Indian Overseas Bank Education Loan

Vidya Jyothi Scheme

 Can I apply for the Vidya Jyothi Scheme ?

You can apply if you are a student and satisfy the following eligibility criteria.
 You should be an Indian National
 You should have secured admission to professional/technical courses in India or abroad through entrance test/merit based selection process

What can I use the loan for ?
You can avail the loan for your Graduation/Post graduation/Diploma/Computer education in any recognised State/Central Government/University. Professional courses including Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, courses like ICWA, CA, CFA, etc., courses conducted by IIM, IISC, XLRI, NIFT etc. Courses offered in India by reputed foreign universities/Evening courses of approved institutes. Regular degree/Diploma courses like Aeronautical, Pilot training, shipping etc approved by Director General of Civil Aviation/shipping if the course is pursued in India. In case the course is pursued abroad the institute should be recognized by the competent local aviation/shipping authority.

How much can I get ?
You can get a maximum of Rs. 10.00 lakh for studying in India and Rs. 20.00 lakh for studying abroad.

What rate of Interest will I have to pay ?
Present Interest rate linked to BPLR is as follows:
 - Up to Rs. 4.00 lakh - 12.25%
 - Above Rs. 4.00 lakh 13.50%
 - Interest to be debited monthly on simple basis during the repayment holiday/moratorium period.

What is the margin for the loan ?

For loans upto Rs. 4.00 lakh Nil

For loans above Rs. 4.00 lakh Studies within India 5%

For studies abroad 15%
Scholarship/assistantship to be included in margin.

What security do I need to provide ?

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 - Coobligation of parents together with tangible collateral security. Collateral security in the form of NSC/KVIP, LIC Policy, Gold, Shares/Debentures or 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.
Is there a Holiday period for my loan ?
Yes, there is. You can pay back your loan 6 - 12 months after you complete the course.

How do I repay my loan ?
You can repay the loan in equal monthly Instalments for a maximum period of 5 - 7 years excluding holiday period.

Whether I have to pay Interest every month during my study period?
It is left to the option of the student either to service the interest during the study period or pay it along with the principal over a period of 5 - 7 years to commence from 12th month after completion of the study.

In case I opt to service the interest, am I eligible for any concession?
Yes. For prompt servicing of interest for all months during the study period when repayment holiday is specified for interest/repayment under the scheme, an interest rebate of 1.0% is allowed. The interest rebate thus calculated will be credited back to loan account at the time of commencement of repayment of the principal sum.


 For more Details  :       www.iob.in