Bank of India has Star Educational Loan on offer for the students willing to pursue higher education. Meritorious students are offered Bank of India Education Loan so that they can study a graduate, computer certificate, diploma, postgraduate, specialized or professional course in India or abroad.

Eligibility Criteria:

a) Eligibility Criteria for Students

• Should be an Indian National.
• Secured admission to professional/technical courses in India or Abroad through Entrance Test/Merit based selection process.
• Good academic career.
• The student should not have outstanding education loan from any other Institution.
• Father/Mother should be co-borrower.
• Branch nearest to the permanent residence of student will consider the loan.

b) Courses Eligible for Getting Loan

Studies in India (Indicative list)

• Graduation courses : BA, B.Com., B.Sc., etc.
• Post Graduation courses : Masters & Phd.
• Professional courses : Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer, etc
• Computer certificate courses of reputed institutes accredited to Department of Electronics or institutes affiliated to university.
• Courses like ICWA, CA, CFA, etc.
• Courses conducted by IIM, IIT, IISc, XLRI, NIFT, NID and other Institutes set up by Central/State Govt.
• Evening courses of approved institutes.
• Other courses leading to diploma/degree, etc. conducted by colleges/universities approved by UGC/Govt./AICTE/AIBMS/ ICMR, etc.
• Courses offered by National Institutes and other reputed private institutions with prior approval of Head Office.
• Courses offered in India by reputed foreign universities with prior approval of Head Office.

Studies abroad

• Graduation : For job oriented professional/technical courses offered by reputed universities.
• Post Graduation : MCA, MBA, MS, etc.
• Courses conducted by CIMA - London, CPA in USA, etc.

Expenses Considered For Loan:

• Fee payable to college/school/hostel
• Examination/Library/Laboratory fee.
• Purchase of books/equipments/instruments/uniforms.
• Caution deposit/building fund/refundable deposit supported by Institution bills/receipts.
• Travel expenses/passage money for studies abroad.
• Purchase of computers - essential for completion of the course.
• Insurance cover for the student.
• Any other expense required to complete the course - like study tours, project work, thesis, etc.

Amount of Loan, Margin and Security:
For studying in India, you can apply for a maximum loan of Rs 10 lacs and Rs 20 lacs for studying abroad.

• There is also a margin of 5% and 15% for studying in India and abroad respectively and it is applicable for a loan amount above Rs 4 lacs.
• The borrower needs to keep a guarantee of a 3rd party if a loan amount is above Rs 4 lacs. If the amount exceeds Rs 7.5 lacs, then a collateral security or a third party (if allowed by the bank) should be kept as a guarantee.
• In addition, the student should assign his future income for paying the installments.

Rate of Interest:

• Upto Rs.7.50 lacs - 1.75% below BPLR, Min. 11.00% p.a.
• Above Rs.7.50 lacs - 0.75% below BPLR, Min. 12.00% p.a.
• Simple interest during the repayment holiday/moratorium period.
• Penal interest @2% for loans above Rs.4 lakh for the overdue amount and overdue period.
• Int. Concession of 0.50%p.a. for woman beneficiaries
• 1% int. concession if interest is serviced during moratorium period, where repayment holiday is specified for interest/repayment under the scheme (concession available for moratorium period)

Repayment procedure:
The loan can be repaid in 5 to 7 years after the repayment is commenced. The moratorium period is considered till 6 months after employment or the period of study plus 1 year, whichever is earlier.