Indian Overseas Bank Education Loan


  • Indian Overseas Bank Education Loan for students wanting to pursue their higher studies
  • Interest rate starts from 9.45% per annum

Seeking an education loan to pursue your higher studies? Think of Indian Overseas Bank (IOB), a renowned public lender that offers you an education loan for studies in India as well as abroad. From graduation to post-graduation or any professional or technical course, the bank offers a loan for all. Students must be an Indian National to get the loan. The parent or guardian is the primary debtor of the borrowed amount. Read on to find out more about the education loan and its benefits for the students.

Loan AmountINR 7.50 Lakh to 30 Lakh
Loan for Foreign EducationUp to INR 40 Lakh
Interest Rate7.25% - 10.05%
Tenure15 Years

Eligibility for Indian Overseas Bank Education Loan

Students who have secured admission in recognized institutions by passing 10+2 or equivalent with the required marks or clearing the entrance test can apply for the loan. And the students must not be earning individuals during the loan application process. The students must secure their admission before applying for the loan. And the loan would be approved based on the entrance test or merit result. But, if the state does not have any common entrance test, students must have secured 60% for admission, whereas SC or ST students can get their admission at 55%.

You will be required to add co-applicants to your education loan at IOB. The co-applicant could be your Mother, Father, or legal guardian.

Co-borrower can be salaried or self-employed, and they should have a regular income. The bank gives you 15 years to pay the loan amount with the interest rate applicable to it. And after the course completion, you have a 1-year or repayment holiday in which you don’t have to pay EMI.

Indian Overseas Bank Vidya Jyoti Scheme

For higher education in India or Abroad, you can apply for an education loan from the bank. And the interest rate on your loan is applied as per the bank base rate that is 7.25% plus spread over the tenure. The interest rate starts from 10.45% per annum, and it is the same over the tenure. You can get your graduation, post-graduation, or diploma degree with the help of an education loan. Technical or professional degrees for specialized courses at recognized institutes are also financed by the bank. And for all of the benefits, you need to submit the list of fee structures to the bank. As per the list of charges, the bank disburses the loan to university or educational institution in stages during your course duration or semester wise.

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Note: If the Co-borrower is a working individual of Indian Overseas Bank, they will get a lower rate of interest on their borrowed loan, starting from 8.15% per annum. You may get a 1% interest rate concession if the interest is serviced to your loan during the moratorium period.

Indian Overseas Bank Vidya Shrest

You can get this loan for admission to the premier institutions for engineering, medical, law, management, among other courses. You need to secure your position through the entrance test or selection procedure. Once that’s done, you can get a loan from IOB to pay for such courses, upto INR 30 lakh.

Loan QuantumINR 30 Lakh
Interest Rate7.65%-8.15%
Tenure15 Years

The loan would be provided to the student as per their institution in which they secure the admission. And the bank has distributed them into two categories which are category A & category B. Look at the table to find out the Loan interest rate and security as per the institution category.

Category of InstitutionsLoan Quantum (INR)Interest Rate (per annum)Security
AUp to 15 Lakh7.65%No security
AAbove 15 Lakh7.65%Tangible collateral
BUp to 7.5 Lakh8.15%No security
BAbove 7.5 Lakh8.15%Tangible Collateral

In case the student is married, the spouse or in-laws can be the co-borrower of the applicant as well. And the loan below INR 7.5 lakh is under the credit guarantee fund scheme.

Indian Overseas Bank Vidya Suraksha Loan

This loan applies to students securing admission to the reputed institution to undertake training programs and acquire skills needed to join as pilots, etc, . You can borrow up to INR 7.5 lakh. Indian Overseas Bank provides an interest rate of 9.45% per annum on your education loan, which can be given for a maximum of 15 years. And the bank puts a margin to your borrowed amount if your loan is above INR 4 lakh. The margin is 5% if you have got admission to an Indian institute and it could be 15% for foreign education.

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You don’t need to provide any assets to secure the education loan. Only your parent or guardian can be a co-borrower of the loan. The loan is paid via EMIs and the margin to your loan is applied on a year to year basis.

Indian Overseas Bank Scholar Loan

Students who secured their admission via Management quota in India or foreign universities for higher education. The loan amount can be a maximum of INR 60 lakh by which you can manage the tall expenses during the course period. And the interest rate on your educational loan is based on the borrowed amount. Look at the table below to know about the IOB scholar loan interest rate.

Loan QuantumInterest Rate (per annum)
Up to INR 7.50 lakh9.45%
Above INR 7.50 lakh10.45%
For Staff Ward9.15%

You can pay the loan over 15 years by providing tangible assets such as land, insurance policies, mutual fund units, etc. The bank puts a margin of 25% to your education loan under the scheme. It means you can finance up to 75% of your expenses using the loan.

Indian Overseas Bank Skill Loan

Students who are willing to enroll for a skill development program can apply for the loan. First, they need to secure admission to Industrial Training Institutes (ITIs), Polytechnics, training partners affiliated to National Skill Development Corporation (NSDC). It is necessary to secure admission to a reputed institute, otherwise, the bank won’t approve the loan. Details of the skill loan are as follows.

The Loan can be paid in EMI as per your tenure, and after the course completion, you have a repayment holiday of 6 to 12 months.

Apply for Indian Overseas Bank Education Loan

To borrow funds from the bank, you need to go through a simple application procedure. After following the procedure successfully, the loan will get disbursed. And, to start the process, you need to visit the official Indian Overseas Bank website. Select the scheme according to your requirements and apply for it via the Vidya Lakshmi online portal.

  • Enter your name, mobile number and email in the online application form
  • Then mention the loan amount you require
  • Select the bank and then click on ‘Submit’

Your request will be sent to the bank and they will approve your loan if you meet the eligibility criteria. And you can contact the bank through the customer care number 1800 425 4445 to know your loan status.

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