Disbursement Process of Bank of India Education Loan

Founded in 1906, the Bank of India is a prominent public sector bank in India. Regarding education loans, the bank offers nearly eight different schemes tailored to various requirements. This blog will primarily focus on the Star Education Loan for Study Abroad scheme, which, as the name suggests, provides education loans for higher studies abroad. The aspect of the loan application process that we will discuss is the disbursement process of Bank of India education loan. Understanding this is crucial to ensure timely payments for things like tuition fees, accommodation, and more.

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Bank of India education loan overview

There are various schemes offered by the Bank of India for education loans, specifically tailored for different public sector banks. However, when it comes to financing education abroad, the primary scheme provided by the Bank of India is the 'Star Education Loan for Study Abroad.' A brief overview of this scheme is provided below.

Bank of India education loan disbursement process

The Bank of India (BOI) education loan disbursement process is quite effective. The following are the several steps that are involved in this process: 

Application and documentation for disbursement

Once your loan application is approved, you will receive an agreement that you need to sign before proceeding with the disbursement process of the BOI education loan. For this, you may be required to submit documents such as income proof, bank account information, and more, which can vary case by case. Additionally, you need to complete the disbursement form, where details regarding the disbursement, such as university account information, will be provided.

Disbursement letter

The bank conducts a thorough examination of the documents you previously submitted, possibly employing a method known as Original Seen and Verified (OSV) to verify accuracy. Upon completing the verification, the bank issues a letter specifying the approved loan amount. Before receiving the funds, it is necessary to complete and have your the disbursement letter.

Money Transfer

The final transfer can occur within 7-10 days of the initial step, so it's important to plan the BOI education loan disbursement process accordingly. The funds can be transferred either to the applicant's account or directly to the university for accommodation. In most cases, the tuition fee will be sent directly to the university, but for special requests, it can also be transferred to your account. The bank might provide you with a FOREX Card, which can assist in managing initial expenses upon your arrival until you establish a foreign bank account.

Benefits of choosing Bank of India

Here are several benefits you can experience when obtaining an education loan for abroad studies through the Bank of India:

• Eligible students can avail themselves of interest subsidies throughout the loan repayment period.
• Bank of India offers education loans with interest rates lower than many private banks and NBFCs.
• Students repaying education loan interest can access tax benefits under Section 80E.
• The processing fee is reimbursed upon the student's initial disbursement.
• Discounts are provided for female students, high-achieving students, and those who consistently pay interest during the moratorium period.

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Challenges during BOI disbursement process

Challenges commonly faced by borrowers during the disbursement of education loans include:

1. Discrepancies in Loan Amounts: The final disbursed loan amount might differ from the initially approved sum due to adjustments made by the lender or changes in the student's eligibility.
2. Loan Servicing and Communication Challenges: Borrowers may experience difficulties when communicating with the lender or its loan servicing agency regarding inquiries, modifications in repayment terms, or other related concerns.

To mitigate or prevent these issues, students should remain proactive, stay informed about the process, and maintain organization throughout the loan application and disbursement phases. Fortunately, the BOI disbursement process is straightforward and free from these complications.

Read more about:

• Education loan for abroad studies
• Education loan without parental income
• Education loan with collateral
• Education loan without collateral
• Study abroad scholarships for Indian students
• Education loan by the Indian government

Now that you know how to get disbursement from the Bank of India for your studies, you can start applying for a loan. Getting the money is usually straightforward, but sometimes there can be problems. If you want to avoid any issues, you can get help from GyanDhan. They have people who can help you for free. Just check if you are eligible, and they'll take care of the rest.

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Frequently Asked Questions

What is disbursement?

Is opting for the Bank of India a favorable decision for obtaining study abroad education loans?

How much time will it take to disburse the amount from the Bank of India?

Can I take a disbursement in my parent's bank account?