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  • Indian Overseas Bank Education Loan

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    “An investment in knowledge pays the best interest” Nothing can adequately explain the need for education more than the mentioned adage. A good education reaps in a great career for an aspiring student. In an effort to make sure that students get maximum financial benefits while they study in India or abroad, Indian Overseas Bank provides a comprehensive education loan scheme with attractive discounts on interest rates, flexible repayment options and higher loan amounts. Indian Overseas Bank educational loan covers a vast selection of courses and disciplines offered at various institutions in India and abroad.

    Feature & Benefits of an Indian Overseas Bank educational loans:

    ‘Vidya Jyoti Education Loan’ offered from Indian Overseas Bank is one of the best financing options for students aspiring to pursue education in premier institutions in India and abroad. With a multitude of choices available as far as educational courses are concerned, students can opt for any discipline or degree with IOB’s affordable education loan scheme.

    Quantum of Loan:

    Indian Overseas Bank sanctions education loans up to a maximum loan amount of Rs. 30 lakhs for studies in India and up to Rs. 40 lakhs for education abroad.

    Interest rates:

    Loan Amount

    Rate of Interest

    Up to Rs. 4 Lacs


    Above Rs. 4 lacs to Rs.7.50 lacs


    Above Rs.7.50



    Vocational Courses


    Ward of Staff


    Female applicants can enjoy an additional discount of 0.50% on Indian Overseas Bank education loan interest rates.

    Loan Margin:

    Borrowers are not required to bring in any loan margin for education loans taken up to Rs 4 lakhs. But IOB requires a loan margin of 5% for studies in India and a margin of 15% for studies abroad for loan amounts exceeding Rs 4 lakhs.


    • For loan amounts up to Rs 4 lakhs the co-obligation of the parents would suffice and security is not required.
    • Loan amounts above Rs. 4.00 lakh and up to Rs. 7.50 lakh require collateral security in the form of third party guarantee along with co-obligation of the parents.
    • Borrowers availing loans above Rs.7.50 lakh are required to furnish collateral security in the form of NSC, KVP, LIC policies, immovable properties and bank deposits in the name of student, parent, guardian or any other third party with suitable margin.

    Holiday Period:

    Indian Overseas Bank offers a ‘holiday period’ of up to 6 months after the applicant gets a job or 12 months after the course is completed for repayment of educational loans.


    An Indian Overseas Bank educational loan can be repaid in monthly installments for a maximum period of up to 5 to 7 years, excluding the holiday period.

    Interest servicing:

    The student can choose to either pay the interest during the course of the study or pay it along with the principal amount for the selected tenure, commencing after the period of study. If applicants choose to service the interest during their course tenure, then they will be entitled to an interest rebate of 1%.

    Eligible courses:

    Studies in India - An Indian Overseas Bank educational loan can be availed for Graduation, Post-Graduation or Diploma education in any recognised State or Central Government institution with any of the following disciplines -Engineering

    • Medical
    • Agriculture
    • Veterinary
    • Law
    • Dental
    • Management
    • Aeronautical
    • Pilot training (courses should be approved by the local aviation authority)
    • Shipping (courses should be approved by the local shipping authority)

    Other Courses:

    • ICWA, CA or CFA
    • Foreign University courses
    • Evening courses

    Studies Abroad - An IOB education loan will be sanctioned only for graduate and postgraduate courses offered from reputed universities and is not available for a diploma.

    Eligibility criteria for an IOB education loan:

    • The applicant should be an Indian national.
    • Students applying for an IOB educational loan should have secured admissions to professional or technical courses in institutions in India or abroad.

    IOB education loan FAQs:

    1. Can mortgaged properties be submitted as security for an Indian Overseas Bank education loan?
    2. Yes, the unencumbered portion of mortgaged properties can be submitted as security on second charge basis, provided it covers the loan amount.
    3. What is the maximum loan tenure available to IOB customers?
    4. The maximum loan tenure that can be taken on an education loan is up to 7 years.
    5. Are IOB education loans available only for PG and UG courses abroad?
    6. Yes, the loan is provided only for PG or UG degrees, and not for diplomas.
    7. Does the Indian Overseas Bank education loan include insurance coverage for the student?
    8. Yes, applicants and their parents will be entitled to get life insurance coverage as part of the loan scheme.
    9. Can an IOB education loan be taken for purchasing computers?
    10. Yes, the IOB education loan can be availed for purchasing a computer and the device has to be hypothecated to the bank.

    Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

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    Indian Overseas Bank Education Loan Reviews

  • Page 1 of 1
    • IOB Education Loan
      "Bad experience"
      0.5 2.0/5 "Expected more"
      I approached INDIAN OVERSEAS BANK for education loan. They gave me a poor response. The approved amount from the bank is 110000.I have taken that loan in 2010 and close it by 2016. Though it was a long period they charged high interest rate. They paid the amount directly to the education institution through cheque.
      Was this review helpful? 0
      , kanchipuram
      Reviewed on Sep 06, 2017
    • IOB Education Loan
      "Good "
      0.5 4.0/5 "Great!"
      I got the education loan with the Indian overseas bank and the loan amount got credited within a week of time. Documentation procedures are not much hassle and the EMI is around 10000 Rupees per month and the tenure is around twelve months of time. They are very flexible to the customer.
      Was this review helpful? 8
      , chennai
      Reviewed on Feb 18, 2017
    • IOB Education Loan
      "Hassle free"
      0.5 4.0/5 "Great!"
      I have an earlier experience with IOB for the Educational Loan. I have also closed this loan as well. It was a clean process from the process to the disbursement. The after loan services was also convenient, I never had issues in any of the EMI payments too.
      Was this review helpful? 2
      , madurai
      Reviewed on Nov 16, 2016
    • IOB Education Loan
      "Average one.."
      0.5 3.0/5 "Satisfactory"
      I have taken my education loan from Indian overseas bank in 2011 and it got closed also. My experience was average only. That was done by my parents only so, that I dint interacted much with them. They have deducted some charges while closing this loan.
      Was this review helpful? 4
      , chennai
      Reviewed on Mar 08, 2016
    • IOB Education Loan
      "Easy process!"
      0.5 4.0/5 "Great!"
      Documents like educational certificate and the policy details were collected for processing the educational loan with Indian overseas bank. The loan was processed within seven working days time by the executives. I took this loan for doing B.E in the year 2005.
      Was this review helpful? 4
      , chennai
      Reviewed on Feb 18, 2016
    • IOB Education Loan
      "Apply the benefits for students issued by government"
      0.5 4.0/5 "Great!"
      I took the educational loan with Indian overseas bank and the rate of interest was around 12.5%. Interest rate was okay for me with them and they dint apply the terms of the indian government for student benefits. Customer service is average with them.
      Was this review helpful? 4
      , chennai
      Reviewed on Jan 20, 2016
    • IOB Education Loan
      "Good educational loan"
      0.5 4.0/5 "Great!"
      India oversea bank is very good in the process as they collected minimum documents for the education loan and they disburse the loan within seven days. Interest rate was 11-12% per annum. After education they give 6 months times and after that we have to start paying the emi. But the flow up was done from our side.
      Was this review helpful? 4
      , bangalore
      Reviewed on Dec 19, 2015
    • IOB Education Loan
      0.5 2.0/5 "Expected more"
      I have closed the educational loan with the Indian Overseas bank and the rate of interest is around 8% to 9%. The loan amount got disbursed after a month of time. I can save the time with them,also I can get the advantages with them because of clear maintenance of account. The EMI is around 11762 Rupees for five years of time for the capital of 5 lakh Rupees.
      Was this review helpful? 3
      , sivakasi
      Reviewed on Dec 16, 2015
    • IOB Education Loan
      0.5 3.0/5 "Satisfactory"
      For Education loan IOB offered me very less interest rate around 12% with zero percent processing fee. Customer service was good. I am getting updated from one of the bank employer who is my relative so I had never faced any issues so far. It is good with IOB.
      Was this review helpful? 5
      , chennai
      Reviewed on Oct 27, 2015
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