Student Education loans in India

Here know the complete information about Student Education Loans offered by South Indian Bank India.

South Indian Bank

Vitjnan Pradhan Scheme

Studies in India

Eligibility for Education Loan
  • Must be an Indian National.
  • Secured admission to Professional/ Technical courses through Entrance Test/ Selection Process.
Eligible Courses for Education Loan
  • Graduation, Post-graduation including technical / professional courses from recognized universities.
Quantum of Finance
Maximum of Rs. 10.00 lacs for studies in India
  • Upto Rs.4,00,000/- -- NIL
  • Above Rs.4,00,000/- -- 15%

Studies in Abroad

  • Must be an Indian National.
  • Secured admission to foreign university/institutions.
Eligible Courses for Education Loan
  • Graduation : For job oriented professional / technical courses offered by reputed universities
  • Post-Graduation - MCA, MBA, MS, PhD etc.
  • Courses conducted by CIMA-London, CPA in USA etc.
Quantum of Finance
Maximum of Rs. 20.00 lacs for studies in abroad.
  • Upto Rs.4,00,000/- -- NIL
  • Above Rs.4,00,000/- -- 25%

Common aspects for Indian and Abroad studies

Expenses considered for Education Loan
  • Fee payable to college/school/hostel
  • Payment of course fees
  • Purchase of books/equipments/instruments
  • Examination/Library/Laboratory fee
  • Caution deposits and refundable deposits
  • Upto 4.00 lacs - Guarantee of Parents. No security.
  • Above Rs. 4.00 lacs - Guarantee of Parents together with collateral security.
Rate of Interest
  • Fixed at BPLR+TP-2.50%
  • The Principal and interest are to be repaid in 5-7 years after commencement of repayment. If the student is not able to complete the course within the scheduled time, extension of time for completion of course may be permitted for a maximum period of 2 years.
Holiday period
  • Course period + 1 year OR 6 months after getting job, whichever is earlier.

  • To attract talented youths pursuing professional studies in the top prestigious educational institutions in India to our bank.
List of eligible educational institutions
  • All IIMs for 2 year PG/PGDM programme
  • All IITs for 4 year UG /2 year PG programmes
  • National Institute of Design (NID)-Ahmedabad for 4 years UG/2 years PG course
  • Indian School of Business (ISB), Hyderabad for 2 year PG programmes
  • National Institute of Fashion Technology (NIFT) for 4 year UG/2 year PG course
  • Indian Institute of Foreign Trade, Delhi & Kolkata for 2 year PG programmes
  • Business schools ( other than those listed above ) appearing in the top 20 ranking of 'NAAC' ( National Assessment & Accreditation Council) / AIMA (All India Management Association) , the list of which will be circulated by Credit Department shortly.
Amount of loan
Max.Rs.10.00 lakhs subject to actual requirement, whichever is lower.
  • Upto Rs.4,00,000/- -- NIL
  • Above Rs.4,00,000/- -- 15%
  • Scholarships /assistantship can be included in margin . Margin may be brought in on year-to-year basis as and when disbursements are made

Mode of payment
  • Payment, preferably through RTGS direct to the institution / supplier for college/hostel fees, books, uniform, computers etc as far as possible. RTGS charges may be waived. The paid bills / vouchers (not older than 3 months) may be reimbursed by credit to borrower's account.
Borrower/ Guarantor
  • In the case of major students - borrower is to be the student him/herself along with atleast one of his/ her parents as guarantor. Networth of the guarantor/s should not be less than the loan amount.
  • If parents are not alive, close relative should be guarantor. (Either one guarantor with net worth not less than the loan amount or more than one guarantors with total networth not less than the loan amount).
  • In the case of minor students- one of the parents is to be the borrower along with the other parent/ close relative as guarantor. Close relative for this purpose means related to the borrower as follows:- parents/ brother /sister /sister's husband / paternal or maternal uncle / father's sister/mother's sister
Guarantee by one of the parents/close relative . Life Insurance policy (Single Premium) for equal amount of loan and tenure to be assigned in bank's name .
Period of loan / Repayment
Repayment will start from 1 year after qualifying exam or six months after obtaining employment, whichever is earlier. Loan should be repaid in 60 equal monthly instalments after the holiday/ moratorium as above. No prepayment penalty. Interest during holiday period may be funded /remitted as per option given by the borrower at the time of availment of loan.
Rate of Interest
Fixed Rate @ 9 % without reset clause
For more details visit South Indian Bank official website:

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