Indian Bank

Overview


"As a premier banking institution in India, Indian Bank has a well-established network of branches, ATMs, specialized banking offices, SME branches and 240 overseas correspondent banks in over 70 countries. Indian Bank has a vast loan portfolio comprising of agricultural loans, group loans, personal loans, SME loans, NRI loans and education loans. An Indian Bank education loan is a convenient financing option that can be availed by students intending to pursue their higher education in premier institutions in India or abroad. Indian Bank offers educational loans with flexible repayment options for students and the repayment can be started after the applicant has been permanently employed."

Loan Interest Rates:


"Indian Bank offers education loans at a floating interest rate of 12.50% per annum with a concession of 0.50% on the interest rate under the IBA scheme for female students."
Base Rates Are:

Loan Eligibility:


Courses Eligible For Loan:
    India:
  • Students applying for diploma, undergraduate or postgraduate courses regardless of the discipline are eligible to avail an Indian Bank education loan.
  • Education loans can also be availed for computer certificate courses from institutions accredited to The Department of Electronics.
    Abroad:
  • Indian Bank educational loans are offered for job-oriented professional or technical courses offered by universities.
  • Students applying for an MBA, MCA, MS and courses conducted by CIMA - London and CPA in USA are also eligible to avail an Indian Bank educational loan.

Documents Required:
Documents Education in India Education Abroad
Residence Proof Ration Card/ Voter's ID/ Passport/Electricity bill/ Telephone bill Ration Card/ Voter's ID/ Passport/Electricity bill/ Telephone bill
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 SSLC/TC/Any mark list SSLC/TC/Any mark list/Passport
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/Bonifide student certificate from the College/University Certificate or I 20 from the College/University
Fee details 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 Rs.4.00 lakhs) 5%. Documentary evidence for source of funds to meet the margin amount 15%. Documentary evidence for 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

Candidate Education Loan Eligibility:
  • All applicants are required to be Indian citizens.
  • Students who apply for an Indian Bank education loan, should have secured admission to professional or technical courses in India or abroad through an Entrance test or a merit based selection process.

Processing Fees:

Expenses Covered under Education Loan:


"An Indian Bank educational loan helps individuals to cover costs involving college fees, hostel fees, exam fees, books and equipment fees, travel or passage money for overseas education and other student expenses. The loan also includes the caution deposit amount, building fund deposit and any refundable deposit up to a maximum of 10% of the total tuition fees of the course opted for. Indian Bank also provides insurance coverage for the student and the educational loan covers the premium required for the same."

Loan Repayment:


"Repayment of an Indian Bank education loan can be initiated either after the completion of the course or a year after the applicant has got a job. Loan amounts up to Rs 7.50 lakhs have to be repaid within a period of 10 years and loans availed above Rs 7.50 lakhs can be repaid within 15 years."

Security Required:


  • For loans amounts below Rs 4 lakhs, the bank does not require applicants to submit any form of security and the parents' co-obligation would suffice.
  • For loan amounts ranging between Rs 4 lakhs and Rs 7.50 lakhs, the co-obligation of the parents along with collateral in the form of third party guarantee is required.
  • Borrowers taking education loans above an amount of Rs 7.50 lakhs require the co-obligation of parents or guardian along with collateral security of suitable value, assuring the future income of the student for repayment of the loan.

FAQs:


1.Does Indian Bank require the parents of the applicant to fall under a particular income category?
Ans. No, Indian Bank does not have preset conditions regarding an applicant's parental income or repayment capability.

2.At what locations can an Indian Bank education loan be availed by an applicant?
Ans. An Indian Bank education loan can be availed at any branch in or near the applicant's place of domicile.

3.Does Indian Bank have a 'Holiday period' on an education loan repayment?
Ans. Yes, Indian Bank borrowers can start repaying their education loans after the completion of the course and up to a year after they have found permanent employment.

4.Does the Indian Bank education loan extend to all types of degrees and disciplines?
Ans. Indian Bank education loans can be taken for diplomas, undergraduate and postgraduate courses which offer professional and technical degrees.

5.Does the interest rate concession for female candidates apply under the non-IBA scheme?
Ans. No, the interest rate concession for educational loans is not applicable under the non-IBA scheme.