificate for PG students

Age Proof

Mark Sheet or a Transfer Certificate From the Institute 

Passport, Mark Sheet or a Transfer Certificate From the Institute 

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

  • Bonifide/ Study Certificate student certificate from the College/University

Certificate from the College/University

Fee details

Letter or Certificate from the College/University

Certificate 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 a legal opinion from the bank in case of land or buildings

LIC policy /Share certificates / Units of UTI / Valuation certificate and a legal opinion from the bank in case of land or buildings

Margin Requirement (Above Rs.4.00 lakhs)

  • 5% margin is required

  • Documentary evidence for the source of funds to meet the margin amount

  • 15% margin is required

  • 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/guarantor

  • Details of securities and collateral

  • A & L of the student/parent/guardian/guarantor

  • Details of securities and collateral


 Repayment of loans

  • 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.



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