Bank of India Indian and Foreign Education Loan

Bank of India Indian & Foreign Education Loan – Bank of India was established in 1906 with a paid-up capital of Rs.50 lakh. Over the years, the bank has been in the vanguard of presenting various innovative banking and monetary 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 monetary support to the commendable students for seeking further studies. Bank of India’s Star Vidya education loan exclusively bids funding for students who are acknowledged to premier educational institutions in India.

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Features and Benefits of Bank of India Education Loan


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

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

Expenses Considered for BOI Education Loan

For both the schemes, the expenditures 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 appropriate
  • Caution deposit, building fund and refundable deposit supported with authorized bills
  • Any other coursework related expenditures 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 reimbursement 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

Eligibility Criteria for BOI Education Loan

  • The candidate should be of an Indian nationality.
  • The learner must have secured admission to a professional or technical course through a merit based selection process at institutes 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 institutes in India through entrance examination or merit based selection process.

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 Loan for Professional courses
Loan for Professional courses 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 reimbursed upon the loan expenditure. As a one-time charge for any aberration from the normal loan scheme, Rs.500 to Rs.3000 is charged depending on the loan amount. Deed 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 refund period for loans up to Rs.7.50 lakhs is 10 years. For loans over Rs.7.50 lakhs, the maximum refund period is 15 years.


BOI Star Education Loan:

For loans up to Rs.4 lakh, no security is obligatory. For loans above Rs.4 lakh and up to Rs.7.5 lakh, collateral security in form of an appropriate 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 compulsory.


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%, notwithstanding of the loan amount. Scholarships can be encompassed in the margin and the margin is to be brought in when expenditures are made on a year to year basis.

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.

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 seeking any of the appropriate professional courses from documented institutions in India is suitable 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 suspension period which is course period plus 1 year or 6 months after securing a job, whichever is earlier.
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