To live the dream of quality education and a high standard of living with plenty of opportunities, people are choosing overseas education. To ease the process of financial assistance and arrangements the government of India launched the Vidya Lakshmi Portal. In coordination with over 40 banks, the portal extends its hands to provide financial assistance to aspiring students. In this blog, we will discuss the loan programs offered by Indian Overseas Bank.
Table of contents
Vidya Jyothi Educational Loan Scheme
Indian Overseas Bank offers a maximum amount of up to 40 lakhs under Vidya Jyothi Educational Loan Scheme. It is for students who secured admission to any recognised university abroad.
| Loan Program | Vidya Jyothi Educational Loan Scheme |
| Quantum of Loan | Minimum Loan Amount: Above INR 7.50 lakhs Maximum Loan Amount: Up to INR 40 lakhs |
| Repayment Period | 180 months excluding the moratorium period. It will be in equated monthly instalments for a period of 15 years. |
| Moratorium Period | Course period plus one year. The maximum moratorium Period is 12 months. |
| Margin | 15% for overseas educationScholarship/assistantship to be included in the margin. Margin may be brought in on a year-to-year basis as and when disbursements are made on a pro-rata basis. |
| Security | Co-obligation of parents Tangible collateral security of suitable value Assignment of future income of the student Plan for payment of instalments. |
| Processing Fees | No processing charges |
Also Read: Reasons to Choose Fly Finance for Study Abroad Loan
Eligibility Criteria
The eligibility criteria to avail loan under the Vidya Jyothi loan scheme is
- A student should be an Indian National.
- Should have secured admission to recognised institutions abroad.
- The student applicant should not be in gainful employment.
Rate of Interest
There are two kinds of interest rates, floating and fixed interest rate. The interest rate under the Vidya Jyothi loan program is as follows
| Interest rate for Male (Fixed) | Upto INR 4 lakh: N.A. INR 4 lakh to INR 7.5 lakh: N.A. Above INR 7.5 lakh: N.A. |
| Interest rate for Male (Floating) | Upto INR 4 lakh: N.A. INR 4 lakh to INR 7.5 lakh: N.A. Above INR 7.5 lakh: MCLR +3.00 % |
| Interest rate for Female (Fixed) | Upto INR 4 lakh: N.A. INR 4 lakh to INR 7.5 lakh: N.A. Above INR 7.5 lakh: N.A. |
| Interest rate for Female (Floating) | Upto INR 4 lakh: N.A. INR 4 lakh to INR 7.5 lakh: N.A. Above INR 7.5 lakh: MCLR +2.50 % |
Vidya Suraksha Educational Loan Scheme
Indian Overseas Bank offers a maximum amount of up to INR 7.50 lakhs under the Vidya Suraksha Educational Loan Scheme. It is for students who secured admission to any recognised university abroad.
| Loan Program | Vidya Suraksha Educational Loan Scheme |
| Quantum of Loan | Maximum Loan Amount: Up to INR 7.50 lakhs |
| Repayment Period | 180 months excluding the moratorium period. It will be in equated monthly instalments for a period of 15 years. |
| Moratorium Period | Course period plus one year. The maximum Moratorium Period is 12 months. |
| Margin | Nil |
| Security | Nil |
| Processing Fees | No processing charges |
Eligibility Criteria
The eligibility criteria to avail loan under the Vidya Suraksha loan scheme is
- A student should be an Indian National.
- Should have secured admission to recognised institutions abroad.
- The student applicant should not be in gainful employment.
Rate of Interest
There are two kinds of Interest rates, floating and fixed interest rate. The interest rate under the Vidya Jyoti loan program is as follows
| Interest rate for Male (Fixed) | Upto INR 4 lakh: N.A. INR 4 lakh to INR 7.5 lakh: N.A. Above INR 7.5 lakh: N.A. |
| Interest rate for Male (Floating) | Upto INR 4 lakh: MCLR + 2.00% INR 4 lakh to INR 7.5 lakh: MCLR + 2.00% Above INR 7.5 lakh: N.A. |
| Interest rate for Female (Fixed) | Upto INR 4 lakh: N.A. INR 4 lakh to INR 7.5 lakh: N.A. Above INR 7.5 lakh: N.A. |
| Interest rate for Female (Floating) | Upto INR 4 lakh: MCLR + 2.00 % INR 4 lakh to INR 7.5 lakh: MCLR + 2.00 % Above INR 7.5 lakh: N.A. |
Also Read: Vidya Lakshmi Portal Documents Required – Check Complete List
Expenses Covered
The amount of the loan and the expenses covered varies according to the loan program you have chosen. The expenses covered under the Vidya Jyoti and Vidya Suraksha education loan programs are
- Tuition fee
- Hostel fee
- Lodging and boarding charges
- Travel expenses
- Passage money and living expenses
- Insurance premiums for students
- Caution deposit
- Any deposit or refundable funds
- Books and uniforms
- Laptop, if required for completion of the course
- Study tours and project work
- Academic & maintenance fee, if required.
How to Apply?
The student can apply for the Vidya Jyothi and Vidya Suraksha loan schemes in both modes, online as well as offline. The steps to apply for an online loan process are as follows
- Sign up on the Vidya Lakshmi portal.
- Login with the ‘student login’ option on the screen.
- Click on the ‘search and apply for loan scheme’ tab
- Apply a filter for the Indian Overseas Bank.
- Choose the loan program and select the appropriate program.
- Click on the ‘Apply Now’ tab.
- Fill Common Educational Loan Application Form.
- Check the status and track the application you submitted.
FAQs
No, courses offered by Open Universities and distance education programs are not eligible under any of the above loans.
The maximum moratorium period is 12 months.
Indeed, PG diploma courses from reputed universities are eligible however, certified courses are not eligible.
The details mentioned above are based on the data provided by the website of the Indian Overseas Bank and the Vidya Lakshmi portal. To avail education loan from the Indian Overseas Bank, make sure to check all the related details with the bank as it may vary with the changing times.
To know more about an education loan, 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. Follow our social media handles on Twitter, LinkedIn and Instagram.
