Student Education Loans by Indian Overseas Bank
Eligibility criteria
- You should be an Indian National
- You
should have secured admission to professional/technical courses in
India or abroad through entrance test/merit based selection process
Courses offered
You
can avail the loan for your Graduation/Post graduation/Diploma/Computer
education in any recognised 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 in India. In case the course
is pursued abroad the institute should be recognized by the competent
local aviation/shipping authority.
Amount
You can get a maximum of Rs. 10.00 lakh for studying in India and Rs. 20.00 lakh for studying abroad.
Rate of Interest
Present Interest rate linked to BPLR is as follows:
- Up to 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 loans upto Rs. 4.00 lakh Nil
For loans above Rs. 4.00 lakh Studies within India 5%
For studies abroad 15%
Scholarship/assistantship to be included in margin.
Security
- For loans upto Rs. 4.00 lakh Co obligation of parents. No security
- For
loans 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
loans above Rs.7.50 lakh Coobligation of parents together with tangible
collateral security. Collateral security in the form of NSC/KVIP, LIC
Policy, Gold, Shares/Debentures or immovable properties Bank Deposits
in the name of student/Parent/Guardian or any other third party with
suitable margin. Wherever 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.
Holiday period
You can pay back your loan 6 - 12 months after you complete the course.
Repayment
You can repay the loan in equal monthly Installments for a maximum
period of 5 - 7 years excluding holiday period.
Concession
For
prompt servicing of interest for all months during the study period
when repayment holiday is specified for interest/repayment under the
scheme, an interest rebate of 1.0% is allowed. The interest rebate thus
calculated will be credited back to loan account at the time of
commencement of repayment of the principal sum.