The ambition to study abroad is a transformative one, offering global exposure and a pathway to a successful career. However, the high cost of international education often requires significant financial support. For Indian students looking for a reliable financial partner, a Bank of India education loan for abroad is a popular and trusted choice.
This guide will walk you through the key features, eligibility, and application process to help you finance your academic dreams.
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The Bank of India Star Education Loan Scheme
The Bank of India Star Education Loan Scheme is the bank's flagship offering designed to provide financial support to deserving students pursuing higher studies in India and abroad. The core philosophy of this scheme is to ensure that every meritorious student has the opportunity to pursue their educational goals without financial constraints.
The loan is structured to be comprehensive, covering a wide range of academic and personal expenses associated with studying internationally. It is a long-term investment in a student's future, designed to be repaid comfortably after they have completed their studies and secured a job.
Key Features and Loan Amount
A Bank of India education loan for abroad offers flexible terms and competitive features to meet the diverse needs of students.
- Maximum Loan Amount:
The maximum loan amount for abroad studies is up to ₹1.50 Crore for a secured loan. For unsecured loans, the amount can go up to ₹7.5 Lakhs.
- BOI Interest Rate for Abroad Studies:
The interest rates are competitive, starting from 10.95% onwards. The final rate depends on factors like the loan amount, the course, and the university.
- BOI Processing Fees for Abroad Education Loan:
The processing fee for the loan is generally between ₹5000 plus GST. However, this fee is often refundable upon the first disbursement.
- BOI Study Abroad Loan Repayment Tenure:
The loan offers a long repayment period of up to 15 years after the moratorium, giving you ample time to start your career and settle your debt.
Bank of India Education Loan Eligibility Abroad
Meeting the eligibility criteria is the first step towards securing your loan. The Bank of India education loan eligibility abroad criteria are straightforward and primarily focus on the academic profile of the student and the financial stability of the co-applicant.
- Applicant Eligibility:
The student must be an Indian citizen who has secured admission to a recognised educational institution abroad. A strong academic record is a key requirement.
- Co-Applicant Requirement:
A co-applicant is mandatory for the loan. This is typically a parent, legal guardian, or a close relative who can demonstrate a stable source of income and a good credit history. The co-applicant's income and financial background are crucial for the loan's sanctioning.
- Collateral Requirement:
Collateral is not required for a loan up to ₹7.5 Lakhs. For amounts above this, the bank requires tangible collateral security, such as residential property or fixed deposits.
Securing the best loan terms often comes down to your financial profile. A blog on How to check your CIBIL score can help you understand and improve your creditworthiness before you apply.
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Application Process: Online and Offline
Students can apply for a Bank of India education loan using both digital and in-person methods, depending on their convenience. The bank aims to make the process as seamless as possible with minimal documentation and a quick turnaround time.
Online Application Process
The most popular way to apply online is through the Vidyalakshmi portal, a government-run initiative that simplifies the loan application process.
- Register on the portal: Create an account on the official Vidyalakshmi portal.
- Complete the CELAF: Fill out the Common Education Loan Application Form (CELAF) with all your academic and personal details.
- Apply to BOI: Select the Bank of India Star Education Loan and submit your application. A bank representative will then reach out to you to guide you on the next steps, including document submission.
You can also apply directly through the Bank of India's official website:
- Visit the Website: Go to the official Bank of India website.
- Navigate to the Loan Section: Find the "Star education loan - Studies abroad" product and click on 'Apply now'.
- Fill the Form: Complete the online application form with your details.
- Await Contact: After submitting the form, Bank of India will contact you to instruct you on the further steps and document submission.
Offline Application Process
For those who prefer a face-to-face interaction, you can visit the nearest Bank of India branch to apply in person. A bank executive will assist you with filling out the application form and will provide a checklist of the required documents for submission.
Planning to study overseas but worried about finances? Don’t miss our detailed guide on how to get an education loan for abroad studies in 2024.
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Bank of India Education Loan for Abroad: Documents Required
A comprehensive set of documents is essential for a smooth and quick loan application process. It is advisable to have all the necessary paperwork ready before you begin.
Documents from Student for Student Loan Bank of India
- Educational mark sheets and certificates for Class 10, Class 12, and graduation (if applicable).
- Admission letter or qualifying exam results, when required.
- Two recent passport-size photographs.
- Aadhaar and PAN card as identity proof.
- Current residential address proof such as utility bills or rental agreement.
- Vidyalakshmi portal application and reference numbers.
- Detailed estimate of tuition fees and other study expenses.
Co-applicant Documents
- Aadhaar and PAN card as identity verification.
- Two recent passport-size photos.
- Papers related to collateral security, if you are offering property or other assets.
- Address proof showing present residence.
- Income evidence like salary slips, Form 16, or latest Income Tax Returns.
- One-year bank account statement.
Courses Eligible for Bank of India Education Loans for Abroad
The Bank of India Star Education Loan Scheme is available for a wide range of professional and technical courses offered by recognised institutions worldwide.
- Undergraduate Courses:
All professional and technical graduation degree courses offered by reputed universities.
- Postgraduate Courses:
Postgraduate degree and diploma courses, such as MBA, MS, and MCA.
- Other Programmes:
Professional courses offered by recognised bodies like CIMA (Chartered Institute of Management Accountants) in London and CPA (Certified Public Accountant) in the USA.
Expenses Covered by Bank of India Education Loan for Abroad
A Bank of India education loan is designed to handle most key costs of studying overseas, easing your financial planning. The approved amount can be used for:
- University or college tuition fees and semester charges.
- Hostel accommodation, daily living, and meal expenses.
- Examination fees, library charges, and lab expenses.
- One-way or return airfare to your study destination.
- Essential study materials such as books, equipment, and instruments.
- Purchase of a laptop or computer if required for the course.
- Insurance premiums for student health or travel policies, if mandated by the university.
- Other academic needs like project work, study tours, or thesis preparation.
Financing your education with a Bank of India education loan for abroad is a strategic step towards a brighter future. By understanding the intricacies of the Star Education Loan Scheme and its various features, you are well-equipped to make an informed decision. The loan provides a holistic solution, covering everything from tuition fees to living costs, with flexible repayment terms and a generous moratorium period.
Remember, every rupee invested in your education is a powerful asset. By leveraging the comprehensive support of a trusted institution like the Bank of India, you can focus on your studies and career without the added financial stress. Your dream of an international education is within reach.
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