Indian Bank Education Loan Scheme

Indian Bank Education Loan

Financial aid to indigent and meritable students in India for going after studies from High School onwards including graduation, technical and professional programs. Indian Bank Education Loans are also catered to study abroad for Professional courses and Post- graduate programs.

Eligibility Criterion
• Should be an Indian National.
• Student who have insured admission to a higher education course in distinguished institutions in India and Abroad through relevant Entrance Test or selection based on merit process after completion of HSC(10 plus 2 or equivalent).

Eligible Courses
In India
• Courses approved by UGC, AICTE, ICMR, AIBMS, and Govt. etc. for Graduation/Post Graduation programs (Degree/Diploma) and conducted by reputed Colleges/Universities.
• ICWA, CA, CFA, etc. courses.
• Courses led by esteemed institutes like IIM, IIT, XLRI, NIFT etc.
• In India, approved regular degree or diploma programs in fields like Aeronautics, Shipping, Pilot training etc. Aircraft Maintenance Engineering or Pre Sea training programs also should be approved by appropriate authorities.
• B.Ed., nursing etc. programs also must be approved by either Central or State Govt.
• Courses offered by reputed and approved Foreign Universities in India.
• Research and Ph. D programs applicant for study in India may not apply.
• Part time/ correspondence study programs are not eligible for this loan.

Abroad
• Graduation and Post-graduation for courses which are job oriented and professional and/or technical in nature and are conducted by known and reputed universities. Like MCA, MBA, MS, PhD or CIMA-London, CPA etc.

Purpose of Loan
• Cost of fee payable to the school/College, Hostel, Tuition, Laboratory etc.
• Cost of books, equipment, instruments, Uniform dress, expenses incurred in travelling, Computer (if crucial for the study program)
• To cover expenses incurred in study tours, project work or thesis etc
• Caution & refundable deposit which has to be backed by bills or receipts. (These deposits in no condition can surmount 10% of the tuition fee.)

Quantum of loan: Need based funding
• For studies in India: up to Rs.15.00 lacs
• For studies abroad: up to Rs.25.00 lacs

Margin
• Up to Rs. 4.00 Lacs – Nil
• Above Rs.4.00 Lacs – 5% for study in India and 15% for studies abroad.

Interest Rate: 10.25%

Loan Security
Loan is given conjointly to the student and parent or guardian.
• Assignment of future income of the student
i. Upto Rs.4.00 lacs- No security
ii. From Rs.4.00 lacs to Rs. 7.50 lacs – third party guarantee is required
iii. Above Rs. 7.50 lakhs – Collateral security is required which is 100% of the loan amount.

Disbursement: Directly to University /College /Hostel etc.

Repayment    
• Starts out one year after completion of the course or Six months after getting job, whichever is earlier.
• Simple Interest will be debited quarterly during the repayment moratorium period. When the repayment starts, the accrued interest is added to the principal amount and EMI is fixed on total outstanding loan amount.
• 2% Penal Interest rate will be charged for above 2.00 Lacs for the overdue amount and overdue period.

Credit Delivery: The loan can be facilitated from the branch closest to the place of permanent residence.

Indian Bank Official website: indian-bank.com

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