Indian Overseas Bank Education Loan: ROI, Eligibility & Application

‍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!

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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

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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

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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

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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.

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Also Read: IBA Model Education Loan Scheme: Eligibility & Rates 2024

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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.

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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

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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.

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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.

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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)

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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.

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Why Choose Propelld?

Feature	Details
Max Loan Amount	50 Lacs
Collateral	Not Required
Moratorium	Available
Processing Time	10 Times Faster than Banks
Disbursal Time	7 Days
Approval Rate	Higher than Banks
Special USP	Marks Based Approval
% Financed	100% of Fees

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Important FAQs About Indian Overseas Bank Education Loan

What is the Indian Overseas Bank Education Loan interest rate?

The Indian overseas bank education loan interest rate varies based on the loan amount, type of course, and whether you are studying in India or abroad. The interest rates range from 9.75% to 12.55%.

What are the eligibility criteria for an Indian Overseas Bank Education Loan?

To be eligible for an Indian Overseas Bank Education Loan, you must be an Indian citizen, have secured admission to a recognised institution, and have an excellent academic record.

How do I apply for an Indian Overseas Bank Education Loan?

You can apply for an Indian Overseas Bank Education Loan online or offline. To apply online, visit the Vidya Lakshmi portal and complete the application form. To apply offline, visit the nearest IOB branch or loan centre and submit the required documents.

What is the IOB Vidya Suraksha loan scheme?

The IOB Vidya Suraksha loan scheme is a specialised financial product offered by the Indian Overseas Bank to provide loans to students for pursuing higher education in India and abroad.

How do I check my IOB education loan statement?

You can check your IOB education loan statement online or by visiting the nearest IOB branch. To check online, log in to your IOB account and click the "Loan Statement" option.

What are the IOB education loan repayment rules?

The IOB education loan repayment rules require borrowers to repay the loan amount within 15 years. The repayment period starts after the moratorium period, up to 12 months after the course completion or upon securing employment.

Can I get a concession on the interest rate if I am a female student?

Indian Overseas Bank offers a 0.50% interest rate concession for female students. This concession reduces the cost of borrowing and encourages more female students to pursue higher studies.

Do I need to provide collateral for an IOB education loan?

Indian Overseas Bank does not require collateral for education loans up to INR 4 lakhs. However, collateral may be required for loans above INR 4 lakhs.

What is the processing fee for an IOB education loan?

The fee ranges from 0.5% to 2% of the loan amount.

Can I repay my IOB education loan online?

You can repay your IOB education loan through Standing Instruction (SI), Post-Dated Cheques (PDCs), or Electronic Clearing Service (ECS).

What is the moratorium period for an IOB education loan?

The moratorium period for an IOB education loan is up to 12 months after the completion of the course or upon securing employment.

Can I take a loan for vocational courses?

Yes, the Indian Overseas Bank offers loans for vocational courses.

What is the maximum loan amount offered by Indian Overseas Bank?

The maximum loan amount offered by Indian Overseas Bank varies based on the loan scheme. The IOB Vidya Suraksha loan scheme provides up to INR 7.5 lakhs, while the IOB Scholar loan scheme offers up to INR 60 lakhs.

Can I apply for an IOB education loan as a non-Indian citizen?

No, Indian Overseas Bank education loans are only available to Indian citizens.

What is the interest rate for the IOB Scholar loan scheme?

The interest rate ranges from 11.55% to 12.55%. The IOB bank education loan interest rate is competitive and helps students pursue their academic goals without financial burdens.