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CreditMantri Finserve Private Limited
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South Indian bank provides education loans at low interest rates and no hidden costs and administrative charges. Less paperwork and no processing fees. 0.50% concession for girl students. Apply now through CreditMantri!
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Processing Fee
nil*
Max Tenure
NA
Best Rate
5%
What Is an Education Loan?
An Education loan is the loan or funds acquired by an individual to pursue higher studies in India or abroad. The loan repayment commences for the student after completing the education and a period of 6 months is given as grace period to students to get or join a job.
The repayment amount will be determined by your choice of interest, you need to decide how you want to repay the loan. That is if you want to start paying during the time of moratorium period itself or after the moratorium period. The Moratorium period is the time of your education plus 6 months or 1 year given to get a job. It is only after this time that you are expected to pay the loan.
The loan interest starts to accrue at the time of dispersal of funds, so at the time of your graduation you have a huge amount to repay. The other option is your parents or guardian can start paying the loan during the moratorium period itself where it is calculated as a simple interest.
This way your loan amount at the time of graduation is drastically reduced.
There are 4 types of education loans in India
1. Under Graduate education loan - These are given to students who have completed their secondary education and looking to do higher studies in the form of under graduation. It can be done in India or abroad.
2. Post graduate education loan - These are education loans given to individuals who want to pursue post-graduation after completing under graduation course from a reputed university/college. Here also the loan can be for studying in India or abroad.
3. Parents availing education loan - This is the case where the parents take loan for the education purposes of their children. This is an unsecured loan and need not be for graduate or post-graduation courses but also for elementary and higher secondary courses.
4. Career growth education loans - These are loans provided to young people who want to pursue courses or trainings, certifications that will benefit their career growth.
One of the earliest banks in South India, "South Indian Bank" came into being during the Swadeshi movement. The establishment of the bank was the fulfillment of the dreams of a group of enterprising men who joined together at Thrissur, a major town (now known as the Cultural Capital of Kerala), in the erstwhile State of Cochin to provide for the people a safe, efficient and service oriented repository of savings of the community. They now operate with 851 branches, 52 extension counters, 4 service branches and 1313 branches across India.
Education is one area where everybody is willing to spend a lot of money to live a prosperous life in the future. Being one of the major education loan providers, South Indian Bank understands the needs of the students and offers extremely competitive education loans at better interest rates. Every year, many students secure admissions in top universities and colleges in India and abroad with South Indian Bank education loans.
Following are some of the advantages of applying for an educational loan with South Indian Bank.
Objective: To provide term loan to Indian students for pursuing higher education in India and abroad where admission has been secured
Quantum of Loan:For studies in India, up to INR 10 Lakhs and for studies in abroad INR 20 Lakhs
Margin: No margin for up to INR 4 Lakhs and for above that limit, 5% of margin for studies in India and 15% for studies in abroad
Security:
1. Up to Rs.4.00 Lacs – Parents to be Joint Borrowers. No security required.
2. Above Rs.4 Lacs and up to Rs.7.50 Lacs – Parents to be joint borrowers together with collateral security in the form of suitable Third-Party Guarantee
3. Above Rs.7.50 Lacs – Any tangible security as collateral acceptable to the bank with suitable margin.
Repayment Period:
1. Repayment of the loan will be in equated monthly installments over a period of 15 years, excluding moratorium period
2. Repayment Holiday / Moratorium: Course period + 1 year.
3. Interest concession of 1% may be allowed, if interest is serviced during the study period and subsequent moratorium period prior to commencement of repayment.
Processing fees: NIL
Penal interest @ 2 % to be charged for loans above Rs.2 Lacs, for the overdue amount and overdue period.
Study in India:
Studies abroad
Objective: To provide financial offers to the creamy layer of the talented youths pursuing professional studies in the top prestigious educational institutions in India to our bank.
Quantum of Loan: Maximum of Rs.15.00 Lakhs subject to actual requirement, whichever is lower.
Margin:
Up to Rs.4 .00 Lakhs: NIL
Above Rs.4.00 Lakhs: 5%.
Scholarships/assistantship can be included in margin. Margin may be brought in on year-to-year basis as and when disbursements are made
No collateral security to be insisted. Only guarantee by one of the parents/ close relative envisaged.
Repayment will start from 1 year after qualifying exam or six months after obtaining employment, whichever is earlier. Loan should be repaid in 60 equal monthly instalments after the holiday/ moratorium as above.
No prepayment penalty. Interest during holiday period may be funded /remitted as per option given by the borrower at the time of availing of loan.
This loan is for students who have newly secured admission to selected Professional Colleges in Kerala.
Objective: To enable the student to pay ‘refundable deposit’ demanded by the educational institution
Quantum of Loan: Maximum of Rs.1 Lakh
Servicing of interest
Option to fund the interest or service the interest monthly. If the interest is funded, the same is to be repaid by 60 EMIs after the holiday period.
Margin:Nil, if interest is serviced periodically; 15% margin if interest is funded
Security:NIL
Guarantee
The parents of the students should guarantee the loan. If both the parents are not alive, guarantee may be obtained from the guardian or any other person having net worth not less than the loan amount.
Repayment of Loan
Bullet repayment from the Management of the college immediately after completion of the course. If the interest is funded, the repayment of funded interest to be effected by 60 EMIs which will start one year after the qualifying exam or six months after the student obtaining employment, whichever is earlier.
Authorization
The student, along with the guarantors should give:
a. An authorization to the bank to effect payment of the loan proceeds direct to the College Management as prescribed in the Prospectus.
b. An authorization to the College Management -through the branch- to refund the amount direct to the bank (along with interest if any), after completion of the course or on discontinuance of studies whichever is earlier.
Undertaking
The student, along with the guarantors should give:
a. From the College Management: An irrevocable undertaking to be obtained from the College Management for repaying the entire amount received from the bank (along with interest, if any) direct to the bank on completion of the course by the student. If for any reason, the student is unable to complete the studies due to any reasons whatsoever, the payment has to be effected immediately by the management.
b. From the student: Student along with the guarantors should give an undertaking to the effect that in case of discontinuance of studies, for whatever reason, the smatter will be immediately intimated to the branch in writing along with copy endorsed to the College Management.
Penal Interest: 2% for default of sanction terms
Base rate is 10.20%
| Vitjnan Pradhan Scheme Loan amount up to Rs.4 Lakhs | Base rate + 5.80% |
|---|---|
| Vitjnan Pradhan Scheme Loan amount more than Rs.4 Lakhs | Base rate + 6.30% |
| Vidyanidhi loan scheme | Base rate + 5.20% |
| SIB-Excellence up to Rs.10 Lakhs | Base rate + 1.10% |
| SIB-Excellence above Rs.10 Lakhs | Base rate + 2.10% |
The list of documents required are representative, for actuals do refer the respective lender
South Indian Bank education loan can be repaid in following three ways.
Standing Instruction (SI): If you are an existing account holder with South Indian Bank, Standing Instruction is the best mode of repayment. Your EMI amount will be debited automatically at the end of the monthly cycle from the South Indian Bank account you specify.
Electronic Clearing Service (ECS): This mode can be used if you have a non-South Indian Bank account and would like your EMIs to be debited automatically at the end of the monthly cycle from this account.
Post-Dated Cheques (PDCs): You can submit post-dated EMI cheques from a non-South Indian Bank account at your nearest South Indian Bank Loan Centre. A fresh set of PDCs will have to be submitted in a timely manner. Please note Post Dated Cheques will be collected non-ECS locations only.
It is recommended that you opt for either the SI or ECS mode of payment for faster and less prone to error than the use of PDCs.
You can either apply online or visit a nearby South Indian Bank branch for the application. You can also download the education loan application form from the South Indian Bank official website, complete the form and submit it the bank representative.
You can also check your eligibility for an education loan through CreditMantri and apply for it.
1. What is the interest charged during moratorium period?
Only simple interest will be charged during the moratorium period. After the moratorium period the actual interest mentioned will be charged.
2. Can I take an education loan without a co-borrower?
No, a co-borrower is needed to take an education loan. The loan will be taken as a joint loan in collaboration with your parent/ guardian or spouse.
3. Is there a range on the rate of interest charged on Education Loan offered by South Indian Bank?
Yes, the interest rate ranges from 10.20 % - 16.00%. However, the it is subject to change at the sole discretion of the bank.
4. I am planning to study abroad. Am I eligible to apply for an Education Loan?
Yes, South Indian Bank offers up to INR 20 Lakhs for courses pursued abroad which also includes travel expenses and study tours.
5. Is there a processing fee for an education loan with South Indian Bank?
There are no processing fees for an education loan with South Indian Bank
6. Is there a way I can reduce the interest paid?
There is special subsidy provided according to Central Government subsidy for education loans. South Indian Bank also provides special interest rates for some premier institutions. The other option is your parent/ guardian or spouse can pay the loan amount during the moratorium period due to which the loan amount you need to repay is less.
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