Indian Overseas Bank Career-Dreams

About the Indian Overseas Bank Career-Dreams Scheme

The Indian Overseas Bank Career-Dreams education loan is available to Indian students enrolling in coaching or preparatory courses for professional exams from reputed institutions. This education loan helps bridge the financial gap for students aiming to qualify for competitive and career-defining entrance exams.

It’s a valuable option for families building a long-term child investment plan, with repayment starting after course completion. It also aligns with subsidy programs and offers flexible repayment options post the moratorium period, easing the financial burden on students and families.

Indian Overseas Bank Career-Dreams Interest Rates

The interest rates under this scheme are structured per IOB’s education loan policy for students and may vary depending on the loan amount and the institution.

• Interest rate: RLLR + 3.45% = 12.30%.

  Note: These rates are based on IOB’s terms as of 25 June 2025 and are subject to change based on RBI policy and internal bank revisions. 

Features of the Indian Overseas Bank Career-Dreams Scheme

Here’s why the Indian Overseas Bank education loan is an ideal choice for students planning to study abroad:

• Loan Amount: Funding ranges from ₹25,000 to ₹2,00,000, depending on the institution's course type and credibility.
• Repayment Tenure: The Loan must be repaid within a maximum of 3 years; no moratorium period is provided.
• Tax Benefits: Borrowers can avail of tax deductions under Section 80E of the Income Tax Act.
• For Salaried Applicants: The Repayment schedule must be planned to conclude before the applicant's retirement age.
• Compact Duration: Regardless of applicant type, the repayment period cannot exceed 3 years under any condition.
• Future-Ready Support: Complements a child education plan or a structured child investment plan.

Eligibility for Indian Overseas Bank Career-Dreams

To be eligible for the Indian Overseas Bank Career-Dreams education loan, the following conditions apply:

• Nationality: Applicant must be an Indian citizen.
• Course Eligibility: Must be enrolled in an approved coaching, training, or skill development course.
• Institute Requirement: The Institution must be reputed, registered per applicable norms, and operate for at least 2 years.
• General Eligibility: Applicable to aspirants pursuing recognised preparatory or professional training programs.

Documents Required for Indian Overseas Bank Career-Dreams

Typical documentation needed for the Indian Overseas Bank Career-Dreams education loan includes:

• Student KYC: Valid ID and address proof (Aadhaar, PAN, passport).
• Academic Proof: Class 10, 12 mark sheets, and a qualifying degree.
• Admission Letter: From the international university.
• Co-applicant KYC: Identity, address, and PAN of the parent/guardian.
• Income Proof: Salary slips, Form 16, or ITR of the co-applicant.
• Course Fee Structure: Details of tuition and other expenses.

Most Important Terms and Conditions

Here are the key loan conditions under the Indian Overseas Bank Career-Dreams education loan scheme that applicants must follow:

• Loan Usage: One loan can only be used for one course; additional courses require a fresh loan application.
• Tuition Margin: The Borrower must contribute 5% of the tuition fee based on the institute’s official fee structure.
• Margin for Security: 25% margin for immovable property; 10% for movable assets like LIC, NSC, or deposits.
• No Collateral (Salary Routed): No collateral is needed if the salary is routed through the IOB, but a third-party guarantee is required.
• Collateral Required (Non-IOB Salary): If salary/pension isn’t routed through IOB, full collateral is mandatory, and a third-party guarantee is not required.