Indian Bank

The education loan from Indian Bank is another convenient way for students to continue their studies, which is hampered due to finance. Anyone, who is an Indian and secured admission to professional / technical courses in India or abroad through Entrance Test / Merit based selection process, eligible for the loan.

Some of the highlights of the process (as per the bank) are mentioned below:

Purpose:
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.

Courses:
Studies in India - Diploma/Graduation/Post-graduation courses in various disciplines. Computer certificate courses of reputed institutes accredited to 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 USA etc.

Amount:
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.

Margin:
Upto Rs.4.00 lakhs - NIL
Above Rs.4.00 lakhs For Studies in India – 5% and For Studies Abroad - 15%

Interest Rate:
Upto Rs.4.00 lakhs -12.00 % p.a. at present
Rs.4.00 lakhs upto Rs.7.50 lakhs -12.00 % p.a. at present
Above Rs.7.50 lakhs -12.25 % p.a. at present
Concession of 0.50% in applicable rate of interest will be allowed on fresh Educational Loans to Girl Students for studies in India and Abroad with effect from 1st July 2009. This interest concession will not be applicable to

• Existing female educational loan borrowers
• Educational Loan borrowers who are enjoying finer rate of interest allowed to select premier educational institutions.

Floating Rate linked with Benchmark Prime Lending Rate (BPLR) of the Bank and liable to undergo changes whenever there is a change in BPLR.

Repayment:
The course period PLUS 1 year or 6 months after getting a job, whichever is earlier.
Repayable in 5- 7 years
Life Insurance cover available to the student borrowers under 'IB Jeevan Vidya' Insurance Scheme.

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

In case of receipt of application for more than one loan from students from a family, the 'family' as a unit will be taken into account for considering the loan and security will be taken in realtion to the total quantum of finance disbursed, subject to margin and repaying capacity of the parent/student.

For processing fees, prepayment penalty, documentation charges, mortgage and other charges, please visit the bank website www.indianbank.in