Bank of India is one of the country’s leading banking institutions catering to the diverse needs of its customers. It was founded in 1906 with a primary capital of Rs. 50 lakh. Over the years, the bank has gained a leading role in the banking sector by introducing various new and innovative financial and banking products and services. The bank has a diversified focus and caters to customers in areas such as personal banking, business finance, deposits, loans and SME services.
Bank of India has been slowly and steadily growing its loans portfolio and has focused on the education loan sector as well. There are reasons for this. As education costs in India is rising tremendously. As the pressure of bearing this hike in prices falls on the family and student, Bank of India helps students to pursue their chosen educational path with a financial aid. The student loan scheme of the bank is a one-stop solution to all problems. It has become more popular in recent times. The scheme for education loans covers all costs associated with higher studies and other expenses incurred by educational institutions.
Bank of India currently offers two types of Education Loans to students to pursue higher studies whether pursued in India or pursued abroad. The first type of loan offered s for higher studies and the second types of loan offered is designed exclusively for students pursuing higher studies from premier institutes. The variants of the BOI education loan are:
- BOI Star Education Loan – This BOI student scheme is offered to meritorious students to go for higher studies in India and abroad. The important aspects of the loan are hereunder:
- The BOI Education loan covers expenditures such as fees payable to college / hostel/ school/ laboratory fees/ examination / library / purchase of books / instruments/equipment /uniforms, building fund caution deposit /refundable deposit maintained by Institution Bills or receipts, travel expense, purchase of laptops or desktop computers if needed for the course completion, insurance coverage for the student
- If pursuing studies within India, the individual can avail a maximum loan of Rs. 10 lakh and the limit goes up to Rs. 20 lakh if studies are pursued abroad. The quantum of loan granted depends on the need of the student and the repayment capacity
- There is no requirement of any margin if one is availing loan amount of Rs.4 lakh but any loan exceeding this amount requires a margin. For studies taken in India, the requirement of margin is 5% while for studies abroad it is 15%. Margin should be brought on a yearly basis when disbursements are made
- For student loan scheme up to Rs.4 lakh, pledging a security is not required. But for loans above Rs. 4 lakh, the bank demands a security. A third party guarantee would suffice as a security if the loan amount is above Rs. 4 lakh but within Rs.7.5 lakh. For loans above Rs. 7.5 lakh, a tangible collateral security which should be of an equivalent amount as the loan granted and the co-obligation of the parents is required. Moreover, the assignment of future incomes of the student for paying off the loan is also required
- Simple interest is charged during the moratorium period under BOI student education loan
- A penal interest which would be 2% for loans above Rs. 4 lakh is applicable for any overdue period and overdue amount.
- An optional Term Insurance cover is provided to students who are required to bear the relevant cost of premium if the coverage is availed
- The repayment tenure of loan is up to Rs. 7.5 lakh is 10 years and for loans above Rs. 7.5 lakh it is 15 years
- Bank of India Star Vidya Loan – A BOI student loan scheme granted to students of premier educational institutions. BOI education loan has the following features:
- The courses covered include regular full-time degree or diploma courses and full-time Executive Management courses like PGPX (for IIMs). Certificate or part-time courses are not covered under the purview of the loan
- The maximum amount of loan granted depends on the pre-determined list of institutes as specified by the bank and each institute falls under a list. For List A institutes, the maximum loan amount is Rs.20 lakh, for List B institutes it is Rs. 10 lakh and for List C institutes it is Rs. 7.5 lakh.
- Moreover, a higher loan amount of up to Rs. 30 lakh can also be granted by the bank if a tangible security of the equivalent amount of the loan is pledged to the bank as collateral.
- There is no requirement of margin in availing the loan
- No collateral security is otherwise required if the loan is taken up to the specified limit. However, parents of guardians are supposed to act as a co-borrower and the student’s future incomes have to be assigned to the bank while availing the loan
- The repayment period is a maximum of 10 years for a loan amount of up to Rs. 7.5 lakh and 15 years for amounts above Rs. 7.5 lakh
- Girl students are given a concession of 0.50% in the rate of interest when they avail the loan
The expenses covered under the loan are fees payable to school /college / hostel, examination or library fees, purchase of books / equipment / instruments, purchase of computer or laptop and any other education-related expenses.
List of certified institution: Institution that are set up by state or central and other universities and which are approved by UGC, AIBMS, ICMR and AICTE. And if you want to pursue higher education abroad and want to avail BOI education loans, only reputed foreign universities are considered.
- List of approved institution: Under this student loan scheme, premier educational institutions in India that are listed under “A”, “B” and “C” categories are certified. If you want to get a complete list of educational institutions that qualify under BOI student education loan, you can visit bank’s website or the nearest branch for the same.
Vocational education and training has obtained lot of momentum in the past few years but still it has not been able to grab a standard place and share in the traditional definition of higher education. However, vocational education and training can be attained at secondary and post secondary levels. According to government statistics, it was disclosed that in the recent few years lack of sufficient funds forced approximately 50% of the aspiring students to withdraw their name in the middle of vocational education and training course. It was only after this figure that Indian Banks Association came up with loan for vocational education and soon after it was adopted by all the leading banks in the country, including Bank of India.
Loan for vocational education and training is also offered by the bank to those students who want to pursue their career in specific trade at distinct levels such as technicians, and craftsman. Such a vocational education loan or a vocational training loan will allow you to apply for and get professional positions in the field of medicine, nursing, accountancy, law and pharmacy. These courses form part of the non-academic courses and are specifically attached to particular occupation and trade. Moreover, it will make your dream come true of having a professional course degree from recognized educational institutions in India and abroad. The bank has provided the option of loan for courses to help people planning to pursue a professional course to study for one with relative ease without any financial worries.
Expenses Covered under BOI Loan for Vocational Education and Training: Listed below is .
kthe list of expenses that are covered under the frame of loan for vocational education:
- Course fees and tuition fees
- The expenses incurred on purchasing course book and related equipment such as laptops
- Examination fees
- Laboratory fees
- Caution money
- Library fees
- Any other expenses that are enforced in completing the course
Quantum of finance/ loan amount: The amount of education loan that can be sanctioned to you under BOI educations loans may differ from institute to institute and from one course to other. However, the bank like most of the other banks is willing to offer an amount which ranges from Rs.50,000 to 1,50,000 for your vocational training.
- Courses which last up to 3 months: Rs. 20,000 is the loan amount which can be sanctioned by the bank
- Course ranges between 3 months- 6 months: Rs.50,000
- Educational courses ranges between 6 months-1 year: Rs.75,000
- Courses which last for more than a year: Rs. 1,50,000
- The student must be an Indian national with a good academic career
- The student should have taken admission in any professional or technical course either in India or abroad by taking an Entrance test or through a merit-based selection process
- A student having a due education loan from another institution is not eligible.
- The father or mother should be the co-borrower and the branch nearest to the residence of the students will be eligible to disburse the loan
- The courses which are eligible to be included in the scope of the loan are graduation or post-graduation courses, professional courses which may be engineering, agriculture, medical, law, dental, veterinary, management, computer, etc., courses conducted by established institutes like the IIMs, IISc, , IIT, XLRI, NIFT, NID and other such institutes which have been established by the State or Central Government, other courses which lead to either a degree or a diploma and are conducted by colleges or universities which are approved by UGC / Govt. / AICTE / ABMS/ ICMR, etc.
- For higher studies taken abroad, the courses covered include job oriented courses which are offered by well- known universities, post-graduation courses like MCA, MBA, MS, etc., courses conducted by CPA in the USA or CIMA in London, etc.
Eligibility for BOI Loan for Vocational Education and Training: In order to be eligible for availing a loan for vocational education you need to fulfil the following criteria:
- You should be enrolled in a course that has that has received recognition from the Central Government or State Government and your programme should earn you a certificate or diploma qualification. The course should be attended from reputed educational institutions in India and should lead to professional employment after its completion.
- You need be a citizen of India who has passed the matriculation exam (Class 10).
- The tenure of the course may be anywhere from 2 to 3 months and may last up to 3 years.
Rate of Interest for BOI start Education loan:
Bank charges interest on education loans depending upon the loan amount.
- For loan amount up to Rs.7.5 lakh the interest rate is 3% + MCLR p.a. (9.40%)
- For loans above Rs.7.5 lakh, interest rate is 2.50% + MCLR p.a
Rates of Interest star vidya loan scheme:
- For students of IITs or IIMs, the rate of interest is the Base Rate which is 9.40 %
- For students of other premier institutes under lists A and B, 1 year MCLR rate of interest is offered and for type C, it is 0.50% over the MCLR rate
- Charges: Listed below are fees and charges of a BOI student loan scheme:
Processing or Upfront Charges
There is no processing charge. However, letter of sanction of loan may be required for foreign studies to obtain Visa for which a charge of Rs. 5,000 is levied which is later refundable
Document / Stamp Charges
Change of Institution
Studies in India – Rs. 250
Studies abroad – Rs. 500
Charges for deviation of scheme norms
For loans up to Rs. 4 lakh – Rs. 500
For loans up to Rs. 7.5 lakh – Rs. 1,000
For loans above Rs. 7.5 lakh – Rs. 2,000
Loans in rural areas – NIL
Documentation: The documentation process is almost similar for both BOI education loans. Following are the list of loan documents required:
- Voter ID card
- Ration card
- Pan Card
- Form 60
- Income Tax Return slips
- Form 16
- Salary slips
- Voter id card
- Pan card
- Bank account statement
- School leaving certificate
- Degree certificate
- Mark sheets
- Any other documents as required by the bank.
- Applying Online
The bank has online facility for applying to its Education Loan. One can follow the following steps and avail the loan online.
Go to Paisabazaar.com and choose Bank of India education loan, after checking your credit worthiness, eligibility, etc. you can apply for BOI education loan. This is the most hassle free method of applying for an education loan
Applying Through Branch
Those who wish to apply for the loan manually can also pay a visit to any branch of the bank which is available all throughout the country. There they would have to seek the help of the bank’s designated representative dealing with loans, complete the formality and apply for a loan