Bank of India Education Loan for Abroad Studies

The Bank of India provides need-based education loan with the following ceilings - 

• Studies in India - Maximum INR 10 lakhs
• Studies abroad - Maximum INR 20 lakhs

Further, students can apply for an unsecured loan for an amount up to INR 7.5 lakhs. For any amount above this, the student will have to pledge collateral, along with parents as the co-borrower. 

The rate of interest offered by the bank for loans above INR 7.5 lakhs is 9.85%. There is an interest concession for women applicants of 0.50% p.a. Additionally, all students pursuing professional courses like Engineering, Medical, or Management are further eligible for a 0.50% interest concession.  

The BOI Star Education Loan process is straightforward. Before applying for the loan, however, students must check the eligibility criteria. The quantum of finance for abroad studies is up to INR 20 lakhs. Refer to the following table for comprehensive details of the BOI Star Education loan -

Documents to be submitted by the student - 

• Proof of admission from the university
• Loan application form
• KYC documents as identity proof and residence proof - Aadhar card, valid passport, Voter ID, PAN card, etc. 
• Scores of standardized tests such as GRE/GMAT/TOEFL/IELTS, etc. (if applicable). 
• Transcripts of previous education - 10th, 12th, and undergraduate mark sheet.
• 2 passport size photographs

Documents to be submitted by the co-applicant - 

• Residence proof- Aadhar Card, Voter ID, etc.
• Identity proof- PAN Card, Driving Licence, etc.
• Latest salary slips (for the last 3 months)
• Income tax receipts of the last 2 years
• Form 16 of the last 2 years
• Employer’s ID Card, in case the co-applicant is employed
• Balance Sheet for the last 3 years and P&L statement, in case the co-applicant is self-employed
• Proof of Business Address, in case the co-applicant is self-employed
• 2 Passport size photos

The margin money for the Star Education Loan is 15%. It means that a student will have to contribute 15% of the total expenses from the pocket. It will be required on a year to year basis as and when the loan amount is disbursed. If the student has won scholarships, it can be counted in the margin money. 

To apply for the secured education loan from the Bank of India, the applicant will have to pledge security as a way to back up the loan amount. The bank accepts the following as collateral - 

• Immovable Property - house, apartment, a plot with a boundary, building, etc. 
• Liquid Assets - government securities, Public Sector Bonds, NSC, KVP, LIP, or Banks Term Deposit, etc.  

The collateral should be in the name of the student/parent/co-borrower/ guarantor. 

Under the Star Education Loan, the student gets a moratorium period of course duration, plus one year after the course completion. Simple interest is charged during this period as well, which is added to the principal amount. The total loan repayment period is 15 years. 

It is perhaps the most attractive feature of every public sector bank. The processing charges for education in India are NIL. The same for abroad education is INR 5000 inclusive of service charge. The processing charges, after deducting the service charges, are refunded once the actual loan is availed. 

Education loans, in theory, seem pretty straightforward and simple. However, the process, in truth, is lengthy and cumbersome. The process gets further dragged-out in case of collateral as the property has to be evaluated, with several document submissions. You can skip all the hurdles and delays by simply contacting GyanDhan. We have streamlined the education loan process for the students by providing an online application portal. Further, you will get a customized checklist to help you arrange the documents on time.