Indian Overseas Bank Education Loan Form

Indian Overseas Bank Education Loan

Eligibility Criterion
• Applicant should belong to India
• Applicant must have ensured admission for further studies programs in his/her desired institute in India or abroad via relevant entrance exams or selection based on merit or via Management quota after completing higher secondary education.

Loan Details: Coverage of expenses are as follows –
• Fee payable to College/School/Hostel.
• Examination/Library/Laboratory fee.
• Purchase of books/equipment/uniforms dress.
• Caution &refundable deposit.
• Travel expenses for studies abroad.
• Purchase of computers – essential for completion of the course.
• Any other expenses needed to finish the programs.
• To pay insurance premium for the policy.

Eligible Courses
In India
• Courses approved by UGC, AICTE, ICMR, AIBMS, and Govt. etc. for Graduation/Post Graduation programs (Degree/Diploma) and conducted by reputed Colleges/Universities.
• ICWA, CA, CFA, etc. courses.
• Courses led by esteemed institutes like IIM, IIT, XLRI, NIFT etc.
• In India, approved regular degree or diploma programs in fields like Aeronautics, Shipping, Pilot training etc. Aircraft Maintenance Engineering or Pre Sea training programs also should be approved by appropriate authorities.
• B.Ed., nursing etc. programs also must be approved by either Central or State Govt.
• Courses offered by reputed and approved Foreign Universities in India.
• Research and Ph.D programs applicant for study in India may not apply.
• Part time/ correspondence study programs are not eligible for this loan.

Abroad
• Graduation and Post-graduation for courses which are job oriented and professional and/or technical in nature and are conducted by known and reputed universities. Like MCA, MBA, MS, PhD or CIMA-London, CPA etc.
• PG diploma programs are allowed but Diploma courses are not allowed to study abroad.
• Any research or Ph.D. program for study abroad are not entitled under this education loan.

Quantum of Loan
• In India: 30 lacs, maximum
• Outside India: 40 lacs, maximum

Rate of Interest: Simple interest will be debited monthly during the moratorium period.

Margin
• Up to Rs.4 lacs – NIL in India and abroad
• Above Rs.4 lacs- 5.00% in India and 15% abroad

Security
• Up to 4 lacs: No security but Parents as co-borrower (incase of married applicant, co-borrower can be the spouse or parents-in-law too)
• From 4 lacs – 7.50 lacs: Collateral security as a third party guarantee which has equal net worth to the sanctioned loan amount along with parents/guardian as co-borrower.
More than Rs. 7.5 lacs: Immovable collateral security along with the assignment of future income of the applicant for the payment of EMIs and parents/guardian as co-borrower.

Disbursement: Directly to University /College /Hostel etc.

Credit Delivery: The IOB education loan can be helped from the branch closest to the permanent residence of the applicant.

Guarantee: Personal Guarantee of parents/guardian is required to process the education loan.

Repayment    
• Repayment of loan starts out after one year of completion of the study program or Six months after getting job, whichever is earlier.
• Repayment tenure is 5 to 7 years

Interest Servicing
Choice is given to the applicant either to service the interest during the tenure of study or pay it with the principal amount over a time period of 5-7 years which will start an year after completion of the study program. For immediate payment of interest for all months throughout the study tenure when moratorium period is defined for interest under the educational loan, an interest discount of 1.00 % is permitted. Interest rebate of 0.50% to female students for pursuing education in India and abroad on all Education loans is permitted.

Indian Overseas Bank Official website: www.iob.in

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