Brief Description:

Indian Bank Education Loan (IBA) scheme is an education loan model that offers need-based loans to students who want to pursue undergraduate, postgraduate, and postgraduate diploma courses in India and abroad. Under this scheme, students can avail of the education loan up to INR 25 lakh for the Executive Management Program and Executive Master of Business Administration (MBA) courses conducted within India.

Eligibility

To be eligible, an applicant must fulfil 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.
• Applicants can apply for the scheme to pursue 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 graduate or equivalent in any discipline.
• Applicants could be a working professional (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 Student born Abroad, loans can be considered only of studies in India.

Benefits:

The selected candidates will receive a loan ranging from INR 4 lakh to INR 25 lakh. The candidates who are pursuing Executive Management Program/Executive MBA across India will receive a maximum loan limit is INR 25 lakh.
Candidates must fulfil the following margin money as per the percentages mentioned below:
• Up to INR 4 lakh – 0% margin money to study in India and abroad
• Between INR 4 lakh and INR 7.5 lakh – 5% margin money (to study in India) and 15% (to study abroad)
• Above INR 7.5 lakh – 15% margin money (to study in India) and 20% (to study abroad)
• Up to INR 25 lakh (for Executive Management Program/Executive MBA) – 25% margin money (to study in India only)

Additional benefits include:

• Tuition fees
• Tour fee
• Insurance premium (if any)
• Academic and maintenance fee
• Hostel fees or lodging and boarding charges
• Living expenses and travel expenses/passage money
• Caution money/building fund/refundable deposit
o Fund to purchase books/uniform/equipment/instruments
o Money to purchase a computer/laptop at an affordable price
o Project or thesis expenses and other miscellaneous expenses

Credit Guarantee Cover:

The credit guarantee cover for IB Education Loan will be applicable for 75% of the defaulted amount. Below are the specific details regarding the guarantee cover.
• Educational loans granted up to INR 7.5 lakh limit under the Indian Bank Education Loan scheme are eligible under the Credit Guarantee Fund Scheme for Educational Loans (CGFSEL).
• The requirement for a third-party guarantee or collateral is waived for this loan scheme.
• Parents/spouses of borrowers are required to act as co-obligates or joint borrowers.
• Applicants can apply for education loans to study in India as well as abroad.
• The annual guarantee fee will be 0.5% per annum for the outstanding loan amount, which the bank will absorb.
• The guarantee cover will be provided for 75% of the defaulted loan amount.

Important Note –

The above-listed covered expenses are tentative and subject to the bank’s lending policy. The bank reserves the right to set limitations on these expenses.

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)
• Aadhaar card/Permanent Account Number (PAN) card/voter identification card/passport/driving license
• Admission letter/bonafide student certificate from the college/university (must include fee structure)
• Details regarding the source of funds to meet the margin (must be 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 telephone bill/electricity bill/property tax receipt
• Marksheet (Class 10, 12, graduation, or last qualifying examination)
• Community certificate (if applicable)
• Income certificate issued by the designated authority
• Passport and visitors International Stay Admission (VISA) to study abroad
• Details of parents/guardian/co-obligation/guarantor
• Copy of liquid securities (if offered as collateral)
• Income proof

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