Indian Overseas Bank Vidya Shrest Education Loan Scheme
This loan helps meritorious and deserving students pursue higher education at a premier institute in India. This loan is applicable to students who have secured admission through an Entrance-test or Merit-based Selection process. The maximum loan amount is capped at Rs. 30 lakh.
Features of Vidya Shrest Education Loan
Why this Loan?
- The loan is meant for you if you have secured admission into a premier institute in India
- Indian Overseas Bank offers a higher loan amount as compared to other banks under this loan scheme
- The bank disburses the Indian Overseas Bank Vidya Shrest Education Loan as a series of payments over the required number of terms or years to pay the fees or other approved charges
- No minimum qualifying marks stipulated in qualifying examinations to get the loan
- The maximum loan amount is capped at Rs. 30 lakh this loan
- The interest rate for this loan depends on the IOB’s categorisation of institutes into List A and List B
- List A: As of October 2020, the effective interest rate for this loan is 7.25% for students studying in List A institutes. It is the sum of the Repo Linked Lending Rate (RLLR) which stands at 6.85% and a spread of 0.4%
- List B: As of October 2020, the effective interest rate for this loan is 7.75% for students studying in List B institutes. It is the sum of the RLLR and a spread of 0.9%
- Unlike other Indian Overseas Bank education loans, there are no discounts for the children of IOB employees on this loan scheme
- The repayment moratorium is for the course duration and an additional grace period of 12 months after completion of course or 6 months after getting a job whichever is earlier
- The loan needs to be repaid in 180 months in equated monthly instalments (EMIs) after the moratorium ends
- List A Institutes: Parents must be co-borrowers of the loan. No collateral security is required for loans up to Rs. 15 lakh. However, for loan amount higher than Rs. 15 lakh, a tangible collateral of full value of the loan must be submitted as security
- List B Institutes: Parents must be co-borrowers of the loan. No collateral security is required for loans up to Rs. 7.50 lakh. However, for loan amount higher than Rs. 7.50 lakh, a tangible collateral of full value of the loan must be submitted as security
- The borrower should be an Indian national
- The student must have secured admission for higher studies in one of the premier institutes in India. The list of eligible institutes for this loan is available on this bank’s website
- You can apply for this loan to pursue higher education courses offered by premier institutes specified by Indian Overseas Bank in this list
Borrower Contribution to Total Cost (Margin Money)
- No margin money is needed
Note: Margin money refers to the amount the borrower contributes to the overall amount required. Suppose a course costs Rs. 40 lakh in which case the borrower will have to pay 5% of Rs. 40 lakh which is Rs. 2 lakh. The bank will cover the rest. In the case of Indian Overseas Bank, scholarship is included in the margin.
Processing and Other Charges
- There are no processing charges for this loan
Uses of the Loan
- The loan amount can be used to pay any fees or other charges that are a part of the standard tuition, hostel or any other institution-approved cost that are necessary to complete the course
- The loan can also be met to cover any travel expenses, study tours, laboratory sessions and so on
Other Features to Know
- The loan is disbursed directly to the college, book seller or publisher, computer seller, and so on and not to the applicant
- The bank may ask for the submission of the student’s progress report at regular intervals during the course
- If the loan amount is lower than Rs. 7.50 lakh, the loan is covered under the Credit Guarantee Fund Scheme for Educational Loan (CGFSEL) Scheme
- Application Form duly filled and signed by applicant and/or guarantor along with details of applicant and/or guarantor and family
- Two Passport Size Photographs of student, applicant and/or guarantor
- Photocopy of PAN Card of the student that needs 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
- Admission Letter, Course Details and Prospectus
- Fee Details with Demand of Fee by the Institution
- All Proofs of Past Academic Record including Mark Sheets and Certificates
- Copy of Passport since loan is for overseas study
- Relevant documents to avail the interest subsidy schemes, if eligible
- Property or other security documents wherever applicable
- Cheque for processing charges that is refunded on first disbursal of loan
- 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
IMPORTANT: Thousands of smart students and their parents lose lakhs of money every year by choosing a costlier education loan.
Apply for Education Loan Only After Finding the Best Education Loan Using Our Guide
India’s First Education Loans Guide – Now at Rs 49 ONLY (same price as soft drink)
Here is what the Guide offers:
- Coverage of All Education Loans from Top Public and Private Banks
- Compare interest rates for each loan, max. loan amount, max. unsecured loan amount, fees and charges, etc.
- Loan for regular studies in India, foreign studies, professional studies, aviation, shipping, PhDs, etc.
Find all-important details before you visit the branch using our Guide to Education Loans.
Don’t lose money on excess interest payments to banks. Click Here to Buy the Education Loan Guide.