Overview: Discover funding options for IIM's Integrated Program in Management (IPM), including IPMAT education loans, scholarship for IPM IIM Indore, and major bank features. A concise guide to navigating financial aid for your IIM aspirations.

Pursuing an education at an Indian Institute of Management (IIM) is a dream for many, but the financial aspect can be a hurdle. This article aims to shed light on the various IPMAT Education Loans and scholarships available to students.

These financial supports play a crucial role in making the esteemed Integrated Program in Management (IPM) at IIMs accessible to a broader range of talented individuals, ensuring that financial constraints do not stand in the way of academic aspirations. 

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Scholarships at IIM Indore

IIM Indore provides a IPM scholarship named Need-Based Financial Assistance (NBFA). Need-Based Financial Assistance (NBFA) is provided based on family income and assets owned by the applicant's family.

The Financial Assistance provided by IIM Indore is further divided into two categories. The IPMAT Education Loan and scholarship at IIM Indore are divided into two categories are as follows:

Annual Family Income (Rs.)	Asset Ownership Condition	Interest Reimbursement
Up to 4,50,000	Asset not more than 600 sq. feet	100%
4,50,001 to 9,00,000	Asset not more than 600 sq. feet	50%

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Important Terms Associated With Education Loan for IPM IIM Indore

Quantum: Quantum means the loan amount, you can say, the principal amount for which the loan is availed.

Collateral: Collateral means a loan against any of your valuable assets like a house, car, FDs, Gold, etc.

Repayment Period: The repayment period is when the loan amount must be repaid. This repayment period starts after completing the degree and getting the job placements. 

Moratorium Period: The moratorium period is when the borrower cannot make any repayment during a loan term.

MCLR (Marginal Cost of Fund-Based Lending Rate): The marginal cost of fund-based lending rate (MCLR) is the minimum lending rate below which a bank is not authorized to lend.

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Loan Option Available

The collateral free - loans are available to be availed for any institute. The student can avail of collateral free - loans up to Rs. 7,50,000 for IIM IPM admission.

The student avail of collateral-free - loans of a higher amount than Rs. 7,50,000 only if the institute they are joining comes under the premiere institute category. The Indian Institute of Management (IIM) comes under the premiere institute category.

If the student wants to avail of bank-specific loans, then the State Bank of India and the Central Bank of India offer India’s most availed loan options.

Read more: Right time to start preparing for the IPMAT exam

SBI Scholar Loan

According to the SBI Scholar loan options, the Indian Institute of Management Indore (IIM Indore) comes under the AA category. The students of the IIM Indore institute can avail of loan amounts up to Rs. 40 lakhs without mortgaging any of their tangible assets to the bank as collateral security.

And not just this, they will also get an interest rate benefit; they just have to pay the loan amount at the rate of interest of 6.85% per annum.

Although the other 4 IIMs come under the A category. The students of the other 4 IIMs institutes can avail of loan amount up to Rs. 20 lakhs without mortgaging any of their tangible assets to the bank as collateral security and Rs. 30 lakhs without mortgaging any of their tangible assets to the bank as collateral security. And not just this, they will have to pay the IIM Indore IPM bank loan amount at the rate of interest of 7% per annum.

Repayment

The candidate will get a repayment period of up to 15 years after completing the course.

The candidate will also get 12 months, i.e., 1 year of repayment holiday also.

This repayment scheme is valid and adapted to the IIM Indore, but soon all the IIMs will also integrate this scheme.

Check: Eligibility criteria for the IPMAT exam

Central Bank of India 

The Central Bank of India allows the candidates to avail of collateral-free loans up to Rs. 40 lakhs. Under this scheme, all the IIMs IPM programs are acknowledged. (interest rate = 7%)

Read more: Short trick to managing IPMAT exam and board exams 

Repayment

The candidate will get a maximum repayment period of up to 10 years for the loan amount of up to Rs. 7,50,000.

The candidate will get a maximum repayment period of up to 15 years for the loan amount above Rs. 7,50,000.

The candidate will also get 12 months, i.e., 1 year of repayment holiday also.

Know more: IPMAT Selection Process 2025

IIM Bodh Gaya IPM Scholarship

These points cover the main aspects of the scholarship and financial aid opportunities at IIM Bodh Gaya for IPM students.

1. Certificate of Academic Excellence

• Awarded to the top 5% of the batch after the first three years.
• Recognizes high academic performance.

2. Gold Medal for Best All-Round Performance

• Separate medals for male and female students.
• Eligibility criteria include being in the top 25% of the batch for all five years, maintaining a CGPA over 8.0, having no 'F' grades, clean disciplinary record, and positive community contributions.
• Selection by a dedicated committee.

3. Need-Based Financial Assistance Scheme (NBFA)

• Aimed at supporting students who face financial constraints.
• The assistance amount is capped at or near the Tuition Fee for the Academic Year.
• Based on family income, with a two-stage evaluation process including application assessment and possible personal interaction with the NBFA Committee.
• It also considers the student's disciplinary record.

Learn more: How is life at IIM Bodhgaya?

How is the Interest Rate Determined?

The interest rate is attached to MCLR (Marginal Cost of Fund Based Lending Rate), which differs from bank to bank.

The interest rate relies on various factors, such as

• Amount of Loan
• Security Offered: The level of security provided by the collateral can lower the interest rate.
• Educational Institute: The rate of interest varies from college to college. For example, the interest rate on loans taken for admission in IIMs is comparatively lower than any other institute. 

The interest rates are low for the public sector banks (7 - 9%) and high for the private banks (10 - 14%).

Check: IPMAT Colleges List 2025

Application Process for Education Loan for IPM Program

The application process for an education loan starts when the student receives the admission letter and pays the initial seat allotment fees at IIM.

After the education loan is processed and approved, the candidate will get the amount paid initially reimbursed. For this kind of thing, it is suggested that a certain amount of money should be kept aside in advance.

• The loan application will be submitted through the Vidya Lakshmi Portal.
• For applying for the loan, candidates need certain documents: PAN card, Aadhar card, mark sheets, offer letter and the parent's PAN card, ITR, income statement, and other documents. You can visit the bank's official website for more information regarding the required documents.
• The CIBIL Score (a 3 - digit numeric summary of one’s credit history, rating, and report): A score of 750+ is preferable, but it should not be less than 650.

Is It Easy?

The ability to avail IPMAT Education Loan and scholarship depends on the following factors:

• Education Institute: The application process is considered to be effortless for IIM students but again, it differs for different categories (AA and A).
• CIBIL score: The CIBIL score plays an important role in every loan, so in this case, if your CIBIL score is higher, it increases the chances of loan approval.
• ITR value: For a loan of a higher amount, a certain annual income level might be preferred for a specific principal amount.
• Loan amount: If you want to avail of a loan for a smaller principal amount, it is easy to get approval.
• Collateral: Taking a collateral loan is easier than taking a collateral-free loan. The collateral provides security to the bank in case of any default in loan repayment.

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Which Bank to Prefer For an Education Loan?

All the students prefer public sector banks over private banks because public sector banks charge fewer interest rates than private sector banks.

• Before applying for the loan, check whether your institute has attached any banks because Availing loans from a bank, the institute is connected with simplifying paperwork and document verification. (IIM Indore has ties with SBI bank, IIM Rohtak with ICICI bank, and IIM Ranchi with Central Bank).
• If your parents are already associated with a bank, asking there might enable availing of a loan of a higher quantum because of the already documented financial position.

Processing Time

Public sector banks take more time than private sector banks. Private sector banks will process your loan in 3 to 7 working days, but the public sector bank will take 3 to 4 weeks of time to process the loan application.

The drawback to availing of an education loan from a public sector bank is that they take a lot of time to process it. Other than this drawback, there is no other problem in the public sector banks.

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Conclusion

The article outlines financial aid for IIM's IPM, focusing on IPMAT Education Loans and scholarships. It mentions interest reimbursement up to 100% for families earning up to Rs. 4,50,000 and 50% for those with incomes between Rs. 4,50,001 and Rs. 9,00,000, conditional on asset size.

It highlights collateral-free loans and favorable loan schemes from State Bank of India and Central Bank of India for IIM students. Public sector banks are recommended for lower interest rates and simplified processing with affiliated institutes.

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