Oriental Bank of Commerce Education Loan

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Introduction

Oriental Bank of Commerce was a public sector bank with its headquarters in Gurgaon, Haryana. On the 1st of April, 2020 the bank was merged with the Punjab National Bank. After the merger it has currently become the second largest Indian bank in the public sector. Originally found on 19th February 1943, the bank has been successfully operating in many parts of India for the last 77 years. The bank has 2625 ATMs and 2390 branches all over India. The current chairperson of the bank is Sh. Mukesh Kumar Jain who has been operating this position since July 2017.

Overview of Loan Schemes

The different education loan schemes provided by Oriental Bank of Commerce are as follows:

SCHEME NAME DETAILS
Education Loan for Study India and Abroad This loan is designed to provide financial aid to students who would like to pursue higher education or professional courses from India or Abroad. The loan is sanctioned for specific courses both India and Abroad.
Education Loan for Working Professionals This loan is designed to provide financial help to working professionals who would like to broaden their career prospects with the help of part time professional courses.

Education Loan

This loan is designed to provide financial aid to meritorious students who would like to pursue higher education or professional courses from India or Abroad. The loan is sanctioned for specific courses both India and Abroad mentioned in the official website.

Eligible Courses:

  1. Approved graduate, post graduate, diploma courses from recognized universities.
  2. ICWA, CFA, CA etc.
  3. Courses by XLRI, IIT, IIM, NID, IISc, NIFT etc.
  4. Indian courses approved by recognized foreign universities
  5. Category A, B and others as mentioned in the website.

Eligibility:

  1. Students who are a citizen of India.
  2. Meritorious students
  3. Students who have secured their admission in any recognized institute through an entrance exam or other college specific selection process after their 10+2 completion.

Quantum of Loan:

  1. For study in India – Up to Rs. 10 lakhs
  2. For study abroad – Up to Rs. 20 lakhs

Margin:

  1. Up to Rs. 4 lakhs – Nil
  2. Above Rs. 4 lakhs – 5% for studies in India and 15% for studies abroad

Expenses Covered under Loan:

  1. Course fee of the institution along with the hostel fee.
  2. Library, examination and any other fee required for the course.
  3. Insurance premium
  4. Deposit money with supported documents from the institute.
  5. Travel and other expenses for studies abroad
  6. Any purchases such as laptops, practical equipments required for the course completion.
  7. Books, uniforms and any other instruments.
  8. Other expenses required for the course such as field work, project work, tours, thesis etc.

Processing Fee:

  1. For Study in India – Nil
  2. For Study Abroad – For loan amount up to Rs. 4 lakhs the fee is Nil. For loan amount above Rs. 4 lakhs the fee is 1% of the loan amount which is taken upfront. The maximum amount for the fee is Rs.10, 000 and will be refunded once the course is finalized.

Moratorium Period: Course period along with a grace period provided by the bank.

Repayment Period: Up to period of 15 years which can be repaid in EMI after the moratorium period.

Rate of Interest:

  1. Up to Rs. 4 lakhs – RBLR + 2.10%
  2. Above Rs. 4 lakhs and up to Rs. 7.50 lakhs – RBLR + 2.10% (Covered under Credit Guarantee Scheme); RBLR + 1.85% (With collateral)
  3. Above Rs. 7.50 lakhs – RBLR + 1.85%

Security:

  1. Up to Rs. 4 lakhs – No collateral security is required. Parents or guardian have to be co-borrower.
  2. Rs. 4 lakhs to Rs. 7.50 lakhs – Guardian or parent to be the co-borrower along with the student. Security has to be given in the form of a third party guarantee.
  3. Above Rs. 7.50 lakhs – Collateral security to be provided equivalent to the loan amount along with the obligation of the guardian or the parent.

Insurance: Life insurance provided to the student

Scheme Details

Education Loan for Working Professionals –

This loan is designed to provide financial help to working professionals who would like to broaden their career prospects with the help of part time professional courses.

Eligibility –

  1. Indian citizen
  2. Maximum age 55 years
  3. Should be at least a graduate
  4. Has to be employed in private, defense, public enterprise etc.
  5. Have secured part time admission in the designated course

Quantum of Loan – As per the fee structure of the course

Expenses Covered –

  1. Course fee, lodging and boarding
  2. Examination, laboratory, library fee etc.
  3. Insurance premium
  4. Purchase of essentials required for the completion of the course.
  5. Travel expenses for abroad studies.

Margin – 25%

Security –

  1. Up to Rs. 7.5 lakhs – No security required. Co-obligation of guardian or parents.
  2. Above Rs. 7.5 lakhs – Co-obligation of parents or guardian along with collateral which equals the amount of the loan.

Rate of Interest –

  1. Up to Rs. 4 lakhs – RBLR + 2.10%
  2. Above Rs. 4 lakhs and up to Rs. 7.50 lakhs – RBLR + 2.10% (Covered under Credit Guarantee Scheme); RBLR + 1.85% (With collateral)
  3. Above Rs. 7.50 lakhs – RBLR + 1.85%

Moratorium Period – Course period

Repayment Period – Up to 15 years (to be completed before the retirement date of the borrower)

Loan without Collateral

  1. For studies in India and Abroad – Up to Rs. 4 lakhs.
  2. For working professionals – Up to Rs. 7.5 lakhs

Application Process for Education Loan

The Oriental Bank of Commerce education loan can be applied both through online and offline process. The application would be sanctioned by the bank after a thorough scrutiny of the documents that are provided by the borrower.

Documents Required For Application

  1. KYC documents – photo id, resident proof, passport photo, pan card, income proof.
  2. Admission letter of the college
  3. School or graduation completion certificate as required.
  4. Expense structure of the course
  5. Admission letter from the institution
  6. Guarantee documents
  7. Any other necessary documents required by the bank

Rate of Interest

The rate of interest for Oriental Bank of Commerce education loan varies from RBLR + 1.85% to RBLR + 2.10% based on the amount of the loan.

Education Loan Eligibility Criteria

  1. Borrower has to be an Indian citizen
  2. Borrower should comply with the maximum age limit of the education loan
  3. Borrower should have completed their 10 + 2 or graduation as required for the loan
  4. Borrower should get selected for the required course in the eligible university

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