Education loans - Indian Overseas Bank

Education Loans are offered by Indian Overseas Bank under the VidyaJyoti Scheme.


  • Should be an Indian National
  • Should have secured admission to professional/technical courses in India or abroad 


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 lacs10.55%
4 lacs to 7.50 lacs10.55%
Above 7.50 lacs11.55%
Vocational courses11.55%
Ward of staff10.25%


For loans upto Rs. 4.00 lakh 


For loans above Rs. 4.00 lakh

Studies within India 5%
For studies abroad 15%

Scholarship/assistantship to be included in margin.


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.


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.