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  • Oriental Bank of Commerce Education Loan

    Oriental Bank of Commerce Education Loan
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    Oriental Bank of Commerce is a leading public sector bank in India that was established in 1943 in Lahore, Pakistan. Post partition and independence, OBC shifted its base to Amritsar in Punjab. At present, this govt. owned bank has its national headquarters in Gurgaon, Haryana with massive presence across the length and breadth of the country.

    Listed on the National Stock Exchange (NSE), OBC hosts a range of lending products in the Individual Banking sector. Loans for higher education is one of its prominent offering for students looking forward to pursue a degree/course in India or abroad.


    OBC provides education loans for meritorious and aspiring students to take up a course of their choice at appealing terms and rates. Financing options are available for a wide range of undergraduate and postgraduate courses at institutions in India and abroad.

    Purpose of Loan:

    To provide monetary assistance to meritorious students in the form of education loan for pursuing higher studies at an institution/university of their choice at affordable terms and rates.

    Feature & Benefits of Education Loan from OBC:

    Quantum of Loan Amount:

    Based on the location of studies, the maximum amount of loan offered by OBC 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 required. OBC takes care of entire funding of the course on basis of the approved amount.
    • For all other amounts above this benchmark, a margin of 5% is applicable for studies in India and 15% for overseas studies.
    • Financial impetus in the form of Scholarship/Assistantship can be included by the student in their margin.
    • Margin from the student can be brought in at the time of disbursement based on pro rata system and on a year to year basis as per the requirement.

    Term for Repayment:

    For borrowings of up to Rs.7.50 lacs, repayment can be made in EMIs for up to 10 years. For all other amount above this threshold, OBC provides a massive repayment tenure of up to 15 years. Repayment holiday (moratorium period) will be a combination of course period plus grace period based on predefined conditions.

    Interest Rates on Education Loan:

    Various inputs such as the type of institution, gender, category based on economic class and caste are taken into consideration by OBC which transpires into various slabs of interest rates for education loans. The rate of interest is applicable 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 addition to the above, students opting for a course in Category A institutions are eligible for a flat interest rate of just 10.25% (Base rate). Category B institutions are billed 10.75% (Base rate + 0.50%). A list of these institutes is available on the web portal of OBC.

    A flat concession of 0.50% is also available 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 required.

    • Parents will sign in as joint borrowers.

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

    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 considered.

    • Collateral security by means of third party guarantee, preferably from a close family member.

    Borrowing over 7.50 lacs

    • Parents will sign in as joint borrowers.

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

    • Mortgage of immovable property or tangible security such as Bonds,LIC etc.

    • Assignment of a part of future income of the student towards loan repayment.

    In all the slabs above, life insurance is compulsory 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 candidate opts for outside accommodation.
    • Examination fee, Library/Lab fees, Caution deposit, Building fund, Institution 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 expenses incurred on overseas studies.
    • Expenses 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 recognised colleges/universities approved/recognised by state/central government or a competent authority such as AICTE /AIBMS / ICMR or Regulatory bodies.
    • Courses/Programs conducted by national institutes such as IIMs, IITs, IISc, XLRI, NIFT etc.
    • I.C.W.A, C.A, C.F.A are also eligible.
    • Evening courses from accredited institutions. Courses from recognised foreign institutes in India.
    • Computer certificate courses of reputed institutes and degree/diploma such as Aeronautical, Pilot training, Shipping approved by the competent authority.
    • Job oriented courses will also be considered.


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

    Dual Courses/Top up Loan:

    OBC also extends loans for courses where degree/diploma are offered in unison. A student with bright prospects and sound performance during the course can also be eligible for a top up loan during the holiday period, provided the applicant meets the extensive eligibility criteria laid out by the bank.

    Oriental Bank of Commerce Education Loan FAQs:

    1. How are the education loan disbursements made by Oriental Bank of Commerce (OBC)?
    2. Based on the requirement and validation of the expense(s), the bank makes disbursements directly to the institute, vendors etc.
    3. Is a life insurance cover mandatory for students availing education loan from OBC?
    4. Based on the type of course/degree undertaken by the student, the bank may insist and arrange for a life cover with prior consent from the borrower. The premium and other charges must be borne by the student which can be considered to be a part of the finance upon request.
    5. Is there a processing fee component involved in handling documentation?
    6. There is no processing fee for study loans availed for pursuing courses in India. However, for courses overseas, OBC levies a fee of Rs. 1,000 (Plus service tax) as processing fee which will be refunded to the student after he/she starts the course.
    7. Is there a penalty for late payment on education loan from OBC?
    8. Yes. A penalty of 2% over the normal rate would be charged on the overdue amount for the overdue period.
    9. My course requires a laptop computer. Can I avail this under the existing education loan from the bank?
    10. Yes, you can. The bank will fund your laptop costs which will be hypothecated until full repayment of the loan amount.
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