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Indian Bank Education Loan

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nil*

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Best Rate

8.50%

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Indian Bank Education Loans

What Is an Education Loan?

An Education loan is the loan or funds acquired by an individual to pursue higher studies in India or abroad. The loan repayment commences for the student after completing the education and a period of 6 months is given as grace period to students to get or join a job.

The repayment amount will be determined by your choice of interest, you need to decide how you want to repay the loan. That is if you want to start paying during the time of moratorium period itself or after the moratorium period. The Moratorium period is the time of your education plus 6 months or 1 year given to get a job. It is only after this time that you are expected to pay the loan.

The loan interest starts to accrue at the time of dispersal of funds, so at the time of your graduation you have a huge amount to repay. The other option is your parents or guardian can start paying the loan during the moratorium period itself where it is calculated as a simple interest.

This way your loan amount at the time of graduation is drastically reduced.

There are 4 types of education loans in India

1. Under Graduate education loan - These are given to students who have completed their secondary education and looking to do higher studies in the form of under graduation. It can be done in India or abroad.

2. Post graduate education loan - These are education loans given to individuals who want to pursue post-graduation after completing under graduation course from a reputed university/college. Here also the loan can be for studying in India or abroad.

3. Parents availing education loan - This is the case where the parents take loan for the education purposes of their children. This is an unsecured loan and need not be for graduate or post-graduation courses but also for elementary and higher secondary courses.

4. Career growth education loans - These are loans provided to young people who want to pursue courses or trainings, certifications that will benefit their career growth.

About Indian Bank

Indian Bank was founded in 1907 and offers consumer banking, corporate banking, finance and insurance, mortgage loans, investment banking, merchant banking, private equity, private banking, savings schemes and credit cards amongst other products. It is a government-owned, public sector banking company which has its headquarters in Chennai, Tamil Nadu. The bank has over 2500 branches spread across the nation.

An Introduction to Indian Bank Education Loans

Education is one area where everybody is willing to spend a lot of money to live a prosperous life in the future. Being one of the major education loan providers, Indian Bank understands the needs of the students and offers extremely competitive education loans at better interest rates. Every year, a large number of students secure admissions in top universities and colleges in India and abroad with Indian Bank education loans.

Advantages of Indian Bank Education Loan

Following are some of the advantages of applying for an educational loan with Indian Bank.

  • Low interest rate
  • Less paperwork
  • No processing fees
  • Faster Disbursal
  • No prepayment charges
  • No pre-closure charges

Key Highlights of Indian Bank Education Loan

Eligibility CriteriaStudents who have secured admission
Loan TenureUp to 15 years
Loan AmountNo cap
Interest RateBase Lending Rate 8.50%
Processing FeesNil

Features of Indian Bank Education Loan for Studies in India and Abroad

Objective: To provide term loan to Indian students for pursuing higher education in India and foreign universities

Quantum of Loan:No cap on the upper limit, higher loan amount is sanctioned to individuals based on eligibility and creditworthiness.

Margin: No margin required for loans up to INR 4 Lakhs, 5% of margin for loans above INR 4 Lakhs for studies in India and 15% of margin for above 4 Lakhs for studies overseas

Repayment Period:The tenure is up to 15 years after completing the course. The moratorium period is up to 1 year after completing the course.

Security: For up to 4 Lakhs, no security is required but co-obligation of parents is necessary. For loans between 4 lakhs and 7.5 Lakhs, suitable collateral with third-party guarantee required and for above 7.5 Lakhs, co-obligation of parents with tangible collateral required as security.

Processing Fees: There are no processing fees for availing Indian Bank education loan.

Courses Covered

The courses covered under Indian Bank education loan are graduation, post-graduation, including technical/professional courses with employment potentials conducted by colleges/universities approved by UGC/Government, AICTE/Department of Electronics/IMC, autonomous institutions like IIM, IIT, etc.

Expenses Covered

To meet the cost of education covering fee payable to college/school/hostel, exam fees, purchase of books/equipments, travel expenses/passage money for studies abroad, purchase of computers essential for completion of the course etc.

Eligibility Criteria: Who Can Apply?

  • Must be an Indian Resident
  • Applicant should have secured admission with the educational institution

Interest Rate of Indian Bank Education Loan for Studies in India and abroad:

The base lending rate is 8.50% and the effective rate of interest is subject to change at the sole discretion of the bank.

Features of Indian Bank Education Loan Prime

Objective: To provide term loan to Indian students for pursuing higher education in premier educational institutions in India

Quantum of Loan:No cap on the quantum of the loan, Collateral free loan amount can be obtained up to 35 Lakhs

Margin: No margin required.

Repayment Period:Up to 15 years

Security: No security required for loans up to 35 Lakhs in List A category and up to 7.5 Lakhs in List B Category, for loans above that limit, tangible collateral needs to be submitted with third-party guarantee.

Processing Fees: There are no processing fees for availing Indian Bank education loan.

Courses Covered

Courses offered at premier education institutions in India which are listed by the bank.

Expenses Covered

Expenses covered under Indian Bank education loan are payment of course fees, purchase of books, equipments, instruments, uniform, payment of hostel fees, examination fees, study tools etc.

Eligibility Criteria: Who Can Apply?

  • Must be an Indian Resident
  • Applicant should have secured admission with the educational institution

Interest Rate on Indian Bank Education Loan Prime

CategoryRate of Interest
List AMCLR 1 year
Presently 8.50%
List BMCLR 1 year + 0.60%
Presently 8.50%+0.60% = 9.10%

Features of Indian Bank Skill Loan

Objective: To provide term loan to Indian students for pursuing vocational courses

Quantum of Loan: Minimum of INR 5000 and maximum of 1.5 Lakhs

Margin: 10% of margin is required.

Repayment Period:For loans up to INR 50,000 – 3 years, for loans between INR 50,000 and INR 1 Lakh – 5 years and for loans between INR 1 Lakh and 1.5 Lakhs – 7 years

Security: No security required

Processing Fees: There are no processing fees for availing Indian Bank education loan.

Courses Covered

Courses offered at Industrial Training Institutes (ITIs), Polytechnics or in a school recognized by central or State Education Boards or in a college affiliated to recognized university, training partners affiliated to National Skill Development Corporation (NSDC)/ Sector Skill Councils, State Skill Mission, State Skill Corporation, preferably leading to a certificate / diploma / degree issued by such organization as per National Skill Qualification Framework (NSQF).

Expenses Covered

To meet the cost of education covering fee payable to Tuition / course fee, any other reasonable expenditure found necessary for completion of the course including but not limited to assessment fee, Examination fee, Library charges, Laboratory fee, Caution deposit, Purchase etc.

Eligibility Criteria: Who Can Apply?

  • Must be an Indian Resident
  • Applicant should have secured admission with the educational institution

Interest Rate on Indian Bank Skill Loan

The base lending rate is 8.50% and the effective rate of interest is subject to change at the sole discretion of the bank.

Documents Required

  • Letter of admission
  • Filled in Loan Application Form
  • 2 passport size photographs
  • Statement of cost of study
  • PAN Card of the student and Parent/ Guardian
  • AADHAR Card of the student and Parent/ Guardian
  • Proof of identity (Driving Licence/Passport/Aadhar/ any photo identity)
  • Proof of residence (Driving Licence/Passport/Electricity bill/Telephone bill)
  • Student/Co-borrower/ guarantor's bank account statement for last 6 months
  • IT return/ IT assessment order, of previous 2 years of Parent/ Guardian/ other co-borrower (if IT Payee)
  • Brief statement of assets & liabilities of Parent/ Guardian/ other co-borrower
  • Proof of income (i.e. salary slips/ Form 16) Parent/ Guardian/ other co-borrower

EMI Payment Methods

Indian Bank education loan can be repaid in following three ways.

Standing Instruction (SI): If you are an existing account holder with Indian Bank, Standing Instruction is the best mode of repayment. Your EMI amount will be debited automatically at the end of the monthly cycle from the Indian Bank account you specify.

Electronic Clearing Service (ECS): This mode can be used if you have a non-Indian Bank account and would like your EMIs to be debited automatically at the end of the monthly cycle from this account.

Post-Dated Cheques (PDCs): You can submit post-dated EMI cheques from a non-Indian Bank account at your nearest Indian Bank Loan Centre. A fresh set of PDCs will have to be submitted in a timely manner. Please note Post Dated Cheques will be collected non-ECS locations only.

It is recommended that you opt for either the SI or ECS mode of payment for faster and less prone to error than the use of PDCs.

How to Apply for Indian Bank Education Loan?

You can either apply online or visit a nearby Indian Bank branch for the application. You can also download the education loan application form from the Indian Bank official website, complete the form and submit it the bank representative.

You can also check your eligibility for an education loan through CreditMantri and apply for it.

Indian Bank Education loan FAQ

1. What is the interest charged during moratorium period?

Only simple interest will be charged during the moratorium period. After the moratorium period the actual interest mentioned will be charged.

2. Can I take an education loan without a co-borrower?

No, a co-borrower is needed to take an education loan. The loan will be taken as a joint loan in collaboration with your parent/ guardian or spouse.

3. I am planning to study abroad. Am I eligible to apply for an Education Loan?

Yes, Indian Bank sets no limit on the loan amount for courses pursued abroad which also includes travel expenses and study tours. Higher amount can be obtained based on eligibility and creditworthiness.

4. Is there a processing fee for an education loan with Indian Bank?

No, there are no processing fees on Indian Bank education loan.

5. Is there a way I can reduce the interest paid?

There is special subsidy provided according to Central Government subsidy for education loans. Indian Bank also provides special interest rates for some premier institutions. The other option is your parent/ guardian or spouse can pay the loan amount during the moratorium period due to which the loan amount you need to repay is less.

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