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Education loans - Indian Overseas Bank
Kapil G.
Education Loans are offered by Indian Overseas Bank under the VidyaJyoti Scheme.
Eligibility
- Should be an Indian National
- Should have secured admission to professional/technical courses in India or abroad
Read: SBI education loans
Purpose
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, courses offered in India by reputed foreign universities/Evening courses of approved institutes, regular degree/ diploma courses like Aeronautical , Pilot training , shipping etc approved by Director General of Civil Aviation/ shipping if the course is pursued in India. Incase the course is pursued abroad, the institute should be recognized by the competent local aviation/ shipping authority.
Quantum of loan
Maximum of Rs. 30.00 lakh for studying in India and Rs. 40.00 lakh for studying abroad.
Rate of Interest
| Upto 4 lacs | 10.55% |
| 4 lacs to 7.50 lacs | 10.55% |
| Above 7.50 lacs | 11.55% |
| Vocational courses | 11.55% |
| Ward of staff | 10.25% |
Margin
For loans upto Rs. 4.00 lakh
Nil
For loans above Rs. 4.00 lakh
Studies within India 5%
For studies abroad 15%
Scholarship/assistantship to be included in margin.
Security
| For loans upto Rs. 4.00 lakh | Co obligation of parents . No security |
| For loans above Rs. 4.00 lakh and up to Rs.7.50 lakh . | Co obligation of parents together with collateral security in the form of suitable third party guarantee |
| For loans above Rs.7.50 lakh | Co obligation of parents together with tangible collateral security .Collateral security in the form of NSC /KVP/ LIC Policy/ Gold/ Shares/Debentures or immovable properties Bank Deposits in the name of student/Parent/Guardian or any other third party with suitable margin. Wherever the land/ building is already mortgaged the unencumbered portion can be taken as security on second charge basis provided it covers the required loan amount. In case the loan is given for the purchase of computer , the computer has to be hypothecated to the bank. |
Holiday period
6 months after getting the job or 12 months after completion of the course whichever is earlier.
Repayment
Repay the loan in equal monthly Instalments for a maximum period of 5 – 7 years excluding holiday period.
Interest servicing
It is left to the option of the student either to service the interest during the study period or pay it along with the principal over a period of 5 – 7 years to commence from 12th month after completion of the study.
Interest servicing - concession
For prompt servicing of interest for all months during the study period when repayment holiday is specified for interest / repayment under the scheme, an interest rebate @1.00 % is allowed. The interest rebate thus calculated will be credited back to loan account at the time of commencement of repayment of the principal sum.
For details on VidyaJyoti Scheme, click here.
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