Students applying for an IOB educational loan should have secured admissions to professional or technical courses in institutions in India or abroad.
Studies in India - An Indian Overseas Bank educational loan can be availed for Graduation, Post-Graduation or Diploma education in any recognised State or Central Government institution with any of the following disciplines -Engineering
Pilot training (courses should be approved by the local aviation authority)
Shipping (courses should be approved by the local shipping authority)
ICWA, CA or CFA
Foreign University courses
Maximum of Rs. 30.00 lakhs for studying in India
Up to Rs. 4 Lacs
Above Rs. 4 lacs to Rs. 7.50 lacs
Above Rs. 7.50 lacs
Ward of Staff
Female applicants can enjoy an additional discount of 0.50%
An Indian Overseas Bank educational loan can be repaid in monthly installments for a maximum period of up to 5 to 7 years, excluding the holiday period.
1. Holiday Period:
Indian Overseas Bank offers a ‘holiday period’ of up to 6 months after the applicant gets a job or 12 months after the course is completed for repayment of educational loans.
Borrowers are not required to bring in any loan margin for education loans taken up to Rs 4 lakhs. But IOB requires a loan margin of 5% for studies in India and a margin of 15% for studies abroad for loan amounts exceeding Rs 4 lakhs.
For loan amounts up to Rs 4 lakhs the co-obligation of the parents would suffice and security is not required.
Loan amounts above Rs. 4.00 lakh and up to Rs. 7.50 lakh require collateral security in the form of third party guarantee along with co-obligation of the parents.
Borrowers availing loans above Rs.7.50 lakh are required to furnish collateral security in the form of NSC, KVP, LIC policies, immovable properties and bank deposits in the name of student, parent, guardian or any other third party with suitable margin.