Indian Overseas Bank Education Loan

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.

Vidya Jyoti

Vidya Jyoti

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. 

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.

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.

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.

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

Eligibility

• 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

Eligibility

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

Dr. Ambedkar Central Sector Scheme

Eligibility

• 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.

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.

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.

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.