Bank of India Education Loan

The Star Educational Loan Scheme of Bank of India aims at fulfilling the financial needs of deserving/ meritorious students for higher education in India and abroad. The bank claims to lay emphasis on providing opportunity to every meritorious student on affordable terms and conditions. Let’s find out how affordable the rates of Bank of India are…

Interest Rates

Charges

Flexibility

• Eligibility:

1. The borrower/ student should be an Indian national.
2. Student should be having a secured admission to professional/technical courses in India or abroad.
3. Student should be having a good academic career.
4. Student should not be having an outstanding education loan from any other bank.
5. Courses not approved by AICTE, will not be covered.

• Loan Amount: The maximum loan amount available under this loan scheme is Rs 10 lakh for studying in India and Rs 20 lakh for studying abroad. The sanctioned amount consists of fee payable to college including hostel, examination, library and laboratory fee, purchase of books, equipment and instruments, caution deposit, building fund, travel expenses, purchase of computer, insurance cover and other allied expenses.

• Repayment options

1. Repayment will start after course period + 1 year, or 6 months after getting job, whichever is earlier.
2. The tenure will be fixed between 5 to 7 years.

• Margin amount is the amount paid by borrower. The margin amount applicable here is:

1. Up to Rs 4 lakh: Nil
2. Above Rs 4 lakh: 5 per cent for studying in India, and 15 per cent for studying abroad.

Scholarships, if any, could also be included in margin. Margin is to be brought in on year to year basis, as and when disbursements are made.

• Time taken for processing: The official time taken for the processing of loan, mentioned on the website of the bank, is 10-15 days.

• Guarantee

1. No security is required for loan amount up to Rs 4 lakh
2. For loan amount between Rs 4 lakh and Rs 7.5 lakh, third-party guarantee and assignment of future income is required (in the form of post-dated cheques).
3. For loan amount above Rs 7.5 lakh, collateral security equal to 100 per cent of the loan amount, along with assignment of future income is required (in form of post-dated cheques).

• Special options

1. Special interest rates for students being admitted into IITs will be considered.
2. Interest rate concession for women students, up to 1 per cent depending on the loan amount, is available.
3. 1 per cent concession on interest will be given, if it is serviced during moratorium period, i.e., the period in which the student was not bound to pay.

Example

Other Details

• Pre-Sales Information: Adequate sales information has been provided on the website in clear format.
• Customer Support: The customers care facility is available only during 6 working days from 6 am to 11 pm. You can apply online for education loan. Complaints and grievance policy is present on the website. There are not many complaints about Bank of India, other than delay in funds transfer.

Documents Required

No documents have been disclosed on the website.

Ratings