The IOB Vidya Jyothi Education Loan Scheme supports students aspiring to pursue higher education in India and abroad. The interest rates range from 9% to 12%, with additional concessions for female students and those who pay interest during the moratorium period. Borrowers can repay the loan over up to 15 years. To qualify, applicants must be Indian citizens accepted into recognized institutions.
The IOB Vidya Jyothi education loan application can be initiated online or at any IOB branch, ensuring a hassle-free experience for students. Explore all the key features of the IOB Vidya Jyothi Education Loan Scheme-
Table of contents
- IOB Vidya Jyothi Education Loan Scheme
- Quantum of Finance
- Repayment Period for IOB Vidya Jyothi Education Loan
- Margin Money Under IOB Vidya Jyothi Education Loan Scheme
- Processing Time and Fee for IOB Vidya Jyothi Education Loan
- Moratorium Period for IOB Vidya Jyothi Education Loan Scheme
- Collateral Requirement for IOB Vidya Jyothi Education Loan
- Eligible Courses to Study Abroad
- IOB Vidya Jyothi Education Loan Interest Rates
- IOB Vidya Jyothi Loan Eligibility Criteria
- Documents Required Under IOB Vidya Jyothi Education Loan Scheme
- How to Apply for IOB Vidya Jyothi Education Loan Online?
- FAQs on IOB Vidya Jyothi Education Loan Scheme
IOB Vidya Jyothi Education Loan Scheme
IOB Vidya Jyothi education loan scheme is a loan scheme provided by Indian Overseas Bank to study abroad aspirants. The maximum loan amount provided under this scheme is up to INR 3 crores (subject to terms and conditions). The scheme aims to meet expenses like tuition fees, accommodation costs, and costs of books, exams and airfare.
Students can pursue any job-oriented and technical graduation, post-graduation, or diploma courses in recognised universities abroad. The scheme also aims to provide education loans for pilot training. Here is an overview of the highlights of the IOB Vidya Jyothi Education Loan Scheme:
| Basis | Details |
| Maximum Loan Amount | Up to INR 3 crores |
| Interest Rates | 9% p.a. to 12% p.a. |
| Repayment Period | 180 months/ 15 years |
| Pre-payment Charges | NIL |
Quantum of Finance
The maximum education loan amount refers to the highest funding a borrower can receive. Under the IOB Vidya Jyothi education loan scheme, students can secure up to INR 3 crores for studying abroad. However, the approved amount is influenced by factors such as the university’s ranking on platforms like QS Rankings, Webometrics, and Top Universities.
| Ranks of University/ College/ Insitute | Maximum Loan Amount |
| Within top 50 | Up to INR 3 crores |
| Ranked between 50 to 200 | Up to INR 2 crores |
| Ranked between 200 to 300 | Up to INR 1.5 crores |
| Ranked above 300 | Up to INR 1 crore |
Repayment Period for IOB Vidya Jyothi Education Loan
The IOB Vidya Jyothi education loan scheme allows applicants to pay back the education loan for up to 15 years. This can be paid back inEMIswhich allows easy repayment of principal and interest amount.
Margin Money Under IOB Vidya Jyothi Education Loan Scheme
Margin Moneyrefers to the amount of money that the borrower/ applicant has to contribute towards the loan amount. It is the difference between your loan amount requirement and what banks sanction. The IOB Vidya Jyothi education loan to study abroad margin requirements are-
| Loan Amount | Margin % of the Total Loan Amount Required |
| Up to INR 4 lakhs | NIL |
| Between INR 4 lakhs to INR 30 lakhs | 15% |
| Above INR 30 lakhs to INR 1 crore | 20% |
| Above INR 1 crore to INR 1.5 crore | 25% |
| Above INR 1.5 crores to INR 3 crores | 25% |
Processing Time and Fee for IOB Vidya Jyothi Education Loan
The IOB education loan processing time is usually 15-20 days. Once, you submit the application form and attach the required documents, during this period, the bank will verify your documents. However, once the loan is sanctioned, it may take up to 72 hours to disburse funds to the university’s account. There are no charges for processing the IOB education loan.
Moratorium Period for IOB Vidya Jyothi Education Loan Scheme
The moratorium period for the Vidya Jyothi education loan scheme is the Course period + 1 year or 6 months after getting the job (whichever is earlier). During the Moratorium Period, the applicant is not required to make any payments towards the repayment of an education loan from the bank. This is also referred to as the holiday period.
Collateral Requirement for IOB Vidya Jyothi Education Loan
The applicants/ borrowers can avail of IOB education loans without collateral. However, for higher loan amounts, one is required to arrange valid collateral/ security.
| Loan Amount | Security Requirements |
| Up to INR 7.5 lakhs | No Security is Required. However, Co-obligation of parent/ guardian is needed. |
| Above INR 7.5 lakhs | Co-obligation of parent/s or guardian together with tangible collateral security in the form of land/ building/ government securities policy/ shares/ gold/ debentures etc. |
Eligible Courses to Study Abroad
- Government-Supported Courses: Courses recognized under various government subsidy schemes are eligible for funding.
- Undergraduate Programs: Job-oriented professional and technical courses offered by reputable universities or institutions are eligible for the loan.
- Postgraduate Programs: Includes specialized courses such as MCA, MBA, MS, and other similar postgraduate qualifications.
- Professional Certifications: Courses conducted by prestigious bodies like CIMA London, CPA in the USA, and similar internationally recognized programs.
- Degree/Diploma Courses: Programs such as aeronautical engineering, pilot training, shipping, and other specialized degrees/diplomas, provided they are recognized by the relevant regulatory authorities for employment in India or abroad.
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.
IOB Vidya Jyothi Education Loan Interest Rates
The IOB education loan interest rates are based on RLLR, which are floating rates of interest. For the Vidya Jyothi loan scheme, the interest rates range from 9% to 12%. They are calculated as the sum of the base rate and spread. Below is a table that outlines the effective interest rates for the IOB Vidya Jyothi education loan scheme:
| Details | Rate of Interest | Effective ROI |
| For General Customers | RLLR + 0.40% (SP) + 1.25% (RP) | 11.00% p.a |
| For the wards of current staff and retired staff | RLLR + 0.40% (SP)+ 0.00% (RP) | 9.75% p.a |
Interest Rate Concession
A special concession of 0.50% is provided for female students according to the IOB Vidya Jyothi education loan scheme. Besides, IOB also provides a concession on the following terms-
| Details | Concession Percentage |
| For serving interest during the moratorium period | 1.00% |
| For securing admission to institutes ranked up to 100 (study abroad) | 1.50% |
| For securing admission to institutes ranked from 101 to 200 | 1.00% |
IOB Vidya Jyothi Loan Eligibility Criteria
To be able to apply for the IOB Vidya Jyothi education loan scheme, the applicant must be an Indian citizen. However, NRI (Non-Indian Resident), PIO (Person of Indian Origin) and OCI (Overseas Citizenship of India) are also eligible to apply. The applicants must also fulfil other eligibility criteria as discussed below-
- Nationality Requirements: Applicants must be Indian citizens, NRIs, PIOs, or OCIs.
- Admission Criteria: Students must secure admission to a recognized university abroad through an entrance exam or merit-based selection process after completing Class 12 (HSC) or its equivalent.
- Employment Status: The applicant must not be engaged in gainful employment during their study period, meaning they cannot have a steady job with regular income.
- Academic Performance: For applicants without a Common Entrance Test (CET), a minimum of 60% marks in the qualifying examination is required. SC/ST applicants require a minimum of 55% marks in the same scenario.
- Alternative Admission Evaluation: If CET scores are not available, factors like the course type, the applicant’s work history, the institution’s reputation, and its global ranking (as per Webometrics) will be considered.
IOB Vidya Jyothi Education loan approval will depend on these parameters assessed by the lending branch.
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.
Documents Required Under IOB Vidya Jyothi Education Loan Scheme
When applying for an education loan through IOB Vidya Jyothi education loan scheme, applicants must submit various documents. The IOB Education loan documents required include identity and address proof, academic records, and income verification. After the loan is sanctioned, additional documents may also be needed. Below is a comprehensive checklist for each stage:
Documents Required During Application
When you first apply for the education loan, you must submit the following documents, required during the application process while applying for the loan:
- Duly Filled out the education loan application form
- 2 passport-size photographs
- Class X/ XII/ 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
Documents Required After Loan Sanction
Once the loan is sanctioned, you will need to provide the following documents:
- Acceptance letter from the university
- Language proficiency exam result
- Accommodation fee breakup (on-campus accommodation)
- Rent agreement documents (off-campus accommodation)
- Estimate of approximate living costs like food, clothing, electronic gadgets, books, and other study materials
- Approximate estimate of miscellaneous expenses including health insurance, travel costs, study aids, and incidental expenses.
- 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: Check out our blog on Top-up Education for specialised programs. It includes details related to the process, eligibility, and repayment.
How to Apply for IOB Vidya Jyothi 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 a Vidya Jyothi loan. This can be easily done through Vidya Lakshmi Portal Indian Overseas Bank. Follow the given steps to apply for an IOB education loan online through Vidya Lakshmi Portal-
- Visit the official website of Vidya Lakshmi Portal.
- Register yourself if you are not yet registered.
- Log in by using the credentials created during the registration process.
- Click on ‘Search and Apply for Loan Scheme’.
- Search ‘Vidya Jyothi Education Loan Scheme’.
- Click on ‘Apply’ and ‘Fill the Application Form’.
- Fill in the required details.
- The concerned bank personnel will connect for further process.
This was all about the Vidya Jyothi education loan scheme of the Indian Overseas Bank. Make sure to check the interest rates, and repayment period, and plan your education loan in a way that ensures hassle-free repayment to the banks.
Also Read: Check out all the details on IDFC First Bank EMI Payment for Education Loans.
FAQs on IOB Vidya Jyothi Education Loan Scheme
The IOB Vidya Jyothi education loan scheme is the financial support provided by Indian Overseas Bank to study abroad aspirants. The maximum loan amount provided under this scheme is up to INR 3 crores.
The IOB Vidya Jyothi loan scheme interest rates range from 9% to 12%. For public, interest rates are RLLR + 0.40% (SP) + 1.25% (RP) = 11.00% p.a and for the wards of staff and retired staff, applicable rates are RLLR + 0.40% (SP)+ 0.00% (RP) = 9.75% p.a.
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.
The IOB Vidya Jyothi loan scheme aims to meet educational expenses. Expenses like tuition fees, accommodation costs, and costs of books, exams and airfare.
IOB Vidya Jyothi education loans are provided up to INR 3 crores to study abroad. However, the exact amount will depend on factors like the rank of the university according to the websites of QS, Webometrics, and Top Universities.
Yes, the IOB Vidya Jyothi Education Loan Scheme requires the applicant to arrange margin money, which is a percentage of the total loan amount. The margin varies based on the loan amount approved by the bank. Here’s the breakdown of margin requirements:
– Up to INR 4 Lakhs: No margin required
– Between INR 4 Lakhs to INR 30 Lakhs: 15% margin
– Above INR 30 Lakhs to INR 1 Crore: 20% margin
– Above INR 1 Crore to INR 1.5 Crore: 25% margin
– Above INR 1.5 Crore to INR 3 Crore: 25% margin
Borrowers can visit the nearest Indian Overseas Bank (IOB) branch and connect with a bank representative to apply for the IOB Vidya Jyothi Education Loan. However, for a hassle-free application process, you can apply online for a IOB Vidya Jyothi loan. This can be easily done through Vidya Lakshmi Portal Indian Overseas Bank.
Yes, the IOB Vidya Jyothi Education Loan Scheme offers several interest concessions to eligible applicants:
– Female students get a special concession of 0.50%.
– Applicants who serve interest during the moratorium period get a concession of 1%.
– Meritorious students also get a concession of 1.50% who secure admission among the top 100 universities to study abroad.
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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