Indian Overseas Bank Education Loans

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Indian Overseas Bank was established in the year 1937, with Shri. M. Ct. M. Chidambaram Chettyar as its mentor, with a major aim and vision to look forward to overseas banking business related to foreign exchange and other services. This bank got nationalised in 1969. Though its major aim is to propalgate overseas business, the bank also offers education loan to meritorious students which is known as Vidya Jothi Scheme.

Eligibility of the Candidate

Education loan of Indian Overseas Bank is available only for Indian nationals and they should get admission to various professional and technical courses through merit based selection process or entrance examination. Only then they are considered for loan.

Courses Eligible for Indian Overseas Bank Educational Loans

Among the very many courses that students can pursue, the following courses are considered eligible for the loan from the bank.

  • All the courses at the graduation, post graduation, computer education and diploma level offered by recognized universities or government statutory bodies in India are considered eligible for loan sanctioning.
  • The loan is also made available for courses of technical and professional curriculum, regular diploma and degree courses as well as courses conducted by reputed foreign universities in India.
  • In case of studies abroad, the institutes offering the courses should be approved by the competent authority of the nation so as the loan application to be considered eligible.

Quantum of Loan

A maximum of ₹ 10 lacs is provided for studying in India and ₹ 20 lacs for education abroad.


For Indian Overseas Bank Student Loan up to ₹ 4 lacs there is no margin. However, the margin is 5 % and 15 % for loans more than ₹ 4 lacs in case of education in India and abroad respectively.


The bank requires various securities for issuing education loans under Vidya Jothi Scheme.

  • For education loans up to ₹ 4 lacs co-obligation of parents is required.
  • Collateral security apart from co-obligation of parents is required for loan amount of more than ₹ 4 lacs and up to ₹ 7.50 lacs.
  • For loans more than ₹ 7.50 lacs, submission of a tangible collateral security is charged along with ensurance from parents.

Repayment of Indian Overseas Bank Student Loan

A maximum time period of five to seven years is given to the students for the repayment of the education loan.

Further Information

In order to collect more information on Indian Overseas Bank education loans browse through IOB

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