EDUCATIONAL LOAN- VIDYAJYOTI
With Indian Overseas Bank Vidyajyoti Education Loan, pursue your dream higher studies without worrying for financial assistance. We provide Vidyajyoti education loan for all Graduate, Post-Graduate, Engineering, Medical, MBA offered by recognized institutions in India. Days of trouble are over for availing student educational loan as IOB provides personalized counseling session which will guide you to achieve your dream in reality.
ELIGIBILITY CRITERIA:
Eligibility of Student:
- Should be an Indian National.
- He / She has secured admission to professional / technical courses in India or Abroad.
EXPENSES CONSIDERED FOR LOAN:
- Fee payable to college / school/ hostel.
- Examination / Library / Laboratory fee.
- Purchase of books / equipments / instruments/ uniforms.
- Caution deposit.
- Travel expenses / passage money for studies abroad.
- Purchase of computers – essential for completion of the course.
- Insurance premium
- Any other expense required to complete the course – like study tours, project work, thesis, etc.
QUANTUM OF FINANCE:
Need based finance subject to repaying capacity of the parents/ students with margin and the following ceilings.
- Studies in India – Maximum upto Rs. 10 lacs.
- Studies Abroad – Maximum upto Rs. 20 lacs
MARGIN (Own Funding by Student):
| Upto Rs. 4 lacs | Nil |
| Above Rs. 4 lacs: Studies in India | 5% |
| Studies in Abroad | 15% |
SECURITY:
| Upto Rs. 4 lacs | Co-obligation of parents. No security |
| Above Rs. 4 lacs and upto Rs. 7.50 lakhs | Co-obligation of parents together with collateral security in the form of suitable third party guarantee. |
| Above Rs. 7.50 lacs | Co-obligation of parents together with tangible collateral security of suitable value, along with the assignment of future income of the student for payment of installments. |
Note:
- The loan documents should be executed by the student and the parent / guardian as joint-borrower.
- Co- Obligator:-The Co-obligator should be Parent(s)/ guardian of the student borrower. Incase of Married person, the co-obligor can be either be Spouse or the Parent / Parents in law.
- The security can be in the form of land / building / Govt. securities / Public Sector Bonds / Units of UTI, NSC, KVP, LIC policy, gold, shares / mutual fund units / debentures, bank deposit 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.
RATE OF INTEREST:
-
The present rate of Interest is as under
Upto Rs. 4 lacs 10.25% Above Rs 4 lacs 11.50% (at present) - Simple interest to be charged during the repayment holiday / moratorium period.
- 1% interest concession is provided if interest debited during repayment holiday is serviced.
- 0.5% Concession in rate of interest to loans for girl student.
- Penal interest @ 2% to be charged for above Rs. 4 lacs for the overdue amount and overdue period
- The interest rates are subject to change as and when advised by the Asset Liability Management Committee of the Bank.
REPAYMENT:
| Repayment holiday / Moratorium: | Course period + 12 months or 6 Months after getting job, whichever is earlier. |
The loan is to be repaid in 5-7 years after commencement of repayment. If the student is not able to complete the course within the scheduled time, extension of time for completion of course may be permitted for a maximum period of 2 years. If the student is not able to complete the course for reasons beyond his control, sanctioning authority may at his discretion consider such extensions as may be deemed necessary to complete the course.
- The accrued interest during the repayment holiday period to be added to the principal and repayment in Equated Monthly Installments (EMI) fixed.
- 1-% interest concession may be provided for loanees if the interest is serviced during the study period when repayment holiday is specified for interest/ repayment under the scheme.
PROCESSING CHARGES:
No processing / upfront charges can be collected on Educational Loan for studies in India. However for Study abroad 0.57% processing may be collected.
INSURANCE
In case of uncertainty we provide insurance cover to the lives of the students and the parents up to 50 years of age while granting Educational Loan by covering the loan under our Vidyajyoti Educational Scheme with Suraksha. The loan to be disbursed could include the insurance premium amount and the insurance policy should be assigned in favour of the bank.
AGE CRITERIA:
There is no specific restriction with regard to the age of the student to be eligible for Educational Loan.
DOCUMENTS REQUIRED
- Application in Bank’s format along with copy of educational qualification certificates from class 10th onwards duly verified by Branch.
- Proof of income of co-obligant and guarantor-copy of salary certificate / IT return duly verified.
- Assets & Liabilities Statements of the applicant (F-347) & co-obligant (F-347) & of the guarantor (F-349 duly certified by Authorized Signatory).
- Necessary particulars to generate CIBIL Report on the applicant, co-obligant & guarantor.
- Letter from parents furnishing source of margin with necessary supporting papers.
- Proof of admission in college /university to be submitted.
- Copy of letter of fee structure & other expenses with year wise break-up.
- Residence proof, Photo ID proof and signature proof documents of applicant and co-obligant.
CLICK BELOW TO DOWNLOAD THE FORMS
Application in Bank’s format
Assets & Liabilities Statements – for Applicant(F – 347)
Assets & Liabilities Statements – for Co Obligant(F – 347)
Assets & Liabilities Statements – for Guarantor(F – 349)
CIBIL Reports Format For the Applicant
CIBIL Reports Format For the Co-Obligant
CIBIL Reports Format For the Guarantor
Contact Details:
Contact Persons:
Mr. Manish Chaturvedi
Mr. S. Krishnamurthy
Address:
Indian Overseas Bank
14-15 Farm Bhavan
Nehru Place
New Delhi
Contact no: 011-26282360 011-26435370 011-26432321