Bank of India Study Loan in india

Bank of India Study Loan in india and abroad : 


The Star Educational Loan Scheme which aims to provide financial support from the bank that deserves meritorious students to pursue higher education in India and also in abroad. The emphasis is that every meritorious student would be provided with an opportunity to pursue education with the financial support on affordable terms and conditions.



  • Should be an Nationality of Indian;
  • Secure admission for professional/technical courses in India or Abroad through Entrance Test or  based on merit selection process.
  • Good academic career.
  • The student should not have any outstanding education loan from any other Institution.
  • Father/Mother should be co-borrower.
  • Nearest branch at the permanent residence of student will consider the loan.

b) ELIGIBLE COURSE:          (i) Studies in India (Indicative list):

  • 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.
  • Graduation courses : BA, B.Com., B.Sc., etc.
  • Post Graduation courses : Masters & Phd.
  • Courses offered in India by reputed foreign universities with prior approval of Head Office.

Note :  1. Professional courses which is approved by AICTE and that is  conducted by Institutes which is not recognised by State Universities is the outside to purview the eligibility under the scheme.
2.  Special scheme for students would be admitted to IITs, at concessional rate of interest.          

(ii) Studies abroad:

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


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

* As per brochure/ demand letter from the institution.
Need is mainly based on finance subject to repaying capacity of the parents/students with margin and the following ceilings :

  • Studies in India – Maximum Rs.10.00 lakh
  • Studies abroad – Maximum Rs.20.00 lakh.


  • Loan upto Rs.4 lakh would be Nil
  • Loan above Rs.4 lakh for Studies in India would be 5%
  • for studies in Abroad would be 15%·
  • Scholarship could be included in margin.·   Margin to be brought in on year to year basis as and when disbursements are made.


No security is needed for the loan up to 4 lakhs
Collateral security in the form of a suitable third party guarantee is needed for Above Rs.4 lakh &upto Rs.7.5 lakh.
Co-obligation of Parents together with tangible Collateral security of suitable value alongwith the assignment of future income of the student for payment of installments is needed for loan Above Rs.7.5 lakh :.
Note : The security could be in the form of land/ Govt. Securities/Public Sector Bonds/NSC/building/ KVP/LIP/ Banks Term Deposit etc., In the name of Student/Parent/Guardian/Guarantor that suits the margin.

7. RATE OF INTEREST*: (w.e.f. 28.07.2011) (Floating)

  • 3% above Base Rate is 13.75% p.a is for loan Upto Rs.7.50 lacs .
  • 2.50% above Base Rate is  13.25% p.a is for loan Above Rs.7.50 lacs  .
  • Int. Concession of 0.50%p.a. for woman beneficiaries for limits upto Rs.50,000/- and 1% for limits over Rs.50,000/-
  • For Professional courses (like Engg./Medical/ Management, etc.) int. concession :  0.50%
  • 1% interest is serviced for the moratorium period, where the repayment holiday is specified for interest/repayment under the scheme (concession available for moratorium period only)
  • Simple interest for the repayment holiday/moratorium period. Penal interest at the rate of 2% for loans above Rs.4 lakh which is overdue amount  for the overdue period.

No processing charges.

One time charges for any deviations from the scheme norms which includes the approval of courses outside the scheme -

Upto Rs.4.00 lacs – Rs. 500/-
Over Rs.4.00 lacsupto Rs.7.50 lacs – Rs.1000/-
Over Rs.7.50 lacsupto Rs.20.00 lacs – Rs.2000/-

With respect to the loans that is availed by borrowers from rural areas from any Rural Branches – Charges Nil

8. INSURANCE  : All the student who are borrowers would be offered by specially designed Term Insurance cover and that are premium can be included as an item of finance.


Repayment of holiday/Moratorium : Course period + 1 year or 6 months after getting job, whichever is earlier.


  • The loan is to be repaid in 5-7 years after commencement of repayment.


Processing/upfront charges For Studies in India will be NIL.
For Studies in Abroad will be Rs.1000 for issuance to sanction letter for obtention of VISA. Amount refundable on availing loan.
Document /Stamp Charges At Actuals
Change of Institution Studies in India – Rs.250/-
Studies Abroad- Rs.500/-

One time charges for any of the deviations that is from the scheme which would norms that includes approval of courses outside the scheme –
Loan upto Rs.4.00 lacs – Rs.500/-
Loan Above Rs.4.00 lacs to Rs.7.50 lacs – Rs.1,000/-
Loan Over Rs. 7.50 lacsupto Rs.20.00 lacs – Rs.2,000/-

With respect loans would be availed by borrowers from rural areas from the Rural Branches – Charges NIL.


i) Loan that is to be disbursed in any of the stages as per requirement or demand, directly for the Institution/  to the Vendors of books/equipments/instruments to the extent possible;
ii) Student has to produce mark list of previous term/semester before availing next installment ;
iii) Student or Parent to provide latest mailing address, in case of any change ;
iv) Student or Parent to inform Branch immediately for the changes of course or completion of studies/termination of studies  or any refundable of fees by college /institution /successful placement /obtention of job/change of job etc.,

On Line of facility that would be available for submission of application that tracks application status and resumes completion of incomplete application.

For further clarifications, you may contact nearest branch of the Bank. Loan at the sole discretion of Bank of India.

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