Indian Overseas Bank is one of the public sector banks in India that provides different kinds of retail loans. Under this category, it offers types of home loans, car loans, jewel loans, education loans and many others. Education loans to study in India or abroad are provided with and without collateral. IOB education loans without collateral are provided up to INR 4 lakhs as per RBI guidelines on education loans 2024.
Continue Reading to find out more about IOB education loans without collateral.
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Understanding IOB Education Loans
IOB Education Loans are the loans provided to aspiring and eligible students to pursue higher education in India and abroad. This helps alleviate the financial burden and chase their dreams without worrying about funds. The bank provides education loans of up to INR 50 lakhs to study in India and up to INR 60 lakhs to study abroad (with collateral). The IOB education loan interest rate starts from 11.55%. Students can apply easily through Vidya Laksmi Portal Indian Overseas Bank.
Students are required to provide margin money of up to 15% of the total loan amount. Scholarships/assistantships are included in the margin. The repayment of an IOB education loan offers flexibility and is equated in monthly instalments for up to 15 years. Repayment of the loan starts after the moratorium period/ holiday period, which is the course duration plus 1 year or after getting the job (whichever is earlier).
| Maximum Loan Amount | Up to INR 50 lakhs (to study in India) Up to INR 60 lakhs (to study abroad) |
| Interest Rates | Starts at 11.55% (RLLR + 2.20% RLLR= 9.35%)- for loans up to INR 7 lakhs |
| Security | Collateral-free loans up to INR 4 lakhsCollateral required above INR 4 lakhs |
| Repayment Period | Up to 15 years |
| Moratorium Period | Course duration + 1 year OR after getting the job (whichever is earlier) |
Recommended Read: Planning to study abroad via financial assistance? Check out our blog on the List of Approved Foreign Universities for Education Loan.
IOB Education Loans without Collateral
There are many IOB education loan schemes to fund higher studies in India like ‘Career Dreams’, ‘IOB Passion’, and ‘IOB Vidya Shreshtha’. To study abroad, schemes like ‘IOB Vidya Jyoti’ and ‘IOB Scholar’ are covered. Under all these categories, IOB education loans without collateral are provided up to INR 4 lakhs. Let’s have a look at the details-
IOB Vidya Jyoti Education Loan
An individual who aspires to become a pilot can avail of education loans for pilot training. IOB Vidya Jyothi Education loan is one of this kind provided to individuals who undertake training programmes to acquire skills needed to join as pilots. Those applying for job-oriented professional/ technical courses from reputable universities abroad can also apply.
| Quantum of Finance | Minimum Loan Amount- INR 7.5 lakhs Maximum Loan Amount- INR 30 lakhs For study abroad- INR 40 lakhs |
| Security | Upto 4 lakhs- NILAbove 4 lakhs- Required |
| Interest Rates | RLLR + 1.65% (9.35% + 1.65%) = 11% |
IOB Scholar Education Loan
Scholar education loan is the financial aid provided by the Indian Overseas Bank to pursue higher education in India and abroad other than loans covered under the IBA model education loan scheme. Such loans are disbursed directly to the university and in stages as per the requirement.
| Quantum of Finance | Maximum Loan Amount- INR 50 lakhs For study abroad- INR 60 lakhs |
| Security | Upto 4 lakhs- NIL Above 4 lakhs- Required |
| Interest Rates | Up to 7.5 lakhs = 11.55% Above 7.5 lakhs and up to 60 lakhs = 12.55% |
Students can consider taking education loans from Indian Overseas Bank as the IOB Education Loan Disbursement Process is quick and hassle-free.
Also Read: Planning for study abroad loan from SBI? Read this and know the differences between the SBI Student Loan Scheme and SBI Global Ed-vantage Scheme
IOB Education Loan Interest Rates
Different banks have different interest rates at which they provide education loans. The IOB education loan interest rates are calculated as the sum of RLLR (Repo Linked Lending Rate) and the Spread.
Spread is the difference between the rate of interest commercial banks pay out loans and the rate at which deposits are credited to their accounts.
The RLLR (w.e.f from 08.02.2023) of IOB is 9.35%. Let’s have a look at the IOB education loan interest rates applicable to the loan schemes discussed above-
IOB Education Loan Interest Rate- Vidya Jyoti
| Type | Rate of Interest | Effective IOB education loan interest rates |
| Interest Rates for Public | RLLR + 1.65% | 11.00% |
| Interest Rates for the wards of IOB Staff (including retired) | RLLR + 0.40% | 9.75% |
IOB Education Loan Interest Rate- IOB Scholar
| Type | Rate of Interest | Effective IOB education loan interest rates |
| Loan up to INR 7.50 lakhs | RLLR + 2.20% | 11.55% |
| Above INR 7.50 lakhs and up to INT 60 lakhs | RLLR + 3.20% | 12.55% |
| For the wards of Staff | RLLR + 1.90% | 11.25% |
Please Note that the interest rates are subject to change as per new market trends and economic changes in the country.
FAQs on IOB Education Loan without Collateral
Yes, Indian Overseas Bank provides education loans of up to INR 50 lakhs to study in India and up to INR 60 lakhs to study abroad.
It is not possible to avail 25 lakh IOB education loan without collateral because IOB is a public sector bank and under RBI guidelines for education loans, banks can provide collateral-free loans of up to 4 lakhs.
IOB education loan interest rates start from 11.55% (which is the sum of RLLR + spread).
An Indian citizen who has secured admission to university through entrance or merit-based is eligible to avail IOB education loan. The student must also have a good credit score.
IOB education loans are provided up to 60 lakhs to study abroad that cover tuition fees, travel expenses, accommodation expenses and related study abroad expenses.
This was all about IOB education loans without collateral. Based on RBI guidelines on education loans, the bank provides collateral-free loans up to 4 lakhs. Make sure to compare different lenders and read IOB education loan terms and conditions carefully before applying.
To know more about education loans, 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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