Oriental Bank Indian and Foreign Education Loan

21 Mar, 2016

Oriental Bank Indian and Foreign Education Loan – Oriental Bank of Commerce is a foremost public sector bank in India that was well-known in 1943 in Lahore, Pakistan. Post partition and independence, Oriental Bank of Commerce shifted its base to Amritsar in Punjab. At present, this government possessed bank has its national headquarters in Gurgaon, Haryana with gigantic presence across the length and breadth of the country.

Listed on the National Stock Exchange (NSE), Oriental Bank of Commerce hosts a variety of lending products in the Individual Banking sector. A loan for higher education is one of its protuberant contributions for students looking forward to chase a degree/course in India or abroad.

Oriental Bank of Commerce offers education mortgages for commendable and ambitious students to take up a course of their choice at alluring terms and rates. Financing possibilities are accessible for a wide range of undergraduate and postgraduate courses at institutes in India and abroad.

Purpose of Loan

To provide financial support to commendable students in the form of education loan for seeking higher studies at an institution/university of their choice at reasonable terms and rates.


Feature & Benefits of Education Loan from Oriental Bank of Commerce

Quantum of Loan Amount

Based on the location of educations, the maximum amount of loan accessible by Oriented Bank of Commerce is Rs.10 lacs for courses in India and up to Rs.20 lacs for overseas studies. This quantum ensures maximum funding for your education, with little burden on you.

Loan Margin

  • For loan amount up to Rs.4 lacs, no margin is obligatory. Oriental Bank of Commerce takes care of entire subsidy of the course on foundation of the sanctioned amount.
  • For all other amounts above this benchmark, a margin of 5% is valid for studies in India and 15% for overseas studies.
  • Monetary impetus in the form of Scholarship/Assistantship can be comprised by the student in their margin.
  • Margin from the student can be brought in at the time of disbursement based on pro rata scheme and on a year to year basis as per the obligation.

Term for Repayment

For borrowings of up to Rs.7.50 lacs, reimbursement can be made in EMIs for up to 10 years. For all other amount above this verge, Oriental Bank of Commerce provides gigantic reimbursement tenancy of up to 15 years. Repayment holiday (moratorium period) will be a amalgamation of course period plus grace period based on predefined circumstances.

Interest Rates on Education Loan

Several inputs such as the type of institute, gender, category based on economic class and caste are taken into deliberation by Oriental Bank of Commerce which emerges into several slabs of interest rates for education loans. The rate of interest is appropriate to both students and working professionals.

Loan Amount Male Students Female Students
Up to Rs.4 lacs 12.75 %( B.R + 2.50) Concession of 0.50%
Above Rs.4 lacs but not exceeding 7.50 lacs with Third party Guarantee 13.25 %( B.R + 3.00) Concession of 0.50%
Above Rs.4 lacs but not exceeding 7.50 lacs with Immovable property or tangible assets 12.00 %( B.R + 1.75) Concession of 0.50%

In accumulation to the above, students opting for a course in Category A institutes are suitable for a flat interest rate of just 10.25% (Base rate). Category B institutes are payable 10.75% (Base rate + 0.50%). A list of these institutions is accessible on the web portal of Oriented Bank of Commerce.

A flat concession of 0.50% is also accessible for students from SC/ST category and the same applies for disabled students aspiring to study further.

Loan Security

Loan amount up to Rs.4 Lacs ·     No security is obligatory.

·     Parents will sign in as joint borrowers.

·     In case of married women, co-obligation from parents in law will be deliberated.

Amount from Rs.4 lacs to Rs.7.50 lacs ·     Parents will sign in as joint borrowers.

    ·     In case of married women, co-obligation from parents in law will be deliberated.

    ·     Collateral security by means of third party assurance, preferably from a close family member.

    Borrowing over 7.50 lacs ·     Parents will sign in as joint borrowers.

    ·     Loan of fixed property or tangible security such as Bonds, LIC etc.

    ·     In case of married women, co-obligation from parents in law will be considered.

    ·     Assignment of a part of future income of the student towards loan reimbursement.

    In all the slabs above, life insurance is required for commercial pilot training course and other related programs.


    Expenses Considered for Oriental Bank of Commerce Education Loan

    • Regular course fees along with charges incurred on boarding/lodging if the applicant chooses for outside accommodation.
    • Examination fee, Library/Lab fees, Caution deposit, Building fund, Organization bills provided these charges do not exceed 10% of the total tuition fees for the entire course.
    • Costs incurred towards purchase of books, equipment, computers, uniforms etc.
    • Travel expenditures incurred on overseas studies.
    • Expenditures related to study tours, project work, thesis, etc.

    Course Eligible for Education Loan from Oriental Bank of Commerce

    In India:

    • Graduate, Post Graduate degree and Diploma from documented colleges/universities sanctioned/well-known by state/central government or a competent authority such as AIBMS /AICTE / ICMR or Regulatory bodies.
    • A, I.C.W.A, C.F.A is also entitled.
    • Courses/Programs conducted by national institutions such as IISc, IIMs, XLRI, IITs, NIFT etc.
    • Evening courses from attributed institutions. Courses from renowned foreign institutions in India.
    • Computer certificate courses of reputed institutions and degree/diploma such as Aeronautical, Pilot training, Shipping approved by the competent authority.
    • Job oriented courses will also be deliberated.


    • Job oriented professional and technical courses offered by acknowledged institutions/universities which include both graduate and postgraduate programs.
    • Other degree/diploma courses such as Aeronautical engineering, Shipping etc.
    • Courses/Programs administered by CPA in USA and CIMA in London.

    Dual Courses/Top up Loan

    Oriental Bank of Commerce also extends loans for courses where degree/diploma is accessible in unison. A student with bright prospects and sound presentation during the course can also be suitable for a top up mortgage during the holiday period, provided the candidate meets the wide-ranging suitability criteria laid out by the bank.


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