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Oriental Bank of Commerce Education Loan for Abroad

Last Modified : June 30, 2018

Oriental Bank of Commerce has launched multiple Education Loan schemes viz. Oriental Bank Education Loan, Education Loan Scheme for Working Professionals and Oriental Education Loan Scheme for Vocational Education and Training.

The bank offers various interest subsidy schemes launched by Government of India to promote education amongst minority or backward class along with Education Loans for India and Abroad.

Why Oriental Bank of Commerce?

The customized loans to meet specific needs of students is a major attraction for Oriental Bank of Commerce. Also, the bank has flexible repayment terms and attractive rate of interest to offer with education loan.

Are you eligible for Oriental Bank of Commerce Education Loan?

  • Indian Citizen. A student must be a resident of India or be in possession of Indian passport
  • 10+2 Pass. Qualifying 12th examination with nearly 60% marks is mandatory
  • Eligible Institute. You must have secured admission in an institute approved by the bank.
  • Eligible course. The course you opt for should be approved by bank under some education loan scheme.

1. Oriental Education Loan Scheme

To study abroad without stressing about monetary burden, Oriental Bank of Commerce have launched Oriental Education Loan scheme to provide financial support to deserving/ meritorious students pursuing higher studies in India. The scheme is extended with maximum benefits, affordable terms and easy conditions to follow.

What makes you eligible for Oriental Education Loan Scheme?

  • Indian national
  • Meritorious student
  • 10+2 pass
  • Entrance exam/ merit-based

Present Rate of Interest

Loan Amount

 

Upto INR 4 Lacs

12.75% (BR+2.50)

Between INR 4 to 7.50 Lacs

13.25% (BR+3.00)

Above INR 7.50 Lacs

12.00% (BR+ 1.75)

Quick Facts about Oriental Education Loan

Margin

Upto INR 4 Lacs: Nil

Above INR 4 Lacs: 15%

Maximum Loan Limit

INR 20 Lacs

Security

Upto 4 lacs- No security required

From INR 4 to 7.50 Lacs – collateral security in form of third party guarantee

Above INR 7.50 Lacs- Tangible collateral security equal to 100% of loan amount

Moratorium Period

Course Period + 1 year or 6 months after getting job

Repayment (Maximum)

Upto INR 7.5 Lacs- 10 years (after moratorium period)

Above INR 7.5 Lavs- 15 years (after moratorium period)

Prepayment Charges

Nil

Additional Facts about Oriental Education Loan Scheme

  • No margin for loan upto INR 4 Lacs
  • No security for loan upto INR 4 Lacs
  • 0.50% concession to girl students

Courses covered underOriental Education Loan Scheme

  • All Graduation, Post- Graduation or Doctorate courses
  • Professional Courses including Medical, Law, Dental, Engineering, etc.
  • Job Oriented Professional and technical courses
  • Post-graduation courses such as MBA/ MCA
  • Courses that are offered by CIMA, London and CPA, USA
  • Pilot Training, Shipping, aeronautical etc. courses that lead to a diploma or degree

Expenses covered under Oriental Education 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.
  • Reasonable cost of computer or laptop (if required)
  • Travel Expenses

Documents required under Oriental Education Loan Scheme

  • Duly filled Application Form
  • Identify proof and Age proof
  • Residence Proof
  • Income Proof of parents/ guardians
  • Income tax statement of last 2 years
  • Copy of prospectus of institute to calculate total expenses
  • Mark sheets of last qualifying examination
  • Admission Letter
  • Schedule for expenses

2. Oriental Education Loan Scheme for Working Professionals

Oriental Education Loan Scheme for working professionals was launched by OBC to help students who wish to pursue part time courses (along with their job). This scheme came into existence to provide financial support to individuals who wish to pursue some course to enhance their career prospects.

Eligibility to avail Oriental Education Loan Scheme for Working Professionals

  • Indian National
  • Upto 55 years of age
  • Graduate
  • Working in any public, private, defence, etc. enterprise
  • Admission on the part-time bases

Present Rate of Interest

Loan Amount

 

Upto INR 4 Lacs

12.75% (BR+2.50)

Between INR 4 to 7.50 Lacs

13.25% (BR+3.00)

Above INR 7.50 Lacs

12.00% (BR+ 1.75)

Quick Facts about Oriental Education Loan Scheme for Working Professionals

Margin

25%

Maximum Loan Limit

As per fee structure of institution

Security

Personal guarantee of a person acceptable to bank

 

Moratorium Period

Course Period

Repayment (Maximum)

Upto INR 7.5 Lacs- 10 years (after moratorium period)

Above INR 7.5 Lacs- 15 years (after moratorium period)

 

Subject to condition that last repayment date will be retirement date

Prepayment Charges

Nil

Courses covered under Oriental Education Loan Scheme for Working Professionals

  • All Part-time Post- Graduation or Doctorate courses
  • Professional Courses including Medical, Law, etc.
  • Courses that are offered by reputed foreign universities in India
  • Part-Time Courses conducted by colleges/ universities approved by UGC/ Government/ AICTE/ AIBMS/ ICMR etc.

Expenses covered under Oriental Education Loan Scheme for Working Professionals

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

Documents required for Oriental Education Loan Scheme for Working Professionals

  • Duly filled Application Form
  • Identify proof and Age proof
  • Residence Proof
  • Income Proof of parents/ guardians
  • Income tax statement of last 2 years
  • Copy of prospectus of institute to calculate total expenses
  • Mark sheets of last qualifying examination
  • Admission Letter

FAQs

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

Answer: 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

Q. In whose name is the loan granted?

Answer: The loan is granted in the name of the student

Q. Is the loan contract executed only in student’s name?

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

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

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

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

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

Q. What does margin on any loan mean?

Answer: 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.

Q. Should the student’s margin be paid upfront in the starting?

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

Q. Where can I avail Oriental Bank of Commerce Education Loan?

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

Q. Is there any provision to apply for loan online?

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

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

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

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

Answer: 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

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

Answer:

  • 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

Q. What all is included in tangible collateral security?

Answer: 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.

Q. Can I place my family property as collateral?

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

Q. Is scholarship or assistantship included in the margin?

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

Q. What is Moratorium Period?

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

Q. What is tenure of an education loan?

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

Q. What does MCLR stands for?

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

Q. What all expenses are covered under this course?

Answer: 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.

Q. Will my travel expense will be covered if I take loan from Oriental Bank of Commerce?

Answer: Yes, travel expenses are covered under this loan

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

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

Q. What do you mean by reputed or recognized institutes?

Answer: 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)

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

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

Q. What is the processing fee or prepayment charges?

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

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

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

Q. Why is Pan Card necessary?

Answer: 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

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

Answer: 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.

Q. Is a co-borrower necessary for loan?

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

Q. Who can be my co-borrower?

Answer: 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.

Q. What all documents are required from the co-borrower?

Answer: 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).

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

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

Q. What is the KYC requirement in education loan?

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

Q. What are maximum term for repayment?

Answer: Maximum Term for repayment for Loan amount upto INR 7.50 Lacs is 10 years and maximum term for repayment is 15 years for loan amount above INR 7.50 Lacs

Q. How can I repay the loan?

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

Q. What is EMI? How are they calculated?

Answer: EMI stands for Equated Monthly Installments. It can be calculated by using the formula given below

  • 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.

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

Answer: 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

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

Answer: 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.  

Q. What is method of application of interest on education loan?

Answer: 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. 

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

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

Q. What is interest rate of education loan?

Answer: The Interest Rate for Oriental Education Loan is

Loan Amount

 

Upto INR 4 Lacs

12.75% (BR+2.50)

Between INR 4 to 7.50 Lacs

13.25% (BR+3.00)

Above INR 7.50 Lacs

12.00% (BR+ 1.75)

Q. What is interest subsidy on education loan?

Answer: 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

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

Answer: 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

Q. If I am availing loan for overseas studies, can I also avail interest subsidy scheme?

Answer: CSIS Scheme is not available for students who wish to pursue overseas studies whereas Padho Pardesh is formulated for foreign education.

Q. What is employment verification in an education loan?

Answer: 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.

Q. Are there any tax benefits in education loans?

Answer: 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).

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

Answer: 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.

Q. Can I repay my loan in foreign currency even if my bank is in India?

Answer: Yes, you can pay the amount in foreign currency (Euro, Pound, Dollar, etc.) The bank might charge an additional currency conversion fee as per RBI regulations.

Q. Why do banks require insurance policy as security?

Answer: 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

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

Answer: 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.

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

Answer: 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.

Q. Are NRIs eligible for the education loan?

Answer: NRIs are eligible for the loan if they have Indian citizenship and are Indian passport holder.

Q. Is Visa a necessary document for studying abroad?

Answer: Visa is needed as a document proof but it is not a sole requirement.

Q. What all procedures do one have to go through while applying for abroad?

Answer: A student who is applying for studying abroad have to give necessary documents required by the bank. One needs to have a thorough knowledge of the course they are applying for and in which institute as it can be asked on the airport by the foreign officials.

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

Answer: 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