South Indian Bank EDUSUM Education Loan
This SIB Student Loan Scheme helps students who want to pursue higher studies in India and abroad afford the cost of the course and related expenses. Students can get a loan amount up to Rs. 10 lakh for higher studies. Let’s look at some of its features:
Features of SIB EDUSUM Education Loan
Why this Loan?
- The SIB EDUSUM loan is meant to help students fulfil their dreams of pursuing higher education in India or abroad
- The loan is disbursed as a series of payments over the required number of years and not as a lump sum
- The loan can be taken for all institution fees as well as related expenses including purchase of books, laptops, hostel fees, lab fees, examination fees, etc.
- The minimum loan amount offered by the bank for this loan is Rs. 2.5 lakh and the maximum loan amount offered by the bank for this loan is Rs. 10 lakh
- The interest rate for this loan is the sum of the Repo Rate which as of November 2020 stands at 4.00% and a spread that ranges from 9.85% to 10.60%. This makes the effective interest rate range from 13.85% to 14.60% as of November 2020
- Previously, the rates were as below:
- Loans up to Rs. 4 lakh: The interest rate for this loan is the sum of Repo Rate + 9.70%. As of October 2020, Repo Rate is 4.00% which brings the effective interest for this loan at 13.70%
- Loans Above Rs. 4 lakh: The interest rate for this loan is the sum of Repo Rate + 10.20%. As of October 2020, Repo Rate is 4.00% which brings the effective interest for this loan at 14.20%
- The repayment period for loans up to Rs. 7.5 lakh is 10 years
- The repayment period for loans above Rs. 7.5 lakh is 15 years
- South Indian Bank does not charge any prepayment fees
- The moratorium period for this loan scheme is course period plus earlier of 12 months after the completion of the course or 6 months after getting a job
- Loan upto Rs. 1 Lakh: No security needed
- Loan from Rs. 1 Lakh to Rs. 3 Lakh: Third-party guarantee is mandatory
- Loan above Rs. 3 Lakh: Tangible collateral security that covers at least the quantum of the loan is required
- If the student is a minor, parents must apply for the loan as principal borrowers. However, parents must be co-borrowers if the student has reached the age of majority
- The applicant must be a resident Indian national
- The upper age limit for applicants for graduate courses is 25 years and for postgraduate courses is 30 years
- The student must have secured admission in a higher studies programme at a recognised educational institute in India or abroad
- The student must have scored at least 85% in each qualifying subject and overall 75% in the qualifying exam in first attempt
- The minimum income of parents must be Rs. 7.5 lakh per annum
- Graduate courses that are of a professional or technical nature and help the student land a job
- MCA, MBA, MS. etc. postgraduation courses
- Degree and Diploma courses in aviation and shipping approved by the local foreign aviation or shipping authority and Director General of Civil Aviation or Director General of Shipping, or any other competent authority
- Premier institutes that offer management, medicine, STEM courses (Science, Technology, Engineering and Mathematics), and other courses such as law, economics, design, fine arts and performing arts
- Job-oriented programmes from recognised foreign colleges and universities. Study programmes from recognized institutes or bodies such as CIMA-London, CPA USA, etc.
Margin Money (Borrower Contribution to the Total Cost)
- Loans up to Rs. 4 Lakh: The borrower does not have to offer any margin money to get the loan
- Loans above Rs. 4 Lakh to Study in India: The borrower must offer 5% of the loan amount as margin money to get the loan
- Loans above Rs. 4 Lakh to Study Abroad: The borrower must offer 15% of the loan amount as margin money to get the loan
Note: Margin money refers to the amount the borrower contributes to the overall amount required.
Processing and Other Charges
- There are no processing charges for this loan
Uses of the Loan
- College, school and hostel fees
- Examination, library and laboratory fees
- Caution deposit, building fund or refundable deposit supported by institution bills or receipts
- Cost of books, equipment, instruments, uniforms
- Purchase of computer, if required for the course
- Travel expenses including passage money for foreign studies
- Insurance premium for the borrower student, if applicable
- Other expenses needed for completing the course such as study tours, project work, thesis, etc.
Other Features to Know
- Top-up loans are allowed within the moratorium period
- It is mandatory to go for the SIB EDUGUARD insurance scheme when you opt for this loan
- The bank may ask the borrower to submit progress report during the course
- The loan is disbursed directly to the school, book seller or publisher, computer seller, and so on and not to the applicant(s)
- 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
- Personal Identification Proofs (Any One) of the Student and Co-borrower: Electoral I-Card, Passport, Driving License, PAN Card or Aadhaar Card
- Residential Address Proof (Any One) of the Student and Co-borrower: Electricity Bill, Landline Telephone Bill, Electoral or Voter ID Card or Passport
- Admission Letter, Course Details and Prospectus
- Statement of the cost of study and Fee Details with Demand of Fee by the Institution
- All Proofs of Past Academic Record including Mark Sheets and Certificates
- Copy of Passport is mandatory
- Proof of Income (Salaried): Salary Slip of last 3 months, Copy of Form 16 of last 2 years and Bank Account Statement of last 6 months
- Proof of Income (Self-employed): Business Address Proof, IT return of last 2 years, TDS Certificate, Bank Account Statement of last 6 months andCertificate of Qualification if Doctor, CA, etc.
- South Indian Bank Website: www.southindianbank.com
- Headquarters: Thrissur, Kerala
- Call Centre Number: 1800 425 1809, 1800 102 9408; +91 484 2388 555 (NRIs)
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