Can a student request an Indian Bank Education Loan without a co-applicant or collateral security?

Yes, students can apply for loans up to Rs. 7.5 lakhs without requiring collateral or a co-applicant. However, for amounts exceeding Rs. 7.5 lakhs, a co-applicant and collateral security may be necessary, based on the loan amount.

Is there a processing fee for Indian Bank Education Loan?

Yes, Indian Bank charges a processing fee for handling loan applications, calculated as a percentage of the loan amount, and is subject to periodic adjustments.

What is the repayment duration for Indian Bank Education Loan?

The repayment period varies based on the loan amount and course duration, ranging from 5 to 15 years, inclusive of the moratorium period.

Is there a specific income category that the parents of the applicant must fall under for Indian Bank's approval?

No, Indian Bank does not impose predefined conditions regarding the parental income or repayment capacity of the applicant.

Indian Bank Education Loan

Indian Bank stands tall as a reliable partner in your academic journey with its comprehensive education loan scheme. Boasting competitive interest rates starting at 10.25%. With its commitment to affordability, accessibility, and transparency, Indian Bank walks alongside you, step by step, ensuring your child’s academic aspirations have the wings they need to fly.

Investing in your child's future:A wise decision & a loving choice

Benefits of Investing In Child Plan

Waiver of Premium Benefit

Future Premiums are paid by the insurer upon death of policyholder

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Your premiums help your child achieve their dreams through lump sum or regular payouts

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Tax Benefits^

You get tax benefits under Section 80(C) and no tax on returns under Section 10 (10D)

Investment Flexibility

It offers the flexibility to invest at regular intervals or as a one-time contribution

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7.7 Crore

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Policies Sold

Disclaimer: #The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CAGR 8%; ₹50,45,591 @ CAGR 4%. *Tax benefits and savings are subject to changes in tax laws. All plans listed here are of insurance companies’ funds.

About Indian Bank Education Loan

The Indian Bank education loans are schemes designed to support students in pursuing their educational aspirations. With attractive low-interest rates, the Indian Bank offers flexible repayment options extending up to 15 years, providing borrowers time to repay their loans.

These loans cater to students undertaking both domestic and international courses, making education accessible to a diverse range of applicants. The application process is streamlined, allowing students to apply for loans conveniently through an online platform, ensuring a quick and efficient experience.

What are the Features and Benefits of the Indian Bank Education Loan?

Below are the features and benefits of Indian Bank Education Loan:

Open to Indian Nationals: Accessible to all Indian citizens.
Recognized Institutions: Applicable for admissions to recognized universities/colleges.
Flexible Repayment: Up to 15 years, allowing borrowers to plan repayments wisely.
Holiday Period: Course duration plus one year, easing the post-education transition.
Convenient Application: Apply online at https://www.vidyalakshmi.co.in/Students/.
Interest Subsidy: Potential subsidy available under specified guidelines.

India Bank Education Loan Schemes

Schemes	Maximum Loan Amount	Interest Rates
Indian Bank Skill Loan	Rs.1.5 lakh	9.55%
Indian Bank Scholar Loan	Rs.40 lakh	8.95% to 9.25%
Indian Bank Student Loan	Rs.20 lakh	10.05%
Indian Bank Global ED-Vantage	Rs.1.5 crore	10.05%
Indian Bank Take Over of Education Loan	Rs.1.5 crore	10.05%

What are the Eligibility Criteria to Apply for Indian Bank Education Loan?

Applicants must be Indian citizens.
Students applying for an Indian Bank education loan should be enrolled in professional or technical courses.
The courses may be pursued in India or abroad.
Admission should be secured through an entrance test or a merit-based selection process.

What are the Courses Eligible Under Indian Bank Education Loan?

Under the Indian Bank Education Loan scheme, various courses are eligible for financial assistance. Here's an overview:

Full-time Graduate/Postgraduate Degree Courses:
- Loan Amount: Up to Rs. 20 lakhs
- Repayment Tenure: Up to 15 years post-course completion
PG Diplomas Courses:
- Loan Amount: Up to Rs. 10 lakhs
- Repayment Tenure: Up to 10 years post-course completion
Professional Courses (ICWA, CA, CFA, etc.):
- Loan Amount: Up to Rs. 20 lakhs
- Repayment Tenure: Up to 7 years post-course completion
Courses from Premier Institutes (IIMs, IITs, IISC, XLRI, NITs, NIDs, NIFTs, etc.):
- Domestic Courses:
  - Loan Amount: Up to Rs. 20 lakhs
  - Repayment Tenure: Up to 15 years post-course completion
- Foreign Courses:
  - Loan Amount: Up to Rs. 40 lakhs
  - Repayment Tenure: Up to 7 years post-course completion
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Specialized Courses (Aeronautical, Pilot Training, Shipping, etc.):
- Domestic Courses:
  - Loan Amount: Up to Rs. 1.5 crores
  - Repayment Tenure: Up to 15 years post-course completion
- Foreign Courses:
  - Loan Amount: Up to Rs. 2 crores
  - Repayment Tenure: Up to 7 years post-course completion
Courses by Reputed Foreign Universities in India:
- Domestic Courses:
  - Loan Amount: Up to Rs. 40 lakhs
  - Repayment Tenure: Up to 15 years post-course completion
- Foreign Courses:
  - Loan Amount: Up to Rs. 1.5 crores
  - Repayment Tenure: Up to 7 years post-course completion
Executive Management Program/Executive MBA:
- Eligibility: Graduate with 3 years of work experience
- Institutes: Premier and Prime Plus categories
- Nationality: Resident Indian, NRI, PIO, OCI, Student Born Abroad (Restricted to studying in India)
- No Age Restriction

Other Eligible Courses:

Full-time and approved part-time/distance education courses in India.
Studies abroad, including job-oriented professional/technical courses.
Courses recognized by regulatory bodies for employment in India/abroad.

**Note: Diploma in Teacher Training course is not eligible under this scheme.

What are the Expenses Considered for an Indian Bank Education Loan?

Tuition Fees:
- Charges for attending classes and accessing learning resources.
Hostel Fees or Lodging and Boarding Charges:
- Expenses related to staying in a hostel or rented accommodation, including meals.
Travel Expenses or Passage Money:
- Coverage for travel to and from the educational institution.
Living Expenses:
- Coverage for necessities such as food, transportation, and other living costs.
Insurance Premium:
- Coverage for the loan amount in case of unforeseen events.
Caution Deposit, Building Fund, or Refundable Deposit:
- Coverage for any required deposits or funds specified by the institution.
Purchase of Books, Equipment, Instruments, or Uniforms:
- Coverage for essential course materials.
Purchase of a Computer (if required for completion of the course):
- Coverage for the cost of purchasing a computer.
Other Expenses Required to Complete the Course:
- Academic and maintenance fees, study tours, project work, thesis, etc.

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Invest ₹5K/Month YOU GET ₹50 Lakhs^* For Your Child View Plans

Standard T&C Apply *

Other Important Things to Know About Indian Bank Education Loan

Margin Requirements:

Margin refers to the percentage of the total education cost a student must fund independently, with the rest covered by an educational loan. The margin varies for Study in India and Studies Abroad categories, as well as Executive Management Programs.
- Study in India:
  - Loan up to ₹4 lakhs: 0% margin
  - Loan ₹4 lakhs to ₹7.50 lakhs: 5% margin
  - Loan above ₹7.50 lakhs: 15% margin
  - Executive Management Program/Executive MBA: 25% margin
- Studies Abroad:
  - Loan up to ₹4 lakhs: 0% margin
  - Loan ₹4 lakhs to ₹7.50 lakhs: 15% margin
  - Loan above ₹7.50 lakhs: 20% margin
Quantum of Finance:

The maximum loan amount depends on the total education cost and the margin requirement.
- Study in India and Abroad: Quantum of finance is need-based, subject to margin.
- Executive Management Program/Executive MBA: Maximum loan amount: ₹ 25 lakhs.
Repayment Period:

The repayment period varies based on the type of education program.
- Study in India, Abroad: Up to 180 EMIs over a maximum of 15 years.
- Executive Management Program/Executive MBA: Up to 120 EMIs over a maximum of 10 years, with a floating interest rate.
Credit Guarantee Cover:

Credit Guarantee Fund Scheme for Educational Loans (CGFSEL) provides safety without collateral for loans up to Rs. 7.50 lakhs.
- No collateral is required.
- 75% guarantee cover for defaults.
- Annual guarantee fee: 0.50% absorbed by the bank.
Collateral Security:

Varies based on loan amount and institute.
- Studies in Premier Institutes:
  - No collateral for loans up to ₹30 lakhs.
  - 100% collateral for amounts exceeding ₹30 lakhs.
- Prime Plus & Other Institutes:
  - 100% collateral required.
- CGFSEL Eligibility:
  - No collateral or third-party guarantee is required under CGFSEL.
Life Insurance Cover:

A life insurance policy is essential to cover the outstanding loan amount in case of the borrower's demise.
- Premium is based on the borrower's age, loan amount, and tenure.
- The policy should cover the entire loan amount and interest.
- Documents required for availing life insurance.

Unique Triple Benefit

Future premiums paid by insurer on parent's death

Monthly income to fund child's education on parent's death

Lumpsum payout to family on parent's death

Returns

Return as of Apr 2024
12%-15%
8.2%
7.1%

Availability

Availability
Girl Child or Boy Child
Girl child only
Girl Child or Boy Child

Max Entry Age
Upto 18 years
Upto 10 years
No Age Limit

Flexibility

Invested Amount can be Withdrawn after
5 years
21 years
15 years

Conditions for Premature closure
Anytime after 5years
Extreme Compassionate Grounds
Serious Ailments or for education

Penalty on Premature Closure
No Penalty after 5 years
Returns reduced to Post Office Savings rate
1% reduction in interest rate

Max deposit amount in an year
No Limit
1.5 Lacs
1.5 Lacs

Documentation

Documentation Required for Withdrawal
Low
High
Low

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What are the Documents Required for the Indian Bank Education Loan?

Documents Required	To Study in India	To Study Abroad
Age Proof	SSLC/TC/Any mark list	SSLC/TC/Any mark list/Passport
Residence Proof	Ration Card/ Voter’s ID/ Passport/Electricity bill/ Telephone bill	Ration Card/ Voter’s ID/ Passport/Electricity bill/ Telephone bill
Academic record	10th/12th marksheet for UG students. Degree mark list/provisional certificate for PG students	10th/12th marksheet for Undergraduate (UG) students. Degree mark list/provisional certificate for Post Graduate (PG) students
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, student certificate from the College/University	Certificate or I 20 from the College/University
Fees detail	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 ₹4 lakhs)	5% Documentary evidence for the source of funds to meet the margin amount	15%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/guarantorDetails of securities and collateral	A & L of the student/parent/guardian/guarantorDetails of securities and collateral

What is the Subsidy Scheme for Indian Bank Education Loans?

Subsidy Scheme	Eligibility Criteria	Loan Limit	Moratorium Period	Interest Subsidy
Central Scheme to provide Interest Subsidy to Educational Loan (CSIS)	Pursuing approved technical and professional courses in recognized institutions in India.	Up to ₹10 lakhs	Up to the moratorium period	Available for the interest charged up to INR 10 lakhs only.
Padho Pardesh Subsidy	Pursuing Masters/M.Phil/Ph.D. courses abroad.	Up to ₹20 lakhs	Up to the moratorium period	Available for the interest charged up to INR 20 lakhs only.
ACSISOBCEBC Subsidy	Pursuing Masters (including PG Diploma), M.Phil, and Ph.D. courses abroad under IBA scheme only.	Up to ₹20 lakhs	Up to the moratorium period	Available for the interest charged up to ₹20 lakhs only.

FAQ's

Can a student request an Indian Bank Education Loan without a co-applicant or collateral security?

Yes, students can apply for loans up to Rs. 7.5 lakhs without requiring collateral or a co-applicant. However, for amounts exceeding Rs. 7.5 lakhs, a co-applicant and collateral security may be necessary, based on the loan amount.
Is there a processing fee for Indian Bank Education Loan?

Yes, Indian Bank charges a processing fee for handling loan applications, calculated as a percentage of the loan amount, and is subject to periodic adjustments.
What is the repayment duration for Indian Bank Education Loan?

The repayment period varies based on the loan amount and course duration, ranging from 5 to 15 years, inclusive of the moratorium period.
Is there a specific income category that the parents of the applicant must fall under for Indian Bank's approval?

No, Indian Bank does not impose predefined conditions regarding the parental income or repayment capacity of the applicant.

†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
*All savings are provided by the insurer as per the IRDAI approved insurance plan.
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
#The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CARG 8%; ₹50,45,591 @ CAGR 4%
+Returns Since Inception of LIC Growth Fund
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.