Education Loan

Bank of India Abroad Education Loan

Bank of India Abroad Education Loan

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Want to apply for a Bank of India education loan to study abroad? Learn about its features, eligibility, requirements, expenses covered, application process & more.

GyanDhan
vishakha Bhagia
Updated on:  04 Sep 2023  | Reviewed By: 
Aman 
| 11.7K | 7  min read

Bank of India (BOI) is a leading public sector bank in India that offers education loans for studying abroad. With competitive interest rates and extended repayment tenures, BOI empowers deserving Indian students to pursue better educational opportunities overseas. Founded in 1906 and headquartered in Mumbai, BOI provides financial assistance for degree programs, diplomas, and select courses.


Students can benefit from tax advantages under section 80 E when availing BOI education loans. It is important for students to meet the eligibility requirements and carefully review loan conditions to make informed decisions. By leveraging BOI's study abroad education loan, students can finance their international education without financial burdens, opening doors to a world of possibilities.

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Overview of Bank of India abroad education loans

The following table gives you an overview of Bank of India education loans to study abroad: 

Bank of India education loan to study abroad

Maximum loan amount

Up to INR 1.5 Cr

Rate of interest (1 year RBLR + 1.70% - 2.50%) 

Up to INR 7.5 Lakhs - 10.95%

More than INR 7.5 Lakhs - 11. 75%

Processing charges

INR 5,000 + GST (refunded)

Margin money

Up to INR 4 Lakhs - Nil

Between INR 4 Lakhs & INR 7. 5 Lakhs - 15%

Above INR 7.5 Lakhs - 10%

Moratorium period 

Course period + 1 year

Repayment tenure

15 years from the start of repayment

 

Note: There will be an additional processing charge between INR 500 - 3,000 if the course falls outside the BOI list. The additional charge will vary depending on the quantum of loan amount.

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Features of Bank of India abroad education loans 

Bank of India has four education loan schemes among which the Star education loan scheme offers financial assistance to eligible students to study abroad at universities listed by the bank. Features of the scheme are listed below:

  • list items The loan terms are student friendly in the sense that Bank of India offers loan amounts of high quantum at moderate rates of interest. 
  • list items Collateral security is required for education loans of amounts more than INR 7.5 Lakhs to study abroad. 
  • list items The collateral must be tangible, and agricultural land is accepted only in states where the law permits mortgaging of agricultural land for non-agricultural activities.


Check the EMI Calculator to see the monthly EMI for your education loan

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Eligibility requirements for Bank of India abroad education loan 

Bank of India mandates eligibility requirements specific to the student regarding the academic choices and general eligibility requirements. Listed below are the major eligibility requirements for education loans from Bank of India: 

  1. list items The student must be an Indian citizen 
  2. list items Secure admission to a recognized institution abroad, like ranking under 3,000 in the list of Webometrics or under 1,000 in the list of QS World University Ranking
  3. list items Course of study must be listed by BOI
  4. list items If the selection for higher studies is not based on academic merit or entrance results education loans are granted based on the future employment potential and reputation of the institution

Course eligible for BOI education loans for abroad

Considering the future employability of students, BOI mandates the student must be enrolled to any of the following courses to be eligible for an education loan to study abroad: 

  1. list items Graduate degree - professional, technical, or any other graduate course
  2. list items Post graduate degree - MCA, MBA, MS, etc. 
  3. list items Post graduate diplomas
  4. list items PHD
  5. list items Courses conducted by CIMA- London, CPA in USA etc.
  6. list items Regular degree / diploma courses like aeronautical, pilot training, shipping etc., provided these are recognized by local competent regulatory bodies of Aviation or Shipping abroad and Director General of Civil Aviation or Shipping in India for the purpose of employment in India/abroad.
  7. list items Courses as initiated under various government education loan subsidy schemes

 

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Expenses covered under abroad education loans by Bank of India

Education loans from the Bank of India extend a standard coverage of the expenses you have while studying abroad. Areas of loan coverage are flexible and open ended if you have valid proofs for additional expenses. The major areas of spending for Bank of India education loans are: 

  1. list items Fees for tuition, admission, and hostel 
  2. list items Examination and library fees
  3. list items Books, equipment and instruments costs
  4. list items Travel expenses or passage money (one way fare)
  5. list items Price of computer or laptop.
  6. list items Funds with receipt or bill from the institution, like caution deposit, building fund, or refundable deposit 
  7. list items Life Insurance Premium for life cover of student or co- borrower for total tenure of loan
  8. list items Any other expenses related to education
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How to apply for Bank of India abroad education loans? 

Students can apply online or offline for education loans from Bank of India depending on their convenience. The application can be in-personal or digital, and as promised by Bank of India, involves minimal documentation and lesser time. 

Offline application: You can apply offline by visiting the nearest BOI branch and following the guidelines the bank executive would provide. 

Online application: You can apply online for BOI education loans by following the steps mentioned below: 

 

The other convenient alternative is applying via Vidyalakshmi portal for BOI Star education loan for studying abroad. Read more about Vidyalakshmi portal

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Documents required for an education loan from Bank of India

Bank of India requires proper documents to prove the education loan eligibility of the student and co-applicant. The requirement of documents for an education loan is case specific and varies with students.

Generally, the following are the documents required from the student and co-applicant for Bank of India education loans:

Documents from student

  1. list items Proof of identity ( PAN & Aadhaar)
  2. list items Proof of address
  3. list items Academic records(X ,XII , Graduation if applicable)
  4. list items Proof of admission/ qualifying examination result ( if applicable)
  5. list items Schedule of study expenses
  6. list items 2 passport size photograph
  7. list items Vidyalakshmi portal reference number
  8. list items Vidyalakshmi portal application number

Documents from co-applicant

  • list items Proof of identity ( PAN & Aadhaar)
  • list items Proof of address
  • list items Income proof (ITR/Form16/Salary slip etc.)
  • list items 2 passport size photograph
  • list items 1 year bank statement
  • list items Collateral security details and documents, if any

 

However, given that education loans from the Bank of India is a good pick to study abroad, it is crucial to be eligible for the loan to enjoy the benefits. One major drawback with Bank of India’s education loans is that the loan amount is limited to INR 7.5 Lakhs for students without any collateral. Also, there are no mentions of liquid collateral being accepted for education loans, a disappointing news for students without any tangible collateral to pledge on for an education loan. 

Check Your Education Loan Eligibility

You may go through the loan terms and conditions patiently to make an informed decision on education loans from Bank of India to study abroad. If you are not not eligible, no need to fret since there are more education loan options you can explore among the public banks, private banks, Non-Banking Financial Companies (NBFCs), and international lenders. As a first step, check your education loan eligibility and see the top education loan options for your profile.

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Frequently asked questions

Is Bank of India a good choice for study abroad education loans? 

Bank of India is a public bank in India that offers education loans to study in India and abroad. Being a public bank you can expect better interest rates and other loan terms on education loans offered by Bank of India. 

Can I get Padho Pardesh subsidy benefits from Bank of India education loans?

As of the latest information the Padho Pardesh scheme for minority students is discontinued in the year 2022-23. The existing beneficiaries will continue to get the subsidy benefit. 

What is the minimum qualification to apply for a study abroad education loan from the Bank of India? 

The minimum qualification to apply for an education loan to study abroad from the Bank of India is +2 or equivalent.

Will Bank of India accept education loan applications for courses outside the bank’s list of eligible courses? 

Depending on your university’s reputation and the course’s earning potential, Bank of India may accept your application for an education loan to study an unlisted course. However, there will be an additional charge of INR 500 for loan amount less than INR 4 Lakhs, INR 1,500 for loan amount between INR 4 - 7.5 Lakhs and INR 3,000 for loan amount more than INR 7.5 Lakhs.

What if I change my course or university of study after getting an education loan sanction letter from the Bank of India? 

If there is a change of course or university the student or parent must immediately contact the nearest branch of Bank of India. The bank will update the details before loan disbursement. 

Check Your Education Loan Eligibility


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