South Indian Bank Indian and Foreign Education Loan

21 Mar, 2016

South Indian Bank Indian and Foreign Education Loan – South Indian Bank is one of the foremost banks with 823 branches spread all across India. The bank offers education loan which supports the students to reimbursement the upfront amount required while admission to any college like tuition fees, hostel charges etc. Candidates can avail mortgages to pursue any discipline of their choice in India and abroad. South Indian Bank education mortgages are considered fewer than three schemes.

Vitjnan Pradhan Scheme

SIB – Excellence

Vidya Nidhi Scheme

Purpose of loan

Candidates cannot only reimbursement their college and hostel fees, but can also use the loan amount provide by South Indian Bank to compensation their library charges, laboratory and examination fees. They can use the loan amount to purchase instruments, books, equipment etc. is obligatory during the course of their study. Costs such as caution deposit, travel and other fundamentals are covered by the loan. Students can also use the education loan for project work, thesis and study tours.

Vitjnan Pradhan Scheme

South Indian Bank Vitjnan Pradhan System offers education loan for students seeking higher studies in India and abroad.


Minimum margin

  • Up to Rs. 4 lakh – Nil
  • Above Rs. 4 lakh – 5% for studies in India and 15% for studies in foreign countries


For a loan of up to Rs. 4 lakh, no security is compulsory but parents need to be co-obligators when the student applies for the education loan. For loans above Rs. 4 lakh and up to Rs. 7.5 lakh, parents or guardians of the student need to offer guarantee security in the form of third party guarantee. For a loan amount above a loan amount of Rs. 7.50 lakh, parents or guardians need to offer collateral security and allocate forthcoming income of the student for imbursement of the education loan payments.


There is a penalty of 2% charged on mortgages above Rs. 2 lakh for the overdue period and amount.


Up to an amount of Rs. 4 lakh the margin is nil. However, there is a 5% margin for an education loan amount above Rs. 4 lakh. Eruditions and assistantships can be amalgamated in the margin.

Mode of payment

It is better to make the payments directly to the institutes, hostel, etc. through Real Time Gross Settlement (RTGS) schemes.


Parents or guardians can offer life insurance policy in the form of assurance, which must be equivalent to the mortgage amount. The life insurance policy should be allocated in the name of South Indian Bank.


The reimbursement starts after six months of employment or one year after the completion of the course, whichever is earlier. The education mortgage is to be paid in sixty equated monthly installments (EMI). There is no penalty charged for reimbursement of the education loan amount.

Vidya Nidhi Scheme

Vidya Nidhi scheme under South Indian Bank education mortgage scheme is tremendously supportive for students pursuing higher education in the well-known institutions of Kerala. This education loan scheme supports the students to pay the refundable deposit charged by an educational association.

Rate of interest charged by South Indian Bank education loan

Loan amount up to Rs. 4 lakh Base rate + 5.80%
Loan amount more than Rs. 4 lakh Base rate + 6.30%
Vidyanidhi loan scheme Base rate + 5.20%
SIB-Excellence up to Rs. 10 lakh Base rate + 1.10%
SIB-Excellence above Rs. 10 lakh Base rate + 2.10%

Base rate is 10.20%


Eligibility and Documentation

All students applying for South Indian Bank education mortgage systems must be residents of India. They should provide all education official documents starting from enrollment to their up-to-date qualifications. Along with these, students must provide results of qualifying entrance examinations held by different educational institutes.


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