Indian Overseas Bank: Education Loans

Education Loan Eligibility in Indian Overseas Bank

You should have secured admission to professional/ technical courses in India or abroad through entrance test/ merit based selection process. You can avail the loan for your Graduation/ Post graduation/ Diploma/ Computer education in any recognized state/ Central Government/ University. Professional courses including Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, courses like ICWA, CA, CFA etc. Courses conducted by IIM, IISC, XLRI, NIFT etc. Courses offered in India by reputed foreign universities/ Evening courses of approved institutes. Regular degree/ Diploma courses like Aeronautical, Pilot training, shipping etc approved by Director General of Civil Aviation/ shipping if the course is pursued abroad the institute should be recognized by the competent local aviation/ shipping authority.

Maximum Amount

Studying in India : Rs. 10. 00 lakhs

Studying abroad : Rs. 20. 00 lakh

Education Loan Rate of Interest

Present Interest rate linked to BPLR is as follows:

- upto Rs 4.00 lakh – 12.25%

- Above Rs. 4.00 lakh 13.50%

- Interest to be debited monthly on simple basis during the repayment holiday/ moratorium period.

Margin

For loan up to Rs. 4.00 lakh NIL

For loan abouve Rs. 4.00 laks studies within India 5%

For the Studies Abroad 15%

Scholarship/ assignment to be included in margin.

Security of Education Loan

For loans up to Rs |4.00 lakh co-obligation of parents No security. For loan above Rs. 4.00 lakh and up to Rs. 7.50 lakh co-obligation of parents together with collateral security in the form of suitable third party guarantee For loan above Rs. 7.50 lakh- Co obligation of parents together with tangible collateral security. Collateral security in the form of NSC/ KVI, LIC Policy, Gold, Shares/ Debentures or immovable properties Bank Deposit in the name of student/ Parent/ Guardian or any other third party with suitable margin. Whenever the land/ Building is already mortgaged the unencumbered portion can be taken as security on second charge basis provided it covers the required loan amount. In case the loan is given for the purchase of computer, the computer has to be hypothecated to the bank.

Repayment of Loan

Loan can be repaid in equal monthly instalment for a maximum period of 5-7 years excluding holiday period.

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