Indian Bank Education Loan (IBA)
Scholarship Amount
About This Scholarship
The Indian Bank Education Loan (IBA) scheme offers substantial financial support for students pursuing higher education in India and abroad. This loan facility is designed to cover a wide array of expenses, ensuring students can focus on their academic pursuits without financial burden. There is no specific deadline for this loan, allowing applicants to apply as needed.
The scheme provides a loan amount ranging from INR 4 lakh to INR 25 lakh. For those pursuing Executive Management Program/Executive MBA courses across India, the maximum loan limit is also INR 25 lakh.
Applicants must fulfill specific margin money requirements based on the loan amount:
• Up to INR 4 lakh: 0% margin money for studies in India and abroad.
• Between INR 4 lakh and INR 7.5 lakh: 5% margin money for studies in India, and 15% for studies abroad.
• Above INR 7.5 lakh: 15% margin money for studies in India, and 20% for studies abroad.
• Up to INR 25 lakh (for Executive Management Program/Executive MBA): 25% margin money for studies in India only.
Additional benefits covered by the loan include:
• Tuition fees
• Tour fees
• Insurance premiums (if any)
• Academic and maintenance fees
• Hostel fees or lodging and boarding charges
• Living and travel expenses/passage money
• Caution money/building fund/refundable deposit
• Funds to purchase books, uniforms, equipment, or instruments
• Money to purchase a computer/laptop at an affordable price
• Project or thesis expenses and other miscellaneous costs
The loan also features a Credit Guarantee Cover:
• Educational loans up to INR 7.5 lakh under the Indian Bank Education Loan scheme are eligible under the Credit Guarantee Fund Scheme for Educational Loans (CGFSEL).
• A significant benefit is the waiver of third-party guarantee or collateral for this loan scheme.
• Parents/spouses of borrowers are required to act as co-obligates or joint borrowers.
• The scheme allows applicants to pursue education in both India and abroad.
• An annual guarantee fee of 0.5% per annum for the outstanding loan amount is absorbed by the bank.
• The guarantee cover extends to 75% of the defaulted loan amount.
Important Note: The expenses listed above are tentative and are subject to the bank’s lending policy. The bank reserves the right to set limitations on these expenses.
Eligibility Criteria
To be eligible, an applicant must fulfill the following criteria:
• Applicants must have secured admission in undergraduate or postgraduate courses in India or abroad, based on merit or through an entrance test.
• Applicants must have completed Higher Secondary level (10+2 or equivalent) education.
• The scheme supports various programs such as graduation, postgraduation, diploma, or degree courses in either India or abroad.
• Eligible applicants include Indian citizens, Non-Resident Indians (NRIs), Persons of Indian Origin (PIOs), Overseas Citizens of India (OCIs), or individuals born abroad.
For Executive Management Program/Executive MBA:
• Applicants must be at least graduates or equivalent in any discipline.
• Applicants could be working professionals (restricted to salaried class only) with at least three years of work experience in the relevant field to apply for the program.
• Students must have secured admission to a Premier and Prime Plus institute to pursue the Executive Management Program/Executive MBA program.
Note:
• Beneficiaries identified under the Prime Minister Cares for Children Scheme (PMCCS) are eligible to apply for the education loan.
• For NRI, PIO, OCI, and students born abroad, loans can be considered only for studies in India.
Required Documents
To apply for the Indian Bank Education Loan, applicants will need to provide the following documents:
• Application form with three passport-size photographs.
• Assets and liabilities statement in the bank’s prescribed format from the applicant(s), co-applicant(s), and guarantor(s).
• Identity proof such as Aadhaar card, Permanent Account Number (PAN) card, voter identification card, passport, or driving license.
• Admission letter or bonafide student certificate from the college/university, which must include the fee structure.
• Details regarding the source of funds to meet the margin, supported by documentary evidence.
• Declaration/affidavit stating that no other educational loan has been availed from any other bank by the applicant and their parents.
• Copy of sale deed and related documents, if immovable property is offered as collateral security.
• Recent utility bills such as a telephone bill, electricity bill, or property tax receipt.
• Marksheets for Class 10, Class 12, graduation, or the last qualifying examination.
• Community certificate, if applicable.
• Income certificate issued by the designated authority.
• Passport and visitors International Stay Admission (VISA) for studies abroad.
• Details of parents/guardian/co-obligation/guarantor.
• Copy of liquid securities, if offered as collateral.
• Income proof.
How to Apply
Eligible candidates can apply for the loan program by following these steps:
1. Visit the official website of the Indian Bank Education Loan (IBA).
2. Scroll down and click on the ‘Apply for Loan’ button.
3. For Existing Customers of Indian Bank:
• Choose the ‘Yes’ option.
• Enter your SB Account Number.
• Click on the ‘Generate OTP’ button.
• Applicants will receive an OTP on their registered mobile number or email ID.
• Enter the OTP and click on the ‘Submit’ button.
• Now, fill in the required details.
• Applicants will receive a call from a bank agent regarding the IB Education Loan.
4. For Non-Existing Customers of Indian Bank:
• Choose the ‘No’ option.
• Enter a 10-digit mobile number.
• Click on the ‘Generate OTP’ button.
• Applicants will receive an OTP on their registered mobile number.
• Enter the OTP; this will redirect you to a new online application page.
5. Fill in all the required details on the online application form.
6. Select ‘I permit the bank to reach me by phone number or email’ and choose a preferred time of contact (morning, afternoon, or evening).
7. Now, click on the submit button.
8. Applicants will receive a call from a bank agent regarding the IB education loan to proceed further.