Indian Bank Education Loan: Interest Rate, Eligibility & Application

Scholarship Examination in India

In this article, Examin gives details about Indian Bank Education loan. Find the complete details about Indian Bank Education loan such as Eligibility, Interest rates, Loan amount, Documentation and more.


Indian Bank provides convenient educational loans for meritorious/deserving students to acquire knowledge and skill in the field of their interest. By playing beacon, new-generation’s quest for success is ably supported, paving way for Generation Banking.



  • The applicant should be an Indian National.
  • He / She should have secured admission to professional/technical courses in India or abroad through Entrance Test / Merit based selection process.



  • To meet the cost of education covering fee payable to college/school/hostel, exam fees, purchase of books/equipment’s, travel expenses/passage money for studies 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% of total tuition fees for the entire course.
  • Insurance premium for student borrower.


Course of Study

Studies in India

  • Diploma/Graduation/Post-graduation courses in various disciplines.
  • Computer certificate courses of reputed institutes accreditedto The Department of Electronics.

Studies Abroad

  • Job-oriented professional/technical courses offered by reputed universities.
  • MCA, MBA, MS etc.
  • Courses conducted by CIMA- London, CPA in the USA etc.

Maximum Permissible Amount of Loan

  • For Studies in India – Rs.10.00* lakhs
  • For Studies Abroad – Rs.20.00* lakhs
    • * Higher quantum of loan also can be considered in deserving and meritorious cases.


Place of Availment

The loan can be availed from the branch nearest to the place of domicile.



  • Upto Rs.4.00 lakhs – NIL
  • Above Rs.4.00 lakhs
    • For Studies in India – 5%
    • For Studies Abroad – 15%


Rate of Interest

  • 25 % p.a. at present (irrespective of the loan limit sanctioned under both IBA as well as non-IBA scheme)
  • Concession of 0.50% in applicablerate of interest will be allowed on fresh Educational Loans under IBA Scheme to Girl Students for studies in India and Abroad with effect from 1st July 2009. This interest concession will not be applicable to Education Loans under the non-IBA scheme.
  • Educational Loan borrowers who are enjoying a finer rate of interest allowed to select premier educational institutions.
  • Floating Rate linked with Base Rate (BR) of the Bank and liable to undergo changes whenever there is a change in BR.


Holiday Period & Repayment

  • The course period PLUS 1 year or 6 months after getting a job, whichever is earlier.
  • Repayable in 10-15 years.



Life Insurance covers available to the student borrowers under ‘New IB Jeevan Vidya’ Insurance Scheme.



Documents should be executed both by the student and parent/guardian as joint borrower.

  1. Up to Rs. 4 lacs – No security
  2. Above Rs. 4 lacs & Upto Rs.7.50 lacs – Collateral in the form of satisfactory third party guarantee
  3. Above Rs.7.50 lacs – Co-obligation of parents/guardians together with tangible collateral security of suitable value along with assignment of future income of the student for payment of installments.


Particulars/Documents to be submitted


Sl. No.ParticularsFor studies in IndiaFor studies Abroad
1Proof of residenceXerox copies of Ration Card or Voters Identity Card or Passport or Electricity or Telephone bill or any such document acceptable to the bankSame as in Col.3
2Academic recordCopy of the Xth std/XIIth std mark list, for undergraduates. Degree mark list/provisional certificate for postgraduatesSame as in Col.3
3a. Date of birth/age SSLC/TC/Mark list Same as in Col.3 besides Passport
b. Community (for statistical purpose only)Community Certificate
4Family IncomeSalary certificate/Pension certificate/Auditor’s certificate in case of business category/IT return filed/any other proof for the income statedSame as in Col.3
5AdmissionAdmission letter/Bonafide student certificate from the College/UniversityCertificate/I 20 from the College/University
6Fee structureLetter/Certificate from the College/UniversityCertificate/I 20 from the College/University
7Passport/VISANot applicableCopies to be enclosed
8Guarantee/Co-obligationParent’s/Guardian’s Co-obligation to be furnishedSame as in Col.3
9Collateral, wherever requiredLIC policy (surrender value of which should be not less than the loan amount at the time of availing the loan) /Share certificates/Units of UTI etc. Valuation certificate from Bank’s approved panel valuer and the legal opinion from Bank’s panel advocate in case of land/buildings.Same as in Col.3
10Margin (Above Rs.4.00 lakhs)Details regarding the source of funds for meeting the margin furnished along with documentary evidenceSame as in Col.3
For studies in India: 5%
For studies abroad: 15%
11Declaration/affidavit stating that no Educational Loan is availed from any other bank by the applicant and his parentTo be submittedTo be submitted
12Documents to be enclosedA & L of the student/parent/guardian/guarantorSame as in Col.3
Details of securities in Col.9


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