IBA Model Education Loan Scheme

The standard terms all public sector banks follow, defining what they may and may not ask of you.

Indian Banks' Association · India and overseas

Open now, no closing date announced

The common rulebook every public sector bank follows. You apply at a branch or through Vidya Lakshmi.

Why this one matters

Knowing the model scheme is what lets you push back. If a branch asks for collateral on a Rs 3 lakh loan, the model scheme says they should not.

tuition, hostel, examination fees, books, equipment, travel. Levels funded: undergraduate, postgraduate, phd.

No collateral, no margin money and no third-party guarantee on loans up to Rs 4 lakh
Both parents normally required as co-borrowers
Moratorium of the course period plus one year
Interest accrues during the moratorium unless a subsidy scheme covers it
Covers tuition, hostel, examination and library fees, books, equipment and travel for overseas study

Most rejected applications are not ineligible students. They are eligible students who missed a step.

Interest builds during the moratorium even though you are not paying anything. A loan taken in year one is larger by graduation than the amount sanctioned.
Paying even the simple interest during study, where you can, cuts the final debt substantially. Most banks offer a concession for doing so and few mention it.
The sanction is not the disbursement. Money is released to the institution semester by semester, and a delayed release can mean a late fee at your college.
A poor credit record for either parent can sink the application, and neither of them is the student.

Record status: needs_verification. Last checked: not yet. Deadlines and amounts appear only once confirmed. Source: https://www.iba.org.in/