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Bank of India Education Loan | Eligibility, Application Process & Interest Rate

Bank of India Education Loan

The key to growth is the introduction of higher dimensions of consciousness into our studies. In the same way, Bank of India decided to introduce a new scheme called as Bank of India Education Loan for meritorious students who wished to pursue their high esteems in India or Abroad for better future.

Bank of India Objective

The main objective of the Bank of India Star Education Loan is for the purpose of providing financial support from the bank to deserved and meritorious applicants for building their higher education either in India or Abroad.

Bank of India Education Loan Eligibility

The students who are applied for Bank of India Education Loan should reach out all the eligibility criteria as mentioned below without any fail.

Bank of India Education Loan

Bank of India Loan Student Eligibility

  • The applied candidate should be of Indian nationality.
  • The contender should have good academic profile
  • The student should not have any education loan from other sources.
  • The parent of the applicant should become as a co-borrower
  • The applicant should need to secure admission to higher education through a common entrance test or merit wise selection process in a reputed university in India or Abroad.

Courses Eligibility For Bank of India Education Loan

  • The well-known courses like CA, ICWA, CFA etc
  • Some other courses which are conducted by Govt./UGC/AICTE/AIBMS etc.
  • Diploma or Degree courses like Aeronautical, Medicine, Nursing or any other discipline approved by the relevant director general.
  • Graduation and Post Graduation courses like Engineering, Law, and Medical etc.
  • For studies in Abroad tGraduationion or Post graduation courses like job oriented offered by renewed universities, MBA, MCA respectively.
  • The Courses conducted by CIMA-London, CPA in USA etc are eligible courses for Abroad studies.

Expenses Covered under Bank of India Education Loan

In this section, you will get a clear idea about expenses which are considered to cover the

  • Building Fund/ Caution deposit supported by college bills/receipts
  • Fee payable to School/College
  • Hostel Fee
  • Exam Fee/Library Fee
  • For purchasing necessary things for studies like computer, laptop, books, instruments, equipment, Industrial tours etc
  • Life insurance premium of applicant/co-borrower.

Quantum of Loan

As per the norms of the Bank of India, the quantum of the loan or Loan amount will be decided based on the need and repaying capacity of the applicants/co-borrower.

  • For studies in India- up to 10 Lakhs
  • For studies in Abroad- up to 20 Lakhs

Bank of India Education Loan Margin

The Margin of the Bank of India Education Loan will be brought in on year wise whenever the disbursements are made. Scholarships/Assistantship is included in Margin. There is No margin for the loans up to 4 Lakhs. For the loan above 4 lakhs the margin will be different based on their studies as follows

  • For Studies in India: 5%
  • For Abroad Studies: 15%

Bank of India Loan Security

  • Up to 4 Lakhs: No security. Parent or Guardian will become co-borrower
  • Above 4 Lakhs & up to 7.5 Lakhs: Parent or guardian to be the joint borrower and need 3rd party guarantor in the appropriate situation.
  • Above 7.5 Lakhs: Co-obligation of co-borrower/Parents with tangible collateral security of suitable value along with the assessment of further income of the candidate for repayment.

The Security should be in the form of Land/bonds/LIP bank term deposit etc in the name of applicant/co-borrower.

Rate of Interest

  • The interest rates of Bank of India Education Loan would be varied for the different ranges of loans along with respective base rates.
  • For the loans, up to 4 Lakhs, the rate of interest would be of 2.5% and minimum 9.5% per Annum.
  • For the loans above 4 Lakhs and up to 7.5 Lakhs, the interest rate will be 2 % and minimum 10% per annum.
  • For the loans above 7.5 Lakhs, there will be a 1.25% interest rate along with their base rate and minimum 10.75% per annum.
  • For professional courses, there will be a concession of interest from 0.5 to 1 percent based on the stream.
  • There will be 0.50% concession for female applicants.
  • It will cost simple interest during the moratorium period.
  • There will be a penal interest of 2% for overdue the loan period on above 4 lakh loans.
  • Also, there will be a concession of 1% interest on completion of repayment before the due date.

Bank of India Loan Repayment

The repayment holiday or moratorium has a one more year along with the course period. From the Bank of India Education Loan, it specified that repayment period would be 15 years after the start/commencement of repayment period.

Bank of India Education Loan Insurance

All the applicant borrowers are offered a special access of optional term insurance covers and the premium will be included as an item of finance.

Things to Remember

The contenders who are applying for Bank of India Education Loan for pursuing their higher esteem in abroad or India should be aware of the all the terms and policies of the bank. Also, the intenders must carry the valid Proofs for successful completion of loan formalities without any late as mentioned below

  • Applicants need to carry valid Id proof like passport, aadhar card, voter Id, driving license etc
  • Residence proof namely bank account statement, recent mobile bill, latest electricity bill, existing house legal documents etc.
  • Bank of India Education Loan agreement copy along with XEROX
  • The applied contenders should need to provide previous academics marks memos before availing the installment
  • Loan to be disbursed in stages as per demand directly to the institute or vendor of books etc to the extent possible.
  • There is a facility for online application submission, application status tracking etc.
  • Applicant or co-borrower should inform as fast as possible if any changes required in given loan agreements like change, of course, refund of fees by college etc.

Other Charges

  • There is no processing or upfront fee for studies in India whereas for Abroad studies bank charges 1000/- for issuing sanction letter for securing VISA which is refundable on availing loan amount.
  • For any charges of the institution, bank charges 250/- for studies in India and 500/- for abroad studies.

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