Indian Overseas Bank

Vidya Jothi Scheme

Can I apply for the Vidya Jothi Scheme ?

You can apply if you are a student and satisfy the following eligibility criteria.

  • You should be an Indian National
  • You should have secured admission to professional/technical courses or other academic courses
  • You should have secured admission to foreign University/Institution (in the case of overseas study)

What can I use the loan for ?

You can avail the loan for your school education including plus 2 stage/Graduation/Post graduation/Diploma/Computer education in any recognised State/Central Government/University. Professional courses including Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, courses like ICWA, CA, CFA, etc., courses conducted by IIM, IISC, XLRI, NIFT etc. Courses offered in India by reputed foreign universities/Evening courses of approved institutes.

How much can I get ?

You can get a maximum of Rs. 7.50 lakh for studying in India and Rs. 15.00 lakh for studying abroad.

What rate of Interest will I have to pay ?

Present Interest rate is as follows:

  • Up to Rs. 4.00 lakh PLR (at the time of availing of loan). Presently 11% (Flat).
  • Above Rs. 4.00 lakh PLR+1% (at the time of availing of loan). Presently 12% (Flat).
  • The rate of Interest prevailing at the time of first availment shall prevail throughout the repayment period.
  • Interest to be debited quarterly/half yearly on simple basis during the repayment holiday/moratorium

What is the margin for the loan ?

For loans upto Rs. 4.00 lakh Nil
For loans above Rs. 4.00 lakh Studies within India 5%
For studies abroad 15%

Scholarship/assistantship to be included in margin.

What security do I need to provide ?

For loans upto Rs. 4.00 lakh Nil
For loans above Rs. 4.00 lakh and up to Rs.7.50 lakh Satisfactory personal guarantee of a third pary
For loans above Rs.7.50 lakh . Collateral security in the form of NSC/KVIP, LIC Policy, Gold, Shares/Debentures or immovable properties Bank Deposits in the name of student/Parent/Guardian or any other third party with suitable margin/co-obligation of third party/parent/guardian along with assignment of future income

Is there a Holiday period for my loan ?

Yes, there is. You can pay back your loan 6 - 12 months after you complete the course.

How do I repay my loan ?

You can repay the loan in equal monthly Instalments for a maximum period of 5 - 7 years excluding holiday period.

Whether I have to pay Interest every quarter during my study period?

It is left to the option of the student either to service the interest during the study period or pay it along with the principal over a period of 5 - 7 years to commence from 12th month after completion of the study.

In case I opt to service the interest, am I eligible for any concession?

Yes. For prompt servicing of interest for all quarters during the study period, an interest rebate of 0.5% is allowed. The interest rebate thus calculated will be credited back to loan account at the time of commencement of repayment of the principal sum.

How can I apply?

Download the application form in MS - Word format.
Save it on your computer, print it out and send it to the nearest/convenient I.O.B. branch for processing

Click here to download the Application Form

While all efforts have been made to update the information, constituents are requested to contact the branches for latest details.