- The purpose of this loan is to provide financial support to students who wish to study within India or abroad at reasonable and affordable costs and conditions.
- Oriental Bank of Commerce ensures that the applicants are informed of all possible charges and fees at the very outset and there are no hidden costs.
- Oriental Bank of Commerce has three categories of institutions for students who wish to avail this loan. Category A has top rung institutions for management and engineering such as the IIMs, IITs, Symbiosis Centre For Management & HRD, Symbiosis Institute of Business Management, Xavier Labour Relations Institute, etc. Category B has institutes such as the Indian Institute of Foreign Trade, Marine Engineering & Research Institute, Birla Institute of Technology, Institute of Management Technology, etc. The third category has all other institutions that are not mentioned in either the Category A or Category B lists, but are eligible for an education loan. Interested loan applicants may check if their institutes are mentioned in the Category A or Category B lists by checking the webpage.
Loan amount and Interest Rates
Oriental Bank of Commerce disburses a maximum loan amount of Rs. 25 lakhs for institutions that fall under Category A and a maximum loan amount of Rs. 10 lakhs for Category B institutions. For all other institutions, the loan amount will be based on the actual fees.
Interest rates also differ according to the category of institutions. Borrowers who have got admittance into Category B institutions will get an interest rate of MCLR + 0.50%, i.e., 10.05%. Borrowers who have got admittance into Category A institutions will have to repay at an interest rate equivalent to the MCLR, i.e. 9.55%. Other applicants will have to pay interest rates that are in keeping with the normal rate for education loans, see the table below:
Up to Rs 4 lakhs
MCLR + 2% = 12.75%
From Rs 4 lakhs to Rs 7.5 lakhs
if credit guarantee coverage provided
MCLR + 3% = 13.25%
From Rs 4 lakhs to Rs 7.5 lakhs
if collateral provided
MCLR + 1.75% = 12.00%
Above Rs 7.5 lakhs
MCLR + 1.75% = 11.30%
- Borrowers whose institutes fall under either Category A or B, no margin, processing fee or collateral security is to be provided by them. However, the other borrowers will have to pay as per normal terms and conditions of education loans. For the borrowers with loan amount above Rs. 4 lakhs, there is a margin of 5% for studies within India and 15% for studies abroad.
- For borrowers whose institute fall under category A or category B and wish to avail bigger loan amount have to provide 100% tangible security.
- There is a penal interest of 2% over the normal interest rate on loan above Rs, 4 lakhs on amounts that are overdue.
- Category A borrowers have to provide a co-obligant who may be their parent/guardian, spouse or parents-in-law. For other borrowers whose loans are up to Rs. 4 lakhs their co-obligant may be their parent/guardian, spouse or parents-in-law. For loan above Rs. 4 lakhs to Rs. 7.5 lakhs, the bank will require one third-party guarantee and a co-obligant in the form of the parent/guardian, spouse or parents-in-law. For loans above Rs. 7.5 lakhs, borrowers may mortgage an immovable property they hold in their name, or provide a tangible security that has a value that is 100% equivalent to the loan amount. They also have to provide a co-obligant in the form of their parent/guardian, spouse or parents-in-law. In all cases, there is assignment of the borrower’s future income.
- For all students OBC provides life insurance policy.
- The repayment period of the OBC Education loan is up to 15 years, excluding the moratorium period. The moratorium period is defined as a time when the applicant does not pay EMIs.
- The interest paid on the OBC Education Loan is eligible for tax exemption under Section 80E of the Income Tax Act.
- After Oriental Bank of Commerce approves the education loan, the loan amount is directly disbursed to the educational Institution.
- The Oriental Bank of Commerce Education Loan may be repaid via the Electronic Clearing Systems (ECS), post-dated cheques, by leaving instructions to the bank to debit the EMIs from his or her Savings Account on due date.
- The loan may be sanctioned at a place that is closest to the residence or native place or nodal branch of the student borrower as per his or her choice and convenience
- Oriental Bank of Commerce allows for a top-up loan/second education loan to be availed by the students.
- Oriental Bank of Commerce may sanction an education loan for two dual courses that may be pursued by the student simultaneously.
- Oriental Bank of Commerce Education Loan covers the following expenses:
- Fees that are to be paid to the borrowers’ university/college/school/hostel
- Examination/Library/Laboratory fees that the borrower will have to pay
- Insurance premium for the borrower
- Travel Expenses/passage money for those borrowers who are going out of the country on studies and bus fare for those borrowers who are studying in India
- Insurance premium for the student borrower, if applicable
- Caution deposit/Building Fund/refundable deposit that are supported by Institution bills/receipts
- For buying books/equipment/instruments/uniforms
- For buying computer at reasonable cost, if required for the completion of the course
- Any other expense that the borrower may face that is related to the course.
- A student who is an Indian national
- A meritorious student
- He or she should have got admission into an institute for higher education that is recognized by a statutory body in India or abroad, by appearing in a entrance exam or via a merit based selection process
- Eligible courses for the Oriental Bank of Commerce Education Loan
For studies in India:
- Approved courses for Graduation/ Post-graduation degrees and diplomas: including professional or technical Degree/Diploma courses that are conducted by colleges or universities that are approved by the UGC/ IMC/AICTE/ Government, etc.
- Courses that are conducted by the IITs, IIMs, XLRI, etc
- Courses such as the C.A., I.C.W.A, C.F.A., etc
- Regular Diploma or degree courses such as pilot training, aeronautical, shipping, nursing, etc., that are approved by the regulatory authority
For studies abroad:
- Professional and technical graduation courses that are job-oriented and that are offered by reputed universities
- Post graduate courses offered by reputed universities such as MCA, MBA, etc
- Courses that are conducted by CPA in USA, or CMA in London, etc
- Degree or diploma courses such as pilot training, aeronautical, shipping etc., that are conducted by institutes that are recognized by competent regulatory bodies abroad or in India
- Oriental Bank of Commerce Education Loan - Tie-Up With NIIT Limited
- The maximum loan amount that can be availed is Rs. 1.75 lakhs
- There is no margin in this loan
- The rate of interest in this loan is set at MCLR + 1.50% = 11.30%
- There are zero processing fees/documentation charges/prepayment penalty
- As security, Oriental bank of Commerce accepts the parents/guardians, spouse or parents-in-law to be the co-obligants