Bank of India Education Loan Interest Rates – Eligibility Information
- Should be an Indian National;
- Secured admission to professional/technical courses in India or Abroad through Entrance Test/Meritbased 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.
o Studies in India (Indicative list)
- Graduation/ Post Graduation courses
- Professional courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer, etc.
- Courses conducted by IIM, IIT, IISc, XLRI, NIFT, NID and other Institutes set up by Central/State Govt.
- Other courses leading to diploma/degree, etc. conducted by colleges/universities approved by UGC/Govt./AICTE/AIBMS/ ICMR, etc.
Note : Professional courses not approved by AICTE and conducted by Institutes not recognized by State Universities is outside the purview of the eligibility under the scheme.
- 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/equipment’s/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.
Quantum Of Finance
Need based 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.
Upto Rs.4 lakh : Nil
Above Rs.4 lakh – Studies in India : 5%
Studies Abroad : 15%• Scholarship could be included in margin.• Margin to be brought in on year to year basis as and when disbursements are made.
|Upto Rs. 4 lakh||No security|
|Above Rs.4 lakh &upto Rs.7.5 lakh||Collateral security in the form of a suitable third party guarantee.|
|Above Rs.7.5 lakh||Co-obligation of Parents together with tangible Collateral security of suitable value along with the assignment of future income of the student for payment of installments.|
RATE OF INTEREST: (Floating, p.a. at monthly rests)
- Upto Rs.7.50 lacs – 3% above Base Rate,
- Above Rs.7.50 lacs – 2.50% above Base Rate,
- BOI BASE RATE 9.70% w.e.f. 05.10.2015
- Int. Concession of 0.50%p.a. for woman beneficiaries for limits up to Rs.50,000/- and 1% for limits over Rs.50,000/-
- For Professional courses (like Engg./Medical/ Management, etc.) int. concession : 0.50% (Maximum under a) and b), above is 1%)
- 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 only)
Simple interest during the repayment holiday/moratorium period. Penal interest @2% for loans above Rs.4 lakh for the overdue amount and overdue period.
All the student borrowers are offered a specially designed OPTIONAL Term Insurance covers and the premium can be included as an item of finance.
Repayment holiday/Moratorium: Course period + 1 year or 6 months after getting job, whichever is earlier.
- After commencement of repayment :
- Loan amount up to Rs.7.50 lacs: 10 years.
- Loan amount over Rs.7.50 lacs: 15 years.
|Processing/upfront charges||No processing Charges. In respect of loans for foreign study letter of sanction may be issued for obtaining VISA, upon recovery of processing charges of Rs. 1000/- However this can be refunded if the actual loan is availed. One time charges for any deviations from the scheme norms including approval of courses outside the scheme:|
|Document /Stamp Charges||At Actuals|
|Change of Institution||Studies in India – Rs.250/-|
Studies Abroad- Rs.500/-
One time charges for any deviations from the scheme norms including approval of courses outside the scheme applicable @ Rs.500 for loan up to Rs. 4 lacs, Rs.1000 for loan up to Rs.7.50 Lacs and Rs.2000 for Loan over Rs.7.50 Lacs. In respect of loans availed by borrowers from rural areas from the Rural Branches – Charges NIL.
- Loan to be disbursed in stages as per requirement / demand, directly to the Institution/ Vendors of books/equipment’s/instruments to the extent possible;
- Student to produce mark list of previous term/semesterbefore availing next instalment ;
- Student / Parent to provide latest mailing address, in case of any change ;
- Student /Parent to inform Branch immediately on change of course /completion of studies/termination of studies/ any refund of fees by college /institution /successful placement /obtention of job/change of job etc.,
For further details, please click here