Indian Overseas Bank is one of the best government banks in India. It was established in the year 1937 and was later nationalised in 1969. IOB education loan to study abroad is offered under the IOB Vidya Jyoti and Vidya Suraksha education loan scheme. You can apply for the loan through the Vidya Lakshmi portal education loan.
Both the loan scheme has different features and terms and conditions. You can check the details of the schemes and finalise the best-suited loan product for you. Let’s check and understand all about IOB Education loans, eligibility, interest rates and others.
Table of contents
Overview of IOB Education Loan to Study Abroad
IOB education loan to study abroad is provided to meritorious students who want to study in approved universities in a foreign country. The two major schemes under which you can avail the loan are bifurcated based on the maximum loan amount, collateral requirements and repayment period. You can also get an IOB education loan without collateral subject to the approval and capped amount. Check the table below to understand the education loan schemes:
| Particulars | IOB Vidya Jyoti Education Loan | IOB Vidya Suraksha Education Loan |
| Loan Amount | INR 7.5 lakh to 50 lakh | Up to INR 7.5 lakhs |
| Repayment Period | Up to 15 years | Up to 15 years |
| Eligibility Criteria | Indian citizens above 18 years of age Must have secured admission to an approved university abroad Must not be employed in a paid job | Indian citizens above 18 years of age Must have secured admission to an approved university abroad Must not be employed in a paid job |
| Rate of Interest | MCLR + 3.00 % (Floating Interest Rate)**0.5% rebate in interest rate will be provided to female students | MCLR + 2.00% (Floating Interest Rate) |
| Collateral Requirements | Tangible Collateral Security Required | NA |
| Processing Fee | NIL | NIL |
IOB Education Loan Eligibility Criteria
Eligibility criteria are one of the most important factors which you should check and understand before applying for an education loan. In case the loan gets rejected based on eligibility criteria, there will be unnecessary trouble for you and it also may impact your credit score negatively.
For both IOB Vidya Jyoti and IOB Vidya Suraksha education loans, the eligibility criteria is the same. Check the details below:
- The student must be above 18 years of age
- He/she must be an Indian citizen
- The applicant shall not be under any gainful employment
- The co-applicant must have a source of income
- The student must be admitted to a reputed and approved university abroad
Also Read: Check here all the important details about HSBC Education Loan to study abroad
IOB Education Loan Interest Rate
IOB education loan interest rate is calculated based on the MCLR (Marginal Cost of Funds based Lending Rate) and the spread as determined by the bank. The final applicable interest rate is the sum of MCLR and the spread. Check the details of the IOB Education Loan interest rate below:
| Loan Amount | Rate of Interest |
| For all amount | RLLR + 0.40% (SP) + 1.25% (RP) = 11.00% |
| For all amounts to wards of staff (both present and retired staff) | RLLR + 0.40% (SP)+ 0.00% (RP) = 9.75% |
IOB Education Loan Interest Rate Concession
Indian Overseas Bank provides some rebates on the interest rate of education loans. The eligibility for getting a discounted interest rate has been determined by the bank based on merit, gender etc. Check the major details below:
- All female students are eligible to get a rebate of 0.5% on the interest rate
- If you are paying the interest rate during the moratorium then you will be eligible to get a discount of 1% on the overall interest rate
- A discount of 1.25% will be given to the wards of current and retired employees of the Indian Overseas Bank
- Students who get admission to the top 100 international universities will get a rebate of 1.50%
- Students who get admission to the top 101-200 universities will get a rebate of 1%
Application Procedure
All the education loan applications, especially in the case of a government bank, shall be made through the Vidya Lakshmi portal. You just need to visit the portal and apply for this bank’s education loan to study abroad by selecting the suitable scheme. A duly filled application form with appropriate details helps to reduce IOB Education Loan processing time. Check the steps to apply below:
- Visit the official website of the Vidya Lakshmi portal
- Register and log in with the credentials and visit the students’ section
- Check the scheme and fill out the loan application form
- Submit the form along with the documents
- Wait for the verification
- The bank will contact you soon after receiving the education loan application
Documents Required
There are various documents required for IOB Education Loan. The applicant and the co-applicant must submit KYC, income and academic documents (as applicable). When you will submit all the documents required, the IOB education loan disbursement process will be initiated. Check the complete list of documents below:
- Aadhaar card
- PAN Card
- Scorecard of secondary and senior secondary exam
- Scorecard of the undergraduate exam (if applicable)
- Bank statement for the last 6 months
- Salary Slip for last 3 months
- ITR
- Copy of visa approval letter
- Copy of Admission Confirmation Letter
Also Read: Did you know banks also consider RLLR while determining interest rates? Check here the full form of RLLR and why it is important
This was all about the major details of the IOB education loan to study abroad. Always check the details of each and every loan scheme offered by the bank and then finalise one that is suitable for you. Check some frequently asked questions regarding this bank’s education loan below.
FAQs
Under the IOB Vidya Jyoti Education Loan, you can avail a loan amount from INR 7.5 lakh to 50 lakh. For the IOB Vidya Suraksha Education Loan, the maximum loan amount is up to INR 7.5 lakhs.
Yes, there are several interest rate concessions available. Female students are eligible for a rebate of 0.5% on the interest rate. Also, if you pay the interest rate during the moratorium period qualifies for a 1% discount on the overall interest rate. The bank also offers a rebate of 1.25% rebate to the wards of current and retired employees of Indian Overseas Bank.
To apply for this bank’s education loan, visit the Vidya Lakshmi portal’s official website. Register and fill out the application form, and submit it along with the required documents.
Any Indian student above 18 years of age who has secured admission to an approved university abroad can apply for this bank’s education loan.
No, there are no processing fees for both the IOB Vidya Jyoti and Vidya Suraksha Education Loan schemes.
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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