IOB or Indian Overseas Bank provides refinance services for education loans at competitive interest rates. Students who have taken an education loan from any bank or NBFC can easily transfer their education loan to Indian Overseas Bank and reduce the overall cost of the loan. IOB education loan interest rates start from 9% under various schemes of the loan like the IOB Vidya Jyoti education loan, IOB Scholar Education Loan etc. Check all the details on IOB refinance interest rates for education loans.
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What is IOB Refinance Interest Rates for Education Loan?
The Indian Overseas Bank (IOB) offers education loans under the IOB Refinance Scheme at competitive interest rates. The interest rate is linked to the bank’s Marginal Cost of Funds based Lending Rate (MCLR). The interest rates for these loans range from around 8% to 10%, depending on factors such as the loan amount, type of course, and institution. Also, the bank provides rebates on interest rates for female students.
- You can get up to INR 1.5 crore loan refinance from Indian Overseas Bank subject to the eligibility criteria set by the bank
- The bank provides discounts of 1.25% on interest rates to wards of staff & retired staff
- For loan amount exceeding INR 7.5 lakh, you need to pledge collateral for IOB education loan refinance
Also Read: Check here all the major details about IOB Education Loan Disbursement
IOB Education Loan Refinance Process
The Indian Overseas Bank (IOB) offers a refinancing option for education loans. The major purpose of IOB education loan refinances is to allow students to refinance their existing education loans to benefit from better interest rates and repayment terms. Once you apply for IOB education loan, it will evaluate your financial profile, the existing loan terms, and the academic course. Once approved, IOB will take over the loan from the original lender and offer revised repayment terms, such as lower interest rates or an extended repayment period. Check more details below:
- You need to apply for refinancing by submitting details of your existing education loan. Please note that the payment of EMI with the existing lender shall be regular.
- Indian Overseas Bank will assess your financial profile, academic details, and current loan terms.
- You need to provide necessary documents such as loan agreements, proof of admission, and academic records.
- Once approved, IOB will take over the loan from the original lender.
- IOB offers new repayment terms, which may include lower interest rates or extended repayment tenure.
Important Guidelines for Education Loan Refinancing
The major purpose of education loan refinancing is to reduce the loan cost and get more flexible repayment terms. Always compare interest rates across lenders to find a lower rate that reduces your overall repayment burden. Check some important guidelines regarding IOB education loan refinance below:
- Start with comparing the terms and conditions of the current loan and the new loan and find out which bank is saving you more money
- Try to make sure you understand the new loan’s repayment terms like the tenure and any penalties for early repayment. However, most of the banks don’t have any early repayment charges on education loan
- Check if refinancing involves any hidden fees like processing charges, education loan insurance charges etc.
- Always ensure that your credit score and financial profile are strong, as these will affect your eligibility for better refinancing deals.
Also Read: Check here all the details about Education loan without guarantor to study abroad
These were some major details on IOB refinance interest rates for education loans. Always compare the overall cost of the loan before applying for refinancing. Check some common FAQs based on the same below:
FAQs
IOB offers education loan refinancing at competitive interest rates ranging from 8% to 10%. The rates are linked to the bank’s MCLR and depend on factors like the loan amount, course, and institution.
IOB allows students to refinance education loans up to INR 1.5 crore, subject to meeting the bank’s eligibility criteria.
To refinance an education loan, you need to submit details of your existing loan like the loan agreements and academic documents. IOB will evaluate your financial profile and, upon approval, offer new repayment terms.
Yes, IOB provides a discount of 1.25% on interest rates for the wards of IOB staff and retired staff members.
It’s important to compare the interest rates, repayment terms, and any hidden fees between your current lender and IOB.
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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