Excellence scheme: Education loan from South Indian Bank

South Indian Bank is a leading private sector bank in India. It offers educational loans to meritorious students going to pursue higher studies in top-level educational institutions of India, under the Excellence scheme. The article provide all necessary details of the scheme.

South Indian Bank is a very old private sector bank of India. Like other banks, South Indian Bank also offers education loan under Excellence scheme for higher education in premier education institutions within India. This article provides the details of Excellence scheme offered by South Indian Bank.


The objective of Excellence scheme is to offer assistance to the creamy layer of the talented youth pursuing professional studies in the top prestigious educational institutions in India. Students getting admission through general merit in premier educational institutions in the country are eligible to grant educational loan undeer this scheme..

Nodal branches

The nodal branches for this scheme are: Ahmedabad Main, Bangalore- City, Lucknow, Indore, Kolkata G.C. Avenue, Kozhikode Main, Delhi Connaughaut Place, Mumbai – Powai, Chennai – T.Nagar, Nungambakkam and Hyderabad Main.

List of eligible educational institutions and courses

The students of the following institutions and courses are eligible for educational loan under Excellence scheme:
  • IITs – 5 year integrated, 4 year Under Graduate (UG), 2 year Post Graduate (PG), 1 Year PG courses
  • NITs – 5 year integrated, 4 year UG, 2 year PG, 1 Year PG courses
  • National Institutes of Design – 5 year integrated, 4 year UG, 2 year PG, 1 Year PG courses
  • National Institute of Fashion Technology – 5 Year Integrated, 4 year UG, 2 year PG, 1 year PG courses
  • IIMs – All full time PG courses
  • IIFTs – All full time PG courses
  • Indian Schools of Business – All full time PG courses
  • XLRI, Jamshedpur – All full time PG courses
  • Xavier University – All full time PG courses
  • Any other college/institution/university within top 25 rank by NIRF can be considered under the scheme – Full time UG/PG, Engineering, UG/ PG Architecture and PG Management Courses
[Note: Students of part-time courses, certificate courses and any other course of less than twelve month duration are not eligible for financing under the scheme.]

Quantum of loan

The maximum limit of educational loan under Excellence scheme is Rs. 15.00 lakhs subject to actual requirement.

Applicable margin

  • Up to Rs. 4.00 lakhs : Nil
  • Above Rs. 4.00 lakhs: 5%
  • Scholarship/assistantship can be included in margin. Margin may be brought in on year-to-year basis as and when disbursements are made.

Loan coverage

The following items are covered under this scheme:
  • Fees payable to College including examination/library/laboratory fees
  • Caution deposits and refundable deposits (not exceeding 10% of tuition fees for the entire course)
  • Cost of study books/ equipments/ computers
  • Cost of uniform
  • Hostel Boarding and lodging
  • One time premium of life insurance policy (without maturity return) covering the entire period of loan with sum assured equal to the loan amount.

Security and Guarantor

  • No collateral security to be insisted. Only guarantee by one of the parents/ close relative envisaged.
  • In case of major students – The borrower to be the student him/herself along with at least one of his/her parents as guarantor. Net worth of the guarantor/s should not be less than the loan amount
  • If parents of the student are not alive, close relative should be the guarantor. (Either one guarantor with net worth not less than the loan amount or more than one guarantor with total net worth not less than the loan amount).
  • In the case of minor students – One of the parents of the student to be the borrower along with other parent/ close relative as guarantor.
[Close relative for this purpose means related to the borrower includes: parents/brothers/sisters/ sister's husband/parental or maternal uncle/father's sister/mother's sister]

Repayment of loan

Repayment will start from 1 year after qualifying examination or six months after obtaining employment, whichever is earlier. Loan should be repaid in 60 equal monthly installments after the holiday/moratorium as indicated above.

Rate of interest

The rate of interest applicable in this scheme are indicated below:-
  • Up to Rs. 10 lakh – Base rate + 1.10%
  • More than Rs. 10 lakh – Base rate + 2.10%

Other conditions

  • Only Indian nationals (including NRIs) are eligible. Loan should not be granted for the payment of capitation fee/donation.
  • Copy of the marksheet/ progress report of the student/borrower Semester wise will have to produce to the bank. In case the student fails in any annual/semester examination during the course of his/her study, continuance of the loan should be reviewed by the sanctioning authority.
  • The borrower should submit the application with identity proof including passport details, if available.
  • Individual worth statements of all the signatories and relevant records/proof for financial requirements for the entire course, including admission ticket, if any, are required to be provided.
  • Tariff of fees, refundable deposits, hostel fees, details of eligible stipend etc. should be certified by the educational institution. Books/instruments to be purchased should be certified by the programme co-coordinator.

For further information, the students and their guardians are advised to check the bank website www.southindianbank.com

Article by Partha K.
“Those who will not reason, are bigots, those who cannot, are fools, and those who dare not, are slaves.” - George Gordon Byron

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