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  • Bank of India Education Loan

    Bank of India Education Loan
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    Fees & Charges

    Promised Interest Rate

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    Bank of India was founded in 1906 with a paid-up capital of Rs.50 lakh. Over the years, the bank has been in the forefront of introducing various innovative banking and financial products. To serve the ever-growing banking needs of Indians, Bank of India offers services in areas like personal finance, business banking, deposits and SME services.

    When it comes to education loans, Bank of India has two different schemes that provide financial support to the deserving students for pursuing further studies. BOI’s Star Vidya education loan exclusively offers funding for students who are admitted to premier educational institutions in India.

    Features and Benefits of Bank of India Education Loan:


    BOI Star Education Loan: The Star Education Loan is provided for students who wish to pursue higher studies in India and abroad.

    BOI Star Vidya Loan: This exclusive education loan scheme is for students who have secured an admission at premier educational institutions in India like IITs and IIMs.

    Expenses Considered for BOI Education Loan:

    For both the schemes, the expenses covered by the loan are as follows:

    • Fees payable to college, school or hostel
    • Cost of uniform, books, instruments and equipment
    • Examination fee, library fee and laboratory fee as applicable
    • Caution deposit, building fund and refundable deposit supported with authorized bills
    • Any other coursework related expenses like cost of study tour and project work

    Also, for students who avail the Bank of India Star Education loan for studies abroad, travel expenses or passage money will be covered.

    Amount of Education Loan:

    BOI Star Education Loan: As subject to repayment capacity, a maximum of Rs.10 lakh is offered for studies in India. For studies abroad, loans up to Rs.20 lakh are offered.

    BOI Star Vidya Loan:

    Institute Type

    Maximum Loan amount offered

    Institutes under List “A”

    Rs.20 lakhs

    Institutes under List “B”

    Rs.10 lakhs

    Institutes under List “C”

    Rs.7.50 lakhs


    Please contact the bank for an exhaustive list of institutions grouped as per the type. Also, loans up to Rs.30 lakhs will be considered under the Vidya Loan scheme with 100% tangible collateral security equal to loan amount.

    Interest Rates:

    BOI Star Education Loan:

    Loan Amount/ Applicant Type

    Interest Rate

    Up to Rs.7.50 lakhs

    3% above the base rate

    Above Rs.7.50 lakhs

    2.50% above the base rate

    Women Beneficiaries

    Concession of 0.5% per annum for limits up to Rs.50,000 and 1% for limits over Rs.50,000

    Loan for Professional courses

    Concession ranging from 0.5% to 1%

    If interest is serviced during moratorium

    1% concession

    BOI Star Vidya Loan:

    Institute Type/Applicant Type

    Interest Rate (Floating)

    For students of IITs/IIMs

    9.95% (At the base rate)

    For students of premier institutes under A, B and C category

    10.45% (0.50% over the base rate)

    Girl students

    0.50% concession subject to minimum base rate

    Processing Fees:

    No processing fee is charged for loans taken for studies in India. When it comes to foreign studies, a fee of Rs.1000 is charged which will be refunded upon the loan disbursement. As a one-time charge for any deviation from the normal loan scheme, Rs.500 to Rs.3000 is charged depending on the loan amount. Document and stamp duty charges are as per the actuals. For change of institution, Rs.250 is charged for studies in India and Rs.500 is charged for studies abroad.

    Repayment Period:

    The maximum repayment period for loans up to Rs.7.50 lakhs is 10 years. For loans over Rs.7.50 lakhs, the maximum repayment period is 15 years.


    BOI Star Education Loan:

    For loans up to Rs.4 lakh, no security is required. For loans above Rs.4 lakh and up to Rs.7.5 lakh, collateral security in form of a suitable third party guarantee is to be provided. For loans above Rs.7.5 lakh, co-obligation of parents together with tangible collateral security along with assignment of future income to the bank is required.

    BOI Star Vidya Education Loan:

    No collateral security is required. Parents or guardian is required to join the loan as co-borrowers. Also, the future income of the student applicant should be assigned to the bank for repayment of loan.


    BOI Star Education Loan:

    For loans up to Rs.4 lakhs, there is no margin. For loans above Rs.4 lakh availed for studies in India, the margin is 5%. For studies abroad, the margin is 15%, irrespective of the loan amount. Scholarships can be included in the margin and the margin is to be brought in when disbursements are made on a year to year basis.

    BOI Star Vidya Education Loan:

    There is no margin for education loans availed under this scheme.

    Eligible Courses in India and Abroad:

    BOI Star Education Loan:

    • For studies in India, professional graduate and post-graduate courses like medical, engineering, law, management etc. are covered. Also, courses conducted by institutes set up by the central & state government and other courses leading to diploma and degree conducted by institutions approved by the government are considered.
    • For studies abroad, job-oriented technical courses offered by reputed universities like MCA, MBA, MS etc., and courses conducted by CIMA – London and CPA – USA are covered.

    BOI Star Vidya Loan:

    Regular full-time courses, diploma courses and full-time executive management courses like PGPX offered by premier institutions in India are covered under this scheme. It is to be noted that certificate courses and part-time courses are not covered.

    List of Approved Educational Institutions:

    BOI Star Education Loan: Institutes set up by central and state government and other universities approved by UGC, AICTE, AIBMS and ICMR. For studies abroad, reputed universities are approved.

    BOI Star Vidya Education Loan: Select premier institutions in India that are listed under “A”, “B” and “C” category are approved. Please visit the bank’s official website or contact the bank for a comprehensive list of institutions in India grouped under these categories.

    Documentation required:

    The following documents might be asked for during the application process:

    • Address proof - Voter ID, Ration Card, Passport etc.,
    • Identity proof - Voter ID, Passport, PAN Card etc.,
    • Income details – PAN Card, Form 16, Form 60, Income Tax Returns, Salary Slips etc.,
    • Education Documents – SSC and HSC mark sheets, degree certificates.

    Eligibility Criteria for BOI Education Loan:

    • The applicant should be an Indian national.
    • The student must have secured admission to a professional or technical course through a merit based selection process at institutions in India or abroad.
    • The student should not have outstanding education loan from other banks.
    • Parents or guardian should sign up as the co-applicant
    • For availing an education loan under Star Vidya scheme, the student should have secured admission in premier educational institutions in India through entrance test or merit based selection process.

    Interest Subsidy Scheme for Education Loan

    In order to support students from the Economically Weaker Sections (EWS) of the society, Ministry of Human Resource Development, Government of India, has come up with a unique interest subsidy scheme.

    Here are some of the important points about the Central Government Interest Subsidy scheme for education loans.

    • Education loans availed from any scheduled bank for pursuing any of the approved professional course from recognized institutes in India are eligible to avail this subsidy.
    • This subsidy can only be availed by students whose parent’s income from all sources does not exceed Rs.4.50 lakhs per annum.
    • Full interest subsidy is offered for the moratorium period which is course period plus 1 year or 6 months after securing a job, whichever is earlier.

    Bank of India Education Loan FAQs:

    1. I have availed a loan of Rs.20 lakh to pursue MS abroad. Will I be eligible for interest subsidy scheme?

      No. The interest subsidy scheme is offered only for loans up to Rs.10 lakh availed to pursue higher education in India.

    2. Will insurance cover for the student be considered as expense for the loan?

      Yes. Insurance cover for the student as provided by the institution is also covered as expense under the loan.

    3. How will the education loan be disbursed?

      The loan will be disbursed in stages as per the requirement or demand directly to the institution or vendor.

    4. What can be submitted as security while availing BOI education loan?

      The security can be in form of land, building, government securities, public sector bonds, term deposits etc.

    5. Can I get the Star Vidya Loan scheme for Ivy League institutions abroad?

      No. BOI Star Vidya education loan is offered only to students pursuing higher education in premier Indian institutions like IITs and IIMs.

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