Bank of India Education Loan

Summary:

Bank of India has been set in 1906 using a paid-up funding of Rs.50 lakh. Through time, the bank was at the forefront of introducing different advanced banking and financial products. To function the ever-growing accounting requirements Indians, Bank of India provides services in areas such as personal finance, business banking, deposits and SME services.

If it comes to education loans, Bank of India includes two distinct schemes offering financial aid to the school pupils for pursuing further research. BOI's Star Vidya schooling loan only offers funding for pupils that are acknowledged to premier educational institutions in India.

Characteristics and Advantages of Bank of India Education Loan:
Goal:
BOI Star Education Loan: The Star Education Loan is provided for pupils who want to pursue higher studies in India and overseas.

BOI Star Vidya Loan: This exclusive education loan strategy is for students who have secured entry at the highest educational institutions in India such as IITs and IIMs.

Expenses Known for BOI Education Loan:
For both the strategies, the costs covered by the loan are as follows:

Charges payable college, faculty or hostel
Price of uniform, books, tools and gear
Evaluation fee, library fee and lab fee as related
Caution deposit, construction finance and refundable deposit backed with approved invoices
Any other coursework associated expenditures such as the price of research tour and job work

In addition, for students who avail the Bank of India Star Education loan for research overseas, traveling expenses or passing money is going to be coated.

The number of Education Loan:

BOI Star Education Loan: As subject to repayment ability, a max of Rs.10 lakh is supplied for research in India. For research abroad, up loans to Rs.20 lakh are provided.

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

Note:

Please contact the bank for a comprehensive list of institutions grouped as per the type. Also, up loans to Rs.30 lakhs will be considered under the Vidya Loan strategy with 100% concrete collateral security equal to loan sum.

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	Concession ranging from 0.5% to 1%
If interest is serviced during the 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 the minimum base rate

Processing Fees:

No processing fee is charged for loans taken for studies in India. If it comes to overseas research, a fee of Rs.1000 is charged which will be reimbursed upon the loan disbursement. As a one-time charge for any deviation from the standard loan strategy, Rs.500 into Rs.3000 is charged based on the amount of the loan. Document and stamp duty charges are according to the actuals. For change of institution, Rs.250 is charged for research in India and also Rs.500 is charged for research abroad.

Repayment Period:

The maximum repayment period for loans up to Rs.7.50 lakhs is 10 years. For loans over Rs.7.50 lakhs, the repayment period is 15 decades.

Security:

BOI Star Education Loan:

For loans around Rs.4 lakh, no collateral is needed. For loans over Rs.4 lakh and up to Rs.7.5 lakh, security in kind of a suitable third party guarantee is to be provided. For loans above Rs.7.5 lakh, co-obligation of parents jointly with tangible collateral security along with assignment of future earnings to the bank is required.

BOI Star Vidya Education Loan:

No collateral security is necessary. Parents or guardian is required to combine the loan as co-borrowers. Additionally, the future earnings of the student applicant should be assigned to the lender for repayment of the loan.

Margin:

BOI Star Education Loan:

For loans around Rs.4 lakhs, there's absolutely no margin. For loans over Rs.4 lakh availed for research in India, the margin is 5 percent. For research overseas, the margin is 15%, irrespective of the amount of the loan. Scholarships could be contained at the margin and the perimeter is to be caused if disbursements are made on a year annually.

BOI Star Vidya Education Loan:

There's not any allowance for instruction loans availed under this scheme.

Eligible Courses in India and Abroad:

BOI Star Education Loan:

For research in India, practitioner grad and post-graduate courses including medical, engineering, regulation, management etc., are coated. Additionally, classes conducted by institutes set up by the fundamental & state authorities and other courses resulting in degree and diploma conducted by associations approved by the authorities are considered.
For research overseas, job-oriented technical courses offered by reputed universities such as MCA, MBA, MS etc., and classes conducted by CIMA -- both London and CPA -- USA are coated.

BOI Star Vidya Loan:

Regular full-time courses, diploma courses and full-time executive management classes such as PGPX provided by highest institutions in India are covered under this scheme. It is to be mentioned that certificate courses and part-time courses are not covered.

List of Approved Educational Institutions:

BOI Star Education Loan: Institutes set up by State and Central Authorities and other universities approved by UGC, AICTE, AIBMS and ICMR. For research overseas, reputed universities are approved.

BOI Star Vidya Education Loan: Select premier institutions in India that are listed under"A","B" and"C" class are accepted. Please see the lender's official site or contact the bank for a thorough list of institutions from India grouped under those categories.

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.

Eligibility Criteria for BOI Education Loan:

The applicant should be an Indian national.
The student must have secured admission into a skilled or technical class by means of a merit based selection process at institutions in India or overseas.
The student shouldn't have outstanding education loan from different 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 institutions in India through an entrance test or merit-based selection procedure.

Interest Subsidy Scheme for Education Loan

To be able to encourage pupils from the Economically Weaker Sections (EWS) of this society, Ministry of Human Resource Development, Government of India, has produced a special interest subsidy scheme.

Below are a few of the vital things 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 pupils whose parent's income from all sources doesn't exceed Rs.4.50 lakhs per annum.
Full interest subsidy is offered for the moratorium period that's course period plus one year or 6 weeks after securing a job, whichever is earlier.