Bank of India provides education loans for studies in India and abroad with need-based financing that is dependent on the earning potential of the student upon completing the course. The loan covers a range of expenses from the course fees to travel expenses for courses abroad.
Bank of India Education Loan Interest Rates
The interest rates for BoI education loans are as given below:
|Schemes||Maximum Loan Amount||Interest Rate (p.a.)|
|BOI Star Education Loan||Rs.20 lakh||8.95% p.a. to 9.75% p.a.|
|BOI Star Vidya Loan||Up to Rs.40 lakh||RBI format|
These interest rates are effective from 1 October 2021 and are subject to change at the bank's discretion.
Bank of India Education Loan Schemes
- Bank of India Star Education Loan
- The rate of interest offered under this scheme ranges between 8.95% and 9.45% p.a.
- No processing fee if you are studying in India
- Processing fee of up to Rs.3,000 if you are studying abroad
- No collateral required for loan amount up to Rs.7.5 lakh
- For loan amount above Rs.7.5 lakh, the parents will have to co-obligate and produce a security of suitable value including assignment of future income of the student
- As per the bank’s discretion
- This rate of interest levied for this education loan scheme is based on RBI format.
- No processing fee if you are studying in India
- Processing fee of up to Rs.5,000 for students studying abroad
- No collateral required
- Parents or guardians can be the co-borrowers
- Assignment of future income
- Minimum repayment tenure of 1 year
- Maximum repayment tenure of 5 years
BoI Education Loan Eligibility criteria
- 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
- The branch which is nearest to the permanent residence of the student will consider offering the loan
Bank of India Education Loan EMI Calculator
Follow the below steps if You have to calculate Education Loan EMI. You will have to pay by using the Calculator facility available on the official website of Bank of India.
- Once you visit the Bank of India official website and type ‘Calculator’ in the search button.
- Click on ‘Calculator’ after that. Enter the loan amount, rate of interest, and repayment tenure.
- You will then be able to view the EMIs you will have to pay.
How to apply for education loan from Bank of India
- You can apply for an education loan from Bank of India by visiting the nearest branch of the lender. Make sure you have all the necessary documents along with you. A representative from the bank will help you with the process of applying for an education loan.
- You can also call on the numbers 1800 103 1906 (Tollfree) / 1800 220 229 (Tollfree - Covid Support) / (022) – 40919191 (chargeable number) and get in touch with a customer care executive who will help you with the process of applying for an education loan. These numbers are active 24x7.
Bank of India Education Loan Documents 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.
- Duly filled application form
Subsidy schemes on Bank of India Education Loan
Under the Bank of India Star Vidya scheme, you can avail the Coverage under Credit Guarantee Funds Scheme for Education Loans (CGFSEL). For loan amounts up to Rs.7.5 lakh and provided it confirms with the guidelines of, IBA Model Education Loan Scheme for pursuing studies in India and Abroad’, the student will be eligible for coverage under this subsidy scheme. You can apply for this scheme online through Vidya Lakshmi Portal developed by NSDL e-Governance Infrastructure Ltd.
Central Government Interest Subsidy Scheme for Education Loans
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.
- I have availed a loan of Rs.20 lakh to pursue MS abroad. Will I be eligible for interest subsidy scheme?
- Will insurance cover for the student be considered as expense for the loan?
- How will the education loan be disbursed?
- What can be submitted as security while availing BOI education loan?
- Can I get the Star Vidya Loan scheme for Ivy League institutions abroad?
No. The interest subsidy scheme is offered only for loans up to Rs.10 lakh availed to pursue higher education in India.
Yes. Insurance cover for the student as provided by the institution is also covered as expense under the loan.
The loan will be disbursed in stages as per the requirement or demand directly to the institution or vendor.
The security can be in form of land, building, government securities, public sector bonds, term deposits etc.
No. BOI Star Vidya education loan is offered only to students pursuing higher education in premier Indian institutions like IITs and IIMs.