Learning Loans: Indian Bank

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As a part of trend of the banks offering education loans as per various requirements of its customers, Indian Bank also offers education loans to students who aspire to do higher studies whether in India or abroad.


The courses for which the loan is available is stated as under:

  • Loan is available for graduate, diploma or post graduate courses.
  • The loan application is also considered eligible if the candidate chooses to study computer certificate courses of recognized bodies, which are accredited to the Department of Electronics.
  • Application of loan is considered if the applicant plans to study employment-oriented vocational or professional course, a program of CPA in the US or CIMA-London or specialized programs like MBA or MCA.


Only Indian Nationals who are aged 15 to 30 years are considered eligible to apply for loan if they want to study in India. If they aspire to study abroad and want their loan application to be considered, they should be between 18 to 35 years of age. The applicant should get admission to a professional or vocational course through a selection procedure based on merit or entrance test.

Expenses Taken into Account

The educational loan considers all the expenses of the student which he needs to pursue the course. Hence the loan amount covers insurance premium for the student as well as caution deposit, refundable deposit or building fund up to 10 % . Also apart from these expenses, the loan amount covers the cost of the course including travel expense, cost of essential purchases and fee of college, hostel, school and exam.

Amount of Loan and Repayment

You can borrow an education loan of maximum ₹ 10 lacs for studying in India whereas a maximum amount of ₹ 20 lacs can be borrowed for studying in abroad. However certain exceptions to the amount can be made in special cases.

  • There is no margin for loans upto ₹ 4 lacs. For loans above ₹ 4 lacs, there is a margin of 5 % for loan taken to study in India and 15 % for loan taken for studying in abroad. The repayment period of loan amount is 5 to 7 years.
  • Third party guarantee is required, in case a loan of above ₹ 4 lacs is taken.
  • If the amount borrowed is more than ₹ 7.5 lacs, then the co-obligation of parents or guardian of the student along with a collateral security need to be guaranteed.

Further Information

The future income of the student also needs to be assigned for paying the installments.

To know more about the learning loan scheme of Indian Bank, you can click on Indian Bank

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