South Indian Bank Education Loan

✓ Up to 1.5 Cr Education Loan

✓ At a lower rate of interest

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Table of content

  1. South Indian Bank Education Loan Schemes for Abroad Studies
  2. South Indian Bank Education Loan Schemes for India
  3. South Indian Bank Processing Fee
  4. Documents Required For The South Indian Bank Higher Education Loan
  5. South Indian Bank Education Loan Insurance
  6. South Indian Bank Education Loan Margin
  7. Education Loan Interest Subsidy Schemes
  8. How To Apply For An Education Loan From South Indian Bank
  9. Why And How To Transfer Your Education Loan To South Indian Bank
  10. South Indian Bank Loan Repayment Process
  11. FAQ's
  12. Need Help? Ask Here!

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South Indian Bank offers various education loan schemes to cater to different career aspirations. They offer loans for professional programs to skill enhancement courses. They offer loan amounts of up to 1.5 crores at a range of interest of around 9.70% to 15.85%.

The schemes offered by SIB are mentioned below:

  • SIB Vitjnan Pradhan Scheme (VPS)
  • SIB Excellence
  • SIB Edsum
  • SIB Global Education

South Indian Bank Education Loan Schemes for Abroad Studies

SIB Vitjnan Pradhan Scheme (VPS)

 

Parameter 

Details

Loan Limit

Up to 20 Lacs 

Expenses covered

  • Tuition fee
  • Exam fee
  • Library fee
  • Lab fee
  • Textbooks 
  • Hostel
  • Equipment 
  • Uniform 
  • Insurance premium

Accepted co-applicant

Parents, parents-in-law, spouse, siblings

SIB Bank Education Loan Interest Rate

1 year MCLR + 1.50% to 1 year MCLR 3.05%

Moratorium Period

Course period plus 1 year

Repayment Period/Duration

Up to 15 years

Repayment policies

  • During the moratorium period, simple interest is charged 
  • If interest is paid during the moratorium period a concession of 1% will be offered

Eligibility Criteria

  • Applicable for citizens of India or NRIs with Indian passports
  • The applicant must have scored at least 75% in UG or equivalent marks or as recommended by the university for postgraduate along with passing the entrance exam or interview process.

Accepted collateral

  • Immovable property such as a flat, house, or non-agricultural land
  • Liquid security such as a fixed deposit, LIC policy, or government bonds.

Collateral requirement

  • The immovable property which is being pledged has to be 1.25x the loan amount being requested 
  • The Liquid security which is being pledged has to be 1.1x the loan amount being requested

 

Pro tip: If you have already paid the tuition fee for your university and want it to be reimbursed, you can discuss it with your financial office who can then process the reimbursement by talking to bank personnel.

SIB Global Education Scheme

 

Parameter 

Details

Loan Limit

Up to 150 lacs

Expenses covered

  • Tuition fees

  • Exam costs

  • Library charges

  • Lab fees

  • Travel expenses

  • Book charges

  • Equipment charges

  • Hostel fees

  • Cost of uniform 

  • Insurance premium

Accepted co-applicant

Parents, parents-in-law, spouse, siblings

SIB Bank Education loan interest rate

Repo rate + 6.40% to Repo rate + 7.15% (Women borrowers can have a concession of 0.5%)

Moratorium Period

Course period plus 6 months

Repayment Period/Duration

7 years to 15 years

Eligibility Criteria

  • Indian nationals including NRIs

  • Any full-time undergraduate, postgraduate, or Ph.D. course with a duration of more than a year.

  • Students between 18 to 50 years of age are eligible

Accepted collateral 

  • Immovable assets: House, Flat, Non-agricultural land 

  • Liquid security : Fixed deposit, Policies(LIC), government bonds

Collateral requirement

  • Immovable property needs to have a value of 1.25x the value of the total required loan amount 

  • Liquid property needs to have a value of 1.1x the value of the total required loan amount.

South Indian Bank Education Loan Schemes for India

SIB Vitjnan Pradhan Scheme (VPS)

Parameter 

Details 

Loan Limit

Up to 10 Lacs

Expenses covered

  • Insurance premium 
  • Exam fee
  • Tuition fee
  • Equipment 
  • Library fee
  • Lab Charges
  • Textbooks 
  • Hostel
  • Equipment charges 
  • Uniform costs

Accepted co-applicant

Parents, parents-in-law, spouse, siblings

SIB Bank Education loan interest rate 

1 year MCLR + 1.50% to 1 year MCLR 3.05% 

Moratorium Period

Course period plus 1 year 

Repayment Period/Duration

Up to 15 years

Repayment policies

During the moratorium period, simple interest is charged 
If interest is paid during the moratorium period a concession of 1% will be offered

  Eligibility Criteria

  • Applicable for citizens of India or NRIs with Indian passports
  • The applicant must have scored at least 75% in UG or equivalent marks or as recommended by the university for postgraduate along with passing the entrance exam or interview process. 

  Accepted collateral 

  • Immovable property such as a flat, house, or non-agricultural land 
  • Liquid security such as a fixed deposit, LIC policy, or government bonds. 

Collateral requirement 

  • The immovable property which is being pledged has to be 1.25x the loan amount being requested 
  • The Liquid security which is being pledged has to be 1.1x the loan amount being requested 

 

SIB Excellence

SIB Excellence education loan in south Indian bank offers many benefits like an attractive interest rate and a loan of up to Rs 25 lacs.

Parameter 

Details

Loan Limit

Up to Rs.25 lacs

Expenses covered

  • Tuition fee
  • Insurance premium
  • Textbooks
  • Hostel tuition fees
  • Equipment
  • Exam fee
  • Library
  • Lab fees
  • Books
  • Hostel
  • Uniform

Accepted co-applicant

Parents, parents-in-law, spouse, siblings

SIB Bank Education loan interest rate

Repo rate +4.05% to Repo rate 4.65%

Moratorium Period

course period plus 1 year or 6 months after getting the job whichever is earlier

Repayment Period/Duration

5 years

Eligibility Criteria

  • Indian Nationals including NRIs.
  • Must take up eligible courses in premier institutes like IIT, IIM, NIT, etc. 
  • Merit-based admission

Accepted collateral

Immovable collateral: House, Flat, Non- agricultural land 

Liquid security: Fixed deposit, LIC policy, Government bonds

Collateral requirement

  • The liquid security being used as collateral must have a value 1.1 times the value of the requested loan amount
  • The immovable property which is to be used as collateral must have a value 1.25 times the value of the requested loan amount

 

SIB Edsum

Parameter 

Details

Loan Limit

Up to 10 Lacs

Expenses covered

  • Tuition fees
  • Insurance premium
  • Hostel
  • Library fee 
  • Equipment
  • Books
  • Lab fees
  • Uniform
  • Exam fee

Accepted co-applicant

Parents, parents-in-law, spouse, siblings

SIB Bank Education loan interest rate

Repo rate +10.20% to Repo rate +10.95%

Moratorium Period

  • Course period plus 1 year or 6months after getting the job whichever is earlier 
  • The moratorium period for overseas study is 6 months after the qualifying exam.

Repayment Period/Duration

  • 10 years for loans up to Rs.7.5 lacs
  • 15 years otherwise

Eligibility Criteria

  • Indian citizens or Non- Resident Indians with an Indian passport. 
  • An aggregate of 85% in each subject and an overall of 75% in the qualifying exam in the first exam.
  • A minimum annual family income of 7.5 Lakhs

Accepted collateral

Immovable assets: House, Non- agricultural land, Flat

Liquid assets: Government bonds, LIC policy, Fixed deposit

Collateral requirement

  • The immovable collateral being pledged must have a value of 1.25 times the required loan amount
  • The liquid security being pledged must have a value of 1.1 times the required loan amount 

 

Eligible courses: 

Job-oriented professional and technical courses PG, PG Diploma, and Graduate courses affiliated with universities in India.

SIB Global Education

Parameter 

Details

Loan Limit

Up to 150 lacs

Expenses covered

Tuition fees, Exams, Library, Lab fees, Travel expenses, Books, Equipment, Hostel, Uniform, and Insurance premium.

Accepted co-applicant

Parents, parents-in-law, spouse, siblings

SIB Bank Education loan interest rate

Repo rate + 6.40% to Repo rate + 7.15% (Women borrowers can have a concession of 0.5%)

Moratorium Period

Course period plus 6 months

Repayment Period/Duration

7 years to 15 years

Eligibility Criteria

  • Indian nationals including NRIs
  • Any full-time undergraduate, postgraduate, or Ph.D. course with a duration of more than a year.
  • Students between 18 to 50 years of age are eligible

Accepted collateral

  • Immovable assets: House, Flat, Non-agricultural land
  • Liquid security : Fixed deposit, Policies(LIC), government bonds

Collateral requirement

  • Immovable property needs to have a value of 1.25x the value of the total required loan amount
  • Liquid property needs to have a value of 1.1x the value of the total required loan amount.
Don't let a lack of funds hold you back from reaching your full potential

South Indian Bank Processing Fee

South Indian Bank charges a processing fee of 1% of the loan amount for only the SIB GLOBAL EDUCATION scheme. 

This fee is not charged by WeMakeScholars as our organization comes under the Digital India scheme which is funded and supported by the Ministry of IT, Govt of India our services are provided at zero cost. 

To start your loan process, reach out to us by filling in the common application form or requesting a callback.

Documents Required For The South Indian Bank Higher Education Loan

Parameter 

Details

Basic documents for Applicant (student) and co-applicant and/or Guarantor

  • South Indian bank loan application, given to you by a financial officer at WeMakeScholars
  • Identification proof: PAN card (also passport if the applicant is pursuing higher education abroad)
  • Proof of Residency: telephone bill, ID card, electricity bill, bank account statement, Aadhar card, Voter ID, Ration card, or Bank account statement. (If the applicant’s current address and permanent address are not the same, two different proofs are required.
  • Statement of personal and salary bank accounts for the previous six months. For the co-applicant, it must show salary credits if they are salaried or one year's worth of company transactions if they are self-employed.
  • Personal Asset & Liability Statement

All the documents should be self-attested.

Applicant academic documents

  • Academic mark sheets and certifications for 10th, 12th, and degree
  • Proof of enrollment into the course showing the total duration of the course
  • The fee structure of the course (For USA, i-20 if available
  • Score sheet of IELTS, GMAT, or GRE 
  • Print-out from  University Ranking

Financial Co-applicant Income documents

If Salaried                         

    • Newest salary slips (for the last three months)
    • Form 16 ( of the previous two years)
    • Identity card of the employer
    • Income Tax Returns (ITR) filed for the last two years  

If Self-employed

    • Income Tax Return (ITR) filed for the last 3 years
    • Loss and profit account and balance sheet of the last 3 years (Incase the co-applicant is a self-employed/ businessman)
    • Proof of Business address

Other Documents

  • A letter stating that the co-applicant will be responsible for any unpaid expenses not covered by the loan.
  • A cheque for Rs. 11,800 toward the processing cost is attached.
  • Cheques towards the lawyer and evaluator fees ( if it was done by the bank)
  • Affidavit of the property collateral owner (on Rs. 20 or 100 stamp paper). If there is more than 1 owner of the land, each one of them must submit the affidavit.

Additional docs

  • Proforma invoice for travel or Laptop, etc. if asking for a loan for it.
  • Receipts of advance payments made if any.
  • All loan account statements (1 year) if any pending loans.
  • Letter explaining the gap. Sample on Rs. 100 stamp paper.
  • Letter explaining the reason for no ITRs of co-applicant if applicable.

 

Since the necessary paperwork may vary for each student based on their profile, it's not feasible to provide a specific list of documents as mentioned earlier. To obtain a customized document checklist for your specific educational loan requirements, you may reach out to WeMakeScholars.

Get your custom document checklist and get closer to your sanction letter- Why wait?

South Indian Bank Education Loan Insurance

South Indian bank charges loan insurance of 1 - 2% of the sanctioned loan amount. 

By getting loan insurance the student can make sure that the financial burden of the loan doesn't fall on the shoulders of the co-applicant in case of, disability of the applicant or death.

 

South Indian Bank Education Loan Margin

Scheme

Loan Margin

SIB Vitjnan Pradhan Scheme (VPS)

5% margin for domestic and 15% margin for foreign studies

SIB Excellence Scheme

  • NIL margin up to Rs.4 lacs
  • Above Rs.4 lacs-5% margin

SIB Edsum

  • NIL margin up to Rs.4 lacs
  • Above Rs.4 lacs-5% margin for domestic
  • 15% margin for foreign studies

SIB Global Education Scheme 

25%

 

We understand that loan margins can have a significant impact on the cost of borrowing, and we are committed to helping our users secure the best possible loan terms and interest rates. 

Education Loan Interest Subsidy Schemes

The interest accrued in the moratorium period (6 months after getting the job/ 6 months or one year after finishing the course) will be paid by the Indian government on behalf of the student under these programs 

Padho Pardesh Scheme

Eligibility

The student has Family Income equates to be less than 6 Lacs and belongs to a religious minority (Muslim, Christian, Sikh, Buddhis, Jain, Zoroastrian) 

Note: Beginning on April 1, 2022, the padho pardesh system will no longer be applied. However, the existing beneficiaries as of March 31, 2022, will continue to get the interest subsidy during the loan's term and moratorium period.

Central Scheme for Interest Subsidy for Economically Weaker Sections

Eligibility

The student has a family income which is less than 4.5 Lacs

Dr. Ambedkar Central Sector Scheme

Eligibility

  • The student has a family income which is less than 8 lakhs and belongs to the economically backward class 
  • The student has a family income which is less than 8 Lakhs and belongs to the  OBC community.

How To Apply For An Education Loan From South Indian Bank

Offline education loan application process

Step 1: Visit a south indian bank branch closest to you and fill in the application form 

Step 2: If you meet the eligibility criteria, then you will be explained the process.

Step 3: You will be asked to submit the documents required for processing the loan  

Step 4: After the submission of documents, your loan will be approved.

Online Education Loan Application Process through WeMakeScholars

Step 1: Fill in the common application form for education loans which you can find on our website or by clicking the above-mentioned link 

Step 2: Provide all your basic details to the financial officer who will contact you after filling in the application form to check your eligibility for the loan

Step 3: You will be provided with a thorough comparison between all the lenders you are eligible to get a loan from.

Step 4: A document checklist will be provided to you by our financial officer. Submit all the mentioned documents in the branch nearest to you, or you can upload them on the WMS-secured portal 

Step 5: The result of your loan application will be known to you in 2-6 working days if the loan was applied in a private bank and 10-15 days if the loan was applied in a public bank

Step 6: You can collect your sanction letter once done signing the loan agreement.

You can watch this video to understand more about the time it generally takes for a loan to get sanctioned. This video will equip you with essential knowledge on how to estimate the sanction time on your education loan process, and the necessary steps to take to ensure a smooth and efficient loan application process.

Issues while approaching the lenders directly

  1. When you process your loans directly with the lenders, the time it takes to process the loan increases drastically.
  2. The process of loan application is not clearly explained by the lenders.
  3. The applicants/ student usually can’t or don’t know how to negotiate for a lower interest than what they have been offered
  4. No clear list of documents that are to be submitted is provided by the lenders
  5. No help is provided after the disbursement of the loan amount 

Benefits of applying through WeMakeScholars 

  • Fastest processing time: An interest rate which is lower than 0.5% to 2% is offered to you when you process your loan with WeMakeScholars as we are the largest partner of many leading banks.
  • Quickest processing time: Here at WeMakeScholars the usual timeline from application to sanction is 21 days 
  • End to End assistance: You can reach out to us during any stage of the loan process, from filling out the application form to the repayment. 
  • The cashback offered: A cashback of up to 3000 is offered to you after the  disbursement of the loan
Experience hassle-free financing for your education and enjoy the benefits of our negotiation services.

Why And How To Transfer Your Education Loan To South Indian Bank

Why transfer your loan to South Indian Bank?

  • By refinancing your loan to South Indian Bank you can get a lower ROI on both your existing loan and the new loan you are about to take out.
  • As WMS is connected to most leading public banks, private banks, and NBFC the process of transferring your loan becomes smooth and easier than you think.

How to transfer your loan to South Indian Bank?

  • Request a callback from us 
  • Tell your assigned financial officer about your wish to refinance your loan to South Indian Bank 
  • Provide all the documents asked by your financial officer in the South Indian Bank branch closest to you.
  • Find out more about refinancing your loan by Requesting a call back from the WMS team

 We understand that loan transfers can be a complex task, which is why we aim to provide you with the resources and support you need to make informed decisions about your finances. 

Looking for an affordable education loan? Choose WMS for automatic ROI reduction and expert negotiation.

South Indian Bank Loan Repayment Process

For example, if you take out a loan of 27 Lakhs, with an interest rate of 10.5% and with a repayment period of 15 years, this would be your amortization schedule.

  • The Monthly EMI: 35,536
  • Total payable amount: 63,96,406 
  • The payable interest: 36,96,406

    Timeline

EMI

Interest Portion

Principal Portion

Loan Outstanding

End of 1st year

35536

27384

8152

3121445

End of 2nd year

35536

26486

9050

3017879

End of 3rd year

35536

25488

10047

2902901

End of 4th year

35536

24381

11155

2775251

End of 5th year

35536

23152

12384

2633534

End of 6th year

35536

21787

13749

2476199

End of 7th year

35536

20272

15264

2301525

End of 8th year

35536

18590

16946

2107602

End of 9th year

35536

16722

18813

1892308

End of 10th year

35536

14649

20887

1653287

End of 11th year

35536

12347

23188

1387926

End of 12th year

35536

9792

25744

1093320

End of 13th year

35536

6955

28581

766249

End of 14th year

35536

3805

31731

403133

End of 15th year

35536

308

35227

0

When you process your loan with us, we provide you with post-sanction support. Meaning, we help you with your entire loan repayment process. Till you pay your last EMI! 

Allow us to guide you through the loan disbursement process with our post-sanction help

Education Loan FAQs

  • Can my sister be my co-applicant?

    Yes, your sister can be a co-applicant for your loan

  • Will I be able to get tax benefits if I get a loan from South Indian Bank?

    Yes, Under section Section 80-E of the Income Tax Act 1961 you can get tax benefits on applying for a loan from South Indian Bank.

  • What if I get employed before the grace period ends and drop out of my course?

    You would have to immediately start repaying the loan after getting the job if you choose to discontinue the course.

  • Will my parents’ income affect my education loan?

    Yes, In most banks, the income of the co-applicant is checked to make sure that they have the repaying capacity needed to pay the loan back if the applicant doesn’t. And generally, parents are found to be the co-applicant. A financial co-applicant can always be added if the primary co-applicant doesn’t have adequate proof of income.

  • Can I pay more than the EMI amount every month?

    Yes, you can pay more than your calculated EMI amount. This not only reduces your payable principal amount but also the interest payable on the principal amount.

Our Education Loan team will help you with any questions

Ajay Kumar
WeMakeScholars- supported by IT Ministry, Govt. of India.
Published: | Updated: