Indian Overseas Bank is a leading government bank in India and one of the most preferred banks for education loans. The bank offers education loans to study abroad at affordable interest rates as per the Indian Banks Association model education loan scheme. You can get an IOB education loan for abroad studies under its ‘Vidyajyoti’ scheme.
The loan covers expenses such as tuition fees, accommodation fees, examination fees, and airfare (for studies abroad). IOB Education loan processing time depends upon various factors like mode of application, document submission, visa approval etc. Check all the details in this blog about the IOB Education Loan processing time.
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What is the IOB Education Loan Process Time?
IOB education loan processing time is usually 15-20 days from the date of submitting the education loan application. However, it depends upon the applicants as well as their sincerity towards submitting the necessary documents and responding properly to the bank. After the loan gets sanctioned, you must submit the documents required for IOB education loan disbursement. Check more details below:
- After the loan sanction, the bank may take up to 72 hours to disburse the loan amount to the university account
- For faster processing, get in touch regularly with the nodal officer working on your loan approval
- IOB Education loan processing will be more smooth and faster if all your documents are appropriate and the loan application form is properly filled
Also Read: Want a loan from Indian Overseas Bank? Check here all about IOB Education Loan without Collateral
Steps Involved in Loan Processing
There are certain stages involved in the processing of education loans from the Indian Overseas Bank. First of all, the students will be required to fill out and submit an education loan application form. After the submission of a form, the bank will sanction the loan subject to terms and conditions and the eligibility criteria. Check details on all the steps involved in IOB education loan processing:
Loan Application Form
The students are required to fill out and submit the education loan application form online through Vidya Lakshmi Portal IOB Education Loan or by visiting the branch. Along with the form, the student shall upload the relevant documents properly. The bank will start the verification after receiving the application form. IOB may call the applicant if they require any further information.
Loan Sanction
After successful verification, the bank will issue an education loan sanction letter. The letter will contain the terms and conditions of the loan, total eligible amount, interest rate, repayment period, EMI amount etc. If you agree to all the terms and conditions as outlined in the sanction letter, you need to sign and submit it back. Also, you can share a copy of the sanction letter with the university to show evidence of financial support.
Also Read: Check out all the major public sector banks in India for education loans
Loan Disbursement
After the loan sanction, the bank will ask for some more documents like proof of admission, visa approval letter, copy of air ticket, health insurance and travel insurance details etc. After verifying all these documents the bank will initiate the IOB education loan disbursement process which will just take 24-72 hours to get transferred to the university account.
FAQs
The IOB Education Loan Disbursement process involves several steps. Once your loan is approved, the funds are disbursed directly to the educational institution on your behalf. The disbursement is typically made in instalments, in line with the tuition and other fees payable at different stages of your academic program.
To ensure a smooth disbursement process, make sure you submit all required documents accurately. Provide the bank with any additional information or documentation they may request during the processing period. Keep in regular contact with the bank and the educational institution to stay informed about the status of your loan and to address any issues.
Yes, IOB generally offers flexibility in the mode of disbursement. You can choose to have the funds transferred directly to the educational institution, or in some cases, IOB may disburse the funds directly to you for certain expenses. However, this totally depends on the bank’s internal policy.
The timeline for disbursement varies, but it is generally aligned with the academic schedule and fee payment deadlines of the educational institution. IOB disburse funds in a timely manner, provided all necessary documentation is in order.
In case of any delay in disbursement, contact your IOB loan nodal officer immediately to inquire about the reasons for the delay and seek a resolution. It’s essential to stay in communication with both the bank and the educational institution to address any issues promptly.
This was all about IOB Education Loan processing time. Always keep a regular follow-up with the bank personnel and respond properly if the bank needs any specific information.
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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