Looking for an Education Loan to Pay Tuition or Coaching Fees?

Look no further. This page contains all the information you will need on the one-of-a-kind Indian Overseas Bank’s Career Dreams Loan to pay the fees for tuition and coaching classes for competitive entrance test exams.

Indian Overseas Bank Career Dreams Education Loan

This loan helps students who want to clear entrance tests for professional courses to pay for their tuition or coaching fees. The loan amount starts from Rs. 25,000 and can go up to Rs. 2 lakh.

Features of IOB Career Dreams Education Loan

Why this Loan?

  • The loan is meant for you if you want to attend coaching classes for Entrance tests for professional courses such as B. Tech, CA, BE, BBA, etc. or skill development courses such as SAP, SAS, etc.
  • The Indian Overseas Bank Career Dreams Education Loan Scheme is a one-of-a-kind loan scheme to help aspiring students get access to coaching classes so that they can improve their chances of clearing the entrance tests

Loan Amount

  • The minimum loan amount starts from Rs. 25,000 and the maximum amount can go up to Rs. 2 lakh


  • As of October 2020, the rate of interest for the Indian Overseas Bank Career Dreams Education Loan is 10.30% for loans secured by LIC, KVP, NSC, immovable property, etc. and 10.80% for unsecured loans
  • The interest rate for the secured loans is the sum of the Repo Linked Lending Rate (RLLR) of 6.85% and a spread of 3.45%, while the spread for unsecured loans is 3.95%


  • Repayment period is up to 3 years after course completion
  • There is no moratorium period for this loan
  • Repayment period should not exceed the applicant’s retirement age in case of salaried class

Security Needed

  • For salaried people whose salary is routed from Indian Overseas Bank, no security is required for this loan
  • In the case of salaried people whose salary is not routed through IOB, self-employed people or student applicants, collateral is required
  • A third-party guarantee is not required if collateral in the form of deposits, LIC, NSC, etc. is used to secure the loan. In other cases including where immovable property is used as collateral, a third-party guarantee is needed


  • The borrower should be an Indian national
  • The (coaching) institute should be registered as per the applicable government norms and must have run satisfactorily for a period of at least 2 years

Eligible Courses

  • Loan for financing Coaching or Tuition fee of reputed Institutions in India to prepare for entrance examinations for professional courses. These courses include CA, Medicine, Engineering, Business Management, etc.
  • Civil services examinations that lead to IAS, IPS, IFS etc.
  • Various Career and Skill development courses such as NIIT, APTECH, SSI, SPSS, SAS, SAP etc. are also eligible

Borrower Contribution to Total Cost (Margin Money)

  • The bank charges 5% of the tuition fee as issued by the institute as margin money for the IOB Career Dreams Loan
  • IOB asks for a margin of 25% if immovable property has been used as collateral
  • The margin is 10% if movable assets are used as collateral

Note: Margin money refers to the amount the borrower contributes to the overall amount required

Processing and Other Charges

  • IOB charges a non-refundable fee of 0.5% of the loan amount as processing fees for the Career Dreams Education Loan

Uses of the Loan

  • The loan amount can be used to pay tuition fees to prepare for entrance tests for professional courses or for job-oriented examinations such as Civil Services

Other Features to Know

  • The applicant must have regular and verifiable income and have repayment capacity when availing the loan
  • If the student has reached the age of majority and earns money independently, then she/he can apply for the loan. In other cases, parents or guardians must be the applicants

Documents Needed

  • Application Form duly filled and signed by applicant and/or parents along with details of applicant and/or parents
  • Two Passport Size Photographs of applicant(s)
  • Photocopy of PAN Cards of the student or parents that need to be submitted at the time of application or during the course period
  • Personal Identification Proofs (Any One): Electoral I-Card, Passport, Driving License, PAN Card or Aadhaar Card
  • Residential Address Proof (Any One): Electricity Bill, Landline Telephone Bill, Electoral or Voter ID Card or Passport
  • Fee Details of the Coaching Institution
  • All Proofs of Past Academic Record including Mark Sheets and Certificates

Reference Facts

  • Indian Overseas Bank Website: www.iob.in and www.iobnet.co.in (net banking)
  • Headquarters: Chennai, Tamil Nadu
  • Education Loan Number: 044-28519490, 044-28519639
  • Call Centre Toll Free Number: 1800 425 4445

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