Bank of India Education Loan Interest Rates – Eligibility Information

 

 

Eligibility Criteria

      Student’s Eligibility:

• 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.

 

       Eligible Course

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.

 

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/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.

 

Margin

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.

 

Security

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

1. 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/-
2. For Professional courses (like Engg./Medical/ Management, etc.) int. concession : 0.50% (Maximum under a) and b), above is 1%)
3. 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.

 

Insurance :

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

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.

 

Bank Charges

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: Up to Rs. 4 lacs, Rs. 500/- Over Rs. 4 lacs up to Rs 7.50 lacs Rs. 1,500/- Over Rs. 7.50 lacs up to Rs 20.00 lacs Rs. 3,000/-
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.

 

Other Conditions

• 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.,

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