South Indian Bank Education Rate of Interest
SIB Global offers education loan to provide financial assistance to students aspiring to study overseas
- Margin charged by bank is 25%
- Maximum Loan Limit offered ranges from 20 Lacs to 1.50 crores
- The repayment period is 7 to 15 years depending upon amount of loan
- Reimbursement of course fee and accommodation within a year of proof submission
- Mandatory insurance cover
- Mandatory life insurance
Rate of Interest charged by the bank depends on the base rate set by SIB as per the guidelines set by RBI
- Rate of interest charged by SIB under SIB Global Education ranges from MCLR + 2% to MCLR +2.5%
CALCULATE YOUR EDUCATION LOAN EMI
188 per month
Looking for admission for India and Abroad?Know Fees
South Indian Bank Education Loan Eligibility
- Indian National. Borrower must be an Indian National or NRI in possession of Indian passport.
- 10+2 Pass. You must have qualified 10+2 from a recognized board or institute with required marks.
- Eligible course. Must have secured admission in course and institute covered under SIB Bank?s guidelines.
- Co-signer. A co-signer is a must while applying for loan from SIB bank.
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|Bank / Financer|
|Applicable Rate of Interest|| MCLR + 2% to MCLR +2.5% || 1.70% above the base rate || up to INR 7.5 Lacs: MCLR + 2.00% |
above INR 7.5 Lacs: 2.60%
| Upto 4 Lacs- 16.50% |
Upto 7.5 Lacs- 17.50%
Above 7.5 Lacs- 15.50%
|Max Loan with Collateral|| INR 20 Lacs to 1.50 crores || For Abroad: 30 Lacs || For Abroad: 20 Lacs || For India: 10 Lacs |
For Abroad: 20 Lacs and beyond based requirement
|Max loan without collateral|| INR 20 Lacs to 1.50 crores || For Abroad: 30 Lacs || For Abroad: 20 Lacs || For India: 10 Lacs |
For Abroad: 20 Lacs and beyond based requirement
|Processing Fee|| Nil || INR 10,000 || Nil || Nil |
|Repayment Period|| 7 to 15 Years || 15 years || 15 years || 7 years |
|Loan for top institutions|| Yes, SIB Excellence || Yes, SBI Scholar Loan Scheme || Yes, PNB Pratibha || No |
|Margin|| 25% || 15% || Up to INR 4 Lacs - NIL |
Above INR 4 Lacs - 15%
| Upto loan 4 Lacs: No margin |
Above 4 Lacs: for India: 5%
for Abroad: 15%
|Age Limit|| No age limit || no age limit || No age limit || No |
|Loan Security|| 100% collateral security equal to amount of loan || Tangible collateral security is required |
Collateral security by third party are also accepted
| Upto INR 7.50 Lacs: Parent(s)/guardian be made joint borrower (s). No tangible Security and /or 3rd party guarantee is required. |
Above INR 7.50 Lacs: Parent(s)/guardian be joint borrower(s). Tangible collateral security of suitable value acceptable to bank.
| Third party guarantee |
Additionally, assignment of LIC policy in favor of bank amounting 100% of education loan amount
Assignment of Future salaries in favor of Axis Bank
|Eligibility concession for SC/ST|| No || No || 50% for SC/ST, and;60% for General category. || No |
|Processing Time|| N.A. || 20 days || 15 days || 14 Days |
|Prepayment charges|| Nil || Nil || Nil || Nil |
|Penal charges|| Nil || Penal interest @ 2% to be charged for loans above Rs.4 lacs for the overdue amount and overdue period || Nil || @ 2% per month on the overdue installment/s |
|Mandatory insurance cover|| No || Yes || yes || yes |
|Travel expeneses|| Yes || yes || yes || yes |
|Bank transfter allowance|| No || available || available || No such clause mentioned |
|Top up loan availability|| Yes || yes || available || unavailable |
|Interest Subsidy Schemes|| CSIS |
Skill Loan Scheme
| Padho Pardesh |
Skill Loan Scheme
| Padho Pardesh |
Skill Loan Scheme
| CSIS |
|Tax benifit|| Yes || yes || yes || yes |
|Concession/benefits|| No processing fee charged |
0.50% conession to girl students
No penal or prepayment charges
| Concession to girl students |
1% concession if interest is serviced during moratorium period including course period
| 0.5% concession to girl students |
0.5% concession if interest is serviced during moratorium period including course period
| There is no processing fee charged |
No pre- payment charges are applied
No pre- closure charges are applied
Loan Disbursal period is 15 working days from the date of final submission of documents
How to apply for South Indian Bank Education Loan ?
South Indian Bank Education loan application form can be available online or offline at Bank branches.
Visit the official website for SIB Bank.
Select the scheme and click on Apply Now.
Fill out the form with essential details.
Upload the mandatory documents required.
Submit the form and take out a print out of the application.
Visit the bank branch for further formalities.
Applicants can directly visit the nearest branch and ask for an application form. The bank representative will then guide you with all the necessary information regarding eligibility, documents required and also which loan is best suitable
South Indian Bank Education Loan Details
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Expenses covered under South Indian Bank Student Loan Scheme
- Tuition Fee
- Hostel Fee
- Examination Fee
- Lab/ Library Fee
- Cost of book and other equipment
- Miscellaneous expenses- study tours, project work, thesis, etc.
- Insurance premium
- Reasonable cost of computer or laptop (if required)
- Passage money (for abroad)
Courses Covered Under South Indian Bank Student Loan Scheme
Education Loan Documents Required ?
Admission letter along with fee structure, mark sheets, etc.
Attested copies of Id proof and Residence proof.
Two recent passport size photographs of applicant, co-applicant, and guarantor.
Mark sheet of qualified public exam for school, college in India.
Salary Proof including latest salary slip, Form 16 and recent salary certificate
Details of proof of admission
Schedule of expenses for the course.
Copy of passport and visa for abroad courses
Interest Subsidy Schemes
Formulated under the Prime Minister's 15 point programme, this subsidy scheme benefits the students of the minority community who want to study abroad. Such students are provided 100% interest subsidy.
Procedure for availing Padho Pradesh
- Students are supposed to inform their lending banks about the recently launched scheme of Padho Pardesh by Ministry of Minority Affairs.
- Then the students have to submit the proof of their eligibility for the particular scheme
- If a student is eligible, the lending bank will feed the students information into a portal of Padho Pardesh.
- The portal will remain open for the period of two months in every quarter.
Courses covered under Padho Pardesh Scheme
Courses that are covered by Government of India under this scheme are as follows:
|Arts/ Humanities/ Social Sciences||Commerce|
|Bio- technology/ Genetic Engineering||Industrial Environmental Engineering|
|Nano- technology||Marine Engineering|
|Petro-chemical Engineering||Plastic Technology|
|Automation Robotics including artificial intelligence||Laser Technology|
|Low Temperature Thermal Dynamics||Art Restoration Technology|
|Optometry||Dock and Harbour Engineering|
|Imaging System Technology||Composite Materials Engineering including Decentralized power|
|Packaging Engineering/ Technology||Nuclear Engineering|
|Information Technology including Computer Engineering, Software, Software Quality assurance, etc.||Industrial Safety Engineering|
|Medical||Agriculture & Agro Technology|
|Agronomy||Floriculture & Landscaping|
|Forestry & Natural Resources||Food Sciences & Technology|
|Energy Studies||Farm Power & Machinery|
|Veterinary Sciences||Soils & Water Management|
|Plant Breeding & Genetics||Small- scale Rural Technology|
|Ocean & Atmospheric Sciences||MB/MCA|
Frequently Asked Questions
What schemes does SIB considers for its education loans?+ -
There are multiple other schemes offered by SIB apart from the basic education loans viz. SIB Vitjnan Pradhan Scheme, SIB Excellence, SIB Edusum, SIB Vidyanidhi and SIB Excellence. These are:
- CSIS Scheme
- Padho Pardesh
- Skill Loan Scheme
In whose name is the loan granted?+ -
The loan is granted in the name of the student
Is the loan contract executed only in student's name?+ -
No, the loan can be executed both in name of student and co-borrower as both are equally responsible for repayment of loan.
What is the age limit for availing loan in SIB?+ -
There is no age restriction as stated by SIB for SIB Vitjnan Pradhan Scheme. For SIB Edusum the age limit is 25 years for UG and 30 years for PG course.
Are minors eligible to apply for SIB Education Loan?+ -
Yes, Minors aspiring for further studies can apply for education loan with help of legal representation from parents/ guardians.
What does margin on any loan mean?+ -
Margin amount is the amount that a borrower has to pay through his/ her own sources in form of a down payment as his/ her contribution towards the education.
Should the student's margin be paid upfront in the starting?+ -
Margin can be paid on a year to year pro rata basis whenever bank disburses loan amount as per requirement.
Where can I avail SIB Education Loan?+ -
You can either contact your nearest branch for the application form or details regarding the loan or apply online from the official website.
Is there any provision to apply for loan online?+ -
Yes, you can apply online through Vidyalakshmi portal to avail for this loan.
Can I view my loan statement online if I am an existing education loan borrower?+ -
Yes, by creating a login on SIB web portal, you can view all details related to education loan online.
Is there any minimum aggregate marks to meet the eligibility criteria to avail SIB education loan?+ -
Yes, a student must have secured required 60% for UG and 65% for PG in their last qualifying examination (10+2 or Graduation). Relaxation of 10% in the marks is given to SC/ ST students
What is the discount/ rebate offered by SIB?+ -
- 0.50% concession is given to girl students
- 1% concession if interest is serviced during moratorium period
- 1% concession for prompt EMI repayments
What all is included in tangible collateral security?+ -
Mostly SIB asks tangible security in lieu of the loan amount sanctioned along with assignment of future salaries in favour of SIB. Tangible security includes documents related to land/ building/ government security/ public sector bonds/ units of UTI, NSC, Life insurance policy/ bank deposits/ shares or debentures. The value of the security should be equal to the education loan amount.
Can I place my family property as collateral?+ -
Yes, but it will need consent of all family members involved.
Is scholarship or assistantship included in the margin?+ -
Yes any scholarship or assistantship will be a part of margin charged on education loan.
What is Moratorium Period?+ -
Course Period plus one year, or six months after getting a job
What is tenure of an education loan?+ -
Tenure of education loan provided by SIB is maximum 7 to 15 years
What does MCLR stands for?+ -
MCLR stands for Marginal Cost of funds based Lending Rate. It refers to the minimum interest rate of bank below which it cannot lend.
What all expenses are covered under this course?+ -
Expenses covered by SIB education loan are:
- Tuition/ college/ hostel fee
- Examination/ lab/ library fee
- Books/ uniform/ instruments
- Caution deposit
- Passage money for studies abroad, etc.
I have taken admission through management quota. Am I eligible?+ -
This depends totally on bank's discretion as whether a student meets other eligibility criteria or not.
What do you mean by reputed or recognized institutes?+ -
Institutes that are affiliated to state/ central universities and comes under UGC or AICTE are considered as recognized institutes. Reputed institutes are those which are well known and have standard course of repute. More often, banks provide the list of institutes they consider for loan. (You can contact nearest branch for the same)
Are there any special benefits if I have secured admission to one of the top premier institutes?+ -
There is a special variant of loan dedicated to students securing admission in top premier institutes.
What is the processing fee or prepayment charges?+ -
The education loan offered by SIB does not carry any prepayment charges/ processing fee/ documentation charges
Will cost of my computer be covered under the loan sanctioned?+ -
Reasonable cost for the computer or laptop well be covered under the loan if it is required to complete the course.
Why is Pan Card necessary?+ -
Pan Card is one of the mandatory document required by banks these days. It is mandatory because:
- Easy to assess Income
- Easy to trace borrowers
Are diploma or certificate courses considered under SIB education Loan (both for India and Abroad)?+ -
Diploma courses are eligible under SIB Education Loan. Regular degree or diploma courses like, shipping, pilot training, and aeronautical that are approved by Director General of Civil Aviation or Shipping.
Is a co-borrower necessary for loan?+ -
Yes, it is mandatory to have a co-borrower to avail loan from SIB.
Who can be my co-borrower?+ -
Your parent/ spouse/ guardian can be a co-borrower. A co-borrower should be your immediate family member, should have a steady source of income, and a good credit history.
What all documents are required from the co-borrower?+ -
Documents required from the co-borrower are:
- Attested copies of age proof, residence proof and birth date.
- Self-attested passport size photograph
- Income proof and/or copy of income tax return file
- Details of collateral security along with government approved valuation certificate (if any).
How many guarantors do I need to borrow loan from SIB?+ -
You need at least 2 guarantors to avail loan from SIB.
What is the KYC requirement in education loan?+ -
KYC requirements are the documents as a proof of personal identification and residence proof of the applicant as well as the co-borrower.
What are maximum term for repayment?+ -
The maximum term for repayment is 7 to 15 Years.
How can I repay the loan?+ -
You can repay the loan after the moratorium period by mode of EMI or through post- dated cheques.
What is EMI? How are they calculated?+ -
Answer: EMI stands for Equated Monthly Installments. It can be calculated by using the formula given below
EMI = [P x R x (+R) ^n] / [(1+R)^ n-1]
Here, P is Amount of Education Loan, R is Rate of Interest, n is Tenure of the Loan.
What are the charges for late EMI payment?+ -
24% per annum on outstanding amount is charged for the late EMI payment and INR 500 for every bounced cheque.
Is the loan disbursed in name of individual applicant or to the institute/ university directly?+ -
The loan is disbursed directly to the institute/ university that you have taken admission to. Hence, an applicant is supposed to submit institute brochure with proper division of the fee.
If I am unable to complete my course in given tenure, will my repayment term be extended?+ -
It is completely on the banks discretion to extend the moratorium period or not. It can be extended for maximum 2 years based on student's reason. You can contact your nearest branch for more details.
What is method of application of interest on education loan?+ -
The interest will be charged at simple rate from the date of disbursement till commencement of repayment of loan. After that, compound interest is charged on reducing balance.
If I am joining the course soon after current course, can I get an extension?+ -
Mostly, in such cases, you do not get an extension and even if you do there is a possibility that interest rates are higher.
What is interest rate of education loan?+ -
The interest rate is different for different loan offered. Refer the tables below:
- For SIB Vitjnan Pradhan Scheme:Interest charged on all amounts is
- For SIB Global Education:Rate of interest charged by SIB under SIB Global Education ranges from MCLR + 2% to MCLR +2.5%
What is interest subsidy on education loan?+ -
- Padho Pardesh Scheme for minority sector students who wish to pursue their studies abroad.
- Interest Subsidy scheme for economically weaker sections and to promote education amongst them.
What documents do I need to submit to avail interest subsidy scheme?+ -
The documents that need to be submitted are:
- Income certificate issued by authorised authorities
- Bonafide student certificate
- Letter of undertaking or declaration signed by borrower/ co-borrower.
What is employment verification in an education loan?+ -
The bank takes the responsibility to cross verify all the employment details of the applicant and co-borrower. If the banks fails to cross verify every detail provided, it might reject the loan application.
Are there any tax benefits in education loans?+ -
Under Section 80E of Income Tax Act, loan borrowers can avail the tax benefits. This benefit is only available over and above INR 1,50,000. Tax benefits can be availed once the borrower starts paying interest on loan. The deduction is available until borrower pays off full interest amount on loan or for maximum of 8 years (whichever is earlier).
Is it necessary to have bank account with the bank while availing loan from that particular bank?+ -
It is not necessary to have a bank account while availing the loan but it makes it easier for the borrower to get loan application approved.
Why do banks require insurance policy as security?+ -
The banks require insurance policy as security in lieu of education loan provided. The insurance policy should be equal or more to the amount of loan sanctioned. In case of untimely demise of the borrower, the bank recovers the amount from the insurance policy.
Are there any additional benefits on availing loan from SIB?+ -
SIB provides no additional benefits. You can contact the bank for more information regarding the same.
What is credit score? Is it important for education loan?+ -
Credit Score is inclusive of various factors such as credit history (Loan history or credit card). If a student does not have a credit score, banks calculate it by considering factors such as University, College and the Course of admission. Banks consider the academic background of student and credit history of co-borrower.
If a student have any query, where or whom to contact?+ -
student can reach out to the nearest branch in case of any query.
Customer Care Number: 1800 425 1809