Education Loan is a term loan granted to Indian Nationals for pursuing higher education in India or abroad where admission has been secured.

Common Features

  • Repayment period of upto 15 years after Course Period + 12 months of repayment holiday*
  • Security
    • Upto Rs. 7.5 Lacs:Only Parent/ Guardian as co-borrower. No Collateral Security or third party guarantee
    • Above Rs. 7.5 Lacs:Parent/ Guardian as co-borrower and tangible collateral security
  • Margin
    • Up to Rs 4 Lacs - Nil
    • Above Rs 4 Lacs - 5% for studies in India, 15% for studies in abroad
  • Repayment will commence one year after completion of course.
  • Loan to be repaid in 15 years after the commencement of repayment
  • In case second loan is availed for higher studies later, to repay the combined loan amount in 15 years after completion of second course
  • EMI Generation
    • The accrued interest during the moratorium period and course period is added to the principle and repayment is fixed in Equated Monthly Installments (EMI).
    • If full interest is serviced before the commencement of repayment; EMI is fixed based on principle amount only.

Indian Bank's Association has issued Model Education Scheme. Click on the link below:

IBA Model Education Loan Scheme 2022