Indian Overseas Bank Education Loan: Eligibility, Interest Rates & more.

Scholarship Examination in India

Indian Overseas Bank Education Loan Scheme

Indian Overseas Bank was established in 1934 to promote foreign exchange operations in India. The bank has 3700 branches in the country and eight overseas offices. The bank has implemented 100% core banking solution in all its branches thereby allowing its customers to do transactions from any branch. The bank provides education loan under the scheme ‘Vidya Jyoti.’



  • Should be an Indian National
  • Should have secured admission to professional/technical courses in India or abroad


Quantum of loan

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


Rate of Interest

Please click Retail credit interest rates
Interest to be debited monthly on simple basis during the repayment holiday/moratorium





For loans upto Rs. 4.00 lakh


For loans above Rs. 4.00 lakh

Studies within India 5%
Studies within India 5%





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

Co-obligation of parents together with tangible collateral security.Collateral security in the form of NSC /KVP/ LIC Policy/ 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 the computer, the computer has to be hypothecated to the bank.


  For further details, please click here


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