Bank of India Education Loan: Interest Rates,Student Loan

Scholarship Examination in India

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.



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 lakhNo security
Above Rs.4 lakh &upto Rs.7.5 lakhCollateral security in the form of a suitable third party guarantee.
Above Rs.7.5 lakhCo-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 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 chargesNo 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 lacsRs. 1,500/-
Over Rs. 7.50 lacs up to Rs 20.00 lacsRs. 3,000/-
Document /Stamp ChargesAt Actuals
Change of InstitutionStudies 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.,

For further details, please click here


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