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iob_bank_educational_loan_iob_vidya_shrest

Last Updated:04/02/2026
Educational Loan IOB Vidya Shrest

FAQ

Objective of the Scheme

The Educational loan to students (Indian Nationals) for pursuing higher education in India in the Select Premier Institutions (refer below link for the list of institutions).

Courses Eligible

  • Regular full time Degree/Diploma Courses through entrance test/selection process
  • Full time Executive Management Courses like PGPX.
  • No Certificate/ Part time courses are covered.

Eligible Person

  • Student should be an Indian National and have secured admission in the Select Premier Institutions.
  • Secured admission to Professional/Technical courses through Entrance Test/Selection process.

Co-obligator:

  • Parent/s /Guardian shall be Co-obligant
  • In case of married person, either Spouse/Parent(s)/ Parent(s) In-Law can be Co-obligant.
  • Parental Co-obligation can be substituted by a suitable Third-Party Guarantee.

MAXIMUM LOAN AMOUNT & SECURITY:

     

Category

No Security, only Parent/Guardian as Co-borrower

With tangible collateral of full value and Parent/Guardian as Co-borrower

LIST A

Rs.40.00 Lakhs

Rs. 150.00 Lakhs

LIST B

Rs.30.00 Lakhs
  • Collateral Security shall be 100% of Loan Amount
  • Land and Building/Plot (with clear demarcation)
  • Collateral security can be in the form of Liquid Security such as Life Insurance Policy, NSC/KVP/Term Deposit/ SGB etc also.

Insurance Coverage:

  • Loans above Rs. 7.50 Lakhs and upto 40.00 Lakhs (for List A Category) and upto Rs. 30.00 Lakhs (for List B Category) without Collateral Security/Credit Guarantee, Student should be covered under Individual Term Life /Endowment Policy/Group Life, Liability Insurance till liquidation of the Loan.
  • Existing Policy if any upto the Loan Amount may also be accepted, provided the same should be assigned in favour of our Bank.

Rate of Interest*:

Category of Institute Revised Interest Rates

Institute under List A

RLLR-0.60%=8.75%

i.e., 9.35- 0.60=8.75% at present

Institute under List B

RLLR-0.35%=9.00%

i.e., 9.35- 0.35=9.00% at present

* Interest rate and spread are subject to change as per prevailing guidelines

Margin: NIL

Special moratorium:

  • A special moratorium of 2 years may be provided to the student after completion of course if he/she intends to establish a Start-up. Wherever, loan is extended without Collateral Security, it is subject to production of a plan and subsequent monitoring on a quarterly basis on progress in this direction.

Repayment period:

  • Maximum 180 months.
  • Repayment to commence after course period + 1 year or 6 months after getting job, whichever is earlier.
  • Servicing Interest during the moratorium period is optional to the borrowers, If the interest is not serviced during the moratorium period, then the accrued interest during the moratorium period/repayment holiday period to be added to the principal and repayment to be fixed in Equated Monthly Instalments (EMI).

Other terms & conditions:

  • The loans granted under this scheme will also qualify for interest subsidy under Central Sector Interest Subsidy (CSIS) Scheme subject to eligibility norms.
  • Other T&C applicable.