.avif)
Education is often a way to a brighter future, but the cost of higher education can be a significant barrier for many. For students aiming to pursue their dreams without financial strain, Oriental Bank of Commerce (OBC) offers a solid education loan scheme that supports higher education in both India and abroad.
This article will help you explore the details of oriental bank of Commerce education loans, including eligibility, loan features, repayment options, and other essential information you need to make an informed decision.
Overview of Oriental Bank of Commerce Education Loan Scheme
The OBC Education Loan is designed to provide financial support for students who wish to pursue higher education at recognised institutions in India or abroad. It covers various educational expenses like tuition fees, hostel charges, exam fees, and more.
Here's an overview of the OBC education loan scheme:
Get an Education Loan 10X Faster than Banks.
Oriental Bank of Commerce Education Loan Interest Rates
The OBC education loan offers a competitive floating interest rate, typically ranging from 7.30% to 9.30% per annum. A lower interest rate can significantly reduce your total repayment amount, allowing you to save money over the life of the loan.
The interest rate varies based on the student's profile and the nature of the course, with lower rates available for students enrolling in premier institutions.
Margin Money and Loan Amounts
Margin money refers to the contribution the student or co-applicant must make toward the total loan amount. For loans up to INR 4 Lakhs, OBC does not require any margin money. However, for loans above INR 4 Lakhs, the margin money is as follows:
- 15% for education abroad
- 5% for education in India
This margin money requirement ensures that both the student and the bank share the financial responsibility of funding the education.
Are you parent of a JEE/NEET aspirant?
Need guidance on funding your MBA College Fees?
Minimal Docs, Maximum Approval - Apply Now.
Security and Collateral for OBC Education Loan
Security requirements depend on the loan amount:
- For loans of up to INR 7.5 Lakh, no collateral is required; however, parents/guardians must be co-applicants.
- For loans above INR 7.5 Lakhs, collateral is required, which could be in the form of immovable property (such as a house or land) or other acceptable forms of security.
For loans above INR 7.5 Lakhs, the collateral will typically need to be equal to or greater than the loan amount sanctioned. You can also use third-party oriental bank of Commerce education loan calculators to estimate your payments.
Key Benefits of OBC Education Loan
Here are some key advantages of OBC, making it an attractive option for students:
- OBC offers competitive interest rates starting from 7.30%, ensuring that students save significantly over the term of the loan.
- Loans up to INR 7.5 Lakhs do not require collateral, easing the financial burden for students without significant assets.
- Repayments begin after course completion, allowing students time to secure employment before starting repayments.
- OBC provides a moratorium period of up to 1 year, allowing students to focus on their studies without worrying about payments.
- The loan covers a wide range of education-related expenses, including tuition, hostel fees, exam fees, travel expenses for studying abroad, and even essential equipment such as laptops.
- Under Section 80E of the Income Tax Act, students can claim deductions on the interest paid on the education loan.
- OBC does not charge any hidden fees, and there is no processing fee for loans in India (only a nominal fee for study abroad loans).
Explore Myths and Facts about Education Loans. Get the real insights before making your loan decisions.
How to Apply for an Oriental Bank of Commerce Education Loan?
To apply for an OBC education loan, you have two options. You can visit a branch to submit your application and documents, or apply online through the official website. Ensure eligibility, gather the necessary documents, complete the form, and submit it for processing.
You can follow these steps:
- Ensure you meet the eligibility criteria for an education loan with OBC.
- Collect all the necessary documents as outlined above.
- You can apply at your nearest OBC branch or visit the official website to fill out the oriental bank of Commerce education loan application form.
- Submit the completed application form along with the necessary documents.
- Once approved, the loan amount will be disbursed in stages, either to your educational institution or directly to you for other expenses.
Documents Required for OBC Education Loan
To streamline the application process, you'll need to submit the following OBC documents required for the education loan:
Documents from the Applicant:
- Photo ID proof like Passport, Voter ID, Aadhar Card
- Proof of age via Birth certificate or Passport
- Academic transcripts
- Admission certificate
- Fee structure from the institution
- PAN card
- Proof of residence, such as a Utility bill, an Aadhar card, or a Passport
Documents from the Co-Applicant:
- Photo ID proof and address proof
- Bank statements from the last 6 months
- Income proof like Salary slips, Form 16, ITR
- Collateral documents (if applicable), such as title deeds, LIC policy, etc.
A complete set of documents will help expedite the loan approval process.
Repayment Options for OBC Education Loan
For individuals with an education loan from OBC, all repayment options are now managed by Punjab National Bank (PNB). PNB's systems now govern the repayment terms and available options for your OBC education loan.
Here are some repayment options to make the process as convenient as possible:
1. Standing Instruction (SI)
If you hold an account with OBC, you can set up an automatic EMI payment from your OBC account.
2. Electronic Clearing Service (ECS)
If you don't have an OBC account, you can set up ECS to have your EMIs automatically debited from your non-OBC account.
3. Post-Dated Cheques (PDCs)
For non-ECS locations, you can submit post-dated cheques for your EMI payments.
It is recommended to opt for SI or ECS for smooth and hassle-free EMI payments.
Explore different Types of Education loans with Eligibility, Interest Rates, & Benefits to understand which option best suits your needs and repayment capacity.
Looking for an Education Loan for Higher Studies? Here's What Other Students Are Discussing!
Many students face financial challenges when tuition fees rise unexpectedly, especially in the middle of their academic journey. If you're wondering whether you can secure an education loan for additional expenses, you're not alone.
Reddit User in r/India shared:
"I've been admitted to IIFT Delhi, but their fee hike has pushed the total cost to 15 lakhs. The SBI Scholar Loan scheme now caps it at 7.5 lakhs for IIFT students without collateral, and I can't provide collateral. Can anyone suggest a lender who can offer a loan of 15 lakhs without collateral at a reasonable interest rate?"
Insight:
While SBI's Scholar Loan scheme has become more restrictive, there are still options available. Many NBFCs and private banks offer unsecured loans for students from reputed institutions, even for higher loan amounts. These loans often come with higher interest rates compared to secured loans, but they don't require collateral.
What can we infer from the case?
- Eligibility for Collateral-Free Loans:
Many banks and NBFCs offer unsecured loans based on the institution's reputation and the student's academic potential. If you're pursuing a course at a recognised institution like IIFT, you might be eligible for an unsecured loan. - Loan Amount and Interest Rates:
For amounts beyond the standard limits, consider exploring NBFCs, which are often more flexible with their loan offerings. Expect slightly higher interest rates, but the benefit is that there is no collateral requirement. - Documentation and Co-Applicant:
In such cases, you will likely need a reliable co-applicant (parent or guardian) and a strong academic record to demonstrate your repayment ability.
Tip: Consider visiting other lenders, such as HDFC Credila, Axis Bank, or ICICI Bank, which offer unsecured loans for reputable institutions. You can also explore government schemes that provide additional subsidies or lower interest rates.
Comparing education loan options is key to finding the proper financial support for your studies. Whether you choose a secured or unsecured loan, or go for a bank or NBFC, ensure you focus on interest rates, repayment terms, and any hidden fees. Make informed decisions to minimise long-term costs and ease your financial journey!
Don't let financial roadblocks slow down your global education dreams. With Propelld, you get quick digital approvals, study loans up to INR 50 lakhs, and zero collateral hassles. Plus, enjoy flexible repayment options designed to fit your journey. Propelld makes financing simple, so you can focus on achieving your goals.
Take the first step towards your future - Apply with Propelld today!
.svg)
