Indian Overseas Bank is one of the best public sector banks in India providing education loans to study abroad aspirants. Under its IOB Scholar education loan scheme, the bank provides student loans up to INR 60 lakhs at competitive interest rates. The IOB education loan disbursement process is online and the amount is directly disbursed to the university’s account on the student’s behalf to cover tuition fees, accommodation expenses, travel expenses and other related expenses.
Let’s take you through the Indian Overseas Bank education loan disbursement process.
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Understanding Indian Overseas Bank Education Loan
IOB Education Loans are provided for a wide range of courses, countries and universities. Education loans up to INR 50 lakhs to study in India and up to INR 60 lakhs to study abroad are offered to eligible and meritorious students. The IOB education loan interest rates start from 11.55%.
Also Read: Check out this blog and know Why Education Loan Insurance is Essential for students taking financial assistance from lenders.
IOB Education Loan Disbursement Process
There are a few steps involved before the final loan disbursement. It includes filling out the application form, document verification, loan sanction and approval. After these steps, the Indian Overseas Bank education loan disbursement process is initiated. Let’s look at these steps in detail.
Submitting Application Form and Documents
The first and foremost step to avail an IOB education loan is to fill out the application form. This can be done online or by visiting the bank’s nearest branch. Vidya Lakshmi Portal Indian Overseas Bank is another way to apply for the same.
Once the application form is filled, the borrower is required to attach a list of documents, These include submitting documents relating to identity, address, academics, income, and collateral.
Document Verification
When documents are submitted to IOB, they will verify the documents. This process can take 5-7 days (7-10 days in some cases). Based on the documents submitted, the bank analyses the required loan amount, interest rates, repayment period, and other terms and conditions. Banks might ask for additional documents, so make sure to coordinate with them to avoid delays in the IOB education loan disbursement process.
Loan Sanction and Approval
The bank then provides you with the loan sanction letter. It is a promise to the borrower that they agree to provide the stated funds once the student successfully secures admission to the university.
The sanction letter specifies the quantum of finance, borrower’s and lender’s details, guarantor’s details, rate of interest, margin percentage, repayment period, asset pledged (if any) and other terms and conditions.
If the borrower agrees to it, they must sign it. You can submit this letter to the university as proof of sufficient funds.
Also Read: Check out the list of public sector banks providing education loans in India at low-interest rates.
Indian Overseas Bank Education Loan Disbursement
The student needs to further submit documents like acceptance letters, fee structure and visa approval letters that would help the bank initiate the disbursement process. The bank will verify the documents and give the loan disbursement letter. It states the date, amount, and mode of disbursement. Once signed by the borrower, the bank will disburse the loan amount directly to the university.
Documents Required for IOB Education Loan Disbursement Process
Before finally disbursing the loan amount to the university’s account, the bank requires a list of documents. These documents help them in initiating the loan disbursement process. Here’s the documentation relating to IOB education loan disbursement-
- A demand letter from a university or college
- Accommodation fee breakup/ rent agreement documents
- Estimate of average living costs (like food, clothing, electronic gadgets, books, and other study materials)
- Estimate of miscellaneous expenses (health insurance, travel costs, study aids, and incidental expenses)
- The self-attested final loan agreement
- Signed disbursement request form
FAQs on IOB Education Loan Disbursement Process
The borrower can initiate the application process through the Vidya Lakshmi Portal and submit the documents. Once submitted, the bank will take 7-10 days to process the IOB education loan.
IOB education loan interest rates start from 11.55% depending on factors like co-applicant income, CIBIL score and loan tenure.
Usually, the funds provided for tuition fees and on-campus accommodation are transferred directly to the university. However, if you have other expenses like off-campus accommodation and other related expenses, then the banks might transfer the amount to your personal savings account.
IOB education loans of up to INR 50 lakhs to study in India and up to INR 60 lakhs to study abroad are offered to eligible and meritorious students at interest rates starting from 10.05%.
After documentation, the bank will transfer the loan amount for the tuition fee and accommodation fee directly to the university.
This was all about the Indian Overseas Bank education loan disbursement process. It is important to understand the steps involved and carefully read the terms and conditions stated in the sanction letter.
To know more about the loan application process, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.
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