Indian Overseas Bank Education Loan

✓ Loan at a 9% interest rate

✓ With easy repayment options

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The loan amount offered through the Indian Overseas Bank education loan ranges from 30-40 Lakhs at an interest rate that ranges from 9% -14% to finance the various expenses that occur while pursuing higher studies.

Indian Overseas Bank Higher Education Loan For Abroad

Vidya Jyoti



Loan Limit

40 Lakhs for studies abroad

Expenses covered

  • Hostel fees
  • Tuition fees 
  • The cost of books 
  • Airfare
  • Exam fees

Accepted co-applicant

Parents, Parents-in-law, Spouse, Sibling

Interest Rate

  • Collateralized: 9-11%
  • Non- Collateralized: 12-14%

 Moratorium Period

Course duration + 1-year

Repayment Duration

15 years

Eligibility Criteria

If the EMI is to be paid during the moratorium period a concession of 1% will be provided by the bank.

Discover your options for financing your education- Check your eligibility today

Indian Overseas Bank Higher Education Loan For India

Vidya Jyoti



Loan Limit

30 Lakhs for studies in India

Expenses covered

  • Tuition fees 
  • Hostel fees
  • The cost of books 
  • Exam fees 
  • Airfare

Accepted co-applicant

Parents, spouse, Parents-in-law, Sibling

Indian overseas bank education loan interest rate

  • Collateralized: 9-11%
  • Non- Collateralized: 12-14%

Moratorium Period

Course duration + 1-year 

Repayment Duration

15 years

Eligibility Criteria

On payment of EMI during the moratorium period, the bank will give an interest concession of 1 %. 

Indian Overseas Bank Processing Fee

In the Indian overseas bank, the processing fees usually ranges between 1% to 2% of the required loan amount. 

WeMakeScholars is an organization backed and financed by the Ministry of IT, Government of India, and operates under the Digital India program, we don't charge you any processing fees for the services we offer. 

Documents Required For Indian Overseas Bank




Basic documents for Applicant (student) and co-applicant and/or Guarantor

  1. The Indian overseas application form is given to you by the WeMakeScholars financial officer. (filled in)
  2. PAN card as proof of identity proof (Also passport if going abroad)
  3. Proof of residency:
    • Voter ID card
    • Aadhar card 
    • Electricity bill
    • Bank account statement 
    • Passport 
    • Telephone bill

Note: In case the applicant has a different permanent and current address, two proofs are needed.

  4. Bank account statement for the past six months (Salary/Personal) Bank account statement for the last 6 months (Personal/ Salary).

  5. If the co-applicant is self-employed, 1 year's worth of business transactions is required.

  6. Liability and personal asset statement (Assessment done by branch personnel)

All the documents should be self-attested.

 Applicant academic documents

  1. Mark sheets of class 10, class 12, and degree/ undergraduate
  2. Admission proof (showcasing the complete duration of the course)
  3. Fee structure (i-20 for US if available) 
  4. GRE/GMAT or IELTS Scorecard. 
  5. Printed out University Ranking form

Financial Co-applicant Income documents

If Salaried:

1. The most recent salary slips (for the last three months)

2. Form 16 (of 2 years)

3. Employer’s identification card 

4. ITR filed for 2 years 

If Self-employed:

1. ITR filed for last 3 yrs 

2. Profit and loss account and Balance sheet for the past 3 years 

3. Evidence of a business address

Other Documents

1. A letter asserting that the co-applicant would be liable for any additional costs not financed by the loan.

2. The processing charge will be provided with a cheque for Rs. 11,800.

3. If your legal and valuation process is handled by the bank itself, you may also need to provide additional cheques.

4. Affidavit of the property collateral owner (on Rs. 20 or 100 stamp paper). If there are many owners of the property, each of them must file this claim.

Additional docs  

1. Proforma invoice for the travel, laptop, or other items if you're requesting a loan for it.

2. Receipt for any payments in advance.

3. if there are any pending loans, complete loan account statements dating back a year.

4. A Letter explaining the gap on a 100Rs stamp paper 

5.  If the co-applicant has no ITRs a letter explaining the reason for it is required.


We can develop a custom document checklist that takes into account your specific profile and needs, which can help you save time and avoid enrollment-related delays or problems.

Stop fretting about documents - Get your hands on our personalized document checklist

Indian Overseas Bank Loan Insurance

The Indian overseas bank offers a loan of 1 to 2% of the loan amount.

With loan insurance, you can make sure that your co-applicant doesn’t become liable to pay back the entire loan amount in case of disability or death of the applicant.

Indian Overseas Bank Loan Margin

Loan Scheme

Loan Scheme

Indian overseas higher education loan for abroad


Indian overseas higher education loan for India



If a student takes out a loan of 25 Lakhs with a loan margin of 5%, then the loan margin would become 1.25 lacs. And, therefore, they can get an education loan of a maximum of up to Rs 23.5 lacs, and the rest of Rs 1.25 lacs, Students will have to arrange themselves.

We believe that by reducing the loan margin, we can help students and their families save money on loan repayments, and make education more affordable and accessible.

Education Loan Subsidy Scheme

Under these schemes, the interest payable during the moratorium/ grace period i.e, course duration + 12 months will be paid by the government of India. 

Padho Pardesh Scheme


  • Applicant belongs to a religious minority (Muslim, Christian, Sikh, Buddhis, Jain, Zoroastrian) 
  • Students must have a family income that equates to less than 6 Lakhs    
  • Applicable for higher education being pursued abroad

Note: Effective April 1, 2022, the Padho Pardesh system will no longer be maintained. However, as of March 31, 2022, the existing beneficiaries will remain to get the interest subsidy throughout the loan's term and moratorium period.

Central Scheme for Interest Subsidy for Economically Weaker Sections


  • Applicant’s family income equates to less than 4.5 Lakhs 
  • Applicable for higher education being pursued abroad

Dr. Ambedkar Central Sector Scheme


  • The applicant belongs to the economically backward class and their total family income is less than 8 Lakhs.
  • The applicant belongs to the OBC community and their family income equals less than 8 Lakhs. 
  • Applicable for higher education being pursued in India.

How To Apply For An Education Loan From Indian Overseas Bank

Offline education loan application process

  • Visit your nearest branch of an Indian overseas bank and request information on the education loan
  • Based on your requirements and eligibility for the loan select a loan product and fill in the application form
  • Get the list of documents to get your loan process started
  • Visit the bank again and submit the documents to start processing the loan

Online education loan application process through WeMakeScholars

Step 1: Fill in your details in the Common Application form.

Step 2: You will receive a call from one of our financial officers to verify your eligibility for the education loan. Give them all the details you are asked for.

Step 3: You will be provided with a thorough analysis of your profile and provide you a list of lenders from whom you are eligible to get a loan. Choose from all the lender options provided to you.

Step 4: You will be given a list of documents required for processing your loan. You can submit them in the branch closest to you or you can upload them on our encrypted secure document portal 

Step 5: Immediately after your documents have been submitted you will be logged in. The outcome of your application will be given to you within 2-6 days in private banks and 15-20 days in public banks.

Step 6: You will sign the loan agreement and receive the sanction letter after your loan has been sanctioned.

Issues while approaching the lenders directly

  • A very long time is taken to process the loan 
  • A clear explanation is not provided to the applicant about the entire process
  • Poor customer service
  • The applicants cannot negotiate for themselves 
  • Post-sanction disbursement issues, no help is offered to the client in case they have a doubt

Benefits of applying through WeMakeScholars

  • Lower rate of interest: By processing your education loan through WMS you can make sure that you get an interest rate that is 0.5 to 2% lower than the average interest rate. 
  • Stellar customer support: You can avail of our services at any time between 9 AM to 9 PM and can avail of our services from the WeMakeScholars team.
  • No service charges: WeMakeScholars doesn’t charge you anything for the services being provided. It’s completely free of cost!
  • The cashback offered: You can avail of a cashback of Rs 3000 the first time your loan gets disbursed. And that is because you are supporting the Digital India campaign by processing your student loan with us.
Apply through us and get the support you need to fund your education

Why And How To Transfer Your Education Loan To An Indian Overseas Bank

Why transfer your loan to an Indian overseas bank?

  • You can reduce the interest rate on that loan significantly.
  • As our organization is connected to most of the mainstream public banks, NBFCs, and private banks the process of loan transfer becomes very easy
  • We further try to negotiate the interest rates down by 0.5% to 2%

How to transfer your loan to an Indian overseas bank?

  • Contact us by requesting a callback.
  • You will receive a phone call from one of our financial officers
  • Mention that you want to get your existing loan transferred to an Indian Overseas Bank
  • Submit all the documents suggested to you by your financial officer in the branch nearest to you.
Stop paying too much for your education loan, get a 0.5% reduction in ROI

Indian Overseas Bank Loan Repayment Process

In Indian overseas banks,  the moratorium period lasts for the course duration plus an additional 12 months. 

For example, if you take out a loan of 21 Lakhs, with an interest rate of 10% and with a repayment tenure of 10 years, this would be your amortization schedule.

Repayment Cycle


Interest portion

Principal portion

Loan Outstanding 

End of 1st year





End of 2nd year





End of 3rd year





End of 4th year





End of 5th year





End of 6th year





End of 7th year





End of 8th year





End of 9th year





End of 10th year






Count on our post-sanction assistance to provide a smooth and quick process

Education Loan FAQs

  • What is the time duration given for an education loan?

    The time duration/ repayment tenure in Indian overseas bank is 15 years.

  • Will I get a concession if I pay interest during the repayment holiday period?

    1% of concession in interest rate will be provided by the bank if EMI is paid during the moratorium period.

  • Will the entire loan amount be disbursed at once in the Indian overseas bank?

    No, the loan amount will be released in stages as per the requirement of the university in Indian overseas bank.

  • What is the minimum loan amount I can get from the Indian overseas bank?

    The minimum loan amount which can be acquired in Indian overseas bank is 7.5 Lakhs

  • Will the Indian overseas bank abroad education loan include travel expenses?

    Yes, Airfare is included in the Indian overseas bank abroad education loan.