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.
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.
For both the schemes, the expenses covered by the loan are as follows:
Also, for students who avail the Bank of India Star Education loan for studies abroad, travel expenses or passage money will be covered.
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 |
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 |
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.
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.
BOI Star Education Loan:
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.
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.
The following documents might be asked for during the application process:
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.
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