Indian Bank — Education Loans (India)

1. Loan Schemes & Variants

Indian Bank offers multiple education loan products designed to cater to different segments of students, all under the umbrella of the IBA Model Education Loan Scheme with custom enhancements.

Key Loan Types

1. IB Education Loan Scheme (Domestic)

   • For studies in recognized schools, colleges, and universities within India.
   • Covers professional, technical, vocational, and graduation/post-graduation courses approved by UGC, AICTE, MCI, ICAR, etc.

2. IB Scholar Loan

   • Special concession for students admitted to Premier Institutions in India (IITs, IIMs, NITs, AIIMS, IISc, etc.).
   • Collateral-free up to a higher limit compared to regular scheme.

3. Vidya Suraksha (Education + Life Insurance)

   • Bundles term life cover with the education loan, so repayment obligations are insured.

4. Government Interest Subsidy Schemes

   • Includes CSIS (Central Scheme of Interest Subsidy) for economically weaker sections.

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2. Loan Amounts, Margins & Coverage

Course Type	Loan Limit (without collateral)	Loan Limit (with collateral)
Studies in India	Up to ₹7.5 lakh	Above ₹7.5 lakh — need tangible security

Expenses Covered:

• Tuition and exam fees
• Hostel and mess charges
• Books, equipment, laptop (if required)
• Caution deposits, project work, study tours
• Other academic fees directly payable to the institution

Margin Money:

• Up to ₹4 lakh – NIL margin
• Above ₹4 lakh – 5% margin for domestic studies

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3. Interest Rates & Concessions

• Base rate: Repo-linked Lending Rate (RLLR) + spread (~8%–9% p.a. depending on category and credit score)
• Premier Institution Concession: 0.50% to 1.00% lower than regular rate
• Girl Students: Additional 0.50% concession
• Simple Interest during Moratorium — option to pay or accumulate

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4. Eligibility & Co-Borrower Rules

Eligibility Criteria:

• Indian nationals with confirmed admission to an eligible course
• Merit-based or entrance-exam-based selection preferred
• Parents/guardians must be co-applicants

Security Norms:

• Up to ₹4 lakh: No security, only co-obligation of parents
• ₹4–₹7.5 lakh: Third-party guarantee + parent co-borrower
• Above ₹7.5 lakh: Tangible collateral + co-borrower

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5. Repayment Structure

• Moratorium: Course period + 1 year OR 6 months after getting a job, whichever is earlier
• Repayment Tenure: Up to 15 years (including moratorium)
• Prepayment: Allowed without penalty

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6. Documents Required

• Admission letter and course details
• Fee structure from institution
• KYC documents of student and co-borrowers (Aadhaar, PAN, proof of residence)
• Academic records
• Income proof (salary slips, IT returns)
• Collateral documents (if applicable)

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7. Subsidy Schemes Supported

• CSIS (Central Scheme for Interest Subsidy): 100% interest subsidy during moratorium for students from families with annual income ≤ ₹4.5 lakh, for professional/technical courses in India.
• State Government Schemes (varies by state; Indian Bank participates in multiple state tie-ups).

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8. Why Students Choose Indian Bank

• Strong PSU bank network — easy branch access in smaller towns and cities
• Lower interest rates for meritorious students in premier institutes
• Willingness to consider broader expense coverage, including laptops and study tours
• Support for multiple government subsidy schemes

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Summary Table

Feature	Details
Max Loan (Domestic)	₹7.5 lakh (no collateral), above with security
Interest Rate	~8%–9% p.a. (lower for premier institutes / female students)
Margin	NIL up to ₹4 lakh; 5% above
Security	None up to ₹4 lakh; guarantee/collateral above
Moratorium	Course + 1 year
Repayment Tenure	Up to 15 years
Special Benefits	Concessions for women, premier institutions, and EWS

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