South Indian Bank SIB Excellence Education Loan

South Indian Bank Excellence Education Loan

This loan is meant for students pursuing graduate, postgraduate and professional studies from premier institutes in the country such as IIM, IIT, NIT, etc. The maximum loan amount is capped at Rs. 25 lakh for this loan. This is a collateral-free loan. Let’s take a look at its features:

Features of South Indian Bank Scholar Education Loan

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 select premier institutes in the country
  • The SIB Excellence Education Loan is disbursed to the institution as required to pay the fees or other approved charges
  • Students can avail quick sanction facility offered by SIB by visiting the designated campus branches or select branches in the country
  • The bank offers collateral-free loans of up to Rs. 25 lakh

Loan Amount


  • The interest rate for this loan ranges from “Repo Rate + 3.7%” to “Repo Rate + 4.3%”. This means that the borrower can expect to pay an interest rate of anywhere from 7.7% to 8.3% since Repo Rate is 4.0% as of November 2020
  • The moratorium period for this loan scheme is course period plus 12 months after the completion of the course or course period plus 6 months after getting a job, whichever is earlier
  • Simple interest is charged during the moratorium


  • The loan amount for each year is repayable in equated monthly instalments up to a period of 5 years after the end of the moratorium period

Security Needed

  • No collateral security is required. Co-obligation of parents or third-party guarantee is sufficient for this loan


  • The borrower should be an Indian national
  • The student must have secured admission in one of the select premier institutes in India through an Entrance Exam or Merit-based Selection process

Eligible Courses

  • Full-time degree or diploma courses offered by select premier institutes
  • Full-time executive management courses offered by select premier institutes
  • Part-time graduate and postgraduate courses offered by select premier institutes

Note: As of November 2020, the exhaustive list of the eligible premier institutes is not available on the bank’s website. Please get in touch with the bank for details.

Borrower Contribution to Total Cost (Margin Money)

  • Loans up to Rs. 4 Lakh: No margin money is needed
  • Loans above Rs. 4 Lakh: Borrowers need to pay 5% of the total loan amount

Note: Margin money refers to the amount the borrower contributes to the overall amount required. Suppose a course costs Rs. 40 lakh in which case the borrower will have to pay 5% of Rs. 40 lakh which is Rs. 2 lakh. The bank will cover the rest.

Processing and Other Charges

  • There are no processing charges for this loan

Uses of the Loan

  • The loan amount can be used to pay any fees or other charges that are a part of the standard tuition, hostel or any other institution-approved cost that are necessary to complete the course
  • The loan can also be met to cover any travel expenses, study tours and so on

Other Features to Know

  • It is mandatory to go for the SIB EDUGUARD insurance scheme when you opt for this loan
  • The loan is disbursed directly to the college, bookseller or publisher, computer seller, and so on and not to the applicant
  • The bank may ask for the submission of the student’s progress report at regular intervals during the course

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
  • 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
  • Proof of Income of the Co-borrower (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 of the Co-borrower (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.

Reference Facts

  • South Indian Bank Website:
  • Headquarters: Thrissur, Kerala
  • Call Centre Number: 1800 425 1809, 1800 102 9408; +91 484 2388 555 (NRIs)