Education Loan Interest Rates 2020230 views
- Bank of India Education Loan comes at an attractive interest rate of 9.30% - 10.10%
- Read this page to know about the loan details
You can apply for a loan to meet your educational needs. And Bank of India provides an education loan scheme of Star Education Loan to provide funds to meritorious students for higher studies. Using the Bank of India education loan students can borrow funds for their admission fee, examination fees, semester exams, overseas studies, etc. Read the page below and know about the Bank of India loan features and benefits.
|Loan Amount||INR 10-20 lakh|
|Interest Rate||9.30% - 10.10%|
|Processing Fee||INR 500+GST for overseas education, otherwise, NIL|
Table of Contents
- 1 Loan Amount for Bank of India Education Loan
- 2 Eligibility for Bank of India Education Loan
- 3 Bank of India Education Loan Interest Rate
- 4 Bank of India Education Loan Tenure
- 5 Eligible Courses for Bank of India Education Loan
- 6 Documents Required for Bank of India Education Loan
- 7 Bank of India Education Loan Disbursement
Loan Amount for Bank of India Education Loan
Students can borrow loans from Bank of India for their higher studies. And the loan amount is based on the course you pursue and its job prospects. To study in India, you can borrow up to INR 10 lakh from the bank. Whereas for higher studies abroad, you can borrow a maximum loan up to INR 20 lakh. The loan can be borrowed with a co-applicant which can be your parent or legal guardian.
Eligibility for Bank of India Education Loan
- You should be an Indian National
- Students should have secured admission to a recognized institution in India or abroad
- Entrance Test or Merit-based results
- 10+2 mark sheet
- Academic career
- Father or Mother should be the co-borrower
- The loan will most likely be available at the bank branch nearest to the permanent residence of the student
- Income proof of the co-borrower required to know the repayment capacity
- You shouldn’t have any outstanding education loan balance when you apply for the Bank of India education loan.
Bank of India Education Loan Interest Rate
The loan interest rate is based on the 1-year MCLR of the bank which is 7.05% currently. And the interest rate would be low if secured admission to the reputed university or college. You might also get a concession on your loan interest rate if you meet the following criteria.
- Girls Students can get a concession up to 0.50% on Bank of India education loan interest rate
- Students pursuing Engineering, Medical, Management etc.are eligible for a concession of 0.50%
- And if you pay interest during the moratorium period, you can get up to 1% interest concession.
Bank of India Education Loan Tenure
The bank provides you a tenure up to 15 years to pay the borrowed loan after the course completion. And students are the primary beneficiaries to pay the loan after the course completion. Repayment won’t start until the course is completed. After which you get a repayment holiday of 1 year in which you need to find a job to pay the borrowed loan. If you get a job after the course completion then the moratorium period is of 6-months and payment starts early which reduces your interest burden.
Eligible Courses for Bank of India Education Loan
Below are the courses for which you can get an education loan from Bank of India.
- Approved Courses like undergraduate degree course, post graduate degree course, P.G. diplomas conducted by colleges or universities such as UGC, Government, AICTE, AIBMS and ICMR
- Courses like ICWA, CA, CFA, etc. can also be pursued using the loan amount
- IIM, IIT, IISc, XLRI, NIFT, NID and other Institute courses set up by the Central or State Govt.
- Regular Degree and Diploma courses such as Aeronautical, Pilot Training Shipping, degree, diploma in nursing or any other discipline approved by Director General of Civil Aviation, Shipping, or Indian Nursing Council
- Job-oriented graduation course, professional, technical courses from the reputed universities.
- Post-Graduation courses like MCA, MBA, MS, etc.
- Courses conducted by CIMA in London, or CPA in the USA, etc.
Expenses covered with the Bank of India Education Loan
- Fee payable to college, school or hostel
- Examination, Library, Laboratory fees.
- Purchase of books, equipment, instruments or uniforms.
- Caution deposit such as building fund, the refundable deposit by Institution bills or receipts.
- Travel expenses for inter-state studies
- Passage money for studies abroad.
- Purchase of computers or Laptops if it is essential for the course.
- Life Insurance Premium to cover student or the co-borrower
- Additional expenses like study tours, project work, thesis, etc, as per the brochure or demand letter from the educational institution.
Margin Money on Bank of India Education Loan
Bank of India doesn’t provide you a 100% financing of the education loan. If you borrow a loan above INR 4 lakh, a margin to your borrowed amount is applied. The margin is 5% for studies in India and 15% for abroad studies. The margin is applied to your loan on a year to year basis when the loan is disbursed to your account. To manage the margin money, you can use the scholarship or assistantship.
Security on Bank of India Education Loan
There is no need for collateral if you borrow up to INR 7.5 lakh. But, above the INR 7.5 lakh limit you need to submit some tangible asset for the loan security which can be land, house, Govt. or Public Sector Bonds, NSC, KVP, LIP, Banks Fixed Deposit etc. which is in the name of Student, Parent, Guardian or the 3rd party Guarantor.
If you borrow within INR 7.5 lakh, the loan security will be dependent on the future income of the student.
Documents Required for Bank of India Education Loan
To apply for the loan, you need to submit a few documents which are as follows-
- Aadhaar Card
- Voter ID card
- Admission letter
- 10+2 marksheet or certificate
- PAN card
- Aadhaar card
- Voter ID card
- Driving Licence
- Salary slip
- Bank statement
- ITR report
- Form 16
Bank of India Education Loan Disbursement
Loan amount is to be disbursed in different stages as per your requirement or demand, which is paid directly to the Institution or Vendors for books, equipment or instruments purchased to ease the procedure. It helps in the timely payment of fees and reduces your responsibilities.