Looking for a foreign education loan from SIB?

Look no further. This page summarises all the information you will need on South Indian Bank’s Global Education Loans for studying abroad

SIB Global Education Loan Scheme (for Study Abroad)

This loan helps students pursue full-time courses at foreign colleges or universities across the world. The minimum loan amount for this loan is Rs. 20 lakh and the maximum loan amount is capped at Rs. 1.5 crore.

Features of SIB Global Education Loan for Higher Studies Abroad

Why this Loan?

  • The loan is meant for you if you have gained admission into a full-time course in a foreign college or university
  • The bank disburses the South Indian Bank Global Education Loan as a series of payments over the required number of terms or years to pay the fees or other approved charges
  • The maximum loan amount for this loan is Rs 1.5 crore which is higher than the maximum loan amount most Indian banks offer through foreign education loans

Loan Amount

  • The maximum loan amount is capped at Rs. 1.5 crore


  • 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 6.05% to 6.80%. This makes the effective interest rate range from 10.05% to 10.80% as of November 2020
  • Previously, the rates were as below:
    • Loans from Rs. 20 Lakh up to Rs 75 Lakh: The interest rate for this loan ranges from “Repo Rate + 6.40%”. This means that the effective interest rate is 10.40% since Repo Rate is 4.00% as of October 2020
    • Loans Above Rs. 75 Lakh:The interest rate for this loan ranges from “Repo Rate + 5.90%”. This means that the effective interest rate is 9.90% since Repo Rate is 4.00% as of October 2020
  • Girl students get a concession of 0.50%
  • The moratorium period for this loan scheme is course period plus 6 months after the completion of the course


  • The repayment moratorium is for the course duration and an additional grace period of 6 months but simple interest is charged for this moratorium period
  • The repayment period for this loan ranges from 7 to 15 years

Security Needed

  • This loan needs tangible security for the entire loan amount
  • Parents, guardian or spouse must be co-obligators
  • Parents can be principal borrowers if the student is a minor


  • The borrower should be an Indian national
  • Student should have secured admission in a full-time course at a foreign college or university

Eligible Courses

  • Regular Graduates Degree, Postgraduate Degree, Diploma, Certificate and/or Doctorate courses from recognised colleges and universities in foreign countries are eligible for this loan
  • Skill development courses are also eligible
  • The minimum duration of the course must be 1 year

Borrower Contribution to Total Cost (Margin Money)

  • SIB takes a 25% margin for this loan
  • Any money received through scholarships or assistantships is included in the margin

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 25% of Rs. 40 lakh which is Rs. 10 lakh. The bank will cover the rest Rs. 30 lakh.

Processing and Other Charges

  • Upfront fee worth 1% of the total loan amount

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

  • This loan comes with a mandatory life cover under the SIB EDUGUARD insurance scheme for the student
  • The bank asks for details of expenses for the course that the applicant(s) need to obtain from the institution
  • The student’s progress report may have to be submitted with the bank at regular intervals
  • The loan is disbursed directly to the college, bookseller or publisher, computer seller, and so on and not to the applicant(s)

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
  • Copy of Passport is mandatory
  • 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: www.southindianbank.com
  • Headquarters: Thrissur, Kerala
  • Call Centre Number: 1800 425 1809, 1800 102 9408; +91 484 2388 555 (NRIs)

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