To compete with the increase in the cost of education, students and parents are considering and selecting scheme for education loans as a viable option for higher studies in educational institutions of India or abroad. These loans come with several incentives in the form of minimum interest rate, flexible repayment option and negligible charges that help the people opt for these as a viable option to fund their education.
Indian Bank is premier public sector bank with well established and well co-ordinated network of branches, specialized banking zones, SME branches, ATM branches and 240 correspondent overseas bank in over 70 countries. Indian Bank has developed strong customer relations over these years with its products including a vast loan portfolio consisting of home loan, car loan, personal loan, agricultural loan and the popular student loan scheme. Indian Bank education loan can be availed by meritorious students aspiring for higher studies from recognized educational institutions in India or abroad. All they have to do is to meet the bank’s representatives, read the brochures, understand the terms and conditions, and apply for the loan.
Indian Bank offers hassle free education loan to estimable & deserving student so that finance is never an issue in realizing their dream. Indian Bank education loans are not simplified to the maximum possible extent but also play a pivotal role in cheering the dreams of our next generation future.
The scope of Indian Bank education loan:
- As a popular method of financing higher studies in India or abroad, the Indian Bank student education loan has gained importance to meet the rising education cost for the Indian youth.
- To cater the needs of financial assistance in covering fee payable to college / school, exam fees, purchase of books or equipment’s, accommodation, travel expenses or passage money for studies abroad, purchase of computers essential for completion of the course etc.
- Any expense incurred towards the caution Deposit, Building fund/ refundable deposit supported by institution bills/receipts, subject to a maximum of 10% of total tuition fees for the entire course.
- For student going abroad and wherein the insurance is mandatory the Insurance premium is covered under the scope of Educational loan offered by Indian Bank
Other Indian Bank student loan schemes
- This Indian Bank educational loan scheme is intended towards catering the financial requirement while getting a child enrolled in school.
- The purpose of this Indian Bank student scheme cover every aspect of cost incurred such as cost of admission fees and term fees, cost of books, uniforms, computer fees, transportation cost (if provided by the school) and duly certified by the respective school authority on yearly basis
- The Salient features of this Indian Bank education loan are
- Available for Salaried Employees in public sector/reputed companies or Professional self employed with minimum 3 years of satisfactorily operated SB account with Indian Bank.
- Amount of Loan is the net actual expense, however maximum amount could be actually.30, 000/- per family.
- Processing fee is charged @ Rs. 300/- per application.
- The pay back has to be done in 10 EMI, Commencing the next month of loan disbursement under this Indian Bank student loan scheme.
- No Donation or Capitation fee is under the purview of this loan scheme.
- Children studying LKG to XII standard in any recognized school/ Govt. aided schools/Approved by Board of Education are eligible
- For cases where the progress of student is laudable and up to bank’s satisfaction the student loan scheme can be rolled over.
- The acceptable security for Balavidhya Scheme could be Employer’s sponsorship or Salary Account with Indian Bank with the letter of authorization to debit the EMI.
Living up to its commitment of maximum financial inclusion and social empowerment, Indian Bank came with this educational loan product, focused on helping the children of Self Help Group. Vidhya Shoba scheme covers all aspects of financial assistance to ensure that no dream of any deserving student is left unattained.
The key features of Vidhya Shoba educational loan scheme is
- Any Children of SHC group member, wherein the SHC should be in existence for more than 2 years with a proven track record.
- The sanction amount is In Multiples of accumulated savings subject to maximum of six times at any time of the year depending upon educational requirements of the wards of SHG members.
- The tenure of the loan is between 12 – 24 months.
Other Value Added service: Apart from the financial assistance, Indian Banks offer other value added service for customers to its student loan scheme borrowers.
New IB Jeevan Vidya
- This is an insurance scheme customized to suit the requirements of students availing educational loans.
- Insurance scheme for students going abroad or in India under Indian Bank student loan scheme.
- Covers all expense incurred towards the treatment of borrowers while they are in Nepal or Bhutan. This covers even on holiday or business purpose.
- However no cashless facility is offered under this scheme. Post payment of expense, students have to claim the expense.
- The enrolment age is between 16 years to 50 years, however the maximum age at the maturity should be 60 years.
- The Sum assured is Balance outstanding at the time of death or limit sanctioned whichever is less.
- The coverage amount is Rs. 15 lakhs & Rs. 25 lakhs for studies in India and abroad respectively.
- The one time single premium shall be remunerated by the bank under this scheme. Indian Bank has tied up LIC of India for the array of services offered.
- First 45days post acceptance of policy (except death due to accident) shall be treated as the waiting period for the insurance cover to start.
- The coverage period shall be of Minimum 3 years top the maximum of 12 years wherein the period is a consolidated term of course period, repayment holiday and repayment period of the loan.
- If in case the borrower attains the age of 60 years, the policy shall automatically come to an end.
- Prior recognition of the policy, the clause of medical check has to be done and bank shall have the sole discretion to either accept or reject the policy basis findings of the medical checkups.
- The condition for policy is determined on the basis of loan amount vis-à-vis the age of borrower.
- Customer may avail tax benefit under Income tax rebate u/s 80C for the premium paid. In case where the parents are paying on behalf of their children, they may avail the tax benefit on the premium paid
Medical check-up is required in following conditions
- Loan exceeding Rs. 5.00 lakhs for the age group of 46 years & above.
- Loan exceeding Rs.10.00 lakhs for the age group of 36 years & above.
- Loan exceeding Rs. 15.00 lakhs for the age group of 35 years & above.
Vocational education and training has gained a lot of momentum in the recent years but until 2012, students aspiring to pursue vocational education and training courses were not able to grab a loan for vocation education as it was not approved by the India Banks Association. It was only in 2012 when vocational education loan and vocational training loan was approved by Indian Banks Association and later was adopted by all other leading banks in our country.
Indian bank loan for vocational education and training provides an impetus to a country’s skill mission, a small initiative towards improving the efficiency of labour force and boost the economy of country. With India targeting to teach skills and expertise to its million people in the coming years, this loan for vocational education will not only help students but also skill providers complaining of low enrolment in vocational education and training courses due to financial crisis.
Subsidy scheme for Indian Bank education loan:
Ministry of Human Resource development under their central scheme for subsidy has provided a full interest subsidy for students belonging to economically weaker section of the society with maximum parental monthly income of not less than Rs. 37,500 which equals to annual income of Rs. 4.5 lakh. This subsidy is granted for entire course period just like loan for courses and additional one year after completing the course or six months after getting the job, whichever is earlier. This subsidy student loan scheme is granted to all the students pursuing graduation or post graduation or any professional course study in India from reputed educational institutions and can be availed only once. Students can utilise this subsidy scheme while applying for courses in UGC / AICTE certified education institutions or other state or central government recognised institutions.
Eligibility: The education loan eligibility criteria for this loan are given below:
- Any Indian National individual.
- He / She should have secured admission to professional or technical courses in India or abroad either through Entrance Test or through Merit based selection process.
Courses in India
- Diploma/Graduation/Post-graduation courses in various disciplines in any of the government or private affiliated university
- Vocational courses or computer certificate or job oriented courses of reputed institutes accredited by either government or any private body.
- Professional courses such as MBA/CA/CWA/CS etc under any government affiliated entity.
For Studies Abroad
- Job-oriented professional/technical courses offered by reputed universities.
- MCA, MBA, MS etc. offered by reputed universities
- Other Professional Courses conducted by CIMA - London, CPA in USA etc.
Amount of education loan
- For Studies in India the loan amount offered from Indian bank education loan is - Rs. 10.00* lakhs.
For Studies Abroad the loan amount - Rs. 25.00* lakhs.
*the amount mentioned above can be revised subject to bank’s discretion in case of praiseworthy students.
- The Indian Bank education loans can be availed only at the place of domicile of the students or Home Branches in cases where in the parent have existing relationship with Indian Bank.
- The maximum tenure of loan shall be 10 years for loan up to Rs. 7.5 lakh and 15 years for loan above Rs. 7.50 lakhs, excluding the holiday period.
- The holiday period shall be 1 years post completion of course or else 6 months post getting a job, whichever is earlier.
- No security up to loan amount of Rs. 4 lakhs.
- For amount above Rs. 4 lakh up to Rs. 7.50 lakh – Any Collateral in the form of satisfactory third party guarantee is acceptable as the security towards Indian Bank student loan scheme.
- For Loan amount Above Rs.7.50 lakhs, a documented co-obligation of parents / guardians is required. This has to be backed up with sufficient collateral security of appropriate value along with assignment of future income of the student for payment of instalments.
- Life Insurance covers available to the student borrowers under 'New IB Jeevan Vidya' Insurance Scheme.
- Nil margin for loan amount up to Rs. 4 lakhs
- For amount above Rs. 4 lakhs, 5 % is the margin for studies in India and 15 % in cases for studies abroad.
Rate of Interest:
- Indian bank charges interest rate of 12.25 % p.a. for education loan at present under both IBA and Non-IBA scheme irrespective of the loan limit.
- Under IBA scheme a concession of 0.50% will be offered to girl students for studies in India and abroad. However, this concession is not applicable for education loans under the non-IBA scheme
- All the students or educational loan borrowers who are offered finer interest rates are allowed to select premier educational institutions.
- Floating interest rate is linked with the base rate of the bank which may change according to the change in the base rate.
List of loan documents required for Indian Bank student education loan
- Residence proof such as photo copies of passport, telephone/electricity bill, voter’s ID card or Aadhar Card.
- Academic records and qualification proofs.
- Birth certificate or mark sheets to validate date of birth
- Income proofs of family members like salary certificates and IT returns filed.
- Certificate from college or university to validate admission of the student.
- Certificate from college or university confirming the fee structure
- Affidavit or certificate stating the fact that no education loan has been taken by the student from any other bank.
The bank also provides the facility of online EMI calculator which the applicant can use to calculate the EMI amounts payable. For example-
Seema took an education loan of Rs 20 lakhs to fund her overseas education in the field of Mass Communications from Indian Bank. She got the loan at an interest rate of 12.25% with a repayment term of 7 years. She used the EMI calculator to find out that she will need to pay Rs.35,573 monthly to pay off the loan.
The bank makes it easy for the customer to choose an Indian Bank education loan by offering the option of applying online. You can use the Paisabazaar portal to check your eligibility for an education loan and apply for one after having entered the necessary details. The portal directs you to another page having suitable options according to the details you have entered, you can select Indian Bank education loan from there after which a bank official will contact you to carry the procedure forward.