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Oriental Bank of Commerce Education Rate of Interest

The scheme is extended with maximum benefits, affordable terms and easy conditions to follow.

  • 15% margin is charged for a loan above INR 4 Lacs.
  • The maximum loan limit is INR 20 Lacs.
  • 0.50% concession to girl students

The interest rates are according to the category in which the concerned institute falls.

  • For Category A: 1-year MCLR.
  • For Category B: 1-year MCLR+0.50%.
  • For Other Institutes: Up to 7.5 Lakhs- 1-year MCLR+2%.; Above 7.5 Lakhs- 1-year MCLR+1.75%

CALCULATE YOUR EDUCATION LOAN EMI

Fill the Loan Amount
Fill the Interest Rate
Fill the Loan Tenure
EMI Payable

188 per month

Total Interest

1,280

Payable Amount

11,280

Total Interest
Principal Loan Amount

Looking for admission for India and Abroad?

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Oriental Bank of Commerce Education Loan Eligibility

loan eligibility image
  • Indian National. The student must be an Indian National or an NRI having an Indian passport
  • 10+2. The student must have cleared 10+2 from a recognized board or institute with 50% marks.
  • Co-signer. A co-signer is mandatory while applying for education loan from Oriental Bank of Commerce
  • Eligible Institute. You must have secured admission in a reputed foreign university.
  • Admission Basis. The admission should have been done on the basis of an entrance exam or a merit list.

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Applicable Rate of Interest For Category A: 1-year MCLR.
For Category B: 1-year MCLR+0.50%
For other institutes: Up to 7.5 Lacs- 1-year MCLR+2%.; Above 7.5 Lacs- 1-year MCLR+1.75%
1.70% above the base rate
up to INR 7.5 Lacs: MCLR + 2.00%
above INR 7.5 Lacs: 2.60%
Upto 4 Lacs- 16.50%
Upto 7.5 Lacs- 17.50%
Above 7.5 Lacs- 15.50%
Max Loan with Collateral INR 20 Lacs
For Abroad: 30 Lacs
For Abroad: 20 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs and beyond based requirement
Max loan without collateral INR 20 Lacs
For Abroad: 30 Lacs
For Abroad: 20 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs and beyond based requirement
Processing fee Nil
INR 10,000
Nil
Nil
Repayment Period 15 Years
15 years
15 years
7 years
Loan for top institutions No
Yes, SBI Scholar Loan Scheme
Yes, PNB Pratibha
No
Margin upto INR 4 Lacs: Nil
Above INR 4 Lacs: 15%
15%
Up to INR 4 Lacs - NIL
Above INR 4 Lacs - 15%
Upto loan 4 Lacs: No margin
Above 4 Lacs: for India: 5%
for Abroad: 15%
Age Limit No
no age limit
No age limit
No
Loan Security Up to 4 lacs - No security required
From INR 4 to 7.5 Lacs - Collateral security in form of third party guarantee
Above INR 7.5 Lacs- Tangible collateral security equal to 100% of the loan amount
Tangible collateral security is required
Collateral security by third party are also accepted
Upto INR 7.50 Lacs: Parent(s)/guardian be made joint borrower (s). No tangible Security and /or 3rd party guarantee is required.
Above INR 7.50 Lacs: Parent(s)/guardian be joint borrower(s). Tangible collateral security of suitable value acceptable to bank.
Third party guarantee
Collateral security
Additionally, assignment of LIC policy in favor of bank amounting 100% of education loan amount
Assignment of Future salaries in favor of Axis Bank
Eligibility concession for SC/ST No
No
50% for SC/ST, and;60% for General category.
No
Processing Time N.A.
20 days
15 days
14 Days
Prepayment charges Nil
Nil
Nil
Nil
Penal charges Nil
Penal interest @ 2% to be charged for loans above Rs.4 lacs for the overdue amount and overdue period
Nil
@ 2% per month on the overdue installment/s
Mandatory insurance cover Not mandatory
Yes
yes
yes
Travel expeneses Yes
yes
yes
yes
Bank transfter allowance No
available
available
No such clause mentioned
Top up loan availability Available
yes
available
unavailable
Interest Subsidy Schemes CSIS
Skill Loan Scheme
padho Pardesh
Padho Pardesh
CSIS
Skill Loan Scheme
Padho Pardesh
CSIS
Skill Loan Scheme
CSIS
Tax benifit yes
yes
yes
yes
Concession/benefits No margin required for loan upto INR 4 Lacs
No security required for loan upto INR 4 Lacs
0.50% concession to girl students
Concession to girl students
1% concession if interest is serviced during moratorium period including course period
0.5% concession to girl students
0.5% concession if interest is serviced during moratorium period including course period
Online application
There is no processing fee charged
No pre- payment charges are applied
No pre- closure charges are applied
Loan Disbursal period is 15 working days from the date of final submission of documents
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How to apply for Oriental Bank of Commerce Education Loan ?

Oriental Bank of Commerce Education loan application form can be available online or offline at Bank branches.

Visit the official website for OBC Education Loan.

Select your scheme and click on Apply Now.

Fill out the form with your essential details.

Upload the mandatory documents required.

Submit the form and take out a print out of the application.

Visit the bank branch for further formalities.

Applicants can directly visit the nearest branch and ask for an application form. The bank representative will then guide them with all the necessary information regarding eligibility, documents required and also which loan is best suitable.

Oriental Bank of Commerce Education Loan Details

Loan Limit
INR 20 Lacs
Margin
Up to INR 4 Lacs: Nil
Above INR 4 lacs: 15%
Processing Fee
Nil
Loan Security
Up to 4 lacs - No security required
From INR 4 to 7.5 Lacs - Collateral security in form of third party guarantee
Above INR 7.5 Lacs- Tangible collateral security equal to 100% of the loan amount
Loan Repayment
15 years

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Expenses covered under Oriental Bank of Commerce Student Loan Scheme

  • Tuition fee
  • Examination fee
  • Library/ Laboratory fee
  • Hostel Fee
  • Cost of Books, equipment, instrument or uniforms
  • Miscellaneous expenses- study tours, project work, thesis, etc.
  • A reasonable cost of computer or laptop (if required)
  • Travel Expenses

Education Loan Documents Required ?

Duly filled Application Form with all essential details

Attested copies of age proof, residence proof and birth date

Self-attested passport size photograph

Copies of qualifying courses

Income proof and/or copy of income tax return file

Details of collateral security along with government approved valuation certificate (if any)

Bank account statement of the applicant.

Copy of passport and visa for abroad courses

Interest Subsidy Schemes

Padho Pardesh

Padho Pardesh scheme was founded under the initiative of Prime Ministers new 15 point programme to benefit the minority community.

Padho Pardesh

Padho Pardesh scheme of Interest Subsidy on education loans for overseas studies aims to promote academic advancement of students belonging to minority communities. The scheme provides 100% interest subsidy to students belonging to minority community

How to Avail Indian Bank ‘Padho Pardesh’ Subsidy Scheme?

Students can yield benefits of the scheme by following the below mentioned procedure:

  • Students are supposed to inform their lending banks about the recent launched scheme of Padho Pardesh by Ministry of Minority Affairs.
  • Then the students have to submit the proof of their eligibility for the particular scheme
  • If a student is eligible, the lending bank will feed the students information into portal of Padho Pardesh.
  • The portal will remain open for the period of two month in every quarter.

Courses covered under Padho Pardesh Scheme

Courses that are covered by Government of India under this scheme are as follows:

Arts/ Humanities/ Social SciencesCommerce
Pure ScienceEngineering
Bio- technology/ Genetic EngineeringIndustrial Environmental Engineering
Nano- technologyMarine Engineering
Petro-chemical EngineeringPlastic Technology
Cryogenic EngineeringMechatronics
Automation Robotics including artificial intelligenceLaser Technology
Low Temperature Thermal DynamicsArt Restoration Technology
OptometryDock and Harbour Engineering
Imaging System TechnologyComposite Materials Engineering including Decentralized power
Packaging Engineering/ TechnologyNuclear Engineering
Information Technology including Computer Engineering, Software, Software Quality assurance, etc.Industrial Safety Engineering

*The courses might change as per discretion of Ministry

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Frequently Asked Questions

01

What schemes does Oriental Bank of Commerce considers for its education loans?

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There are multiple other schemes offered by Oriental Bank of Commerce apart from the basic education loans. These are:

  • CSIS Scheme
  • Padho Pardesh
  • Oriental Education Loan for Vocational Education and Training
02

In whose name is the loan granted?

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The loan is granted in the name of the student

03

Is the loan contract executed only in student's name?

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No, the loan can be executed both in name of student and co-borrower as both are equally responsible for repayment of loan.

04

What is the age limit for availing loan in Oriental Bank of Commerce?

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There is no age limit for basic Oriental Education Loan for studies India. For Oriental Education Loan for Working Professionals, the age limit at time of enrolment is 21 to 55 years.

05

Are minors eligible to apply for Oriental Bank of Commerce Education Loan?

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Yes, Minors aspiring for further studies can apply for education loan with help of legal representation from parents/ guardians.

06

What does margin on any loan mean?

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Margin amount is the amount that a borrower has to pay through his/ her own sources in form of a down payment as his/ her contribution towards the education.

07

Should the student's margin be paid upfront in the starting?

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Margin can be paid on a year to year pro rata basis whenever bank disburses loan amount as per requirement.

08

Where can I avail Oriental Bank of Commerce Education Loan?

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You can either contact your nearest branch for the application form or details regarding the loan or apply online from the official website.

09

Is there any provision to apply for loan online?

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Yes, you can apply online through Vidyalakshmi portal to avail for this loan.

10

Can I view my loan statement online if I am an existing education loan borrower?

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Yes, by creating a login on Oriental Bank of Commerce web portal, you can view all details related to education loan online.

11

Is there any minimum aggregate marks to meet the eligibility criteria to avail Oriental Bank of Commerce education loan?

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Yes, a student must have secured a minimum aggregate marks in their last qualifying examination (10+2 or Graduation). Relaxation in the marks is given to SC/ ST students

12

What is the discount/ rebate offered by Oriental Bank of Commerce?

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  • 0.50% concession is given to girl students
  • 1% concession to students who have secured admission to top premier institutes that fall under List A.
  • Eligibility criteria and margin on education loan is relaxed for SC/ST students
13

What all is included in tangible collateral security?

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Mostly Oriental Bank of Commerce asks tangible security in lieu of the loan amount sanctioned along with assignment of future salaries in favour of Oriental Bank of Commerce. Tangible security includes documents related to land/ building/ government security/ public sector bonds/ units of UTI, NSC, Life insurance policy/ bank deposits/ shares or debentures. The value of the security should be equal to the education loan amount.

14

Can I place my family property as collateral?

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Yes, but it will need consent of all family members involved.

15

Is scholarship or assistantship included in the margin?

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Yes any scholarship or assistantship will be a part of margin charged on education loan.

16

What is Moratorium Period?

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Course Period plus one year, or six months after getting a job

17

What is tenure of an education loan?

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Tenure of education loan provided by Oriental Bank of Commerce is maximum 15 years

18

What does MCLR stands for?

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MCLR stands for Marginal Cost of funds based Lending Rate. It refers to the minimum interest rate of bank below which it cannot lend.

19

What all expenses are covered under this course?

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Expenses covered by Oriental Bank of Commerce education loan are:

  • Tuition/ college/ hostel fee
  • Examination/ lab/ library fee
  • Books/ uniform/ instruments
  • Caution deposit
  • Passage money for studies abroad, etc.
20

I have taken admission through management quota. Am I eligible?

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This depends totally on bank?s discretion as whether a student meets other eligibility criteria or not.

21

What do you mean by reputed or recognized institutes?

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Institutes that are affiliated to state/ central universities and comes under UGC or AICTE are considered as recognized institutes. Reputed institutes are those which are well known and have standard course of repute. More often, banks provide the list of institutes they consider for loan. (You can contact nearest branch for the same)

22

Are there any special benefits if I have secured admission to one of the top premier institutes?

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Oriental Bank of Commerce offers 1% concession to students who secure admission to top premier institutes under List A.

23

What is the processing fee or prepayment charges?

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The education loan offered by Oriental Bank of Commerce does not carry any prepayment charges/ processing fee/ documentation charges.

24

Will cost of my computer be covered under the loan sanctioned?

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Reasonable cost for the computer or laptop well be covered under the loan if it is required to complete the course.

25

Why is Pan Card necessary?

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Pan Card is one of the mandatory document required by banks these days. It is mandatory because:

  • Easy to assess Income
  • Easy to trace borrowers
26

Are diploma or certificate courses considered under Oriental Bank of Commerce education Loan (both for India and Abroad)?

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Diploma courses are eligible under Oriental Bank of Commerce Education Loan. Regular degree or diploma courses like, shipping, pilot training, and aeronautical that are approved by Director General of Civil Aviation or Shipping.

27

Is a co-borrower necessary for loan?

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Yes, it is mandatory to have a co-borrower to avail loan from Oriental Bank of Commerce.

28

Who can be my co-borrower?

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Your parent/ spouse/ guardian can be a co-borrower. A co-borrower should be your immediate family member, should have a steady source of income, and a good credit history.

29

What all documents are required from the co-borrower?

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Documents required from the co-borrower are:

  • Attested copies of age proof, residence proof and birth date.
  • Self-attested passport size photograph
  • Income proof and/or copy of income tax return file
  • Details of collateral security along with government approved valuation certificate (if any).
30

How many guarantors do I need to borrow loan from Oriental Bank of Commerce?

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You need at least 2 guarantors to avail loan from Oriental Bank of Commerce.

31

What is the KYC requirement in education loan?

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KYC requirements are the documents as a proof of personal identification and residence proof of the applicant as well as the co-borrower.

32

What are maximum term for repayment?

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  • Oriental Model Education Loan Scheme: Loan amount upto INR 7.5 Lacs: 10 years; Loan amount above INR 7.5 Lacs: 15 years
  • Oriental Education Loan for Working Professionals: Loan amount upto INR 7.5 Lacs: 10 years; Loan amount above INR 7.5 Lacs: 15 years. Subject to the condition that last payment date will be retirement date.
  • Oriental Education Loan for Vocational Education and Training: Course with 3 months duration: 2-5 years; Course with 3-6  months duration: 2-5 years; Courses with 6 months- 1 year duration: 2-5 years; Courses above 1 year duration: 3-7 years
33

How can I repay the loan?

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You can repay the loan after the moratorium period by mode of EMI or through post- dated cheques.

34

What is EMI? How are they calculated?

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  • EMI = [P x R x (1+R) ^n] / [(1+R)^ n-1]
  • Here, P is Amount of Education Loan, R is Rate of Interest, n is Tenure of the Loan.
  • Or simply you can use the EMI calculator provision available on Oriental Bank of Commerce’s official website.
35

What are the charges for late EMI payment?

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24% per annum on outstanding amount is charged for the late EMI payment and INR 500 for every bounced cheque.

36

Is the loan disbursed in name of individual applicant or to the institute/ university directly?

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The loan is disbursed directly to the institute/ university that you have taken admission to. Hence, an applicant is supposed to submit institute brochure with proper division of the fee

37

If I am unable to complete my course in given tenure, will my repayment term be extended?

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It is completely on the banks discretion to extend the moratorium period or not. It can be extended for maximum 2 years based on student?s reason. You can contact your nearest branch for more details.

38

What is method of application of interest on education loan?

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The interest will be charged at simple rate from the date of disbursement till commencement of repayment of loan. After that, compound interest is charged on reducing balance.

39

If I am joining the course soon after current course, can I get an extension?

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Mostly, in such cases, you do not get an extension and even if you do there is a possibility that interest rates are higher

40

What is interest rate of education loan?

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The Interest Rate for Oriental Education Loan is

Loan Amount Rate of Interest
Upto INR 4 Lacs12.75% (BR+2.50)
Between INR 4 to 7.50 Lacs13.25% (BR+3.00)
Above INR 7.50 Lacs12.00% (BR+ 1.75)
41

What is interest subsidy on education loan?

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Oriental Bank of Commerce offers

  • CSIS- Interest Subsidy scheme for economically weaker sections and to promote education amongst them
  • Oriental Education Loan Scheme for Vocational Education and Training for students who wish to purse Vocational (Skill Development) courses.
  • Padho Pardesh scheme for students who wish to pursue studies abroad
42

What documents do I need to submit to avail interest subsidy scheme?

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The documents that need to be submitted are:

  • Income certificate issued by authorised authorities
  • Bonafide student certificate
  • Letter of undertaking or declaration signed by borrower/ co-borrower
43

What is employment verification in an education loan?

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The bank takes the responsibility to cross verify all the employment details of the applicant and co-borrower. If the banks fails to cross verify every detail provided, it might reject the loan application.

44

Are there any tax benefits in education loans?

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Under Section 80E of Income Tax Act, loan borrowers can avail the tax benefits. This benefit is only available over and above INR 1,50,000. Tax benefits can be availed once the borrower starts paying interest on loan. The deduction is available until borrower pays off full interest amount on loan or for maximum of 8 years (whichever is earlier).

45

Is it necessary to have bank account with the bank while availing loan from that particular bank?

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It is not necessary to have a bank account while availing the loan but it makes it easier for the borrower to get loan application approved.

46

Why do banks require insurance policy as security?

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The banks require insurance policy as security in lieu of education loan provided. The insurance policy should be equal or more to the amount of loan sanctioned. In case of untimely demise of the borrower, the bank recovers the amount from the insurance policy

47

Are there any additional benefits on availing loan from Oriental Bank of Commerce?

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Oriental Bank of Commerce insists and arranges for a life cover for borrowers, premium of which can be included in finance as per borrower?s request.

48

What is credit score? Is it important for education loan?

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Credit Score is inclusive of various factors such as credit history (Loan history or credit card). If a student does not have a credit score, banks calculate it by considering factors such as University, College and the Course of admission. Banks consider the academic background of student and credit history of co-borrower.

49

If a student have any query, where or whom to contact?

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student can reach out to the nearest branch in case of any query.

Customer Care Number:0124-4126200/ 4126300

1800 180 1235/ 1800 102 1235

Local rates apply on every call

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