filter your search allcollegesexamnews

Home > News >  South Indian Bank Education Loan

South Indian Bank Education Loan

Last Modified : September 03, 2018

South Indian Bank aims at making tailor-made education loan schemes to meet all types of financial needs of students aspiring to study in India, abroad or specifically Kerala (India)

Education Loan for India and Abroad are offered 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?

Facility of top up loans, zero processing/ prepayment charges, Income tax benefits are some of the benefits offered by SIB Bank that attracts borrowers. The bank also has special variant for SIB Education Loan for Abroad.

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.

1. SIB Vitjnan Pradhan Scheme

SIB Vitjnan Pradhan Scheme is one of the variants offered by SIB Bank to financially assist students in pursuing their education in India or abroad.

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:
  • for studying in India: 5%
  • for studying in Abroad: 15%
Maximum Loan LimitFor studies in India: INR 10 Lacs
For studies in Abroad: INR 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 about SIB 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

Expenses covered under SIB Vitjnan Pradhan Scheme

  • 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 Vitjnan Pradhan Scheme

  • Graduate/ postgraduate degree/ diploma courses conducted by renowned institutions/ universities recognized by UGC, Government, AICTE, AIBMS or ICMR.
  • Academic courses such as CA, CFA, and ICWAI.
  • Courses conducted by NIFT, IITs, IIMs, XLRI, IISc, and NID.
  • Regular degree or diploma courses like, shipping, pilot training, and aeronautical that are approved by Director General of Civil Aviation or Shipping (only if it is pursued in India).
  • Courses for noble cause such as teaching training (like B.Ed.), nursing courses, and from other training institutions approved by Central Government or by State Government
  • Reputed foreign universities offering approved courses offered in India.

2. SIB Excellence

SIB Excellence is offered to students who secure admission to top premier institutes in India. The loan is eligible for courses conduced in premier institutes such as IIM, IIT, NIT, etc.

What makes you eligible for SIB Excellence?

  • Indian National.
  • 10+2 qualified
  • Admission through merit based only

Present Rate of Interest

Rate of interest charged by SIB for SIB Excellence is MCLR (1 Year) +0.50%.

Quick Facts about SIB Excellence

MarginUp to INR 4 Lacs: Nil
Above INR 4 Lacs: 5%
Maximum Loan LimitINR 25 Lacs
SecurityNil
Moratorium PeriodCourse Period plus one year, or six months after getting a job
Repayment (Maximum)5 years
Prepayment ChargesNil, if paid during the repayment period

Additional Facts about SIB Excellence

  • Mandatory life insurance
  • Zero processing fee
  • Zero prepayment charges
  • No collateral security charged

Expenses covered under SIB Excellence

  • Tuition Fee
  • Hostel Fee
  • Examination Fee
  • Lab/ Library Fee
  • Cost of book and other equipment
  • Cost of uniform
  • Insurance premium

3. SIB Edusum

This variant of education loan is only applicable for loans sourced through Kerala branches. The loan meet the financial needs of students securing admission in institutes outside Kerala or in Kerala if admission is sought under management quota (entrance exam or merit based) for regular courses after completion of 10+2.

What makes you eligible for SIB Edusum?

  • Indian National
  • Age limit: 25 years for UG and 30 years for PG course
  • 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

Rate of interest on all amounts ranges from MCLR (1Year) + 5.8% to MCLR (1 Year) +6.3%.

Quick Facts about SIB Edusum

MarginUp to INR 4 Lacs: Nil
Above INR 4 Lacs:
  • for studying in India: 5%
  • for studying in Abroad: 15%
Maximum Loan LimitINR 2.50 to 10 Lacs
SecurityUpto INR 2.50 Lacs: Nil
From INR 2.50 to 4 Lacs: Third party guarantee
Above 4 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:
Upto 7.50 Lacs: 10 years
Above 7.50 Lacs: 15 years
Prepayment ChargesNil, if paid during the repayment period

Additional facts about SIB Edusum

  • Mandatory life insurance
  • Zero processing fee
  • Zero prepayment charges
  • No collateral security charged

4. SIB Vidyanidhi

SIB Vidyanidhi loan scheme is sanctioned to finance the refundable deposit demanded by few colleges of Kerala at time of admission.

Present Rate of Interest

Rate of interest charged is MCLR+5.20%.

Quick Facts about SIB Vidyanidhi

MarginNil if interest is serviced else 15%
Maximum Loan Limit10% of tuition fee or INR 1 Lac (whichever is lower)
SecurityNil
Moratorium PeriodCourse Period plus one year, or six months after getting a job
Repayment (Maximum)5 years
Upfront fee0.50% of loan amount

Additional Facts about SIB Vidyanidhi

  • No collateral security
  • Zero margin
  • Zero collateral security
  • Undertaking from college principle and student

Courses Covered under SIB Education Loan Schemes

For India

  • Graduate/ postgraduate degree/ diploma courses conducted by renowned institutions/ universities recognized by UGC, Government, AICTE, AIBMS or ICMR.
  • Academic courses such as CA, CFA, and ICWAI.
  • Courses conducted by NIFT, IITs, IIMs, XLRI, IISc, and NID.
  • Regular degree or diploma courses like, shipping, pilot training, and aeronautical that are approved by Director General of Civil Aviation or Shipping (only if it is pursued in India).
  • Courses for noble cause such as teaching training (like B.Ed.), nursing courses, and from other training institutions approved by Central Government or by State Government
  • Reputed foreign universities offering approved courses offered in India.

For 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

  • 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

Skill Loan Scheme

Skill Loan scheme is extended to students who aspire to pursue skill development courses for better career prospects. The scheme is offered with maximum loan amount upto INR 1,50,000.

What makes you eligible for Skill Loan Scheme?

  • Indian National
  • Admission to a course conducted by Government Organization or supported by National Skill Development Corporation, State Skills Missions or State Skills Corporations.
  • Degree or diploma courses issued by a government organization
  • Qualification must be in accordance to the enrolling institute

Present Rate of Interest

Rate of Interest on all amount is MCLR + 3%

Margin10%
Maximum Loan LimitINR 1,50,000
SecurityNo collateral or security is required
Moratorium PeriodCourse duration upto 1 year: Course period+6 months
Course duration above 1 year: Course period+12 months
Repayment (Maximum)Loan upto 50,000: 3 years
Loan between 50,000 to 1 Lac: 5 years
Loan above 1 Lac: 7 years
Prepayment ChargesNil

FAQs

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

Answer: 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

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 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

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 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

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 if prompt EMI payments.

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: 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: There is a special variant of loan dedicated to students securing admission in top premier institutes.

Q: What is the processing fee or prepayment charges?

Answer: The education loan offered by SIB does not carry any prepayment charges/ processing fee/ documentation charges.

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: The maximum term for repayment 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: What are the charges for late EMI payment?

Answer: 24% per annum on outstanding amount is charged for the late EMI payment and INR 500 for every bounced cheque.

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: Interest rate charged by SIB for various education loan schemes are:

Q: SIB Vitjnan Pradhan Scheme

Answer: Interest charged on all amounts is

  • SIB Excellence: Rate of interest charged by SIB for SIB Excellence is
  • SIB Edusum: Rate of interest on all amounts ranges from
  • SIB Vidyanidhi: Rate of interest charged is

Q: What is interest subsidy on education loan?

Answer: SIB offers:

  • CSIS- Interest Subsidy scheme for economically weaker sections and to promote education amongst them
  • Padho Pardesh scheme for students who wish to pursue studies abroad
  • Skill Loan Scheme for students who wish to pursue courses to enhance their skills and attain better career opportunities.

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: 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: 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: SIB provides no additional benefits. You can contact the bank for more information regarding 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: 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.

Customer Care Number: 1800 425 1809