Indian Overseas Bank Indian and Foreign Education Loan

Indian Overseas Bank Indian and Foreign Education Loan

Indian Overseas Bank Indian and Foreign Education Loan – Indian Overseas Bank (IOB) is a main public sector bank based in Chennai (Madras), with about 3700 domestic branches, including 1150 branches in Tamil Nadu, 3 extension lead counters, and eight branches and offices overseas as of 30 September 2014. Indian Overseas Bank has an ISO licensed in-house Information Technology department, which has developed the software that its branches use to provide online banking to customers; the bank has achieved 100% networking status as well as 100% CBS status for its branches. Indian Overseas Bank also has a network of about 3300 ATMs all over India.

Indian Overseas Bank has branches in Singapore, Hong Kong, Colombo, Seoul, and Bangkok. It has representative offices in Guangzhou, Vietnam, and Dubai. Indian Overseas Bank also is part-owner of a joint-venture bank in Malaysia.


  • The student should be of an Indian Nationality.
  • The student Must have secured admission to professional/technical courses in India or abroad


Loan is made accessible for Graduation/Post graduation/Diploma/Computer education in any well-known State/Central Government/University, Medical, Agriculture, professional courses including Engineering, Veterinary, Law, Dental, Management, courses like ICWA, CA, CFA, etc., courses conducted by IIM, IISC, XLRI, NIFT etc., courses accessible in India by reputed foreign universities/Evening courses of sanctioned institutions, regular degree/ diploma  courses like Aeronautical , Pilot training , shipping etc.  Sanctioned by Director General of Civil Aviation/ shipping if the course is pursued in India. In case the course is pursued in abroad, the institution should be documented by the competent local aviation/ shipping authority.   For education in abroad, loans will be made accessible only for Graduation and Post-Graduation Courses accessible by Reputed Universities and not for diplomas.

Quantum of loan

Maximum of Rs. 30.00 lakhs for education in India and Rs. 40.00 lakhs for education in abroad.

 Rate of Interest 

  • Rate of Interest shall be deducted once-a-month on simple basis during the reimbursement holiday/moratorium duration.


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 shall be included in margin.


For loans up to   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 appropriate to the third party guarantee.
For loans above Rs.7.50 lakh Co obligation of parents  together with tangible collateral security .Collateral security in the form of NSC /KVP/ LIC Policy/ Fixed properties/ Bank Deposits in the name of student/Parent/Guardian or any other third party with appropriate margin. Wherever the land/ building are already mortgaged the unencumbered portion can be taken as security on second charge basis provided it covers the obligatory loan amount. In case the loan is given for the purchase of computer, the computer has to be hypothecated to the bank.

 Holiday period

6 months after getting the job or 12 months after accomplishment of the course whichever is earlier.


Reimburse the loan in equal monthly Installments for a maximum period of 5 – 7 years eliminating holiday period.

Interest servicing

It is left to the choice of the students either to service the interest during the education duration or reimbursement it along with the principal over a period of 5 – 7 years to commence from 12th month after accomplishment of the education.

Interest servicing – concession 

For quick servicing of interest for all months during the study duration when reimbursement holiday is specified for interest / reimbursement under the pattern, an interest rebate @1.00 % is allowed. Interest concession at 0.50% on all Education Loans to Girl Students for seeking education in India and Abroad is allowed. The interest rebate thus calculated will be accredited back to loan account at the time of commencement of reimbursement of the principal amount.


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