Name of the Scheme: Vidya Jothi Scheme

Eligibility:

A student who is interested to avail the loan should have the following eligibility conditions:

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

Courses

A student can avail the loan from Indian Overseas Bank for -

• His/Her school education including plus 2 stage/Graduation/Post graduation/Diploma/Computer education in any recognized State/Central Government/University.
• Professional courses including Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, courses like ICWA, CA, CFA, etc. and courses conducted by IIM, IISC, XLRI, NIFT etc.
• Courses offered in India by reputed foreign universities/Evening courses of approved institutes.

Loan Amount

A student can get a maximum of Rs.7.5lakh for studying in India and Rs.15lakh for studying abroad.

Interest rate is as follows:

- Up to Rs.4lakh 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

For loans upto Rs.4lakh - Nil

For loans above Rs.4lakh - Studies within India 5%, for studies abroad 15%

Scholarship/assistantship to be included in margin.

For loans upto Rs.4lakh - Nil

For loans above Rs.4lakh and up to Rs.7.5lakh Satisfactory personal guarantee of a third party

For loans above Rs.7.5lakh 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.

Holiday period

Students can pay back your loan 6 - 12 months after they complete the course.

• Students can repay the loan in equal monthly Installments for a maximum period of 5 - 7 years excluding holiday 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.

• 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.