Are loans from banks like Indian Bank or IOB acceptable for study abroad funding?

You can rely on Indian Bank and Indian Overseas Bank for your study abroad funding, since both are scheduled commercial banks regulated by the Reserve Bank of India. Their loan sanction letters, disbursements, and financial documents are officially recognized by foreign universities and embassies, so you should not worry about their acceptance.

What These Loans Typically Cover

Things You Should Keep in Mind

For loan amounts above 7.5 lakh INR, you will usually need to provide collateral such as property, land, or fixed deposits, and you should also expect to contribute margin money of around 10 to 15 percent of the total cost, though this can sometimes be waived through scholarships. Public sector banks also tend to offer lower, repo linked interest rates and a repayment moratorium of your course duration plus 6 months to a year, though their paperwork process can take longer than private lenders.

My Advice

You should apply well ahead of your visa deadline given the longer processing time at public sector banks, and decide early whether you can offer collateral, since that will determine your interest rate and loan amount. If you need a fully unsecured loan, compare the terms against private lenders before committing.