Indian Overseas Bank Education Loan for India and Abroad

To alleviate the burden of aspiring students planning to pursue higher education in India or abroad, the Indian Overseas Bank (IOB) offers education loan schemes. The Indian Overseas Bank has three education loan schemes to help students finance their higher education, namely - the Vidya Jyoti Education Loan, IOB Vidya Shrest, and IOB Scholar Education Loan.

• Vidya Jyoti Education Loan: This loan covers various educational expenses, for students pursuing professional/technical courses in India and abroad.
   
• IOB Scholar Education Loan: This education loan is designed for students pursuing higher education in India & abroad other than loans covered under the IBA model scheme.
   
• IOB Vidya Shrest: This education loan scheme aims at providing term loans to students for pursuing higher education in premier institutions in India’s best engineering and medical colleges, top B-schools, law colleges & other reputed institutions. Top colleges are divided into categories A & B.
  

Overview of Indian Overseas Bank education loan schemes

 

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Eligibility criteria for IOB education loan 

Eligibility criteria for the Vidya Jyoti Education Loan Scheme are as follows

• The student should have secured admission to a recognized higher education course in India should be obtained through an entrance test/merit-based selection process.
   
• In states where a Common Entrance Test (CET) is not available, the applicant must achieve a minimum of 60% for others and 55% for SC/ST students in the qualifying examination as a cut-off.
   
• If there is no Common Entrance Test (CET) for securing admission to post-graduate courses/research programs, the criteria should be based on the employment opportunities and reputation of the institution concerned.
   
• The student should not be engaged in any employment.

Eligibility criteria for the IOB Scholar Education Loan Scheme are as follows

• Students should have secured a minimum of 60% for general & 55% for SC/ST in the plus two or its equivalent examination approved by the Government of India.

• Students who wish to pursue vocational training and skill development courses that are not covered under the IBA Model Scheme (VJEL) are also eligible for this loan.

• This loan scheme also covers students pursuing any other course that offers employment upon completion.

Please note that the loan amount for students falling under these categories may exceed the eligibility limits set by the IBA Model Scheme, provided they meet the eligibility criteria specified for this scheme.

Eligibility criteria for the IOB Vidya Shrest Education Loan Scheme are as follows
 

• The student should be an Indian national and must have secured admission to the select premier institutions.
   
• This scheme covers regular full-time degree/diploma courses that require an entrance test/selection process for admission. Executive management Courses such as PGPX are also included in this scheme.

• Certificate/part-time courses are not eligible for coverage under this scheme.

 

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Key points to remember for IOB education loan 

Co-applicant’s documents

• Identity proof: PAN/ Passport/ Driver’s license/ Voter ID card or government-issued identification document
• Address proof: recent copy of telephone bill/ electricity, water, piped gas bill or copy of Driving license/ Aadhaar card
• 2 passport-size photographs
• Co-borrower’s bank account statement for the last 6 months
• In case of another ongoing loan, then the loan A/C statement of 1 year

 

Income proof for salaried co-applicant/guarantor

• Salary slips for the last 3 months
• Copy of Form 16 of the last 2 years or copy
• Bank account statement for the last 6 months (Salary account)
• A brief statement of assets & liabilities of parent/ guardian/ other co-borrower

Income proof for self-employed co-applicant/guarantor

• Business address proof
• Last 2 years IT returns ( If IT Payee)
• TDS certificate (Form 16A, if applicable)
• Certificate of qualification (for C.A./ doctor and other professionals)
• Brief statement of assets & liabilities of parent/ guardian/ other co-borrower
• Bank account statement for the last 6 months

Repayment of IOB education loan

After the moratorium period is over the students are required to pay the EMI. During the moratorium period, students are required to pay simple interest. If students do not pay simple interest during the moratorium, the collective interest is added to the EMI. Indian Overseas Bank offers three methods for repaying education loans.

• Standing Instruction (SI): If you have an existing account with IOB, SI is the most convenient option. Your monthly EMI amount will be automatically deducted from your designated IOB account at the end of each month.
   

• Post-Dated Cheques (PDCs): If you don't have an IOB account, you can provide post-dated EMI checks from a non-IOB account holder at the nearest IOB Loan Center. However, please note that PDCs are accepted only at non-ECS locations, and you must promptly submit a new set of PDCs when required.

 

• Electronic Clearing Service (ECS): If you have a non-IOB account and prefer automatic debits for your EMIs, you can opt for the Electronic Clearing Service (ECS). This service will deduct your EMI amount from your non-IOB account at the end of each monthly cycle.