Indian Bank Education Loan

Indian Bank, constituted in 1907, plays an important role in micro finance with its Micro Credit Kendras functioning in 44 rural/ semi-urban areas. The bank has been lending various retail loans including home, personal, education, etc. to a diversified customer base, with the help of 1,867 branches in India and presence in 70 countries. The bank provides education loans to students at fixed rate of interest for computer diploma courses, apart from regular graduate and post graduate courses.

 Interest Rates

Charges

Charges have not been disclosed on the website.

Flexibility

• Eligibility: To avail education loans from Indian Bank, the applicant should be an Indian, having a secured admission to the professional or technical courses, in India or abroad, through entrance test or merit based selection process.

• Loan Amount: The maximum amount sanctioned under educational loan would go up to Rs 10 lakh for studies in India and Rs 20 lakh for studying abroad. Higher loan can also be considered in deserving and meritorious cases.

The loan amount will cover cost of education covering fee payable to college, hostel, exam fees, purchase of books, equipment, travel expenses, passage money for studying abroad, purchase of computers essential for completion of the course, etc. Caution deposit, building fund/ refundable deposit, supported by institution bills/receipts, subject to a maximum of 10 per cent of total tuition fees for the entire course will be provided. Insurance premium for student borrower will also be provided.

• Repayment options: The repayment of the loan can go up to 5-7 years after the repayment holiday. It will start from (course period + 1 year) or 6 months after getting a job, whichever is earlier.

• Margin is the percentage of study cost that borrower has to pay. There is no margin applicable for loan amount up to Rs 4 lakh; whereas for loans worth above Rs 4 lakh, 5 per cent of the study cost has to be paid by borrower for studying in India, and 15 per cent for studying abroad.

• Time taken for processing: The bank would take 10 to 12 days to process the loan applications and get back to you with its status.

• Security:

1. For an amount up to Rs 4 lakh, no security is required.
2. For an amount between Rs 4 lakh and Rs 7.5 lakh, third-party guarantee is required.
3. For an amount above Rs 7.5 lakh, co-obligation of parents or guardians together with collateral security of suitable value and assignment of future income of the student for payment of installments will be required.

• Special options: The discount of 0.50% on interest rate would be applicable for girl students.

Example

Other Details

• Pre-Sales Information: All information is available on the website, other than the allied charges for processing of the loan. You can apply online for the loan and also can download the forms for submitting in the bank branches. Loan will only be considered from the branch nearest to your residence.

• Customer Support: The bank fares poorly on the parameter of processing loans. There are operational issues and complaints regarding the long processing time taken by the bank. Also, in some cases, the bank has denied giving loan for expenses other than the tuition fees.

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