Bank of India Education Loan – Interest Rate, Document, Eligibility

Bank of India Education Loan provides opportunity to an increasing number of Indian students wishing to go abroad for higher studies. The Bank of India Education Loan facilitates abroad education for students who need financial assistance to pursue a degree in a foreign country.

As the cost of studying abroad is no longer a deterrent with banks and financial institutions in India ready to provide study abroad education loans. The Bank of India education loan interest rate varies depending upon the scheme a student wishes to choose or is eligible for as per the course and degree of their choice.

An applicant can go through the Bank of India education loan college list in order to consider a variety of college or university options in different countries. It will help the students in the selection process of colleges to study abroad while understanding the fee structure, loan coverage, and tax benefits more thoroughly.

Features of Bank of India Education Loan for Study Abroad

Bank of India Education Loan is popular among Indian students for pursuing studies abroad. The specific features of availing these education loans are provided below:

• Education loans are provided for higher studies abroad for both undergraduate and postgraduate courses.

• The maximum loan amount is Rs. 1.5 crores.

• The repayment period for the loan is 15 years.

• Processing charges of the education loan are Rs. 5000 and GST.

• The moratorium period is the course period and one year.

Advantages of the Bank of India Education Loan

The advantages of Bank of India education loan abroad are:

• No processing charges.

• No documentation charges.

• No prepayment penalty is levied.

• No requirement for collateral security up to 7.5 lakhs.

• Loan offers fee payment for online classes.

• No margin money is required for loans up to 4 lakhs.

Bank of India Education Loan Interest Rate

The base lending rate in Bank of India education loan interest rate is 9.40%. It includes 1 Year of MCLR and additional percentage of interest. Additionally, as per the Bank Of India education loan interest rates calculator, women enjoy an additional 0.50% concession.

Bank of India Education Loan Amount

The maximum loan amount for study abroad is Rs. 1.5 crores which is given for medical courses. This excludes nursing and non-medical courses. The Bank of India Education Loan abroad also provides finance based on the needs of the student to meet expenses and the amount is subject to the earning potential of the student once he completes the course.

For more details on the matter, one can acquire Bank of India education loan customer care number from the official website or by visiting your nearest branch.

Expenses covered under the Bank of India Education Loan

• Fee payable to college or school or hostel as per the brochure or demand letter from the university

• Examination or library or laboratory fee

• Purchase of books or equipment or instruments or uniforms or laptops necessary for the completion of the programme

• Caution deposit or building fund or refundable deposit supported by Institution

• Travel expenses or passage money for studying abroad for one way

• Life Insurance Premium for life cover of student or co-borrower if required for visa approval

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

Eligibility Criteria for Bank of India Education Loan

Students have to fulfill the following eligibility criteria given below to apply for a Bank of India education loan abroad:

• The student should be an Indian National.

• Student must have cleared their higher secondary education from a recognized institution.

• Students should have secured admission to an eligible course abroad which are technical or professional courses.

• Students should have a good academic background.

• Students should not have outstanding education loans from any other Institution to qualify for Bank of India education loan eligibility.

• The father or mother of the student should be the co-borrower

Students aspiring to study abroad should be admitted to eligible courses to be considered for a Bank of India education loan:

• Graduation - Job-oriented professional or technical courses offered by reputed universities

• Post Graduation - MCA, MBA, MS, etc.

• Courses conducted by reputed professional organisations like CIMA in London, CPA in the USA etc

Bank of India Education Loan Documents Required

The documents required for education loan in Bank of India include the following. Students are encouraged to prepare all the below mentioned documents before applying for an education loan from the Bank of India.

• PAN & Aadhaar & Passport of the student.

• PAN & Aadhaar of the cosigner

• Proof of address.

• Income proof of Cosigner / Guarantor which can be his/her salary slip, income tax returns of 2 years or Form 16.

• Academic transcripts of the student.

• BOI education loan documents required must include admission letter from the university.

• Scores of any competitive exams if required.

• Statement of tuition fees and living expenses for the course.

• Bank Statement of one year of the Co-signer

• 2 Passport size Photos

• Documents related to the collateral security if provided.

Bank of India Education Loan Application Process

The application process for the Bank of India education loan involves the following steps:

• Students must visit the website of the bank to make an online application for education loan in Bank of India.

• They must then click on the loan scheme they are applying for and download the application form.

• The next step is to fill out the form with the required information.

• Applicants must then upload the BOI education loan documents required for education loan in Bank of India.

• They should then submit the application and take a printout of the form.

• The bank will then reach out to the applicant for further processing of the loan.

• Students can also apply through the Vidya Lakshmi portal of the Government of India.

Students can also apply offline by visiting the nearest branch of the bank.

Margin Money for Bank of India Education Loan

Education loan in Bank of India requires a margin amount to be supplied by the applicants. Margin money is the amount to be paid by the student which will be calculated on the basis of a certain percentage of the total cost of the course which the student is expected to fund from his own pocket. Following are the margin money requirements for different categories of BOI education loans:

• Up to 4 lakhs - Nil

• Between 4 lakhs and 7.5 lakhs- 15%

• Above 7.5 lakhs-10%

Security for Bank of India Education Loan

The security for Bank of India/BOI education loan can be in the form of Property (land or building), Bank Term Deposit, Government Securities, Public Sector Bonds, National Savings Certificate, Kisan Vikas Patra, Life Insurance Policy etc. Security for education loans from the Bank of India should be in the name of the student or parent or guardian or guarantor with a suitable margin. Following is the security for the Bank of India education loan, based on the loan amount:

• Up to 7.50 lakhs - No collateral security or Third Party Guarantee since it is covered under Credit Guarantee Fund Scheme for Education Loans(CGFSEL). However, parents or guardians have to be joint borrowers for this scheme to be applicable.

• Above 7.5 lakhs – Tangible Collateral security of suitable value along with the assignment of future income of the student for payment of instalments, and a co-obligation of the parents or guardians.

Bank of India education loans up to 7.50 lakhs which conform to the guidelines of “IBA Model Education Loan Scheme for pursuing studies in India and Abroad” are eligible for coverage under CGFSEL by National Credit Guarantee Trustee Company (NCGTC).

Repayment of Bank of India Education Loan

Repayment of education loan from the Bank of India (BOI) will start after the moratorium period, which is the programme duration plus a period of 1 year. An Equated Monthly Instalment (EMI), which would include the principal and interest amount, will be calculated to be paid monthly by the student or the co-applicant. Any interest accrued during the repayment holiday period will also be added to the principal for estimating EMI. The repayment period for the BOI education loan will be 15 years after the commencement of repayment.

Disbursement of Bank of India Education Loan

Disbursement of Education loans by the Bank of India will be done directly and in stages as per the requirement or demand of the university. Before availing next installment of a Bank of India education loan, a student must produce the mark list of the previous term or semester. Furthermore, the student or parent must immediately inform the bank in case of a change in course or completion or termination of studies or any refund of fees by the college, and on successful placement.

Also Read:

• Education Loan from SBI

• Top Education Loan Providers in India to study abroad

• Axis Bank education loan