Indian Bank IB Education Loan Prime
This loan is meant for students pursuing higher education from premier educational institutes in the country. This is a need-based loan with maximum collateral-free loan amount capped based on the Indian Bank’s categorisation of institutes into List A and List B.
Features of IB Education Loan Prime
Why this Loan?
- The loan is meant for you if you have gained admission into a Bachelors, Masters, Doctorate (PhD) or a professional studies programme at a premier institute in the country
- The Indian Bank IB Education Loan Prime is disbursed to the institution as required to pay the fees or other approved charges
- All fees and expenses directly connected to the successful completion of the course including the lab fees, examination fees, travel expenses, purchase of computers, etc. are covered
- Full-time courses offered by some of the top medical, engineering, management, Pharma as well as Art and Science colleges are eligible for this loan
Loan Amount
- List A Institutes: The collateral-free loan amount is capped at Rs. 30 lakh for premier institutes in List A. However, the quantum of collateral-free loan for ISB is capped at Rs. 35 lakh
- List B Institutes: The collateral-free loan amount is capped at Rs. 7.50 lakh for premier institutes in List B
- List C Institutes: Details are not available
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Interest
- List A Institutes: The rate of interest for List A institutes is 1-year MCLR where MCLR is the Marginal Cost of Funds-Based Lending Rate (MCLR). As of October 2020, the MCLR of Indian Bank is 7.15%
- List B Institutes: The rate of interest for List B institutes is a sum of 1-year MCLR and a factor of 0.60%. As of October 2020, the MCLR of Indian Bank is 7.30% which makes the rate of interest at 7.75%
- List C Institutes: Sum of 1-year MCLR and a factor of 1.0%, which makes the rate of interest 8.15%
Repayment
- The repayment period for this loan is 15 years
- The loan amount for each year is repayable in 12 equated monthly instalments, with the first instalment becoming due after the end of moratorium period
- The moratorium period for this loan is course duration + 12 months
Security Needed
- A co-applicant is mandatory for all loan amounts
- Students of List A Institutes: No tangible collateral is required to avail this loan if the parents are co-borrowers and the loan amount is up to Rs. 30 lakh. For ISB, a collateral-free loan is available up to Rs. 35 lakh
- Students of List B Institutes: No tangible collateral is required to avail this loan if the parents are co-borrowers and the loan amount is up to Rs. 7.50 lakh
- If the loan amount exceeds Rs. 30 lakh for List A Institutes (Rs. 35 lakh for ISB) and Rs. 7.50 lakh for List B institutes, the applicant must provide a tangible collateral equal to the market value of the loan or more
Eligibility
- The applicant must be an Indian national
- The student should have gained admission into a full-time course offered by premier medical, engineering, management, Pharma as well as Art and Science institutes in India
Eligible Courses
- All full-time courses and regular higher education programmes at premier institutes including IIMs, IITs, ISB Hyderabad, ISB Mohali, IIFT and other top medical and management colleges. Check out the list of eligible institutes for the IB Prime Loan on the Indian Bank’s website
Borrower Contribution to Total Cost (Margin Money)
- The bank does not ask borrowers to pay margin money to avail this loan
Note: Margin money refers to the amount the borrower contributes to the overall amount required. Suppose the total fees and expenses add up to Rs. 10 lakh, in which case if the borrower has to provide margin money percentage of 10% of the total fees, then he will contribute Rs. 1 lakh, while the lender bank offers the rest Rs. 9 lakh.
Processing and Other Charges
- There are no processing charges for this loan
Other Features to Know
- The student’s progress report may have to be submitted with the bank at regular intervals
- Indian Bank pays amounts due for books, laptops, etc. directly to the seller. However, the loan cannot be used to pay off external coaching or tuition fees and not to the applicant
Documents Needed
- Application Form duly filled and signed by applicant and/or guarantor along with details of applicant and/or guarantor and family
- Two Passport Size Photographs of student, applicant and/or guarantor
- Photocopy of PAN Card of the student that needs to be submitted at the time of application or during the course period
- Personal Identification Proofs (Any One): Electoral I-Card, Passport, Driving License, PAN Card or Aadhaar Card
- Residential Address Proof (Any One): Electricity Bill, Landline Telephone Bill, Electoral or Voter ID Card or Passport
- Admission Letter, Course Details and Prospectus as proof of admission
- Fee Details with Demand of Fee by the Institution
- All Proofs of Past Academic Record including Mark Sheets and Certificates
- For the co-borrower, documents as age, ID, signature, address, employment/business/income proofs are required
Reference Facts
- Indian Bank Website: www.indianbank.in
- Headquarters: Chennai, Tamil Nadu
- Call Centre Toll-Free Number: 1800 425 00 000, 1800 425 4422