Educational loans

Indian Bank

Bank Type : Goverment Bank
No. Of Branches : 2400

About Bank

A premier bank owned by the Government of India

Established on 15th August 1907 as part of the Swadeshi movement

Serving the nation with a team of over 19429 dedicated staff as on 31.03.2014

Total Business crossed Rs.2,86,633 Crores as on 31.03.2014

Operating Profit : Rs. 2,901 Crores as on 31.03.2014

Net Profit : Rs.1,159 Crores as on 31.03.2014

Core Banking Solution(CBS) in all 2250 branches as on 31.03.2014


International Presence:

Overseas branches in Singapore , Colombo including a Foreign Currency Banking Unit at Colombo and Jaffna

240 Overseas Correspondent banks in 70 countries

Loan Procedures

Indian Bank provides convenient educational loans for meritorious/deserving students to acquire knowledge and skill in the field of their interest. By playing beacon, new-generation's quest for success is ably supported, paving way for Generation Banking.


The applicant should be an Indian National.

He / She should have secured admission to professional / technical courses in India or abroad through Entrance Test / Merit based selection process..


To meet the cost of education covering fee payable to college / school / hostel, exam fees, purchase of books / equipment's, travel expenses / passage money for studies abroad, purchase of computers essential for completion of the course etc.

Caution Deposit, Building fund/ refundable deposit supported by institution bills/receipts, subject to a maximum of 10% of total tuition fees for the entire course.

Insurance premium for student borrower

Course of Study:

Studies in India:

Diploma/Graduation/Post-graduation courses in various disciplines.

Computer certificate courses of reputed institutes accredited to The Department of Electronics.

Studies Abroad:

Job-oriented professional/technical courses offered by reputed universities.

MCA, MBA, MS etc.

Courses conducted by CIMA - London, CPA in USA etc

Maximum Permissible Amount of Loan:

For Studies in India - Rs.10.00* lakhs

For Studies Abroad - Rs.20.00* lakhs

* Higher quantum of loan also can be considered in deserving and meritorious cases

Place of availment:

The loan can be availed from the branch nearest to the place of domicile.


Upto Rs.4.00 lakhs - NIL

Above Rs.4.00 lakhs

For Studies in India - 5% 

For Studies Abroad - 15%

Rate of Interest:

12.50 % p.a. at present (irrespective of the loan limit sanctioned under both IBA as well as non-IBA scheme)

Concession of 0.50% in applicable rate of interest will be allowed on fresh Educational Loans under IBA Scheme to Girl Students for studies in India and Abroad with effect from 1st July 2009. This interest concession will not be applicable to Education Loans under non-IBA scheme.

Educational Loan borrowers who are enjoying finer rate of interest allowed to select premier educational institutions.

Floating Rate linked with Base Rate (BR) of the Bank and liable to undergo changes whenever there is a change in BR.

Holiday Period & Repayment:

The course period PLUS 1 year or 6 months after getting a job, whichever is earlier.

Repayable in 5- 7 years


Life Insurance cover available to the student borrowers under 'New IB Jeevan Vidya' Insurance Scheme.


Documents should be executed both by the student and parent / guardian as joint borrower.

1. Upto Rs. 4 lacs - No security

2. Above Rs. 4 lacs & Upto Rs.7.50 lacs - Collateral in the form of satisfactory third party guarantee

3. Above Rs.7.50 lacs - Co-obligation of parents / guardians together with tangible collateral security of suitable value along with assignment of future income of the student for payment of installments

Education Loan Application Can Be Downloaded From Documents Below,To Apply Online Click Here.


Indian Bank, Corporate Office, PB No: 5555, 254-260, Avvai Shanmugam Salai, Royapettah, Chennai - 600 014


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