IOB Scholar Education Loan: Interest Rates, Eligibility, Apply Online

IOB Scholar Education Loan
Home » Education Loan » IOB Scholar Education Loan: Interest Rates, Eligibility, Apply Online

The Indian Overseas Bank offers six education loan schemes. Deciding on which loan scheme to choose can be challenging, especially when you are planning to study abroad and want to avail loans at lower interest rates. IOB Vidya Jyothi education loan scheme, Vidya Suraksha and IOB Scholar are the popular study abroad schemes.

Both schemes are different in terms of the maximum loan amount, interest rates, and eligibility criteria. In this blog, we will cover all the the details of IOB Scholar education loan scheme.

What is an IOB Scholar?

IOB Scholar is an education loan scheme provided by the Indian Overseas Bank. Aspiring students can pursue higher education in India and abroad other than the loans covered under the IBA Model Scheme. The scheme covers all the students who have been kept outside the purview of the IOB Vidya Sukraksha/ Vidya Jyothi education loan scheme.

Maximum Loan AmounUp to INR 60 lakhs to study abroad
Interest Rates11.25% to 12.55%
Repayment PeriodUp to 15 years
Moratorium PeriodCourse period + 1 year
Margin MoneyA uniform margin of 25% irrespective of the loan amount.
Processing ChargesApplicable based on the loan amount(Usually 0.50%)

Also Read: Check out our blog on Top-up Education for specialised programs. It includes details related to the process, eligibility, and repayment.

IOB Scholar Interest Rates

The IOB education loan interest rates are based on RLLR, which is linked to the repo rate set by the RBI. These are floating rates of interest which are subject to revision every quarter. IOB Scholar interest rates range from 11.25% p.a to 12.55% p.a. These are calculated as a sum of RLLR and spread. The current RLLR is 9.35%. The table below shows the effective rates of interest-

Loan AmountRate of Interest Effective ROI
Up to INR 7.5 lakhsRLLR + 2.20%11.55% p.a.
INR 7.5 lakhs to INR 60 lakhsRLLR + 3.20%12.55% p.a.
IOB SCHOLAR TO STAFF WARD UP TO Rs. 60 lakhsRLLR + 1.90%11.25% p.a.

Also Read: Did you know about tax benefits on interest paid on education loans? Check out the details on Income Tax Rebates on education loans under Section 80E of the Income Tax Act.

Eligibility Criteria

An applicant who seeks a loan for a total amount more than that is eligible under the Model Scheme subject to fulfilling eligibility norms is covered under the IOB Scholar scheme. However, there are other eligibility criteria that the student is required to fulfil. Check the same given below-

  • Must be an Indian national.
  • Students who have been admitted into a college approved by AICTE, UGC or any other recognized Statutory Body under Management Quota without undergoing any test or Interview but have secured minimum cut-off marks of 60% for General and 55 % for SC/ST in the plus two or its equivalent examination approved by Govt. of India / respective State Governments.
  • Students who seek loans for a total amount more than that is eligible under the Model Scheme subject to fulfilling eligibility norms to be covered under this Scheme. However, the loan is to be considered under any one of the Schemes only.
  • Students who want to pursue Vocational Training and skill development courses that are kept outside the Model Scheme (VJEL).
  • Any other course pursued by students who are having employability on completion.

Documents Required

Documents are an important thing that must be attached along with the application form for education loans. The IOB forms a list of documents to be submitted. Make sure to attach bonafide certificates and authentic mark sheets to ensure faster IOB education loan processing time. The checklist is noted below:

  • Education loan application form
  • 2 passport-size photographs
  • Class X result sheet
  • Class XII result sheet
  • Graduation mark sheet
  • Aadhaar Card/ Voter ID/ Passport/
  • Salary slips, Form 16, ITR for Salaried employees
  • P&L Statement, Balance Sheet, ITR, and Business evidence for Businessman
  • Acceptance letter from the university
  • Language proficiency exam result
  • Accommodation fee breakup (on-campus accommodation)
  • Rent agreement documents (off-campus accommodation)
  • The self-attested final loan agreement
  • Disbursement request form signed by the applicant and co-applicant
  • Receipt of margin money paid to the college/university along with the bank statement reflecting the transaction
  • Original KYC documents for the student, co-applicant, and guarantor

Also Read: Know all about the full form of NPA and check out what happens with NPAs when the borrowers of education loans stop making payments.

How to Apply for IOB Scholar Online?

Applying for the IOB Scholar education loan scheme is super easy. You can visit the nearest bank branch, fill in the loan application form and attach the required documents. Applicants can apply for the IOB Scholar loan online through IOB Vidya Lakshmi Portal. The following steps can help in a hassle-free application process-

  • Visit the official website of Vidya Lakshmi Portal.
  • Register yourself if you are not registered.
  • Log in using your credentials.
  • Click on ‘Search and Apply for Loan’.
  • Search for ‘IOB Scholar’.
  • Click on ‘Apply’.
  • Fill out the application form and upload the required documents.
  • Wait for a callback and visit the branch if necessary.

This was all about the IOB Scholar education loan to study abroad. It is important to keep and attach the documents along with the duly filled-out application form. This enables the bank to quickly process your application for an education loan.


What is the IOB Scholar education loan scheme?

IOB Scholar is an education loan scheme provided by the Indian Overseas Bank. Aspiring students can pursue higher education in India and abroad other than the loans covered under the IBA Model Scheme.

What are the interest rates in the IOB Scholar?

IOB Scholar interest rates range from 11.25% p.a to 12.55% p.a. These are calculated as a sum of RLLR and spread. The current RLLR is 9.35%. 

Who is eligible for the IOB Scholar education loan scheme?

To be able to apply for the IOB Vidya Jyothi education loan scheme, the applicant must be an Indian citizen. Besides, students must have secured admission to a recognised university abroad through an entrance examination or merit-based selection process.

What expenses are covered under IOB Scholar?

The scheme aims to meet educational expenses. Expenses like tuition fees, accommodation costs, and costs of books, exams and airfare.

What is the IOB Scholar’s maximum education loan amount?

IOB Scholar education loans are provided up to INR 60 lakhs to study abroad. 

Do I have to arrange margin money for the IOB Scholar?

Yes, the applicant is required to arrange a margin of 25%. This percentage remains the same irrespective of the education loan amount.

How can I apply for an IOB Scholar education loan online?

The borrowers can simply visit the nearest Indian Overseas Bank branch and connect with the bank representative. However, for a hassle-free application process, you can apply online for the IOB Scholar scheme. This can be easily done through Vidya Laksmi Portal Indian Overseas Bank.

Do I get an interest concession on IOB Scholar?

Yes, female students get a special concession of 0.50%. Applicants who serve interest during the moratorium period get a concession of 1%.

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.

Auxilo Education Loan for Wards of Defence PersonnelEducation Loan for MBA without Collateral
Indian Army Education LoanEducation Loans in West Bengal
SBI Education Loan Disbursement ProcessBajaj Finserv Personal Loan For Education
Education Loan Interest Rates of Different Banks and NBFCsKarnataka Bank Education Loan Interest Rates
Canara Bank Education LoanBanks offering Lowest Interest Rates on Education Loan

Follow Us on Social Media

About Shubhika Garg

Hey there! I'm Shubhika- a proud graduate in English Literature and Language from Delhi University. My journey as a content writer transitioned from online teacher into the world of words. Stepping into the domain of blogs and articles, I discovered my passion for writing growing deeper and stronger. Having said that, I have experience of writing for diverse industries in automobile, technology, ed-tech, finance and mental-health; crafting details to help you find the solution to what you are looking for. Join me as I invite you all explore and learn together.

Leave a Comment

Coverage Under Tata AIG Travel Health Insurance for Students Best Overseas Travel Policies for Students Cheapest Forex Cards for Students Best Picks for Student Travel Insurance Top Banks Offering Education Loans for New Zealand Studies! Apply for YES Bank Education Loan Top Up in Easy Steps Top Currency Exchange Providers in Toronto Documents Required for SBI Takeover of Education Loans Where to Exchange Currency in Birmingham? Major Pros and Cons of Student Loan Consolidation

Send Money Abroad in <15 mins


Request a callback


Get an education loan at the lowest interest rate


Thank you! Your call request has been submitted

Our team will connect with your shortly

aero Confused which education loan is the best for you?