Looking for a loan from South Indian Bank to pay tuition fee at a professional college in Kerala?

Look no further. This page summarises the information you will need on South Indian Bank’s Vidya Nidhi Education Loans

South Indian Bank SIB Vidya Nidhi Education Loan

This SIB Vidya Nidhi Loan Scheme helps students who want to pursue higher studies at a professional college in Kerala. The loan amount is restricted to 10% of the tuition fees or Rs. 1 lakh, whichever is lower. Let’s look at some of its features:

Features of SIB Vidya Nidhi Education Loan

Why this Loan?

  • The loan is meant to help students pay tuition fee for a professional college in Kerala
  • The loan can be taken to cover 10% of the tuition fee or Rs. 1 lakh, whichever is lower.

Loan Amount

  • The maximum loan amount offered by the bank for this loan is 10% tuition fee or Rs. 1 lakh, whichever is lower


  • The interest rate for this loan is the sum of Repo Rate + 9.10%. As of October 2020, Repo Rate is 4.00% which brings the effective interest for this loan at 13.10%
  • 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


  • The repayment period for this loan is 5 years

Security Needed

  • No collateral security is required
  • Parents must apply for the loan as principal borrowers if the student is a minor. However, parents must be co-borrowers if the student has reached the age of majority


  • The applicant must be a resident Indian national
  • The student must have secured admission in a higher studies programme at a professional college in Kerala

Eligible Courses

  • Higher studies programmes from professional colleges in the state of Kerala

Margin Money (Borrower Contribution to the Total Cost)

  • The borrower must offer 15% of the loan amount as margin money if the loan interest is not serviced during the moratorium

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

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
  • Income Proof of parent

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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