Education Loan from Overseas Bank

Courses Eligible There is various kinds of courses which are eligible for Indian Overseas Bank student loans.
Loans are available for various graduations, post-graduation; computer education and diploma courses offered by recognized universities or government statutory bodies in India.
Indian Overseas Bank student loan is also provided for technical and professional courses, regular diploma and degree courses as well as courses conducted by reputed foreign universities in India.
In case of studies abroad, the institutes offering the courses should be approved by the competent authority of the nation.

Maximum Loan Amount
Study Abroad – up to Rs.20 lakhs
Study in India - up to Rs.10 lakhs

Rate of Interest
For education loans up to Rs.4 lakh -10.75%
For loans more than Rs.4 lakh - 12.00%

Margin
Up to Rs.4 lakhs - Nil
Above Rs.4 lakhs
- Studies in India 5%
- Studies abroad 15%
Scholarship/ assistantship to be included in margin.

Documents required
While applying for Indian Overseas Bank Education loan to study in India and abroad, following documents are needed to complete the loan process: Candidates have to fill the Indian Overseas Bank Education loan application form and must include appropriate necessary documents of latest last 2 months salary slip of parent and income tax assessment sheet. Student have to attach one set of Education qualification certificates of his/her last studies like 10th class and Intermediate etc. other documents include Income Proof-Any either salary slip/other, Residency proof, Education Certificates of SSC, Intermediate and other necessary, if required, Income tax assessment of last 2 years, Last 6 months of Bank account balance sheet, Latest 2 passport Photo graphs, Admissions proof in college, and Passport/Visa

Security
Documents should be executed both by the student and parent / guardian as joint borrower.
Up to Rs. 4 lakh - Co obligation of parents. No security
Above Rs. 4 lakh & Up to Rs.7.50 lakh - Co obligation of parents together with collateral security in the form of suitable third party guarantee
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 computer, the computer has to be hypothecated to the bank.

Repayment
Repayment can begin after the end of moratorium period i.e. after one year after completion of course or 6 months after having a job, whichever occurs sooner. The EMIs have to be paid within 5 to 7 years, excluding the moratorium period.

Also 1% interest rebate facility is available for applicants who chose to pay the interest during the course tenure.