Indian Bank Education Loan

Indian Bank is a public sector bank that serves more than 100 million customers. It is the 7th largest bank in the country.

Indian Bank carries a legacy that is more than a century old, to fulfill the modern-day requirements of ambitious students, it also offers student loans under the following education loan products:

• Indian Bank education loan scheme for study abroad
• Indian Bank education loan scheme for study in India

Let's understand the products in detail.

Under Indian bank abroad education loan scheme, all Indian residents are eligible to apply for an educational loan. Indian Bank offers both collateralized and non-collateralized education loans under this product to students to study in their preferred countries like France, Sweden, or even Ireland.

Loan Margin for Indian Bank Education Loan Scheme for Study Abroad:

Eligible courses of study 

1. Graduation: Students can pursue STEM courses with specialization in subjects with high employability in future.
2. Courses run by CPA in the USA and CIMA in London etc
3. Study programs offered under Government Subsidy schemes
4. MBA, MS, MCA etc courses as study programs for post-graduation
5. For any accredited or recognized courses
6. Degree or diploma courses like aeronautical, shipping, pilot training, etc.

Acceptable Institutes:

Only Institutes ranked from 1 to 1000 colleges as per the latest World Ranking issued by the Bank’s accepted websites are benefited to get the loan under Indian Bank study loan scheme for study abroad.

Indian Bank student loan scheme is for all NRI, persons of Indian origin, overseas citizens of India, students born abroad, and Indian residents taking admission into higher education courses in popular states like Karnataka, Tamil Nadu, West Bengal, and others in India.

Eligible Courses for study

1. Courses covered under various Government subsidy schemes.
2. Courses acceptable for diploma, graduate, and postgraduate levels, which are approved by UGC, or Government of India, or Indian Council of Medical Research (ICMR), the All India Council for Technical Education (AICTE), AIB Merchant Services, etc.  
3. Standard degree or diploma course in streams like aeronautical engineering, pilot training, coast, shipping, etc.
4. Courses offered by prestigious foreign universities in India.
5. Executive management programs and MBA 
6. Courses including CA, CFA, ICWA, etc

If your course is not in the above-mentioned list of eligible courses, still no need to worry, we’ve got you covered. Get in touch with your financial officer at WeMakeScholars to know about other lenders who provide student loans for your preferred course. Request a callback or fill out the common application form.

Loan Margin:

Indian bank charges a processing fee in the range of 1-2% of the entire loan amount. This amount is charged from the applicant before the disbursement of their student loan. The bank also charges an amount between Rs 7,500 to Rs 10,000 for the legal and valuation report, for processing a collateralized education loan.

However, WeMakeScholars being India’s leading education loan partner does not charge anything from the students to process their loan, as we are funded and supported by the IT Ministry, Government of India under the Digital India Campaign. 

To begin the process of getting an education loan, you'll need to provide your bank with certain documents. We've recently posted an article that outlines all the necessary documents for an education loan. Take a look at it to understand what's needed. Here's a summary of the essential documents necessary for an education loan from Indian Bank:

• Proof of Identity: Any official document like Aadhaar Card, Voter ID, Passport, or Driving License.
• Proof of Address: Similar official documents verifying your address, such as Aadhaar Card, Voter ID, Passport, or Driving License.
• Proof of Admission: A formal admission letter from the institution you're joining.
• Academic Records: This includes your 10th and 12th-grade mark sheets, graduation records, and the results of the entrance exam (e.g., CAT, GRE, TOEFL, IELTS, etc.) used for admission.
• Income Verification: Your last three months' pay stubs or a company-signed salary certificate, along with your last two years' Form 16 from your employer.
• Tax Documentation: Copies of your Income Tax Returns (ITR) filed for the past two years.
• Financial Statements: For self-employed co-applicants, provide the balance sheet and profit and loss account for the past three years.
• Property Collateral Affidavit: A legally sworn statement (on Rs. 20 or 100 stamp paper) from the owner of the property being offered as collateral.
• Additional Charges: Include an extra cheque to cover attorney and evaluator fees if the bank conducts these services.
• Gap Explanation: A letter explaining any gaps in your history, written on a stamp paper costing Rs. 100.

• Tuition Fees: The fee stated in your admission letter or admit card.
• Living Expenses: These include costs for housing, meals, and transportation.
• Health Insurance: Often included in the expenses covered by lenders.
• Travel Tickets: Yearly round-trip flight ticket expenses.
• Books & Stationery: Costs for study materials throughout the course.
• Laptop & Computer: If necessary for the program, students can use their study loan to purchase these.
• Cautionary Deposit: A deposit of up to 10% of the loan amount may be required.
• Miscellaneous Expenses: Any other costs associated with field trips or projects.

Comment: If you have any questions about the expenses covered by the education loan, feel free to ask in the comments.

Taking an education loan insurance or having a life insurance policy is mandatory for students taking the loan from the Indian bank. The loan insurance amount is usually 1 to 2% of the loan amount. 

The loan insurance reduces the risk for the banks as well as family members regarding education loan repayment. In case of any mishap with the students, while pursuing their education in India or abroad, the co-applicant will not be liable to repay the loan instead the insurance will take care of the outstanding loan amount.

Request a callback or fill out the common application form to get in touch with your financial officer at WeMakeScholars to know more about education loan insurance.

The Indian bank loan procedure is as follows , both ways are mentioned below:

Offline Application Process

1. Reach out to your nearest Indian Bank branch, after speaking to the loan officer ask for the required documents
2. Visit the bank again to submit the required documentation to get your education loan process started 

Online Application process with WeMakeScholars:

Step 1: Request a Callback or fill the online application form to get in touch with your financial officer

Step  2: Give details about your loan profile, over the call

Your financial officer will analyze your profile details and suggest to you all possible lenders.

Step 3: Either go to the bank to submit those documents or take advantage of the power of digitalization and upload your document on the WeMakeScholars documents portal and stand one step ahead of the crowd.

Step 4: Sit back and relax, your financial officer will take care of the entire process from here and will keep you posted about all the updates in the process.

Step 5: You can contact your financial officer at any time of the process to check for updates

Step 6: Collect your loan sanction letter from your selected bank, within 15-20 days after submitting the documents.

The process of application for study loan is simple, and it gets even simpler when you choose WeMakeScholars as your education loan partner. Because with WeMakeScholars you get the following benefits:

1. Expert guidance - Your financial officer at WeMakeScholars will analyze your loan profile and provide you with the best guidance as per your eligibility to help you get the best student loan deal.
2. Consistent availability - Our team of financial officers and student support are available from 9 AM to 9  PM to process your education loan, give you updates and provide support to you at any and every step of your loan application process
3. Minimal Processing time - With our years of experience we hold expertise in getting an education loan sanctioned within 15-20 days of submitting your documents, from a government bank, and within 7 days from private banks or NBFCs
4. Digitized application process - Being a digital platform ourselves, we empower you to apply and get your loan sanctioned via online application
5. Tax benefits - We help you save your income tax, under section 80E and 80C of the income tax department, by providing you necessary information regarding the process of claiming the benefits.
6. Negotiation support - While processing your application, if possible your financial officer will negotiate with the Indian Bank lenders team, regarding the rate of interest and other bank policies to get your student loan sanctioned. 
7. Cashback offer - You get a chance to get up to Rs 3,000 from us, as cashback at the time of your loan disbursement.

Compared to the following issues that you will surely face if you go directly go to the banks to get your education loan sanctioned:

• Lack of proper customer services
• No particular list of required documents
• Unavailability of correct information
• No clear idea about the eligibility for education loan
• Multiple visits to the banks, delaying the process
• Issues in legal and valuation reports
• Lots and lots of documentation

All the premium class services of WeMakeScholars are entirely free of cost for the students. To start your study loan process today, request a callback or fill out the common application form to get your education loan sanctioned at the earliest.

Students can opt to transfer their running education loan from their current bank to the Indian bank in order to avail of the following benefits:

• Great serviceability
• Wider coverage of loan scheme
• Lower Interest Rate
• Easy reach to customer care
• Student friendly bank policies

Students can follow the below-mentioned steps to get their education loan transferred to Indian Bank:

Step 1  Ask for details of the outstanding loan amount from your current lender. 

Step 2 Speak to your financial officer at WeMakeScholars by requesting a callback, stating that you wish to transfer your running education loan.

Step 3 Submit your documents to the Indian Bank as instructed by your Financial Officer. 

As soon as your education loan transfer process is completed, the Indian bank will pay your outstanding loan amount to your current lender, and loan of the same amount will be sanctioned in your name from the Indian bank, which you will have to repay as per their repayment policies.

EMI or Equated Monthly Installment is a fixed amount that an education loan borrower has to pay every month after the moratorium period, to repay the loan within the pre-decided repayment duration.

The EMI amount depends on multiple factors, like

• Moratorium period
• Rate of interest
• Type of interest charged, simple or compound
• Repayment duration
• Loan Amount
• Semester-wise breakdown

The EMI amount is a big concern for students and their parents; therefore, we have come up with the most accurate WeMakeScholars EMI Calculator, that is specially designed for students to get an idea of the EMI amount depending on their preferred values of other loan parameters.

The education loan repayment process of Indian banks has to be completed within 15 years after the moratorium period ends. However, the repayment duration for EMBA courses is only 10 years, starting immediately after disbursement of loan.

Suppose, a loan amount of Rs 50 lacs is taken to pursue a 2-year MBA in the USA at a 12% rate of interest for repayment duration of 15 years, then the amortization table will look like the following:

Students will be provided an amortization table like such in their education loan sanction letter, as per their loan parameters to give details of monthly EMI amount for their entire repayment duration.

However, students can repay the loan, earlier as well by the following methods:

• Pre-payment or part-payment
• Opting for shorter repayment periods
• Considering transferring your education loan

WeMakeScholars is India’s leading education loan processing partner, we are impanelled with 14+ public and private banks in India and have successfully processed thousands of loan files over the years. If you also want to get your higher studies loan sanctioned at complete ease without any hassle, request a callback or fill out the common application form to start your education loan process with WeMakeScholars.

1. Padho Pardesh Scheme

The Ministry of Minority Affairs announced the scheme for education loans to benefit abroad study aspirants belonging to the EWS category of notified minority communities.

Padho Pardesh Scheme eligibility parameters

• Students should pursue courses at M.Phil, Ph.D. levels, and Masters.
• Students should have taken the loan from a scheduled bank as per the Indian Banks Association guidelines.
• The total family income of the student should not be more than Rs 6 lacs per annum.
• Government-approved income certificate is mandatory.

2. Dr. Ambedkar Interest subsidy scheme for OBC and EWS students

The Ministry of Social Justice and Empowerment announced the scheme for students hailing from OBC and EBC categories of the society, to give exemption on their interest on their education loan within the moratorium period. This interest subsidy scheme for education loans is only for eligible students going to study abroad.

Dr. Ambedkar Interest subsidy scheme eligibility parameters

• Students should have secured admission in the approved courses at M.Phil, Masters, or Ph.D. levels abroad
• Family income of the student should not be more than Rs 8 lacs per annum for the EBC category and OBC category
• Caste certificate is mandatory for students belonging to the OBC category.
• Loans taken from scheduled banks as per the Indian Banking Association guidelines are only acceptable

3. Central Scheme for Interest Subsidy (CSIS)

Run by the Ministry of Education, this interest subsidy scheme for education loans grants interest subsidies on the loans to students belonging to the EWS section of society. 

Eligibility criteria for CSIS

• Courses to study in India are considered under this scheme.
• Students should have a government-approved certificate of belonging from the EWS section of society.
• Family income of the student should not exceed Rs 4.5 lacs per annum.