Indian Bank Education Loan Details | GyanDhan

by williamair1

Published date: 08 Feb 2021
Updated on: 08 Feb 2021

One of the top public sector banks in India, Indian Bank was established in 1907 and currently holds a broad network of branches all over the country. Indian Bank education loan is a financial option that the students can avail of in order to pursue their higher education in premium colleges in India and abroad. Education loan from Indian Bank come with flexible repayment options and repayment period starting after the student has got a permanent job.

Note- In 2020, Allahabad Bank merged with Indian Bank, and all the customers of Allahabad Bank were transferred to Indian Bank. Allahabad Bank effectively ceased its independent operations on 01 April 2020.

An Indian Bank study loan helps students who are looking to pursue their studies in various disciplines in various colleges across India and abroad. The education loan schemes of Indian Bank cover expenses involving college fees, exam fees, hostel fees, equipment fees, books, travel money, etc for overseas education. The loan also includes building fund deposits, caution deposit, and any refundable deposit as well. Indian Bank also offers insurance coverage 'New IB Jeevan Vidya' scheme for the loan and the loan amount covers its premium.

In this blog, we will traverse you through all the features, requirements, and benefits of an Indian Bank education loan. So, let's dive in...

What is the rate of interest of the Indian Bank education loan?

Students can get study loan at a floating rate of interest of 12.5% p.a. Female applicants can also get a concession of 0.50% on the interest rate.

What is the margin money on the Indian Bank education loan?

There is no margin money on loan margin for the education loans up to INR 4 Lakhs. For the loan amount of more than INR 4 Lakhs, the margin money is up to 15% for abroad education and 5% for study in Indian colleges.

Maximum Loan Amount 


For abroad education: Up to INR 25 Lakhs
For study in India: Up to INR 15 Lakhs




Loan Tenure


For up to INR 7.5 Lakhs: up to 10 Years
For more than INR 7.5 Lakhs: up to 15 Years




Interest Rate


12.50% per annum with 0.5% concession for girls




Moratorium Period


Either after the course completion or 1 year after the student gets a job




Margin Money


Up to INR 4 Lakhs- Nil
For more than INR 4 Lakhs- 15% for studying abroad and 5% for Indian college/university




Eligibility


The student should be an Indian citizen.
 Students should have secured admission to professional or technical courses in India or abroad.

How much loan can be taken from the Indian Bank education loan?

The bank can sanction up to INR 15 Lakhs for studies in India and up to INR 25 Lakhs for abroad studies.

What is the repayment period of the Indian Bank education loan?

Repayment of Indian Bank study loan can be started either after the course completion or a year after the student has got a permanent job. If the loan amount is up to INR 7.5 Lakhs, the loan repayment period can be up to 10 years whereas the loan amounting above INR 7.5 Lakhs, the repayment period can be up to 15 years.

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What is the security required to be pledged for the Indian Bank education loan?

If the loan amount is below INR 4 Lakhs, students do not have to pledge any form of collateral or security. Parents have to be a co-applicant and it would suffice.
For loans between INR 4 Lakhs and INR 7.5 Lakhs, a third-party co-applicant is mandatory along with the parents.
If the loan amount is more than INR 7.5 Lakhs, the parents or guardian can be the co-applicant along with collateral security of suitable value is mandatory to assure the repayment of the loan.

What are the documents required for an Indian Bank education loan?

Address proof: passport, voter ID, electricity bill, etc.
Academic record: 10th/12th mark sheet for undergrad students and graduation degree & mark sheet for PG students.
Age proof
Community certificate
Family income proof: ITR, salary certificate, pension certificate of parent/guardian.
Admission certificate or I20 from the college/university
Fee details
Collateral documents (if applicable): LIC policy, valuation certificate, registry documents, etc.
An affidavit declaring that no study loan is availed from any other bank by the student and his/her parent.

At what locations in India can a student avail of an Indian Bank education loan?

Students can apply for an Indian Bank education loan at any branch in or near his/her place of domicile.

Does the Indian Bank education loan is available for all types of degrees and disciplines?

Indian Bank offers education loans diplomas, undergraduate courses, and postgraduate courses which offer professional and technical degrees in India and abroad.

If you are also looking for an education loan to study abroad, from government banks, private banks, or NBFCs, you can get in touch with GyanDhan. We have a tie-up with leading financial lenders in India to provide the best deal on education loans. For a secured or an unsecured education loan, you can check your loan eligibility and see if you are qualified for an education loan. If eligible, our education loan counselor will get back to you and understand your requirements in detail, and will suggest you the best loan options.

Our loan assistance service is free of cost- we don’t charge anything from the students! We also provide a customized checklist of documents in order to avoid any confusion. Get in touch with GyanDhan and we will make your loan process easy, simple, & swift!

This is a companion discussion topic for the original entry at https://www.gyandhan.com/blogs/indian-bank-education-loan