Bank of India (BOI) Student Education Loan for India & Abroad Studies

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    Education loans are the easiest way to fund your higher education in a world where the cost of everything is increasing. Personal funds are often insufficient to cover the cost of abroad education, leading to an increasing demand for education loans for abroad studies.

    As a response to this demand, several lenders in the market have come out with various abroad education loan schemes. Bank of India (BOI) is one of the public sector banks that offer education loan schemes for higher education in India as well as abroad, known as the Star Education Loan

    In this blog, we will discuss in detail the Bank of India Education loan - Star Education Loan - a loan product for students who wish to fund their education in India and abroad. 

    Without further ado, let’s get into it - 

    Check Your Education Loan Eligibility Apply Here

    Bank of India (BOI) Education Loan Eligibility Criteria

    The BOI Education loan eligibility criteria are as follows -  

    The Student -

    • Should be an Indian citizen. 
    • Should have secured admission in a recognized institution in India or abroad through an entrance test or a merit-based application process after the completion of 10+2 education. 
    • Should have a good academic record. 
    • Should not have any outstanding education loans from any other institution. 
    • Should have a mother or father as the co-applicant. 

    Which courses and universities are eligible for the BOI Education Loan?

    The Bank of India has set forth the following list of eligible courses to avail of the Star Education Loan. 

    • Approved courses that lead to a graduate or postgraduate degree and P.G diplomas. 
    • Courses like ICWA, CA, or CFA.
    • Regular degree or diploma courses like Aeronautical, Pilot Training, or nursing, etc. 
    • Courses conducted by the CIMA - London, CPA in the USA, etc.  

    Expenses covered under the Bank of India Education Loan

    The expenses covered in the BOI Star Education Loan are as follows - 

    • Fee payable to college/school/hostel
    • Examination/Library/Laboratory fee
    • Purchase of books/equipment/uniforms
    • Caution deposit/building fund/refundable deposit supported by Institution bills/receipts
    • Travel expenses for studies abroad
    • Purchase of computer or laptop, if essential for the completion of the course. 
    • Life Insurance Premium for life cover of student/co-borrower
    • Any other expenses required to complete the course - like study tours, project work, thesis, etc. 


    Calculate Your Education Loan EMI Check Here

    How much loan amount is possible from the 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. 

    Bank of India Education Loan Interest Rate 

    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.  

    What is the BOI Education loan process? 

    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 -

    BOI Student Loan - Star Education Loan Overview

      Maximum Loan Amount  

    For abroad studies- INR 20 Lakh
    For education in India - INR 10 lakhs


    Should be a resident Indian
      Should have got a merit-based admission to a well-ranked & recognized university abroad  
    Should have a good academic record

    Interest Rate

    9.85% (interest rate concession for women applicants - 0.50%)
    0.50% interest rate concession for students pursuing professional courses

    Margin Money


    Repayment Period

    15 years

    Moratorium Period

    Course period + 1 year after the course completion

    Processing Fees

    For education in India - NIL
    For abroad education - INR 5000

    What are the documents required for a BOI education loan for abroad studies? 

    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
    Apply Education Loan Click Here

    What is the margin money in the BOI education loan? 

    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

    What collateral is accepted by the Bank of India for abroad education loans? 

    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. 

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    What is the repayment policy for the BOI star student education loan? 

    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. 

    What are the processing charges in the BOI Star Education Loan? 

    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. 

    How can GyanDhan help you get an education loan? 

    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. 

    GyanDhan provides all the services free of cost to the students. Our Education Loan Counselors will discuss the loan options available to you after going through your profile. The loan scheme and lender are suggested only after a detailed discussion with you in accordance with your needs and requirements. We work closely with several lenders in the market, including public sector banks. Your loan application will be processed swiftly, which you will be able to track on the dashboard of your GyanDhan account. 

    With us, you will not have to worry about any aspect of your abroad education loan application. Just Check Your Loan Eligibility Here and start the hassle-free loan process.  

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