Are you planning to pursue higher studies and running short of funds to support your education and planning to take a loan? Well, worry not in that case because banks in India have designed various schemes to benefit students who wish to pursue higher studies in India as well as abroad. In this blog, you shall get to know about the Indian Overseas Bank (IOB) Education Loan and we hope it will help you. Indian Overseas Bank offers Vidya Jyoti Education Loan Scheme to applicants who wish to pursue undergrad, postgrad or diploma courses in India or abroad from any recognised university.
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Eligibility for IOB Education Loan
Students who wish to apply for IOB Education Loan, must be aware of the eligibility criteria notified by the bank. Let’s have a look at the eligibility criteria given by the bank –
- Applicants must be Indian citizens.
- Applicants must have secured at least 60% in the last appeared exam for, XIIth or graduation.
- Applicants must have secured admission in India or Abroad through a proper entrance test . Or the selection should have been merit based selection.
- Applicants must not be employed.
- Reputation of the college/university is often considered while providing loan, in cases where admission is not through entrance.
- The PNB Education Loan Program
- SBI Education Loan
- Syndicate Bank Education Loan
- Vijaya Bank Education Loan
- ICICI Education Loan
Documents Required for IOB Education Loan
Applicants must have a list of documents while applying for education loan. We have listed the necessary documents below :
- Loan application form of the bank to be filled
- Two passport size photos
- Proof of age
- Offer Letter from the University
- GMAT/IELTS/TOEFL/GRE results
- Proof of residence
- Marksheet of the last exam appeared for
- Co borrower’s statement of assets and liabilities
- Scholarship letter, if present
- Documents supporting the financial status
- Collateral documents
- Entrance exam results
Also Read: Education Loan without Collateral
Loan Schemes of IOB
IOB does not provide multiple loan schemes for education. The most popular one has been mentioned below:
|Loan Scheme||Loan Amount||Interest Charges|
|Vidya Jyoti||For courses in India – Maximum Loan up to INR 30 lacs
For courses abroad: Maximum Loan Upto INR 4O Lacs
Up to ₹ 10,00,000 for studies at IIT’s, IIM’s and ISB’s.
- IDBI Education Loan
- Bank of Baroda Education Loan
- Allahabad Bank Education Loan
- Canara Bank Education Loan
- HDFC Education Loan
Now applicants might also want to know the repayment terms provided by IOB. Mentioned below is the Repayment Frequency of IOB Education Loan:
- IOB provides quarterly or monthly rests for loan repayment.
- Repayment period starts 1 year after the completion of the course or six months after getting a job, whichever happens before.
- After disbursement of the first installment of the loan, the interest re‐payment starts.
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How to Avail the IOB Education Loan ?
IOB Education Loan can be applied for, both in the offline and online mode.
For those who wish to avail the loan through offline mode, they must follow the given steps.
- For availing the IOB Education Loan, applicants must make sure they know all the requisites beforehand.
- They can go to their nearest bank branches and collect the application form.
- The complete application form must be submitted along with all the documents asked for.
- Applicants must patiently wait for the verification process.
Applicants who wish to apply online, should follow the steps given below –
- Applicants must log on to the official website of Indian Overseas Bank.
- After logging in applicants must click on ‘Educational Loan – Vidyajyoti’, under the ‘Retail’ section.
- After which they are requested to click on www.vidyalakshmi.com.
- Applicants must enter the relevant details that are asked for then.
- After completing the above mentioned steps, an Indian Overseas Bank executive will get in touch to process the request.
The minimum loan amount is Rs.7.50 lakh.
The margin of the loan for studies abroad is 15% and studies in India is 5%.
Yes, an extension period of up to 2 years is provided in such a case.
So, this was all about the IOB Education Loan. We hope you found this blog useful and it answered all your questions. For more such content stay connected with Leverage Edu!