Indian Bank Education Loan for Abroad Studies

Looking to fund your higher education  abroad? Indian Bank Education Loan offers a student-friendly financing solution with interest rates starting from 7.30% per annum, making it one of the most affordable options in the market. Designed to cover tuition fees, living expenses, travel costs, and other education-related expenses, this loan provides flexible repayment options and quick processing, helping students focus on their academic goals without financial stress.

With the Indian bank educational loan interest rate starting at as low as 7.30%, it is one of the leading student loan providers in India. To fulfill the modern-day requirements of ambitious students, the bank offers student loans for studying abroad.

Features of an Indian Bank Education Loan

Indian Bank offers education loans to students under various schemes. The following are several features of the student loan services offered by the bank. 

• The bank offers both secured and unsecured education loans for studing abroad.
• The bank offers need-based financing for secured education loans. This means that there is no upper limit for an education loan with collateral in the Indian Bank. However, the loan amount depends on the value of the collateral.
• Eligible applicants can avail of an Indian bank education loan without collateral of up to ₹40 lakhs.
• There is no processing fee for an education loan of up to ₹10 lakhs.
• Indian Bank offers flexible repayment terms for education loans with a maximum repayment period of up to 15 years, depending on the scheme.

Indian Bank offers student loans to aspiring students under the following education loan schemes:

• IB education loan (IBA) Scheme 
• IB Skill Loan Scheme 

Keep reading to understand these Indian bank education loan schemes for study abroad in detail.

Under the Indian Bank education loan (IBA) scheme for Abroad, all Indian residents are eligible to apply for an educational loan to study in recognized foreign universities. The Bank offers both collateralized and non-collateralized education loans under this scheme for students to study in their preferred countries like France, Sweden, or even Ireland. The table below covers the important Indian Bank education loan details, including the loan amount offered, Interest Rates, and Moratorium period, to help you understand the education loan eligibility in Indian Bank.

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

Eligible Courses of Study

1. Students can pursue STEM courses with specialization in subjects with high employability in the future.
2. Professional and technical graduation courses are offered by recognized universities. 
3. Courses run by the CPA in the USA and the CIMA in London, etc
4. Study programs offered under the Government Subsidy schemes
5. Post-graduation courses such as MBA, MS, MCA, etc.
6. Any accredited or recognized courses.
7. Degree or diploma courses like aeronautical, shipping, pilot training, etc., recognized by the relevant regulatory bodies abroad.

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 the Indian Bank study loan scheme for study abroad.

List of Expenses Covered Under Education Loan by Indian Bank.

• Tuition Fees: The fee is 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.

Education loans in the Indian Bank are known for their competitive interest rates. The Indian bank educational loan interest rate ranges from 7.30% to 10.40%, depending on the scheme. These education loan interest rates vary depending on several factors such as the loan amount, collateral availability, country, the student's profile, and the co-applicant’s income. 

Indian Bank Education Loan Interest Certificate

An Indian bank education loan interest certificate is a document issued by the bank. It contains the details about the interest payments made by students to their education loans in a year. An Indian bank education loan interest certificate helps borrowers claim tax on the interest earned on their education loans under Section 80E. It also helps students track their student loan repayments.

An Indian bank charges a processing fee of a maximum of ₹3000 or 0.15% of the loan amount for education loans exceeding ₹10 lakhs. This amount is charged to the applicant before the disbursement of their student loan. The bank also charges an amount between ₹7,500 to ₹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.

Students should meet the education loan eligibility criteria of indian Bank to get an education loan from the bank. The Indian bank education loan eligibility criteria include:  

1. Citizenship: Both the student and the co-applicant should be Indian citizens. 
2. Admission status: The student should secure admission to a recognized university abroad.
3. The University: The university that the student is going to should come under the recognized list of universities of the bank.
4. Course Eligibility: Both Graduate and post-graduate programs, including diplomas and professional courses abroad, are eligible for Indian Bank education loans, according to the scheme.
5. The co-applicant's profile: The Co-applicant should meet the Income and CIBIL score requirements of the lender, especially for an indian bank education loan without collateral.
6. Collateral Requirement: To get an Indian bank education loan with collateral, students should pledge collateral that is accepted by the bank and has value according to the loan amount.

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:

• Indian Bank Education Loan Form: You should submit a filled-out application form for an education loan in 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 an 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.

There are two ways to apply for an Indian Bank education loan: online and offline. The offline process requires you to visit the nearest branch and submit the required documents. whereas, in the online process, you just have to upload your docūments using our document uploading link and we will negotiate with the lenders and get your loan sanctioned.

Offline Application Process of Education Loans in Indian Bank

1. Reach out to your nearest Indian Bank branch and fill out the Indian Bank education loan form. 
2. Subsequently, submit the filled-out Indian bank education loan form, and talk to an education loan officer in the bank. 
3. After speaking to the loan officer, ask for the required documents checklist.
4. After gathering all the required documents, visit the bank again to submit the documentation to get your education loan process started 

Indian Bank Education Loan Apply Online with WeMakeScholars:

Here's the step-by-step process of how to get an education loan from Indian Bank via WeMakeScholars. 

• Step 1: Request a Callback or fill out 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 to check your education loan eligibility in Indian Bank and connect you to the best lenders according to your eligibility.

• Step 3: Either go to the bank to submit those documents or take advantage of the power of digitalization and upload your documents 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 in 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 applying for a 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 sections 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 to the banks to get your education loan sanctioned:

• Lack of proper customer service
• No particular list of required documents
• Unavailability of correct information
• No clear idea about the eligibility for an education loan
• Multiple visits to the banks delay 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.

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 is a big concern for students and their parents. 

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

Students can use the Indian Bank education loan Interest rate calculator, also known as the EMI calculator, on the bank's website to calculate their student loan EMIs. However, the Indian bank education loan interest rate calculator doesn't consider the above-mentioned factors while calculating EMIs. Therefore, we have come up with the most accurate WeMakeScholars EMI Calculator, which is specially designed for students and considers all the factors mentioned above to get an accurate 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 the disbursement of the 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 ra epayment duration of 15 years, then the amortization table will look like the following:

Students will be provided an amortisation table like such in their education loan sanction letter, as per their loan parameters, to give details ofthe  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 affiliated 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.

Taking an education loan insurance or having a life insurance policy is mandatory for students taking a loan from an 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 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 learn more about education loan insurance.

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 a 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.