filter your search allcollegesexamnews

Home > News >  Oriental Bank of Commerce Education Loan for India

Oriental Bank of Commerce Education Loan for India

Last Modified : May 09, 2018

Oriental Bank of Commerce is one of the public sector banks in India that is nearly 75 years old. With total of 1092 branches, OBC have established itself to be home to nearly 21, 469 employees.

With aim to provide financial assistance and promote nation’s development in terms of academic sphere, Oriental Bank of Commerce has launched multiple Education Loan schemes viz. Education Loan Scheme for India and Abroad, Education Loan Scheme for Working Professionals and Oriental Education Loan Scheme for Vocational Education and Training.

The bank have always been forward in eliminating the financial constraints for students who wish to pursue further studies in India or Abroad.

1. Oriental Education Loan Scheme

Oriental Bank of Commerce have launched this 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.

Eligibility to avail Oriental Education Loan Scheme

  • Student must be an Indian national
  • He/ she must be a meritorious student
  • He/ she must have qualified 10+2 (HSC)
  • He/ She must have secured admission to any institute recognized by statutory body through entrance exam or merit based

Key Points for Oriental Education Loan Scheme

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

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)

Margin

Loan upto INR 4 Lacs: Nil

Loan above INR 4 Lacs: 5%

Maximum Loan Limit

INR 10 Lacs

Security

If loan is upto 4 lacs- No security required

Above INR 4 Lacs and upto INR 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)

Loan upto INR 7.5 Lacs- 10 years (after moratorium period)

Loan above INR 7.5 Lavs- 15 years (after moratorium period)

Prepayment Charges

Nil

Courses covered underOriental Education Loan Scheme

  • All Graduation, Post- Graduation or Doctorate courses
  • Professional Courses including Medical, Law, Dental, Engineering, Hospital Management, Hotel Management, Event Management, Mass Communication, Fashion Studies, Agricultural Studies, etc.
  • Courses that are offered by reputed foreign universities in India
  • Regular or Evening Courses conducted by colleges/ universities approved by UGC/ Government/ AICTE/ AIBMS/ ICMR etc.

Expenses covered under Oriental Education Loan Scheme

  • Payment of Fee to College, Institute or University
  • Examination Fee or payment of fee to library or laboratory
  • Hostel Fee and other charges applicable
  • Cost of Books, equipment, instrument or uniforms
  • Miscellaneous expenses required for completion of the course- study tours, project work, thesis, etc.
  • Reasonable cost of computer or laptop (if required)

Documents required under Oriental Education Loan Scheme

  • Duly filled Application Form
  • Identify proof and Age proof
  • Residence Proof
  • Income Proof of parents/ guardians along with income tax statement of last 2 years
  • Copy of prospectus of institute to calculate total expenses
  • Mark sheets of last qualified examination
  • Confirmation of students’ admission to the institute

2. Oriental Education Loan Scheme for Working Professionals

Oriental Bank of Commerce launched this Oriental Education Loan Scheme for working professionals who wish to pursue some course part-time (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

  • Student must be an Indian National
  • He/ she must be upto 55 years of age
  • He/ she must have qualified graduation exam
  • Student must be working in any public, private, defence etc. enterprise
  • He/ she must have secured admission to any approved institute on part-time basis

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)

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)

Loan upto INR 7.5 Lacs- 10 years (after moratorium period)

Loan above INR 7.5 Lavs- 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, Dental, Engineering, Hospital Management, Hotel Management, Event Management, Mass Communication, Fashion Studies, Agricultural Studies, 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

  • Payment of Fee to College, Institute or University
  • Examination Fee or payment of fee to library or laboratory
  • Hostel Fee and other charges applicable
  • Cost of Books, equipment, instrument or uniforms
  • Miscellaneous expenses required for completion of the course- study tours, project work, thesis, etc.
  • Reasonable cost of computer or laptop (if required)

ocuments 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 along with income tax statement of last 2 years
  • Copy of prospectus of institute to calculate total expenses
  • Mark sheets of last qualified examination
  • Confirmation of students’ admission to the institute

3. Oriental Education Loan Scheme for Vocational Education and Training

Oriental Education Loan Scheme for Vocational Education and Training is the scheme launched by OBC for purpose of providing financial support to students pursuing employment oriented skill development courses. The scheme is extended with maximum benefits and affordable interest rates.

Eligibility to avail Oriental Education Loan Scheme for Vocational Education and Training

  • Students must be an Indian national
  • He/ She should have the qualification required by the institute/ university
  • He/ She must have secured admission to course approved by State/ Central Government

Key Points of Oriental Education Loan Scheme for Vocational Education and Training

  • No Margin applied to the loan
  • No security in lieu of the loan sanctioned
  • Loan can be availed from nearest OBC Bank branch

Margin

Nil

 

Maximum Loan Limit

Course with 3 months duration: INR 20,000

Course with 3-6  months duration: INR 50,000

Courses with 6 months- 1 year duration: INR 75,000

Courses above 1 year duration: INR 1,50,000

Security

No security is required

No collateral or third party guarantee is asked for.

Moratorium Period

For course upto 6 months: Course Period + 6 months

For courses above 6 months duration: Course Period
+ 1 year

Repayment (Maximum)

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

Prepayment Charges

Nil

Courses Covered under Oriental Education Loan Scheme for Vocational Education and Training

  • Vocational or Development courses of 2 months to 3 years duration
  • The course should lead you certificate, degree or diploma by a renowned organization.
  • University/ Institute should be approved by State/ Central Government

Expenses Covered under Oriental Education Loan Scheme for Vocational Education and Training

  • Payment of Fee to College, Institute or University
  • Examination Fee or payment of fee to library or laboratory
  • Hostel Fee and other charges applicable
  • Cost of Books, equipment, instrument or uniforms
  • Miscellaneous expenses required for completion of the course- study tours, project work, thesis, etc.
  • Reasonable cost of computer or laptop (if required)
  • Life Insurance premium of student

Documents required for Oriental Education Loan Scheme for Vocational Education and Training

  • Identity Proof such as Passport, Voter’s ID, Driving Licence or PAN Card
  • Mark sheet of recently qualified public exam for school, college in India
  • Admission Proof: Fee receipts, Transfer certificate, etc.
  • Schedule of expenses for course
  • Two recent passport size photographs of applicant, co-obligant and guarantor
  • Educational Proof such as copy of admission letter along with fee structure, mark sheets, SSC, HSC and degree course certificates
  • Salary Proof such as Latest salary slip, Form 16 and recent salary certificate

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 India. 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. 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:

  • 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

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.
  • Or simply you can use the EMI calculator provision available on Oriental Bank of Commerce’s official website.

Q. What are the charges for late EMI payment?

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

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. 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. 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. 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