Oriental Bank of Commerce


"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."

Loan Interest Rates:

Max. Loan Amount Interest Rate Concession
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."
Base Rates Are:

Loan Eligibility:

Courses Eligible For Loan:
  • 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.

Documents Required:

Candidate Education Loan Eligibility:

Processing Fees:
"This loan does not carry any processing fee or any other charges."

Expenses Covered under 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.

Loan 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."

Security Required:

Loan Type Security Required
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.


1.How are the education loan disbursements made by Oriental Bank of Commerce (OBC)?
Ans. Based on the requirement and validation of the expense(s), the bank makes disbursements directly to the institute, vendors etc.

2.Is a life insurance cover mandatory for students availing education loan from OBC?
Ans. 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.

3.Is there a processing fee component involved in handling documentation?
Ans. 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.

4.Is there a penalty for late payment on education loan from OBC?
Ans. Yes. A penalty of 2% over the normal rate would be charged on the overdue amount for the overdue period.

5.My course requires a laptop computer. Can I avail this under the existing education loan from the bank?
Ans. Yes, you can. The bank will fund your laptop costs which will be hypothecated until full repayment of the loan amount.