Indian Bank Education Loan
Education Loan

Indian Bank Abroad Education Loan

Indian Bank Abroad Education Loan

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Get the details of the Indian Bank education loan for studies in India & abroad. Know the interest rate, eligibility criteria, margin money, repayment tenure, and more.

GyanDhan
Rohit Gidwani
Updated on:  20 Sep 2023  | Reviewed By: 
Aman 
| 12.8K | 6  min read
 


Did you know that in the last 10 years, the number of students taking abroad education loans from public sector banks has increased three times and similarly the loan amount being sanctioned has also increased six times. One of the major players in this overall increase is the Indian Bank and its abroad education loan offering. For the FY 2021-22, the Indian Bank disbursed around 284 Cr to students who wanted to study abroad. The average lending amount comes to 11 Lakh per student. In order to provide you with more clarity on Indian Bank’s abroad education loan process and its offering, we have compiled all the information and integrated it into this blog.

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Overview of Indian Bank

Founded in 1907, Indian Bank has established a robust network of branches spanning across the entire nation. However, a pivotal development took place in 2020 when Indian Bank merged with Allahabad Bank. This merger had the consequential effect of transferring all customers of Allahabad Bank to Indian Bank, effectively bringing an end to the independent operations of Allahabad Bank. Indian Bank provides education loans to study both in India and abroad as well.

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Eligibility criteria for Indian Bank for abroad education loan

Following are the eligibility criteria that you need to fulfill in order to get an abroad education loan from Indian Bank. There can be more specific criteria, which banks can put in front of you while applying. The general criteria are -

  • list items You should be an Indian student with a minimum age of 18 years or above.
  • list items You should have a good past academic score. 
  • list items Must have cleared all necessary tests like IELTS, TOEFL, GRE, or GMAT. 
  • list items Should be admitted to a reputed university abroad. 
  • list items Eligible courses - full-time graduate/postgraduate courses, PG diploma courses, and more.
  • list items The target universities should be selected from institutes ranked within the top 1,000 colleges according to the latest World Ranking issued by the bank's accepted websites.  

Check Your Education Loan Eligibility

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Expenses covered under abroad education loan by Indian Bank

The different expenses that will be covered when you take an abroad education loan through Indian Bank will be - 

  • list items Tuition Fees
  • list items Accommodation charges
  • list items Travel expenses
  • list items Living cost
  • list items Purchase of study-related materials like books, laptops, or more. 
  • list items Registration or subscription fee for things like library, laboratory, and more. 
  • list items Any other charges or costs like security deposit, healthcare, or any other important thing.
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Features of abroad education loan by Indian Bank

This bank just like other public sector banks is preferred when an individual needs to take a secured education loan that is a loan with collateral. The main reason for this preference is that when you decide to take a secured education loan then the loan amount that can be approved is more, the interest rate is low, and more such benefits. The details of Indian Bank’s abroad education loan are given below -
 

Feature  Detail

Loan Amount

7.5 Lakh to 100% of collateral value

Minimum age of the applicant

18 years

Interest rate type

Floating 

Interest rate

9.20% - 11.40%*

Interest rate incentive

0.50% for female applicants

Loan Tenure

15 years

Moratorium period 

Course + 12 months

Payment during the moratorium period

May require SI only

Processing time 

10 - 12 days

Tax Benefit

Yes

Prepayment penalty

No

Margin Money

15%


 

*Interest Rate as of August 2023

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Required documents for Indian Bank abroad education loan

The different documents that will be required in order to apply for an abroad education loan via Indian Bank are - 

  • list items Address proof: passport, voter ID, electricity bill, etc.
  • list items Academic record: 10th/12th mark sheet for undergrad students and graduation degree & mark sheet for PG students.
  • list items Age proof
  • list items Community certificate
  • list items Family income proof: ITR, salary certificate, pension certificate of parent/guardian.
  • list items Admission certificate or I20 from the college/university
  • list items Tuition Fee details
  • list items Collateral documents (if applicable): LIC policy, valuation certificate, registry documents, etc.
  • list items An affidavit declaring that no study loan is availed from any other bank by the student and his/her parents.  

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How to apply for Indian Bank abroad education loan?

The application process for the Indian Bank abroad education loan is simple. You can apply for the loan by visiting the branch directly, or you can also apply via an online application form and then move forward as required by the bank officials. The steps for the same are - 

  • list items Visit the Indian Bank’s website. 
  • list items From the options given on the horizontal bar, choose the product and then choose the loan product. 
  • list items Once you have clicked on it, you will see different loan products that are offered by Indian Bank. 
  • list items From the given list you will have to choose the education loan option. 
  • list items A new page will open in which you will find an option “Apply for Loan”, click on it, and then you will be redirected to a new page. 
  • list items Fill in the required details and attach the required documents. Once all of this is done your application can be successfully submitted to the bank. 

Choosing the perfect lender requires careful consideration of various factors to meet your specific requirements. Public sector banks are a reliable option for education loans with collateral, but alternatives like SBI and UBI offer competitive rates. Therefore, it's essential to evaluate factors such as interest rates, loan amounts, eligibility criteria, margin money, processing fees, and more before finalizing a lender. We understand that assessing all these factors can be challenging, which is why GyanDhan is here to assist you in finding the best lender tailored to your needs. All you need to do is check your eligibility, and you can secure your abroad education loan with ease.

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Frequently asked questions

Does the Indian Bank give loans to study abroad?

Yes, the Indian Bank can give you an education loan with and without collateral. You can get up to 7.5 Lakh without collateral whereas with collateral you can get up to 100% of your collateral value. 

How much interest rate is charged by the Indian Bank for abroad education loans?

The interest rate for the Indian Bank can range between 9.20% - 11.40%. The interest rate that you can get depends on the application profile, targeted university/college, country, and more. 

How much time does it take to get my loan approved from the Indian Bank?

You can get your loan approved via Indian Bank in about 15-20 working days once all the documents have been submitted to the bank officials. 

Is there any interest rate concession when I take an education loan through the Indian Bank?

Female applicants are eligible for an interest rate concession of 0.50% on the applicable interest rate.

Check Your Education Loan Eligibility


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