Indian Overseas Bank Education Loan

Vidya Jyoti

The Vidya Jyoti education loan scheme is a loan scheme that caters to students who want to study at foreign universities. It is all-encompassing in terms of the costs that it can accommodate and has a fairly flexible payment plan. This loan is intended to make studying abroad more accessible due to affordable interest rates and the ability of relatives to become guarantors of a loan. Also, the scheme has features like concession during the moratorium period; this further adds to the financial relief for students. 

Vidya Jyoti

Another loan scheme is the Vidya Jyoti education loan scheme which targets students who wish to study in Universities outside India. As for the costs that can be covered, it is quite comprehensive. This loan is expected to help students study outside their home country by using reasonable interest rates and the option of having a relative act as a surety for the loan. There are other aspects of the scheme such as concession in the repayment during the moratorium period this is another boost that students get financially.

For an education loan with Indian Overseas Bank, some of the documents that are necessary to attach include the following. These documents help the bank to gather all the information needed to evaluate and sanction the loan application. The following table shows the list and details of the documents required for the loan application process such as application form, identification proof of applicant and co-applicant, proof of income, academic documents, and any other document that might be required. Also, collateralized loans might require state-specific collateral documents in some cases. 

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.

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.

The following table shows the amortization schedule for a loan of 21 Lakhs borrowed from the Indian Overseas Bank at an interest rate of 10% with a repayment period of 10 years. The grace period for this loan is for the course duration plus one year. This schedule also determines the form of the repayment cycle, EMI, and the balance place showing the interest and principal components and the outstanding balance of the loan at the end of each year.