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SIB Education Loan for Abroad

Last Modified : September 03, 2018

South Indian Bank (SIB) offers variety of education loan variants to meet the financial needs of students. The loans are extended to students pursuing graduate/post-graduate course in India or Abroad.

The bank offersEducation Loan for India and Abroad with interest subsidy scheme such as skill loan scheme and CSIS apart from variety of variants viz. SIB Vitjnan Pradhan Scheme, SIB Excellence, SIB Edusum, SIB Vidyanidhi and SIB Global Education.

Why South Indian Bank?

There are various facilities extended by SIB along with SIB Education Loan. Some of these facilities are facility of top up loans, zero processing/ prepayment charges, Income tax benefits are some of the benefits offered by SIB Bank that attracts borrowers.

Are you eligible for SIB Bank Education Loan?

  • 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.

How can you apply for SIB Bank Education Loan?

Students wishing to avail loan from SIB Bank can either do it through the official website or through Vidyalakshmi Portal. Applicants can also visit the nearest branch and fill the form.

For Online:

  • Visit the official website
  • Click on Loan Enquiry Form
  • Fill up the form with all the necessary details
  • Fill in the type of loan you require
  • Submit the Form
  • Take the print out of application form
  • After that visit the nearby SIB Bank for the further proceedings

For Offline

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.

Here are various aspects of student loan offered by SIB Bank. We have curated all the vital information to help you decide.

SIB Vitjnan Pradhan Scheme

SIB Vitjnan Pradhan Scheme is education loan variant extended by South Indian Bank to meet financial needs of students pursuing UG/PG courses in reputed university/institute overseas.

What makes you eligible for SIB Vitjnan Pradhan Scheme?

  • Indian National
  • 10+2 pass with 60% for PG course and 65% for UG course
  • Entrance based/merit based admission
  • Admission to eligible course and institute

Present Rate of Interest

Interest charged on all amounts is MCLR + 2.5 % to MCLR +3.5%

Quick Facts about SIB Vitjnan Pradhan Scheme

MarginUp to INR 4 Lacs: Nil
Above INR 4 Lacs: 15%
Maximum Loan LimitINR 20 Lacs
SecurityUpto INR 4 Lacs: Nil
From INR 4 to 7.50 Lacs: Third party guarantee
Above 10 Lacs: 100% collateral security
Moratorium PeriodCourse Period plus one year, or six months after getting a job
Repayment (Maximum)Repayment of the loan can be done after the moratorium period by mode of EMI
Maximum repayment tenure: 15 years
Prepayment ChargesNil, if paid during the repayment period

Additional Facts aboutSIB Vitjnan Pradhan Scheme

  • 0.5% concession to girl students
  • 1% concession if interest is serviced during moratorium period
  • 1% concession for prompt repayment of EMI
  • Top-up loan facility available

SIB Global Education

SIB Global Education is a loan variant specially designed to provide financial assistance to students aspiring to study overseas. The loan is extended with maximum loan amount of INR 1.50 crores.

What makes you eligible for SIB Global Education?

  • Indian National
  • Admission to reputed institute or university overseas
  • Age limit: Minimum 18 years to maximum age of 50 years
  • Admission to UG/PG or diploma courses of duration more than 1 year

Present Rate of Interest

Rate of interest charged by SIB under SIB Global Education ranges from MCLR + 2% to MCLR +2.5%

Quick Facts about SIB Global Education

Margin25%
Maximum Loan LimitINR 20 Lacs to 1.50 crores
Security100% collateral security equal to amount of loan
Moratorium PeriodCourse Period plus one year, or six months after getting a job
Repayment (Maximum)Repayment of the loan can be done after the moratorium period by mode of EMI Maximum repayment tenure: 7 to 15 years
Upfront Charges1% of loan amount

Additional Facts about SIB Global Education

  • Mandatory insurance cover
  • Reimbursement of course fee and accommodation within a year of proof submission

Expenses covered underSIB Education Loan Schemes for Study Abroad

  • Tuition Fee
  • Examination Fee
  • Library/ Laboratory Fee
  • Hostel Fee 
  • Cost of books, equipment, instrument or uniforms
  • Miscellaneous expenses- study tours, project work, thesis, etc.
  • Reasonable cost of computer or laptop (if required)
  • Passage money (for abroad)

Courses Covered under SIB Education Loan Schemes for Study Abroad

  • Job Oriented Professional and technical courses
  • Post-graduation courses such as MBA/ MCA
  • Courses that are offered by CIMA, London and CPA, USA
  • Pilot Training, Shipping, aeronautical etc. courses that lead to a diploma or degree

Documents Required for SIB Education Loan Schemes for Study Abroad

  • Admission letter with all essential details
  • Attested copies of age proof, residence proof and birth date.
  • Self-attested passport size photograph of applicant, co-applicant, and guarantor.
  • Copies of qualifying courses.
  • Income proof and/or copy of income tax return file of co-applicant, parents, and guarantor (if any).
  • Details of collateral security along with government approved valuation certificate (if any)
  • Bank account statement of the applicant.
  • Copy of passport and visa for abroad courses

FAQs

Q: What schemes does SIB considers for its education loans?

Answer: There are other multiple schemes offered by SIB apart from the basic education loans. These are:

  • CSIS
  • Skill Loan Scheme

Q: In whose name is the loan granted?

Answer: The loan is granted in the name of the student

Q: Is the loan contract executed only in student’s name?

Answer: No, the loan can be executed both in name of student and co-borrower as both are equally responsible for repayment of loan.

Q: What is the age limit for availing loan in SIB?

Answer: There is no age restriction for the applicant applying for education loan from SIB. He/ she should only meet the other stated eligibility criteria’s.

Q: Are minors eligible to apply for SIB Education Loan?

Answer: Yes, Minors aspiring for further studies can apply for education loan with help of legal representation from parents/ guardians.

Q: What does margin on any loan mean?

Answer: 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.

Q: Should the student’s margin be paid upfront in the starting?

Answer: Margin can be paid on a year to year pro rata basis whenever bank disburses loan amount as per requirement.

Q: Where can I avail SIB Education Loan?

Answer: You can either contact your nearest branch for the application form or details regarding the loan or apply online from the official website.

Q: Is there any provision to apply for loan online?

Answer: Yes, you can apply online through Vidyalakshmi portal to avail for this loan.

Q: Can I view my loan statement online if I am an existing education loan borrower?

Answer: Yes, by creating a login on SIB web portal, you can view all details related to education loan online.

Q: Is there any minimum aggregate marks to meet the eligibility criteria to avail SIB education loan?

Answer: Yes, a student must have secured a minimum of 60% for UG and 65% for PG in their last qualifying examination (10+2 or Graduation). Relaxation in the marks is given to SC/ ST students

Q: What is the discount/ rebate offered by SIB?

Answer:

  • 0.50% concession is given to girl students
  • 1% concession if interest is serviced during moratorium period
  • 1% concession for prompt EMI repayments

Q: What all is included in tangible collateral security?

Answer: 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.

Q: Can I place my family property as collateral?

Answer: Yes, but it will need consent of all family members involved.

Q: Is scholarship or assistantship included in the margin?

Answer: Yes any scholarship or assistantship will be a part of margin charged on education loan.

Q: What is Moratorium Period?

Answer: Course Period plus one year, or six months after getting a job

Q: What is tenure of an education loan?

Answer: Tenure of education loan provided by SIB is maximum 15 years

Q: What does MCLR stands for?

Answer: MCLR stands for Marginal Cost of funds based Lending Rate. It refers to the minimum interest rate of bank below which it cannot lend.

Q: What all expenses are covered under this course?

Answer: 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.

Q: Will my travel expense will be covered if I take loan from SIB?

Answer: Yes, travel expenses are covered under this loan

Q: I have taken admission through management quota. Am I eligible?

Answer: This depends totally on bank’s discretion as whether a student meets other eligibility criteria or not.

Q: What do you mean by reputed or recognized institutes?

Answer: 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)

Q: Are there any special benefits if I have secured admission to one of the top premier institutes?

Answer: SIB does not provides any additional concession to students who have secured admission in top rated institutes abroad.

Q: What is the processing fee or prepayment charges?

Answer: The education loan offered by SIB does not carry any prepayment charges. 1% upfront fee is charged that is refundable upon the acquisition of loan.

Q: Will cost of my computer be covered under the loan sanctioned?

Answer: Reasonable cost for the computer or laptop well be covered under the loan if it is required to complete the course. 

Q: Why is Pan Card necessary?

Answer: 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

Q: Are diploma or certificate courses considered under SIB education Loan (both for India and Abroad)?

Answer: 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.

Q: Is a co-borrower necessary for loan?

Answer: Yes, it is mandatory to have a co-borrower to avail loan from SIB. 

Q: Who can be my co-borrower?

Answer: 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.

Q: What all documents are required from the co-borrower?

Answer: 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).

Q: How many guarantors do I need to borrow loan from SIB?

Answer: You need at least 2 guarantors to avail loan from SIB.

Q: What is the KYC requirement in education loan?

Answer: KYC requirements are the documents as a proof of personal identification and residence proof of the applicant as well as the co-borrower.

Q: What are maximum term for repayment?

Answer: Maximum Term for repayment for Loan is 15 years

Q: How can I repay the loan?

Answer: You can repay the loan after the moratorium period by mode of EMI or through post- dated cheques.

Q: 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 (1+R) ^n] / [(1+R)^ n-1]

Here, P is Amount of Education Loan, R is Rate of Interest, n is Tenure of the Loan.

Q: Is the loan disbursed in name of individual applicant or to the institute/ university directly?

Answer: 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

Q: If I am unable to complete my course in given tenure, will my repayment term be extended?

Answer: 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. 

Q: What is method of application of interest on education loan?

Answer: 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. 

Q: If I am joining the course soon after current course, can I get an extension?

Answer: Mostly, in such cases, you do not get an extension and even if you do there is a possibility that interest rates are higher

Q: What is interest rate of education loan?

Answer: 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%

Q: What is interest subsidy on education loan?

Answer: SIB offers:

  • 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.

Q: What documents do I need to submit to avail interest subsidy scheme?

Answer: 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.

Q: If I am availing loan for overseas studies, can I also avail interest subsidy scheme?

Answer: No, the interest subsidy scheme is available only for studies applying for studies in India.

Q: What is employment verification in an education loan?

Answer: 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.

Q: Are there any tax benefits in education loans?

Answer: 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).

Q: Is it necessary to have bank account with the bank while availing loan from that particular bank?

Answer: 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.

Q: Can I repay my loan in foreign currency even if my bank is in India?

Answer: Yes, you can pay the amount in foreign currency (Euro, Pound, Dollar, etc.) The bank might charge an additional currency conversion fee as per RBI regulations.

Q: Why do banks require insurance policy as security?

Answer: 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

Q: Are there any additional benefits on availing loan from SIB?

Answer: There is no additional benefit mentioned by SIB. Students may contact the official website for the same.

Q: What is credit score? Is it important for education loan?

Answer: 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.

Q: Are NRIs eligible for the education loan?

Answer: NRIs are eligible for the loan if they have Indian citizenship and are Indian passport holder.

Q: Is Visa a necessary document for studying abroad?

Answer: Visa is needed as a document proof but it is not a sole requirement.

Q: What all procedures do one have to go through while applying for abroad?

Answer: A student who is applying for studying abroad have to give necessary documents required by the bank. One needs to have a thorough knowledge of the course they are applying for and in which institute as it can be asked on the airport by the foreign officials.

Q: If a student have any query, where or whom to contact?

Answer: student can reach out to the nearest branch in case of any query.

Q: Customer Care Number: 1800 425 1809