Indian Overseas Bank (IOB) Education Loan for India and Abroad

To alleviate the burden of aspiring students planning to pursue higher education in India or abroad, the Indian Overseas Bank (IOB) offers education loan schemes. The Indian Overseas Bank has three education loan schemes to help students finance their higher education, namely - the Vidya Jyoti Education Loan, IOB Vidya Shrest, and IOB Scholar Education Loan.

Features of Indian Overseas Bank (IOB)

Let us quickly get a glance at important features of Indian Overseas Bank (IOB):

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  Education loan from Indian Overseas Bank covers tuition fees, hostel expenses, examination fees, airfares, and study material costs.
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  Wide range of eligible courses for graduation, post-graduation, diplomas, and professional courses.
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  No margin requirements for loans up to INR 4 lakhs. However, for above INR 5 lakhs, 5% margin money is required for studies in India and 15% for abroad
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  There are no processing fees for education loans 
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  The entire process and pricing are transparent, and no hidden charges are there.
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  Moratorium period or grace period is 12 months after course completion.
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  Flexible repayment options are also available.
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  With GyanDhan, the application process is very simple, direct and transparent. Plus, with GyanDhan you can track your application status in real-time on your dashboard.

Comparison with Other Banks’ Education Loans

Let us compare Indian Overseas Bank education loan with others from this table:

Indian Overseas Bank IOB Education Loan Interest Rates

Let us understand Indian Overseas bank education loan interest rates from the table below. Please note that these rates can change, and we recommend that you check with the bank’s official website.

Indian Overseas Bank Education Loan Scheme - Vidya Jyoti

The Vidya Jyoti education loan scheme is designed for students pursuing professional/technical courses in India or abroad. 

IOB Vidya Jyoti Education Loan - Eligibility Criteria:

The eligibility criteria for the Vidya Jyoti Education Loan Scheme are as follows -

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  The student should have secured admission to a recognized higher education course in India should be obtained through an entrance test/merit-based selection process.
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  In states where a Common Entrance Test (CET) is not available, the applicant must achieve a minimum of 60% for others and 55% for SC/ST students in the qualifying examination as a cut-off.
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  If there is no Common Entrance Test (CET) for securing admission to post-graduate courses/research programs, the criteria should be based on the employment opportunities and reputation of the institution concerned.
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  The student should not be engaged in any employment.

Indian Overseas Bank Education Loan Scheme - IOB Scholar 

The IOB Scholar education loan scheme is designed for students pursuing higher education in India & abroad other than loans covered under the IBA model scheme.

IOB Scholar Education Loan Scheme - Eligibility Criteria:

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  Students should have secured a minimum of 60% for general & 55% for SC/ST in the plus two or its equivalent examination approved by the Government of India.

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  Students who wish to pursue vocational training and skill development courses that are not covered under the IBA Model Scheme (VJEL) are also eligible for this loan.

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  This loan scheme also covers students pursuing any other course that offers employment upon completion.

Please note: that the loan amount for students falling under these categories may exceed the eligibility limits set by the IBA Model Scheme, provided they meet the eligibility criteria specified for this scheme.

IOB Education Loan - IOB Vidya Shrest

This IOB bank education loan scheme aims at providing term loans to students for pursuing higher education in premier institutions in India’s best engineering and medical colleges, top B-schools, law colleges & other reputed institutions. Top colleges are divided into categories A & B.
 

IOB Vidya Shrest Education Loan Scheme - Eligibility Criteria:

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  The student should be an Indian national and must have secured admission to the select premier institutions.
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  This scheme covers regular full-time degree/diploma courses that require an entrance test/selection process for admission. Executive management Courses such as PGPX are also included in this scheme.
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  Certificate/part-time courses are not eligible for coverage under this scheme.

IOB Education Loan - Important Points

Indian Overseas Bank IOB Education Loan - Documents Required

Below listed are the IOB education loan documents required list -

Applicants Documents:

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  Identity proof: PAN/ Passport/ Driver’s License/ Voter ID card or government-issued identification document
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  Education loan application form
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  Address proof: recent copy of telephone bill/ electricity bill/water bill/ piped gas bill/ Driving license/ Aadhaar card
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  Passport
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  Past academic record
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  10th standard mark sheet
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  12th standard mark sheet
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  Undergraduate result (semester-wise)
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  Entrance exam results (e.g. GMAT, GRE, TOEFL, etc.)
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  Proof of admission: admission letter (A conditional admission letter is also applicable).
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  Statement of expenses
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  2 passport-size photographs
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  Loan A/C statement of one year (if applicable)
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  Bank account statement of the student (if applicable)

Co-applicant’s Documents:

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  Identity proof: PAN/ Passport/ Driver’s license/ Voter ID card or government-issued identification document
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  Address proof: recent copy of telephone bill/ electricity, water, piped gas bill or copy of Driving license/ Aadhaar card
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  2 passport-size photographs
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  Co-borrowers bank account statement for the last 6 months
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  In case of another ongoing loan, then the loan A/C statement of 1 year

Income proof for salaried co-applicant/guarantor:

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  Salary slips for the last 3 months
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  Copy of Form 16 of the last 2 years or copy
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  Bank account statement for the last 6 months (Salary account)
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  A brief statement of assets & liabilities of parent/ guardian/ other co-borrower

Income proof for self-employed co-applicant/guarantor:

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  Business address proof
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  Last 2 years IT returns ( If IT Payee)
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  TDS certificate (Form 16A, if applicable)
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  Certificate of qualification (for C.A./ doctor and other professionals)
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  Brief statement of assets & liabilities of parent/ guardian/ other co-borrower
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  Bank account statement for the last 6 months

IOB Education Loan Repayment Rules

After the moratorium period is over the students are required to pay the EMI. During the moratorium period, students are required to pay simple interest. If students do not pay simple interest during the moratorium, the collective interest is added to the EMI. Indian Overseas Bank offers three methods for repaying education loans.

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  Standing Instruction (SI): If you have an existing account with IOB, SI is the most convenient option. Your monthly EMI amount will be automatically deducted from your designated IOB account at the end of each month.

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  Post-Dated Cheques (PDCs): If you don't have an IOB account, you can provide post-dated EMI checks from a non-IOB account holder at the nearest IOB Loan Center. However, please note that PDCs are accepted only at non-ECS locations, and you must promptly submit a new set of PDCs when required.

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  Electronic Clearing Service (ECS): If you have a non-IOB account and prefer automatic debits for your EMIs, you can opt for the Electronic Clearing Service (ECS). This service will deduct your EMI amount from your non-IOB account at the end of each monthly cycle.

Role of Collateral and Margin Money

When applying for an education loan, collateral and margin money are important factors to consider. Let us understand what they mean:

What is Collateral?

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  Collateral is something you pledge as security to the bank for loans above a certain amount.
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  It can be property, fixed deposits, or government bonds.
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  For IOB loans, collateral is required:

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    For loans above INR 7.5 Lakh under most schemes.
  • 
    No collateral is required for education loans for smaller amounts or for premier institutions under the Vidya Shrest scheme (up to INR 15 Lakh).

What is Margin Money?

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  Margin money is your contribution towards the total education cost. This is the amount you pay from your pocket.
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  The remaining education loan is paid by the bank.
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  For IOB:

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    5% for studies in India.
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    15% for studies abroad.

How to Apply for an IOB Education Loan?

The Indian Overseas Bank education loan procedure is straightforward. To apply for an IOB education loan, you can use both online and offline methods.

IOB education loan application offline mode:

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  Go to the nearest branch of an Indian Overseas Bank and inquire about their education loan options.
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  Based on your eligibility and specific requirements, choose an appropriate loan product and complete the application form.
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  Obtain the list of necessary documents to initiate the loan processing.
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  Make a second visit to the bank to submit all the required documents and start the loan processing procedure.

IOB education loan application online mode:

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  To secure an IOB education loan you have to apply at the Vidya Lakshmi portal.
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  Submit the required documents
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  The bank will review and approve or deny the loan application after reviewing the student's profile and documents.

Various lenders provide a range of education loan schemes with different features and benefits. Students are bound to get confused. To sail through the confusion without making a wrong move, contact GyanDhan. Apart from partnering up with several of the lenders in the market, we can offer an unbiased opinion on the loan products as our executives are thoroughly acquainted with them. Not only that, GyanDhan offers all these services, and more, absolutely free of cost to the students. Floored by the many services offered and want to apply for a loan? Just start by checking your education loan eligibility and start the process!

How to Track and Manage Your IOB Education Loan Online

Following are the methods to track and manage your IOB education loan

Using Net Banking:

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  Log in to your IOB net banking account.
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  Navigate to the Loans section.
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  Check your loan balance, disbursals, repayment schedule, and interest accrued.
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  Download loan statements for easy tracking.

Using Mobile Banking:

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  Download the IOB mobile app and log in.
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  Go to the Loan Details section.
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  View real-time updates on disbursals and outstanding amounts.
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  Set alerts for EMI payments and track your repayment progress.

Though GyanDhan Live Dashboard:

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  Apply through GyanDhan
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  You can check your loan eligibility here.
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  An expert loan counselor will be dedicated to you
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  View real-time updates of all your loan applications on your dashboard.

Tips for Faster Loan Approval

Here are ten concise and actionable tips to ensure quick approval and disbursement of your education loan:

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  Keep Documents Ready: Make sure all your relevant documents are ready and updated. The same applied to the co-applicant.

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  Know the Eligibility: Make sure that you are eligible for the loan, as any unfulfilled condition may result in the cancellation of your loan application.

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  Apply Early: Start the loan process as soon as you receive your admission offer to avoid last-minute delays.

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  Check Credit History: Your co-applicant must have a good credit score by clearing outstanding debts or loans.

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  Submit Accurate Details: Provide correct financial and personal information to avoid application rejection or delays.

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  Choose Recognized Institutions: Applying for courses at reputed institutions improves the chances of quicker approval.

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  Prepare Collateral (If required): For loans needing collateral, make sure all property or asset documents are complete, in order and meet bank standards.

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  Respond Promptly: Stay in touch with the bank and respond quickly to any additional requirements. The bank may call you for an interview to better understand your requirements.

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  Track Application Progress: Use the bank’s tracking tools or services to monitor the status of your loan application regularly. If you have applied through GyanDhan, then you can track the status of all your loan applications on a single dashboard.

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  Seek Expert Help: Consider consulting education loan advisors like GyanDhan for guidance to simplify the application process, faster approval and better chances of getting your education loan sanctioned.

Frequently Asked Questions