Educational loans

Oriental Bank of Commerce

Bank Type : Goverment Bank
No. Of Branches : 1092

About Bank

Rai Bahadur Lala Sohan Lal, the first Chairman of the Bank, founded OBC in 1943 in Lahore. Within four years of its coming into existence, OBC had to face Partition. The bank had to close down its branches in the newly formed Pakistan and shift its registered office from Lahore to Amritsar. Lala Karam Chand Thapar, the then Chairman of the Bank, in a unique gesture honoured the commitments made to the depositors from Pakistan and paid every rupee to its departing customers.

The bank was nationalised on 15 April 1980. At that time OBC ranked 19th among the 20 nationalised banks.

Vision Statement:


Mission Statement:

Provide quality, innovative services with state-of-the-art technology in line with customer expectations.

Enhance employees’ professional skills and strengthen cohesiveness.

Create wealth for customers and other stakeholders.

Loan Procedures


To provide financial support to meritorious students for pursuing higher studies in India & abroad with affordable terms & conditions.

Eligibility For Loan:

Student who is / has: 

1. An Indian national.

2. Meritorious student

3. Secured admission to a higher education course in an institute recognized by a statutory body in India or abroad through entrance test/ merit based selection process

Eligible Courses:

Studies in India:

Approved courses leading to Graduate/ Post Graduate degree and Post Graduate diplomas conducted by recognized Colleges / Universities approved / accredited by Government of India/ State Government/ UGC / Government /AICTE /AIBMS / ICMR or Regulatory bodies.

Courses like I.C.W.A., C.A., C.F.A., etc.

Courses conducted by IIMs, IITs, IISc, XLRI, NIFT, NIDetc.

Approved courses offered in India by reputed foreign universities

Regular Degree/Diploma courses like Aeronautical, pilot training, shipping, degree/diploma in nursing or any other discipline approved by Director General of Civil Aviation/Shipping/Indian Nursing Council or any other regulatory body as the case may be, if the course is pursued in India.


Eligible Courses:

Studies in Abroad:


For job-oriented professional/technical courses offered by reputed universities. (Diploma/ Certification courses are not permissible)


Post Graduation:

Courses like MCA, MBA, MS etc.


Courses conducted by CIMA-London, CPA in USA etc

Degree/ Diploma:


Courses like Aeronautical, Pilot training, and Shipping etc. provided these are recognized by competent regulatory bodies in India/ abroad for the purpose of employment in India and abroad.

Two / Dual Courses:

Education loan for Diploma and degree courses simultaneously may also be considered for two / dual courses provided by the educational institutions.

Top-up/Second Loan:

Second Education Loan can be permitted for pursuing higher education in view of better placement prospects in case the student approaches for top-up/ second loan during the moratorium period of the first education loan subject to compliance of security stipulations, other terms & conditions defined as per extant guidelines of education loan policy.

Components of Finance:

1. Fee payable to college/ school/ hostel (lodging and boarding). Reasonable Lodging & Boarding charges will be considered in case the student chooses/ is required to opt for outside accommodation.

2. Examination/ Library/ Laboratory fee.

3. Insurance premium.

4. Caution deposit, Building fund/ refundable deposit supported by Institution bills/ receipts, subject to the condition that the amount does not exceed 10% of the total tuition fees for the entire course.

5. Travel expenses/ passage money for studies abroad.

6. Purchase of computers-essential for completion of the course*.

7. Purchase of books/ equipments/ instruments/ uniforms*.

8. Any other expenses required to complete the course-like study tours, project work, thesis, etc*.

Amount of loan:

Up to Rs. 10.00 Lacs for studies in India

Up to Rs. 20.00 Lacs for studies abroad

* Higher Loan amount can be considered.


Up to Rs. 4.00 Lacs


Above Rs. 4.00 Lacs

5% For studies in India

5% For studies Abroad


1) Scholarship/assistantship can be treated as margin.

2) Margin may be brought in on year to year basis as and when disbursements are made on a pro-rata basis.

Rate Of Interest (floating)

Click here to know rate of interest

Penal Interest:

2% over the normal rate of interest shall be charged on loan above Rs. 4.00 Lacs on overdue amount for the overdue period.

Process Fee:

Click here to view Process Fee.

Prepayment Penalty:


Security Clause:

Loan upto Rs.4.00 lacs : 

No collateral security but co-obligation of parents / guardian & spouse/parents / parents-in-law in case of married women.


Loan above Rs.4.00 lacs & upto Rs.7.50 lacs :

Collateral in the form of one satisfactory third party guarantee, co-obligation of parents / guardian & spouse/parents / parents-in-law in case of married women


Loan above Rs.7.50 lacs:  

Mortgage of immovable property or any tangible security having value equivalent to 100% of loan amount. Co-obligation of parents / guardian & spouse/parents / parents-in-law in case of married women

Assignment of future income in all cases.


Life Insurance policy for the students is available.


For loan upto Rs. 7.50 Lacs - Upto 10 years

For Loan above Rs. 7.50 Lacs - Upto 15 years

Moratorium Period/ repayment holiday (course period + Grace period of one year or six months after getting job whichever is earlier)

(The moratorium period be permitted within the overall repayment period of respective loan)


1. For studies in India:

Loan shall be disbursed in stages as per requirement / demand, directly to the institutions/vendors of books/ equipments/ instruments etc. to the extent possible.


2. For studies abroad:

In stages as per requirement/demand, directly to the institutions subject to obtention of certified copies of relevant pages of passport and visa of the student.

The Institute eligible under Education loan scheme

1. Diploma, Degree courses conducted by Colleges/ Universities/ Educational Institutions approved by UGC / Central or State Governments/ AICTE/AIBMS/ICMR or other regulatory bodies.

2. The Education Institute not having approval from above said Regulators, but their names are included in approved Educational Institute list.

The Institute eligible under Education loan scheme:

Diploma, Degree courses conducted by Colleges/ Universities/ Educational Institutions approved by UGC / Central or State Governments/ AICTE/AIBMS/ICMR or other regulatory bodies.

To Apply Education Loan Click Here


Oriental Bank of Commerce Corporate Office Plot No. 5, Institutional Area , Sector - 32 Gurgaon - 122001


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