Indian Overseas Bank Education Loan: Interest Rate, Eligibility, Application Process
The Indian Overseas Bank Education Loan is a vital resource for students hoping to study abroad or in India. Recent data shows that the average cost of studying abroad, including living expenses, can range from INR 30 lakhs to INR 32 lakhs per year, depending on the country and course.
The IOB Education Loan is designed to make this dream achievable, offering competitive interest rates and flexible repayment options. Keep reading to learn more!
About Indian Overseas Bank (IOB)
Indian Overseas Bank (IOB) is a major public sector bank in India, established on February 10, 1937, by Shri M. Ct. M. Chidambaram Chettyar with the aim of encouraging overseas banking and foreign exchange operations. Headquartered in Chennai, Tamil Nadu, IOB has grown significantly over the decades.
As of 2024, the bank has a notable presence in countries like Singapore, Hong Kong, Sri Lanka, and Thailand. Through initiatives like IOB’s education loan, the bank continues to support the aspirations of students by providing affordable and accessible financial solutions.
Also Read: Impact of Budget 2024 on Education Loans in India
Indian Overseas Bank Education Loan Interest Rates
The IOB bank education loan interest rates vary based on the loan amount, the type of course, and whether you are studying in India or abroad. As of 2024, the interest rates for IOB Education Loans are as follows.
IOB Education Loan Scheme | IOB Bank Education Loan Interest Rate |
---|---|
Vidya Suraksha | 11.00% |
Vidya Jyoti | 11.00% |
Skill Loan | 10.85% |
Vidya Shrest | A Rated Institutions - 9.75% B Rated Institutions - 10.25% |
IOB Scholar | Up to INR 7.5 Lakh - 11.55% Above INR 7.5 Lakh - 12.55% |
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Indian Overseas Bank Education Loan: Vidya Jyoti Scheme
The Vidya Jyoti education loan scheme by Indian Overseas Bank (IOB) is a specially designed financial product to support students who aspire to pursue higher education, both in India and abroad.
Key Features of the Vidya Jyoti Education Loan
Feature | Description |
---|---|
Loan Amount for Studies in India |
- For Colleges/Universities Ranked in Top 100 NIRF Ranking: Up to INR 1.5 Cr - For Other Colleges: Up to INR 75 lakhs |
Loan Amount for Studies Abroad | Up to INR 3 Cr |
Interest Rates | 11.00% |
Margin Money |
Study in India: - Up to INR 4 Lakhs: NIL - Above INR 4 lakhs and up to INR 30 lakhs: 5% - Above INR 30 Lakhs to INR 100 Lakhs: 10% Study Abroad: - Up to INR 4 Lakhs: NIL - Above INR 4 lakhs and up to INR 30 lakhs: 15% - Above INR 30 Lakhs to INR 100 Lakhs: 20% |
Repayment Tenure | 15 years |
Moratorium Period | Course duration + 1 year |
IOB Vidya Jyoti Education Loan - Eligibility Criteria
The eligibility criteria for the Vidya Jyoti Education Loan offered by Indian Overseas Bank are designed to ensure that the loan is accessible to deserving students who have secured admission to reputable educational institutions.
Below is a detailed overview of the key eligibility requirements.
Criteria | Details |
---|---|
Nationality | The applicant must be an Indian citizen, NRI, PIO, or OCI. |
Admission Criteria | Must have secured admission through a merit-based selection process. This could be through entrance exams or based on qualifying examination marks. |
Academic Record | A good academic record is typically required. |
Employment | You should not be employed during your studies. |
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Indian Overseas Bank Education Loan: IOB Scholar Scheme
The IOB Scholar education loan scheme provides higher loan amounts compared to standard education loans. Let’s help you explore the key features of the IOB Scholar education loan scheme.
Feature | Description |
---|---|
Loan amount | India - INR 50 Lakh Abroad - INR 60 Lakh |
Interest rates | 11.55% - 12.55% |
Margin Money | 25% |
Repayment tenure | 15 years |
Moratorium period | Course duration + 1 year |
IOB Scholar Education Loan Scheme - Eligibility Criteria
The IOB Scholar Education Loan scheme’s eligibility criteria ensure that the loan is accessible to high-achieving students who have gained admission to top-tier universities and colleges.
The table below provides a detailed overview of the essential eligibility requirements.
Criteria | Details |
---|---|
Institution and Course Admission | AICTE, UGC, MCI, or equivalent international bodies must recognise and approve the institution. |
Admission Through Management Quota | Must have secured at least 60% (General) or 55% (SC/ST) plus two or equivalent examinations if admitted to a college under Management Quota without an entrance exam or interview. |
Loan Amount Exceeding IBA Model Scheme | Students applying for a loan amount higher than that eligible under the Indian Banks' Association (IBA) Model Scheme, provided they meet all necessary eligibility criteria for this loan scheme. |
Course Coverage | Students pursuing vocational training or skill development courses that are not included in the standard Model Scheme (Vidya Jyoti Education Loan). |
Courses with Employment Potential | Any course chosen by the student that is likely to lead to employment upon completion. |
Also Read: IBA Model Education Loan Scheme: Eligibility & Rates 2024
Indian Overseas Bank Education Loan: Vidya Shrest Scheme
The IOB Vidya Shrest Scheme is another specialised education loan program offered by the Indian Overseas Bank to support students pursuing higher education in select leading institutions financially.
There are two categories for elite colleges: A and B. The table below highlights the key
Feature | Description |
---|---|
Loan amount for List ‘A’ Category |
- Up to INR 30 Lakhs (with collateral) - Up to INR 15 Lakhs (without collateral) |
Loan amount for List ‘B’ Category |
- Up to INR 30 Lakhs (with collateral) - Up to INR 7.5 Lakhs (without collateral) |
Interest rates |
A Rated Institutions - 9.75% B Rated Institutions - 10.25% |
Margin Money | Nil |
Repayment tenure | 180 months |
Moratorium period | Course duration + one year or six months after getting a job |
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IOB Vidya Shrest Education Loan Scheme: Eligibility Criteria
Specific eligibility criteria must be met to ensure that the scheme benefits those who are most likely to need and make good use of the financial support. Here’s a detailed overview of these criteria.
Eligibility Criteria | Details |
---|---|
Nationality | Must be an Indian citizen. |
Institution | Admission must be secured in selected premier institutions. |
Course Type | Admission is required in professional or technical courses through an entrance test or selection process. |
Academic Marks | No minimum qualifying marks are required in the last qualifying examination. |
Course Type | Full-time degree or diploma courses through entrance tests or selection processes. Full-time executive management courses like PGPX are also included. |
Exclusions | This scheme does not cover certificates or part-time courses. |
Indian Overseas Bank Education Loan: Vidya-Suraksha Loan Scheme
The IOB Vidya Suraksha Loan Scheme is a specialised financial product offered by the Indian Overseas Bank designed to provide loans to students for pursuing higher education in India and abroad.
Here’s an overview of the key features of the IOB Vidya Suraksha Loan Scheme.
Feature | Details |
---|---|
Loan amount | Up to INR 7.5 Lakhs |
Interest rates | 11.00% |
Margin Money |
Up to INR 4 Lakhs: Nil Above 4 Lakhs: 5% for India and 15% for abroad |
Repayment tenure | 15 Years |
Moratorium period | Course duration plus one year |
Indian Overseas Bank Education Loan: Key Features
The IOB Education Loan offers a range of features that make it a flexible and supportive option for students seeking to fund their education. It ensures that you can manage your financial responsibilities effectively while pursuing your academic goals.
Here’s a breakdown of the key features.
Feature | Description |
---|---|
Processing fees | IOB charges a processing fee between 0.5% and 2% of the loan amount. |
Repayment during study | While repayment is voluntary, the main loan amount will increase by the total amount of interest accumulated. |
Co-applicant | Co-applicants may be spouses, parents, legal guardians, or siblings. |
IOB education loan insurance | IOB loan insurance ensures that the co-applicant is not responsible for repaying the full loan amount in the event of the applicant's disability or death. |
Indian Overseas Bank Education Loan: Documents Required
When applying for an IOB Education Loan, you must provide several documents to complete your application. Here’s a list of the essential documents required.
Document Category | Required Documents |
---|---|
Identity Proof of Applicant and Co-Applicant |
- Passport - Voter ID - Aadhaar Card - Driver’s Licence |
Address Proof of Applicant and Co-Applicant |
- Utility Bill (Electricity, Water, Gas) - Rental Agreement - Bank Statement with address - Passport |
Proof of Admission |
- Admission Letter from the educational institution - Offer Letter or Enrollment Confirmation |
Academic Records |
- Mark Sheets of Previous Examinations (10th, 12th, Graduation) - Degree Certificates (if applicable) - Entrance Exam Scores (e.g. GMAT, GRE, IELTS/TOEFL, etc) |
Income Proof of Co-Applicant |
- Recent Salary Slips - Income Tax Returns (ITR) - Bank Statements (last six months) - Employment Certificate |
Financial Documents |
- Bank Statements (last six months) - Proof of Assets (if applicable) - Proof of Income of the student (if applicable) |
Course Details |
- Fee Structure from the institution - Course Duration and Schedule |
Other Documents |
- 2 Passport-sized Photographs - Completed Loan Application Form - KYC Documents of Co-Applicant - One-year loan A/C statement (if applicable) |
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Indian Overseas Bank Education Loan Repayment Rules
Repaying an education loan is a significant part of managing your finances post-graduation. The IOB Education Loan Repayment Rules are designed to make the repayment process manageable and flexible.
Understanding these rules can help you plan your repayment strategy effectively and avoid any potential issues.
Repayment Tenure
The repayment tenure for an IOB education loan extends up to 15 years.
Moratorium Period
The scheme offers a moratorium period of up to 12 months after the completion of the course or upon securing employment, whichever comes first. This means you have up to a year after completing your studies to start repaying the loan.
EMI Structure
Following the moratorium period, borrowers must begin paying Equated Monthly Instalments (EMIs). The EMI amount is determined based on the loan amount, interest rate, and repayment period.
Three options are available from Indian Overseas Bank for repaying student loans:
Standing Instruction (SI)
If you have an existing account with IOB, you can use the Standing Instruction (SI) option. This method allows your monthly EMI to be automatically deducted from your IOB account at the end of each month, providing a seamless repayment experience.
Post-Dated Cheques (PDCs)
Post-dated cheques (PDCs) can be used if you don’t have an IOB account. You must provide post-dated EMI cheques from a non-IOB account at your nearest IOB Loan Center. Note that PDCs are accepted only at non-ECS locations, and it’s important to submit a new set of cheques as needed promptly.
Electronic Clearing Service (ECS)
If you have a non-IOB account and prefer automatic deductions, the Electronic Clearing Service (ECS) is available. ECS will automatically debit the EMI amount from your non-IOB account at the end of each month.
Indian Overseas Bank Education Loan: Application Process

Applying for an IOB Education Loan is a simple process. Here's a step-by-step guide to help you efficiently follow the application process and secure the financial support needed for your education.
Offline Application Process
1. Check Eligibility
Verify that you meet the eligibility criteria for the IOB Education Loan.
2. Gather Required Documents
Collect all necessary documents discussed in the previous section.
3. Visit an IOB Branch
Go to the nearest IOB branch or loan centre. Obtain the education loan application form from the branch.
4. Fill Out the Application Form
Complete the application form with accurate personal, academic, and financial details.
5. Submit the Application
Submit the completed form along with the required documents at the branch. The bank staff will assist you with the submission process and may provide a checklist to ensure all documents are included.
6. Loan Processing
The bank will process your application, which includes verifying your documents and assessing your financial status.
7. Disbursement of Loan
Once all formalities are completed, the loan amount will be disbursed.
Online Application Process
1. Visit the Vidya Lakshmi Website
Go to the Vidya Lakshmi portal and apply for the loan.
2. Fill the Application Form
Fill in the required details online.
3. Submit the Application
Prepare digital copies of all required documents and upload them. Submit the duly filled application form.
4. Application Review
The bank will review your application. This may involve online verification and assessment of your financial status.
5. Disbursement of Loan
If approved, the loan amount will be disbursed.
Also Read: Vidya Lakshmi Education Loan Portal: Interest Rates (2024)
Advantages of Indian Overseas Bank Education Loan
An education loan from the Indian Overseas Bank offers several benefits designed to make financing your higher education more accessible and manageable. Here are the key advantages.
1. Flexible Loan Amounts
IOB provides loans to cover various educational expenses, including tuition fees, accommodation, and other related costs. This flexibility ensures you can secure adequate funds for your entire course.
2. Extended Repayment Tenure
The repayment period extends up to 15 years, allowing borrowers to spread out their payments and manage their finances more effectively after graduation.
3. Low Interest Rate
IOB offers education loans at competitive interest rates, keeping the cost of borrowing as low as possible.
4. Transparency
IOB prides itself on transparency, with no hidden costs or administrative charges associated with the loan.
5. Less Paperwork
The application process for an IOB education loan is designed to be straightforward, with minimal paperwork. This ease of application reduces the hassle and time required to secure financing.
6. No Security Required for Loans Up to INR 4 Lakhs
For education loans up to INR 4 lakhs, IOB does not require any collateral or security.
7. 0.50% Concession for Girl Students
IOB offers a 0.50% interest rate concession for female students. This concession not only reduces the cost of borrowing but also supports gender equality in education by encouraging more female students to pursue higher studies.
The Indian Overseas Bank education loan offerings provide a comprehensive financial solution for students aspiring to pursue higher education domestically and internationally. With competitive interest rates, transparent processes, and minimal paperwork, IOB ensures students can focus on their studies rather than their finances. By choosing IOB, you can access affordable and accessible financial support, making your academic goals more achievable.
Propelld’s personalised support and seamless application process ensure you focus on what truly matters — your studies.
Why Choose Propelld?
Particulars | Details |
---|---|
Max Loan Amount | 50 Lakhs |
Collateral | Not Required |
Moratorium | Available |
Processing Time | 10 Times Faster than Banks |
Disbursal Time | 7 Days |
Approval Rate | Higher than Other Banks |
Special USP | Marks Based Approval |
% Financed | 100% of Fees |