INDIAN BANK EDUCATION LOAN 

The Indian Bank is a government-owned public sector bank that was established in 1907. This bank, headquartered in Chennai, offers financial services including corporate banking, finance banking, investment banking, insurance and loans.Education loan is one of the most useful loans to be offered by the Indian Bank which can be availed in order to secure admissions at top colleges and universities in across India and abroad. Let’s get down and know more about the Indian Bank education loan. 

Features and Benefits of Indian Bank Education Loan

Education loans have come out as an excellent way to finance education to help students pursue their dreams. Whether it is India or abroad, the Indian bank makes sure the educational costs don’t come between you and your dream college or university. The bank brings a plethora of features and benefits including the affordable interest rates and convenient repayment options. 

Let’s dig more into the features and benefits of Indian Bank education loan:

1. Coverage: Indian Bank education loan covers tuition fees, exam fees, books and equipment fees, hostel fees and other student expenses including the cost of travel and passage. Apart from that, the education loan also covers the caution deposit amount. 

2. Loan Amount : For studies in India, you can get an education loan of up to Rs 15 lakh availed by Indian Bank. The maximum Indian Bank educational loan amount for abroad is Rs 25 lakh. 

3. Rate of Interest: Indian Bank education loans come at 12.50% per annum as a floating rate of interest. Along with that, 0.50% concession is provided on the interest rate for female students under the IBM scheme.

4. Loan Margin: Indian Bank does not require borrowers to cover the amount as a loan margin for education loans of up to Rs 4 lakhs of amount. If you are a student availing the loan of above the Rs 4 lakhs of amount, the bank will ask you to have an amount of up to 5% as loan margin for education in India. For studies abroad, you will have to bring the loan amount of up to 15%. 

5. Loan Repayment: Indian Bank allows the borrowers to start with the loan repayment after the completion of their studies or after the one year of securing a designation for a permanent job. If you have availed a loan amount of up to Rs 7.50 lakhs, you will get the tenure of 10 years to pay off the loan amount. If the loan amount you have availed is above Rs 7.50 lakhs, then you can repay it within 15 years.

6. Security:

• If the Indian Bank loan amount you have applied for is below Rs 4 lakhs then you will not be required to submit any documents of security. However, the co-obligation of parents will be required. 
• If the loan amount falls between the range from Rs 4 lakhs and Rs 7 lakhs then the collateral as a third-party guarantee and parents’ co-obligation will be needed.
• In case of loan amounts above Rs 7.50 lakhs, the collateral security will be required along with the co-obligation of parents/guardians to be an assurance about the student’s future income or loan repayment.

7. Schemes: Indian Bank educational loan comes with the ‘New IB Jeevan Vidya’ under which the insurance coverage is provided to the student.

Eligibility for Indian Bank Education Loan

If you are going to apply for an education loan by Indian Bank, you must meet certain eligibility criteria in order to make sure no hurdles come your way. 

Here is the eligibility criteria for Indian Bank education loan:

1. The student applying for an Indian Bank education loan should be at least 16 years.

2. The maximum age of the student applying for an Indian Bank loan should be 60 years at the time of maturity.

3. You are eligible for the education loan by Indian Bank only if you are an Indian citizen.

4. You should have a secured admission for any technical or professional course in India or abroad (by merit based or entrance test based selection process) in order to avail the education loan.

5. Those who are applying for an undergraduate, postgraduate or a diploma course can avail the Indian Bank education loan. 

6. Those who are applying for a computer certificate course from any Institution authorized by The Department of Electronics can avail the Indian Bank education loan.

7. Students who wish to seek any technical or professional courses by universities abroad can avail this loan.

8. Those who are applying for a MBA, MS, MCA, any CPA course in the USA, or CIMA-conducted course in London are eligible to go ahead for this loan. 

Documents Required for Indian Bank Education Loan

Here is the list of all the documents required for Indian Bank education loan in India as well as for overseas studies.

Expenses covered under Indian Bank Education Loan :

1. Tuition fees 
2. Cost of books, uniforms and stationeries
3. Cost of laptop or computer ( If required)
4. Examination Form
5. Library/ Laboratory fees
6. Hostel fee
7. Travel expenses ( for Abroad)
8. Miscellaneous Expenses

Indian Bank Education Loan Subsidy Scheme

As per the Central Subsidy scheme by the HRD ministry, a full interest subsidy is provided to the students who come from the financially weaker sections of the society. Those with the maximum family annual income of Rs 4.50 lakhs get the relief of full interest subsidy on education loan. 

This subsidy scheme is applicable to the educational loans availed technical or professional undergraduate and postgraduate courses in India. This scheme can only be availed once and is valid throughout the course period and one year after the completion of course along with six months after the permanent job.

Here are the undergraduate and postgraduate courses that are eligible for availing this scheme:

• Medical 

• Engineering 

• Law

• Dental 

• Para Medical 

• Computer Science 

• Management 

• Agriculture

• Veterinary 

• AICTE/UGC approved PG Diploma Courses

Compare other bank interest rate :

How to Apply for Indian Bank Education Loan

If you wish to apply for an education loan Indian Bank, here is what you can do that:

1. Apply Offline: You can simply visit the nearest branch of the bank. All you have to do is carry all the required documents and fill in the application form. You can also contact the bank on their toll free number and enquire about the education loan. 

2. Apply Online : To apply for Indian Bank education loan online, you can visit the official website of Indian Bank and fill the form there. 

Here is how you can reach out to the Indian Bank:

Toll-free number: 1800425000000, 18004254422

Other products of Indian Bank :

1. Indian Bank Business Loan

2. Indian Bank Car Loan

3. Indian Bank Home Loan 

4. Indian Bank EMI Calculator

Financials products offered by Bank :

FAQs

1. Is there any income category for the parents of an applicant to avail this loan?

No. There are not any conditions regarding the income of an applicant’s parents decided by the Indian Bank.

2. Does the Indian Bank provide the education loan for all the courses?

Indian Bank education loan is availed on the technical and professional degrees that fall under the diploma, undergraduate and postgraduate courses.

3. Does the Indian Bank provide ‘Holiday Period’ on education loan repayment?

Yes, the Indian Bank does have a ‘Holiday Period’ for the repayment of educational loan. The borrowers can repay the loan amount after the course gets completed or up to the one year after securing a permanent job.