IOB-Scholar

About the IOB-Scholar Scheme

The IOB-Scholar scheme caters to Indian students who have secured admission into recognised professional and technical institutions in India and abroad. This education loan is designed to help students meet tuition, accommodation, travel, and other education-related expenses.

It fits seamlessly into a child education plan, offering peace of mind to parents who wish to secure their child’s academic future. This scheme is even more appealing as it aligns with government interest subsidy programs.

IOB-Scholar - Rates of Interest

Interest rates under the IOB-Scholar scheme are competitive and depend on the type of institution, loan amount, and location (domestic or international).

• Loan up to ₹7.5 lakh:11.05%
• Loan above ₹7.5 lakh up to ₹60 lakh:12.05%
• Loan to Staff Ward: 10.75%

Note: The rates are updated per IOB Bank’s latest terms as of 25 June 2025. These may change based on RBI Repo Rate movements or bank lending policy updates to the bank’s lending policies.

Features of the IOB-Scholar Scheme

Here’s what makes the Indian Overseas Bank Education Loan under the IOB-Scholar Education Loan Scheme an attractive choice for students and parents:

• Loan Amount: Finance available up to ₹50 lakh (domestic), ₹60 lakh (international), depending on the course and institution.
• Repayment Flexibility: Moratorium includes the course period + 1 year; total repayment period can go up to 15 years.
• Special Rate for Staff Wards: Concessional interest rate of 10.75% for children of IOB staff.
• Supports Future Planning: Easily integrates into a child investment plan for long-term academic planning.
• Tax Benefit: Interest paid is eligible for deduction under Section 80E of the Income Tax Act.

Eligibility for the IOB-Scholar Scheme

To apply for the IOB-Scholar education loan, students must meet the following criteria:

• Indian Citizen: Applicant must be a citizen of India.
• Management Quota Admission: Eligible with 60% (General) or 55% (SC/ST) in Plus Two or equivalent, even without entrance exam.
• Approved Institutions: Course must be from AICTE, UGC, or any recognised statutory body in India or a reputed foreign university.
• Loans Beyond IBA Limit: Students seeking higher loan amounts than the IBA Model Scheme are eligible if they meet the criteria.
• Employability Focus: Any course that leads to employment after completion qualifies.

Documents Required for IOB-Scholar

Here are the standard documents required while applying for the IOB-Scholar loan:

• Student Identity & Address Proof: Valid proof per KYC norms (Aadhaar, Voter ID, Passport, etc.).
• Academic Records: Mark sheets and certificates for Class 10, 12, and the qualifying degree.
• Admission Proof: Offer letter or admission letter from a recognised institution.
• Cost of Study: Detailed statement of course fees and schedule of expenses from the institution.
• Co-applicant KYC Documents: Identity and address proof of the parent/guardian as per KYC norms.
• PAN Card of Co-applicant: Mandatory and must be submitted with the application or before the first disbursement.
• Income Documents of Co-applicant: Salary slips, Form 16, or ITR as income proof for the co-borrower.

Most Important Terms and Conditions

Here are some of the key terms to consider before applying for the IOB-Scholar loan:

• Loan Margin: A uniform margin of 25% applies, regardless of the loan amount.
• Interest Concession: An additional 1% interest concession is available if interest is serviced during the study and moratorium period.
• Disbursement Process: The Loan is disbursed in stages, directly to the institution or vendors for tuition, equipment, or course-related expenses. 
• Processing Charges: Applicable per bank policy and communicated at the time of application.
• Subsidy Eligibility: To qualify for central interest subsidy schemes, the loan must be sanctioned under the IBA Model Education Loan Scheme.
• Collateral Required: All loans require collateral security such as land, building, NSC, KVP, life insurance policy, mutual funds, FDs, or other tangible assets acceptable to the bank.
• Assignment of Future Income: The Student’s future income must be assigned for repayment, based on the employability of the course.