Indian Overseas Bank Education Loan: Application, Eligibility, Interest Rate, Documents & Much More.

Indian Overseas Bank Education loan

The Indian Overseas Bank is a public sector Bank based in Chennai. Bank also manage to have branches across the globe in Singapore, Colombo, Seoul and Bangkok. Services provided by Indian Overseas Bank are Loans, Credit cards, savings, Investment vehicles etc. Indian Overseas Bank also provides the facility to Education Loan. If you want Education Loan to pursue higher studies from Abroad or India, You are at the right place to collect every aspect of information related to Education Loan in India.

Indian Overseas Bank Logo

Read this full post on Indian Overseas Bank Education Loan for information Like Eligibility, How to apply, Interest Rates, Documents Needed, Different aspects of Education Loan, Interest Rates, Return Policy, General Instructions etc. Throughout the article, we will share information regarding Indian Overseas Bank Education Loan it’s Process to Apply and full detailed Information.


Indian Overseas Bank Education Loan


The major aim of the bank is to ensure anywhere and any time banking for the customer with the latest state-of-the-art technology. The Bank is very serious about its Education Loan Facility and by developing an effective customer-centric relationship it promises to emerge as a world-class education Loan provider. Before we share further, let us first have a brief review of the Bank.

Brief Review

Profile Description
Name of Bank  Indian Overseas Bank
Founded on 10 February 1937
Headquarter Chennai, Tamil Nadu,
Type of Bank  Private bank
Number of Employees 31,846 (2016)
CEO Name Shri R. Subramania Kumar
Maximum Loan Amount  Maximum Upto Rs 40.0 Lakhs
Timeline for Loan Disposal Maximum 15 Working days
Annual Revenue ∇ 23,517.29 crore (US$3.3 billion) (2016)
Processing Fees No Processing Fee will be charged
Other Subsidiaries
  • Indian Overseas Bank (Singapore)
  • Indian Overseas Bank, Asset Management Arm
  • Indian Overseas Bank, Hong Kong Branch
Category  Education Loan in India

Types of Student Loan

S.no. Scheme Description
1. Educational Loans-Vidya Jyoti Loan is made available for Graduation/Post Graduation/Diploma/Computer education in any recognized State/Central Government/University, professional courses including Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, courses like ICWA, CA, CFA, etc., courses conducted by IIM, IISC, XLRI, NIFT etc,
Maximum of Rs. 30.00 lakhs for studying in India and Rs. 40.00 lakhs for studying abroad.
2. IOB Scholar The loan is made available for Graduation/Post Graduation/Diploma/Computer education in any recognized State/Central Government/University, professional courses including Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, courses like ICWA, CA, CFA, etc. One can avail a loan amount Maximum of Rs. 30.00 lakhs for studying in India and Rs. 40.00 lakhs for studying abroad
3. Vocational Course & Skill Development Scheme for Vocational Education and Training for providing financial support to those who have the minimum educational qualification and to support the national initiatives for skill development. One can avail a loan of amount From Rs. 20,000 to Rs. 1,50,000 Depending upon the course.
4. Career Dreams This Scheme is for financing Coaching/Tuition fee of reputed Institutions in India to prepare for professional Courses entrance examinations (Chartered Accountancy /Medicine /Engineering /Business Management etc.), Civil Services examinations (IAS/IPS/IFS etc) and various.
Career & Skill development courses. The loan amount will be Minimum of Rs. 25,000 and Maximum Of Rs.2,00,000

How to Apply

Online

  • Visit official Web Site of Indian Overseas Bank (Click Here)
  • Find the Educational Loan Section (Apply Now Button)
  • Fill online Application Form

Offline

  • Visit the nearest branch of Indian Overseas Bank to get offline Education Loan form.
  • You may also download the form from official web handle.
  • Submit the Application Form to Nearest Branch along with document needed.

Eligibility

  • The applicant should be an Indian national.
  • Should have secured admission to professional/technical courses in India or abroad.

Documents Needed

  • Mark sheet of last qualifying examination for school and graduate studies in India
  • Academic Records: 10th Result, 12th Result, Graduation result-semester Wise (if Possible) Entrance Exam Result through which admission is being taken
  • Proof of admission: Offer Letter or Admission Letter from the Institution
  • Proof of Income: IT Returns, Salary Slip/Business Proof.
  • Documents of Guarantor.

Expenses Considered

  • Tuition and course fee
  • Examination, library and laboratory fees
  • Caution deposit
  • Cost of books, Uniforms, Equipment and other instruments.
  • Travel Expenses

Return Policy

An IOB educational loan can be repaid in monthly instalments for a maximum period of up to 5 to 7 years, excluding the holiday period.

EMI Calculator

EMI Calculator is used for calculating the periodic payment amount due on a loan. For calculating EMI one must input data like Amount, Interest Rate, tenure, Processing Fee etc.

  • If you want to calculate EMI for IOB Educational Loan: Click Here

Security

  •  Up to Rs 4 Lacs
    • Co-obligation of parents
    • No security
  •  Above Rs 4 lacs and up to Rs 7.50 Lacs
    •Co-obligation of parents together with collateral security
    in the form of suitable third party guarantee. The bank
    may, at its discretion, in exceptional cases, waive third
    party guarantee if satisfied with the net-worth/means of
    parent/s who would be executing the documents as
    “joint borrower”.
  • Above Rs 7.50 Lacs
    •Required are to furnish collateral security in the form of NSC, KVP, LIC policies, immovable properties and bank deposits in the name of student, parent, guardian or any other third party with suitable margin.

Contact Details

Head office  Indian Overseas Bank,
6th Floor, Annex Building, 763, Anna Salai, Chennai – 600 002, Tamil Nadu, India.
Official website www.iob.in
Apply for Loan  Click Here
Contact Number 091-44-852 3582

Student Loans FAQs

We hope that the information furnished above will guide you to get the best educational loan for your studies. In case of any doubt regarding the loan procedure and other related terms, read our FAQ’s session.

Q1. Who can be my co-borrowers?

Ans. Your parents/guardian can be a co-borrower as well as the spouse in case of a married applicant. The co-borrower should have a steady source of income and a good credit history in order to improve the applicant’s chances of a successful loan application.

Q2. How long does it take to process Educational Loan?

Ans. Generally, the time taken for the education loan to process is somewhat between 7-10 working days. Often, the whole process can be easily completed within 3 to 5  Working days, once the student fulfils all documentation.

Q3. What all expenses will be covered by education loans?

Ans. Apart from the tuition fees, other aspects of expenses such as hostel charges, equipment purchases and other course-related expenses may also be covered by the education loan.

Q4. What are the courses for which an education loan can be availed?

Ans. An education loan can be availed for all courses recognized by the UGC in case of India and all regular courses abroad. Each lender has its own list of educational institutions and courses that they would provide a loan for whether overseas or within India.

Q5. Can a student avail another loan for further studies?

Ans. Yes, this is possible. You can borrow a loan for a bachelor’s degree followed by one for master’s without repaying the first loan. This loan can be taken as a top-up loan against the already existing loan; however, it is subject to the lending bank’s discretion and the internal rules and regulations of the lender.

Q6. Do education loans have any Income Tax benefits?

Ans. Loan borrowers can avail tax benefits on interest paid on education loan under Sec 80E of the Income Tax Act. This benefit is available over and above the Rs. 150,000 deduction allowed under Section 80C. Tax benefits can be availed once the borrower starts paying the interest on the education loan. Further, the deduction is available until the borrower pays off the full interest amount on the loan or for a maximum period of 8 years, whichever is earlier.

Q7. Why do banks require an insurance policy?

Ans. Banks usually prefer that students avail a life insurance policy equivalent to, or more than, the loan amount. The policy acts as a security feature and forms a part of the collateral. In case of the untimely demise of the borrower, the bank recovers the outstanding loan amount from the student’s life insurance policy and the remaining amount, if any, is paid out to the beneficiary of the policy.

Q8. Is any incentive available for a girl student applying for education loan?

Ans. Banks generally provide a 0.5% concession on the applicable education loan interest rate to girl students pursuing higher education in India and abroad.

Q9. Are there any special privileges for students of SC/ST category who avail education loans?

Ans. Yes, eligibility criteria and loan margins on education loan are relaxed for Scheduled Caste/Scheduled Tribe students availing education loans in India. The eligibility criteria are lowered from first/second class to pass class for SC/ST category students seeking education loan for graduate and postgraduate studies, while, margin money is sometimes lowered than the regular percentage or nil.

Q10. Where can I avail on IOB education loan?
Ans. The loan is available from all branches in metro/urban areas as well as those having personal banking divisions.

Best of Luck..!!

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