Indian Overseas Bank Education Loan

The interest rates of the Indian overseas Bank educational loans are as follows: 

Education Loans	Interest Rates
Vidya Suraksha	10.50% p.a.
Vidya Jyoti	10.50% p.a.
Vidya Jyoti- Ward of Staff	9.25% p.a.
Skill Loan	10.35% p.a.
Vidya Shrest A Rated Institutions B Rated Institutions	8.25% p.a. 8.50%p.a.
IOB Scholar Up to Rs.7.50 lakh Above Rs.7.50 lakh Staff Ward	11.05% p.a. 12.05% 10.75%
Bihar Student Credit Card Scheme up to Rs.4 lakh  Vocational Loans	11.05% 12.05%
IOB Career Dream up to Rs.2 lakh by liquid security  IOB Career Dream above Rs.2 lakh secured by immovable	12.30% 12.50% p.a.

FREE Credit Score - Check Now

Overview of Indian Overseas Bank (IOB) Education Loans

The following are the details regarding Indian Overseas Bank Education Loan:

Minimum Loan Amount	Up to Rs.7.50 lakhs (without collateral).
Loan Amount	Up to Rs.7.5 lakhs without collateral. Above Rs.7.5 lakhs 100% collateral required.
Maximum Loan Amount In India Foreign	Rs.15 lakhs Rs.30 lakhs.
Interest Rate	8.25% p.a. to 12.50% p.a.
Interest Concessions	0.50% for girl students 1% for interest serviced during the moratorium period 1.5% for institutions ranked up to 20 under NIRF 1% for institutions ranked 21 to 50 under NIRF.
Interest During Holiday Period	Simple interest charged during the study period and up to the commencement of repayment.
Margin Studies in India Studies Abroad	5% (for amounts above Rs.4 lakhs). 15% (for amounts above Rs.4 lakhs).
Moratorium Period	Course duration plus 1 year or 6 months after gaining employment, whichever is earlier. Interest servicing is optional for the borrower.
Maximum Repayment Period	15 years (excluding course and moratorium period), repaid in equated monthly instalments.

Check Your Credit Score for FREE

Features and Benefits of the Indian Overseas Bank (IOB) Student Loan Scheme

The following is the list of significant features and benefits of Indian Overseas Bank education loan:

1. Comprehensive coverage including tuition, hostel, examination fees, airfares, and books 

1. Wide range of eligible courses for graduation, post-graduation, diplomas, and professional courses 

1. No margin requirements for loans up to Rs. 4 lakhs; 5% for loans above Rs. 4 lakhs in India; 15% for abroad 

1. 1% rebate for timely interest payments and 0.5% concession for girl students 

1. Zero processing fees for education loans 

1. No hidden costs, ensuring transparent pricing 

1. Grace holiday period of 6 months after employment or 12 months post-course completion 

1. Flexible interest servicing options to pay interest during studies or add to principal 

1. Simple application process with minimal paperwork 

FREE Credit Score - Check Now

Eligibility Criteria for IOB Education Loan

The following is the list of eligibility criteria for IOB education loan:

1. Resident Indian students. 

1. NRI (Non-Resident Indian), OCI (Overseas Citizen of India), and PIO (Person of Indian Origin) students pursuing higher education, either domestically or internationally. 

1. Students must secure admission to a higher education course at a recognised institution in India or abroad. 

1. Admission should be through an entrance test or a merit-based selection process after completing Higher Secondary Certificate (HSC). 

1. Students admitted on management seats are eligible, provided that funding is restricted to the fee approved by the state government or a government-approved regulatory body for payment seats. 

1. The student should not be engaged in gainful employment during their studies. 

1. The creditworthiness of the student will be evaluated. If there are any adverse remarks in the credit history, the student will be required to submit an explanation. 

Note: The student's ability to repay the loan will be assessed.

FREE Credit Score - Check Now

How to Apply for Indian Overseas Bank (IOB) Education Loan

The following are the steps to apply for IOB education loan:

Step 1: Go to your closest Indian Overseas Bank branch.  

Step 2: Ask the bank representative about different education loan options available. Discuss your eligibility and requirements to choose the most suitable loan product. 

Step 3: Once you have selected a loan product, begin the application process by submitting relevant documents such as identity proof, admission letters, and financial statements. For a more convenient application process, visit the VidyaLakshmi portal. This government platform allows you to apply for education loans from multiple banks. 

Step 5: Complete the online loan application form accurately, ensuring that all required fields are filled out. 

Step 6: Upload or physically submit all necessary documents as specified in the application form. 

Step 7: After reviewing your application, the bank will notify you of the approval status via SMS or email.

Check Your Credit Score Now

Be Money-Smart with our App

A good credit score can help you secure lower interest rates on loans and credit cards.

Get Free Credit Score

FAQs on Indian Overseas Bank Education Loan

• Can I apply for an IOB education loan if I am an NRI?

  Yes, Non-Resident Indians (NRIs) can apply for an education loan from Indian Overseas Bank to pursue higher studies, provided they meet the bank’s eligibility criteria.

• Can I receive a loan for vocational courses through IOB?

  Yes, IOB offers education loans for various vocational courses, including technical courses at recognised training institutes and polytechnics.

• What if I want to study a course not listed under the IOB education loan eligibility?

  If your desired course is not listed under IOB's education loan eligibility, it may still be possible to apply. Contact the bank for guidance on the specific course and its eligibility criteria.

• What if I do not have a co-borrower?

  You cannot apply for an education loan with IOB without a co-borrower, as the bank requires a joint application typically involving a parent, guardian, or spouse.

• Can I get a loan for studying abroad at any institution?

  You can apply for an education loan for studying abroad, but eligibility may depend on the institution’s recognition and your academic performance.

• What if I miss a payment during the repayment period?

  If you miss a payment, it’s important to contact IOB immediately to discuss your options, which may include restructuring the loan or setting up a payment plan.

• Can I take a break from repaying my loan?

  Generally, repayment breaks are not allowed; however, if you are facing financial difficulties, you may contact IOB to explore options such as restructuring the loan.

• What if my family income exceeds the limit for interest subsidies?

  If your family's income exceeds the subsidy threshold, you will not be eligible for interest subsidies under government schemes, but you can still avail of the standard loan terms.

• Can I pay off my education loan early without penalties?

  Yes, Indian Overseas Bank typically allows early repayment of education loans without penalties, but it’s advisable to confirm this with the bank before proceeding.

• What if I want to change my course after securing a loan?

  If you wish to change your course, inform IOB as soon as possible to ensure that your loan remains valid and meets the eligibility criteria for the new course.

• Can I apply for multiple education loans at the same time?

  While it is possible to apply for multiple loans, it’s advisable to consult with IOB about the impact on your creditworthiness and repayment ability.

• What if I have a poor credit score?

  A poor credit score may affect your eligibility for an education loan; however, you can still apply, and the bank will assess your application based on other factors.

• Can I claim tax benefits on my education loan?

  Yes, under Section 80E of the Income Tax Act, you can claim tax deductions on the interest paid on your education loan for higher studies.

• What if I need to extend my repayment period?

  If you need to extend your repayment period, contact IOB to discuss options for restructuring your loan to accommodate your financial situation. 

• Can I include scholarships in my loan application?

  Yes, you can include scholarships and assistantships as part of your loan application to demonstrate your financial standing and eligibility. 

• What are the EMI Payment Methods for IOB Education Loan?

  You can repay your IOB education loan EMIs via Electronic Clearing Service (ECS) for automatic deductions, Standing Instruction (SI) for existing IOB account holders, or by submitting post-dated cheques (PDCs) from a non-IOB account at the nearest Loan Centre.