Education Loan for IPM: Eligibility, Details, How to Apply

How Much Does a 5-Year IPM at an IIM Cost?

The first three years follow a fixed IPM fee. Years four and five follow the institute's PGP (Post Graduate Programme) fee, which is the MBA fee. IIM Ranchi calls it the MBA fee.

Fee	IIM Indore (2026–31)	IIM Rohtak (2026–31)	IIM Ranchi (2025–30)
Year 1	₹6,00,000	₹6,22,045	₹5,05,000
Year 2	₹6,00,000	₹6,22,045	₹5,70,000
Year 3	₹6,00,000	₹6,22,045	₹5,70,000
Acceptance fee	Not listed separately	Not listed separately	₹1,10,000
First three years	₹18,00,000	₹18,66,135	₹17,55,000
Years 4 and 5	Current PGP fee	Current PGP fee	Current MBA fee

These fees exclude mess expenses. IIM Ranchi's total also includes the caution deposit, alumni fee and student activity fee.

The Ranchi batch started a year earlier than the other two. Check the fee notice for the batch you are joining.

How to work out your five-year total

Use this formula:

Five-year cost = first three years' fees + PGP or MBA fees for years four and five + hostel and mess costs

Find the PGP or MBA fee on the institute's website. Hostel and mess costs differ by institute, so use the figures in your offer documents. This total is the amount you base your loan on.

Check Out IIM Rohtak vs IIM Ranchi IPM

SBI vs HDFC Bank vs Axis Bank: Education Loan for IPM

The three banks differ in interest rates, loan limits, and collateral requirements. Collateral means property or a fixed deposit that you pledge as security for the loan.

Cost and loan limits

Factors	SBI Scholar Loan	HDFC Bank	Axis Bank
Interest rate	6.90%–7.65% a year for select institutions (rate schedule effective 9 June 2026)	From 10.50% a year	Repo rate + 3.5% or more
Rate type	Floating, linked to the External Benchmark Rate	Confirm in your sanction letter	Floating, linked to the repo rate
Maximum loan	₹7.5 lakh to ₹40 lakh without collateral, depending on institute category	Up to ₹1.5 crore	Up to ₹1.5 crore overall
Without collateral	Depends on institute category and loan amount	Up to ₹50 lakh for select institutes	Up to ₹75 lakh for select institutes under Prime Domestic
Processing fee	Nil	Nil up to ₹7.5 lakh; 1% above that	Up to 2% plus GST

The repo rate is the rate at which the RBI lends to banks. A floating rate changes when the benchmark rate changes, so your EMI (equated monthly instalment) can change too.

Repayment terms

	SBI Scholar Loan	HDFC Bank	Axis Bank
Moratorium (repayment holiday)	Course period plus 12 months	Course period plus 12 months, or 6 months after you get a job, whichever is earlier	Course period plus up to 12 months for select institutes
Repayment period	Up to 15 years after the moratorium	Up to 15 years	Up to 15 years
Interest during moratorium	Added to your loan unless you pay it before repayment starts	Simple interest; paying it is optional	Simple interest is payable during the moratorium
Co-applicant	Parent or guardian	As the bank requires	Parent or guardian, usually
Margin money	Depends on loan category	Depends on loan assessment	Nil up to ₹4 lakh; usually 5% above that
Prepayment charges	As per loan terms	Nil	Nil on floating-rate individual loans

Margin money is the share of the course cost that you pay from your own funds. A co-applicant is a person who shares responsibility for the loan, usually a parent.

Eligibility for an IPM Education Loan

You can apply if you meet these conditions:

• You meet the bank's citizenship requirement.
• You have secured admission to an eligible IPM programme through the institute's selection process.
• The course is a recognised, full-time programme covered by the bank's education-loan policy.
• Your parent or guardian can join as a co-applicant if the bank asks.

The bank will also check your co-applicant's income, existing loans and credit history. Collateral may be needed, depending on the loan amount and institute category.

The bank can finance your total course cost, including tuition, hostel and other eligible expenses.

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Documents You Need to Apply for an Educational Loan for IPM

Banks use these documents to verify your identity, admission, and course cost.

Your documents

• Identity proof: PAN card, Aadhaar card, passport or voter ID
• Address proof: Aadhaar card, passport or utility bill
• Class 10 and Class 12 marksheets and certificates
• IPMAT or other entrance exam scorecard
• IIM admission or offer letter
• Detailed IPM fee structure
• Recent passport-size photographs
• Bank statements, if the lender asks

Your co-applicant's documents

• Identity and address proof
• Recent passport-size photographs
• Salary slips or other income proof
• Income Tax Returns (ITR), where applicable
• Bank statements for the period the lender requests
• Proof of employment or business, where applicable

Extra documents if you offer collateral

• Property ownership papers or other accepted security papers
• Valuation and legal documents, if the bank asks
• Fixed deposit papers, if you offer a fixed deposit

How to Apply for Educational Loan for IPM?

Follow these steps after you receive your admission offer:

1. Work out your total cost. Add the first three years' fees, the PGP or MBA fees for years four and five, and hostel and mess costs.
2. Decide how much to borrow. Subtract your savings, family contribution and any scholarship.
3. Check your institute's category. Ask each bank whether your IIM falls under its premier-institute scheme. This decides your rate and collateral-free limit.
4. Choose a bank. Compare rates, collateral rules and repayment terms using the tables above.
5. Speak to your co-applicant. Your parent or guardian will share responsibility for the loan.
6. Collect your documents. Use the list above.
7. Submit the application. Apply at a branch or on the bank's education-loan portal.
8. Complete verification. The bank checks your admission, course cost, your co-applicant's finances and any collateral.
9. Read the sanction letter. Check the amount, rate, processing fee, moratorium, repayment period and disbursement conditions.
10. Sign the loan agreement. Submit any additional documents the bank requests.
11. Receive the disbursement. The bank usually pays the institute according to its fee schedule.

Check Out MBA Exams in India

Government Schemes Related to IPM Education Loan

Currently, two government schemes lower the interest rate on your education loan. A third scheme helps banks lend to students. Know more about them below:

PM-Vidyalaxmi

PM-Vidyalaxmi offers collateral-free and guarantor-free education loans. You qualify if you secure merit-based admission to a notified Quality Higher Education Institution (QHEI).

• The loan covers tuition fees and other eligible expenses.
• There is no fixed maximum loan amount. The bank decides based on your eligible expenses.
• If your family income is up to ₹8 lakh a year, you may get a 3% interest subvention on loans up to ₹10 lakh. Subvention means the government pays part of your interest.
• The subsidy applies during the moratorium.
• You can repay over up to 15 years, not counting the moratorium.
• You cannot use this scheme if you get admission through the management quota.

PM-USP Central Sector Interest Subsidy Scheme (CSIS)

CSIS pays your full interest during the moratorium. It is meant for students from economically weaker families.

• You may qualify if your annual gross family income is up to ₹4.5 lakh.
• It covers eligible technical and professional courses at approved institutions.
• The subsidy applies to loans up to ₹10 lakh.
• It covers interest during the course and for one year after.
• Integrated courses can qualify, subject to the scheme's conditions.
• You cannot claim it if you already receive another central or state scholarship or fee reimbursement.

CSIS pays interest only. It does not reduce your loan principal.

Credit Guarantee Fund Scheme for Education Loans (CGFSEL)

This scheme gives banks a guarantee on student loans. Under the PM-Vidyalaxmi guidelines, loans up to ₹7.5 lakh can receive a 75% guarantee.

It is not a scholarship or cash benefit. It also covers only a small part of an IPM loan, because your five-year cost is far above ₹7.5 lakh.

Explore important resources for IPMAT exam:

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Scholarships at IIMs for IPM Program

IIMs give financial help based on merit and need. We found published details for IIM Indore and IIM Ranchi.

IIM Indore

• The Need-Based Financial Assistance (NBFA) scheme is open to PGP, PGP-HRM and IPM students.
• You can apply if your annual family income is below ₹12 lakh.
• The institute checks family income, assets and your disciplinary record. It may also interview you.
• Help is given as a percentage of the maximum assistance set for that year.
• The top academic performer in IPM year four receives ₹1.5 lakh.
• Two scholarships in memory of late Ms Adya Prabha go to eligible female students in years four and five, based on academic performance.

IIM Ranchi

• A merit-cum-means scholarship pool of ₹1 crore a year funds 25 scholarships.
• The pool is shared across MBA, MBA-HR, MBA-BA and IPM. It is not reserved for IPM.
• Selection considers merit and financial need.
• Differently abled students and students from SC and ST categories get extra weightage.

We did not find a published scholarship scheme for IPM students at IIM Rohtak. Ask the admissions office before you plan your borrowing.

Get Complete Details About IIM Indore and IIM Ranchi IPM Fees :-

• IIM Indore IPM Fees
• IIM Ranchi IPM Fees

How to Repay Your Loan After IPM

Repayment usually starts when the moratorium ends. Follow these steps:

1. Find your moratorium end date. Check your sanction letter.
2. Check your outstanding amount. This is your principal plus any interest added during the course.
3. Understand your EMI. The bank calculates it based on your outstanding amount, interest rate, and repayment period.
4. Pay on time. Late EMIs attract overdue charges.
5. Pay interest during the course if you can. This stops interest from being added to your principal.
6. Make part-payments. Extra payments reduce your principal and total interest, subject to your loan terms.
7. Keep a record. Note each EMI and extra payment.
8. Collect closure papers. After you repay in full, ask for the loan closure letter and no-dues certificate.

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