IOB Vidya Suraksha

About IOB-Vidya-Suraksha Scheme

The IOB-Vidya-Suraksha education loan is designed to fund students who have secured admission in higher education in India or a foreign country, either by merit or an entrance exam. The innovative financing will ensure the child's future education by providing financial support with a built-in guarantee system to cover part defaults. Like other Indian overseas bank education loans, this education loan can also be planned to match the long-term vision of a parent to educate his or her child.

IOB Vidya Suraksha – Rates of Interest

The IOB Vidya Suraksha Education Loan offered by Indian Overseas Bank comes with a floating interest rate linked to the Repo Linked Lending Rate (RLLR). Currently, the interest rate is Repo Linked Lending Rate + 1.65%, which works out to approximately 10.50% p.a., depending on the prevailing benchmark rate. Since it is a floating rate, it is subject to periodic revision in line with changes in the bank’s lending rate.

Features of the IOB Vidya Suraksha Scheme

Here are the features of the IOB Vidya Suraksha Scheme:

• Nil Processing Fees: IOB does not charge processing fees on this scheme, other than a nominal fee on the Vidyalakshmi portal.
• Extended Moratorium Period: The moratorium period entails the course period plus one year. The best investment plans enable students and parents to balance long-term wealth creation alongside IOB Vidya Suraksha loan obligations.
• Flexible Repayment: The tenure of payment is up to 15 years, which also provides the students with sufficient time of repaying the loan.
• Coverage Under Credit Guarantee: In case of default, a bank is assured of 75 per cent of the loan amount, thus risk sharing.

Your child's investment plan can be used with student financing to guarantee total financial security in higher studies.

Eligibility Criteria for IOB Vidya Suraksha Scheme

The eligibility criteria of the IOB Vidya Suraksha Scheme are as follows:

• Admission by Merit or Entrance: The students have to have been admitted by means of a recognised merit or entrance examination.
• Courses Under this scheme Higher education courses in India and abroad are covered under this scheme.
• Choosing an education loan like IOB Vidya Suraksha enables students to focus on their studies without immediate financial constraints.
• Loan History Requirement: Students who are under benefits under any other scheme of the government are ineligible.
• Maximum Extension to Complete Course Later: The loan will permit two-year extension in case the course has been postponed.

Another target audience of IOB could be families with child education allowance benefits or those intending to study abroad.

Documents Required for the IOB Vidya Suraksha Scheme

To apply for the IOB Vidya Suraksha Scheme, the documents listed below are needed:

• Admission Letter by Institution: a formal document indicating the admission of a student to the course which has been approved.
• Academic Certificates and Mark Sheets: Certificates and Mark Sheets of past qualifying exams.
• PAN and Aadhaar of Student and Co-applicant: The PAN and Aadhaar of the student and co-applicant should be valid.
• Institute Fee Structure: A comprehensive fee structure by the learning institution.

Evidence of Admission (Entrance Exam or Merit List): Admission is evidenced by entrance test marks or a merit list.Integrating child education plans with the IOB Vidya Suraksha scheme allows parents to manage rising education costs more efficiently.

• Income Proof of Parent/Guardian (Where Necessary): Salary slips or ITR of parent/guardian, where necessary.

Most Important Terms and Conditions

Here are the most important terms and conditions of the IOB Vidya Suraksha Scheme

Margin Requirement: Margin is 0% on a loan amount of 0-4 lakhs. Beyond amounts of 4 lakhs, it is 5% on courses in India and 15 percent abroad.

• Annual Guarantee Fee: The current amount is 0.50 per cent, which should not be paid by the borrower; it is paid by the IOB.
• Loan Default Coverage: The bank has 75% loan default coverage that is guaranteed by its own system.
• Invocation of guarantee: The guarantee shall take effect after a period of one year of the loan being referred to as an NPA (non-performing asset).  A child plan calculator provides clarity on investment needs, while the IOB Vidya Suraksha education loan supports higher education expenses without collateral.

An online income tax calculator will help you have a preview of how you will be impacted by repayment by comparing the current interest rates.