Indian Overseas Bank


"An investment in knowledge pays the best interest.Nothing can adequately explain the need for education more than the mentioned adage. A good education reaps in a great career for an aspiring student. In an effort to make sure that students get maximum financial benefits while they study in India or abroad, Indian Overseas Bank provides a comprehensive education loan scheme with attractive discounts on interest rates, flexible repayment options and higher loan amounts. Indian Overseas Bank educational loan covers a vast selection of courses and disciplines offered at various institutions in India and abroad."

Loan Interest Rates:

Max. Loan Amount Interest Rate
Up to Rs. 4 Lacs 12.25%
Above Rs. 4 lacs to Rs.7.50 lacs 13.50%
Above Rs.7.50 lacs 13.25%
Vocational Courses 12.25%
Ward of Staff 12.00%

Loan Eligibility:

Courses Eligible For Loan:
  • Medical
  • Agriculture
  • Veterinary
  • Law
  • Dental
  • Management
  • Aeronautical
  • Pilot training (courses should be approved by the local aviation authority)
  • Shipping (courses should be approved by the local shipping authority)
  • ICWA, CA or CFA
  • Foreign University courses
  • Evening courses
  • An IOB education loan will be sanctioned only for graduate and postgraduate courses offered from reputed universities and is not available for a diploma.

Documents Required:

Candidate Education Loan Eligibility:
  • The applicant should be an Indian national.
  • Students applying for an IOB educational loan should have secured admissions to professional or technical courses in institutions in India or abroad.

Processing Fees:

Expenses Covered under Education Loan:

Loan Repayment:

"An Indian Overseas Bank educational loan can be repaid in monthly instalments for a maximum period of up to 5 to 7 years, excluding the holiday period."

Security Required:

  • For loan amounts up to Rs 4 lakhs the co-obligation of the parents would suffice and security is not required.
  • Loan amounts above Rs. 4.00 lakh and up to Rs. 7.50 lakh require collateral security in the form of third party guarantee along with co-obligation of the parents.
  • Borrowers availing loans above Rs.7.50 lakh are required to furnish collateral security in the form of NSC, KVP, LIC policies, immovable properties and bank deposits in the name of student, parent, guardian or any other third party with suitable margin.


1.Can mortgaged properties be submitted as security for an Indian Overseas Bank education loan?
Ans. Yes, the unencumbered portion of mortgaged properties can be submitted as security on second charge basis, provided it covers the loan amount.

2.What is the maximum loan tenure available to IOB customers?
Ans. The maximum loan tenure that can be taken on an education loan is up to 7 years.

3.Are IOB education loans available only for PG and UG courses abroad?
Ans. Yes, the loan is provided only for PG or UG degrees, and not for diplomas.

4.Does the Indian Overseas Bank education loan include insurance coverage for the student?
Ans. Yes, applicants and their parents will be entitled to get life insurance coverage as part of the loan scheme.

5.Can an IOB education loan be taken for purchasing computers?
Ans. Yes, the IOB education loan can be availed for purchasing a computer and the device has to be hypothecated to the bank.