.svg)
Bank Of India Education Loan
Are you dreaming of a higher education but worried about the costs? You're not alone. Education can be a significant investment, but it doesn't have to be a financial burden. The Bank of India Education Loan is here to make your academic dreams a reality.
As of FY 2024-25 the overall education loan portfolio of scheduled commercial banks has grown to around INR 1.6 lakh crore, reflecting the steady year-on-year rise in demand for student credit. Get yourself all the benefits, requirements, and detailed steps to apply for a BOI education loan in this blog. Your journey to success is just a loan away!
Bank Of India Education Loan Overview (May 2026)
The BOI education loan interest rate is competitive, ensuring that you get the best possible deal.
Here's a glimpse of the Bank of India education loan:
| Feature | Details |
|---|---|
| Maximum Loan Amount | Up to INR 150 lakhs for studies in India and abroad |
| Rate of Interest (May 2026) |
Up to INR 7.5 Lakh: 1-Year RBLR + 1.70% (~8.40% p.a. onwards) Above INR 7.5 Lakh: 1-Year RBLR + 2.50% |
| Processing Time | Typically 7-15 working days after document verification. |
| Processing Fees | Nil for studies in India. INR 5,000 (refundable on disbursement) for studies abroad. |
| Repayment Options | Moratorium = course duration + 1 year (or 6 months after securing employment, whichever is earlier) |
| Tenure | Up to 15 years post-moratorium |
| Documents Required | Admission letter, fee structure, identity and address proof, academic records, income proof of parents/guardians |
| EMI Calculator | Available online for easy EMI calculation |
| Interest Concession | Up to 0.50% p.a. concession for women borrowers |
| Repayment Penalty | No prepayment penalty |
| Courses Covered | Undergraduate, postgraduate, diploma, professional and skill development courses |
| Expenses Covered | Tuition fees, accommodation, exam fees, library and lab fees, travel, books and equipment, insurance and other related expenses |
| Other Benefits | Collateral-free under CGFSEL up to INR 7.5 lakh; Section 80E tax benefit on interest paid; PM-Vidyalaxmi credit guarantee & 3% interest subvention applicable for eligible QHEI students. |
Next, the bank's interest rate has much impact on your education and loan decision. Here's how BOI charges their interest rate.
Get Education Loan for Any College in India. 100% Fees Financed - Propelld Education Loan
Bank Of India Education Loan Interest Rate (May 2026)
The interest rate is determined using the bank's Repo-Based Lending Rate (RBLR), which is RBI repo rate + bank spread, plus an additional credit-risk spread. As of the April 2026 RBI policy, the repo rate stands at 5.25% and BOI's 1-Year RBLR is ~8.40%. Your credit score plays a key role in the final mark-up applied.
Even where the Bank Of India Education Loan Interest Rate appears moderately high, you can claim a deduction on the entire interest paid under Section 80E of the Income Tax Act, effectively lowering your post-tax cost.
How the rate is built
High Credit Score borrowers (CIBIL 800+)
Low-risk borrowers typically pay close to the floor rate. RBLR (Repo Based Lending Rate) = 5.25% (RBI Repo) + bank spread = ~8.40% p.a. effective.
The table below provides an overview of the Bank Of India Education Loan Interest Rates (May 2026).
| Schemes | Maximum Loan Amount | Interest Rate (p.a.) |
|---|---|---|
| BOI Star Education Loan | Up to INR 150 lakh | ~8.40% to 11.05% p.a. (RBLR-linked) |
| BOI Star Vidya Loan (Premier Institutes) | Up to INR 40 lakh | ~8.40% p.a. onwards |
*For the latest interest rates, always check the bank's official website (bankofindia.co.in).
Types Of Bank Of India Education Loan
When it comes to financing your education, the Bank of India education loan offers various options tailored to meet your specific needs. Here's a breakdown of the different types of Bank of India student loans available for studying in India and Abroad:
| Feature | Star Education Loan (India) | Star Education Loan (Abroad) | Star Vidya Loan | Star Progressive Education Loan | Star Education Loan - Working Professionals | Star Pradhanmantri Kaushal Rin Yojana |
|---|---|---|---|---|---|---|
| Maximum Loan Amount | INR 150 lakh | INR 150 lakh | INR 15-40 lakh (premier institutes) | INR 4 lakh | INR 20 lakh | INR 1.5 lakh |
| Interest Rate (May 2026) | ~8.40% p.a. onwards | ~8.40% p.a. onwards | ~8.40% p.a. onwards | ~8.40% p.a. onwards | ~8.40% p.a. onwards | Concessional rate linked to RBLR |
| Repayment Period | Course + 1 year moratorium; tenure up to 15 years | Course + 1 year moratorium; tenure up to 15 years | Course + 1 year moratorium; tenure up to 15 years | Within 12 equated monthly instalments | Typically up to 10 years or age 60, whichever is earlier | Up to 7 years |
| Processing Fees | Nil | INR 5,000 (refundable) | Nil | Nil | Nil | Nil |
| Moratorium Period | Course + 1 year | Course + 1 year | Course + 1 year | None | Course + 1 year | Course + 1 year |
| Loan Margin | Nil up to INR 4 lakh; 5% above (India) | 15% (abroad) | 5% above INR 4 lakh | 5% above INR 4 lakh | 5% above INR 4 lakh | 5% above INR 4 lakh |
Please note: BOI provides education loans for abroad only under Star Education Loan Abroad.
Are you one who requires an education loan after the 12th, then read more: How to Get an Education Loan After the 12th: Complete Guide!
Now that you are aware of the different types of education loans provided by BOI. Let's see how it differs in terms of different features.
Get upto 100% Education Fees Financed with Propelld. Simplified Processing. Dedicated Support.
Comparison Of Bank Of India Education Loans
When choosing an education loan, comparing different options available will better meet your budget and loan requirements.
Here's a detailed comparison of the Bank of India education loan types and schemes:
| Loan Type | Interest Rate (May 2026) | Loan Amount | Security Required |
|---|---|---|---|
| BOI Star Education Loan (India) | ~8.40% p.a. onwards | Up to INR 150 lakh | Collateral for loans above INR 7.5 lakh |
| BOI Star Education Loan (Abroad) | ~8.40% p.a. onwards | Up to INR 150 lakh | Collateral for loans above INR 7.5 lakh |
| BOI Star Vidya Loan | ~8.40% p.a. onwards | INR 15-40 lakh | Collateral for loans above INR 7.5 lakh |
| BOI Star Progressive Education Loan | ~8.40% p.a. onwards | Up to INR 4 lakh | No collateral required |
| BOI Star Education Loan - Working Professionals | ~8.40% p.a. onwards | Up to INR 20 lakh | Collateral for loans above INR 7.5 lakh |
| BOI Star Pradhanmantri Kaushal Rin Yojana | Concessional rate linked to RBLR | Up to INR 1.5 lakh | No collateral required |
For a complete picture, you can also review government-backed schemes like the PM-Vidyalaxmi credit guarantee on the official PM-Vidyalaxmi portal alongside BOI's standalone schemes.
Next, let's break down some of the exciting advantages of the Bank of India education loan that you must check out.
Advantages Of Bank Of India Education Loan
The Bank of India education loan offers a host of advantages. With competitive interest rates, flexible repayment options, and comprehensive coverage of expenses, this loan ensures you focus more on your studies rather than financial worries.
1. Competitive Interest Rates
BOI's Star Education Loan starts from ~8.40% p.a. (May 2026), making it one of the more affordable public-sector options.
2. High Loan Amounts
You can secure up to INR 150 lakh for studies in India and abroad, ensuring you have sufficient funds for all educational needs.
3. Flexible Repayment Options
Enjoy a repayment period of up to 15 years, with a moratorium covering course duration + 1 year, giving you ample time to start repayments.
4. Tax Benefits
Avail of tax deductions under Section 80E of the Income Tax Act on the entire interest paid, reducing your overall financial burden.
5. Simple Application Process
The application process is straightforward via the PM-Vidyalaxmi / Vidya Lakshmi portal or BOI's own portal, with clear documentation requirements.
6. Interest Rate Subsidies and Subventions
Benefit from interest subsidies under CSIS (now integrated with the PM-Vidyalaxmi portal) and a 3% interest subvention under PM-Vidyalaxmi during the moratorium for eligible families earning up to INR 8 LPA.
Get a no collateral Education Loan
Still not convinced about taking your loans with BOI? Then, you must watch out for the education loan subsidies and their benefits.
Bank Of India Education Loan Subsidies and Subventions (2026)
Financing your education can be more manageable with the Bank of India education loan and its various subsidy programmes. These programmes are designed to provide financial relief to students from diverse backgrounds, making higher education more accessible.
Here are the key subsidy programmes available:
PM-Vidyalaxmi Scheme (Launched 6 November 2024)
- Purpose: 75% credit guarantee on collateral-free education loans up to INR 7.5 lakh and a 3% interest subvention during moratorium for eligible meritorious students.
- Eligibility: Admission to one of the 860+ Quality Higher Education Institutions (QHEIs); family income up to INR 8 LPA for interest subvention.
- Benefit: Collateral- and guarantor-free loans up to INR 10 lakh routed through BOI and other participating banks via the PM-Vidyalaxmi portal.
Central Sector Interest Subsidy Scheme (CSIS)
- Purpose: Full interest subsidy during the moratorium period for economically weaker sections.
- Eligibility: Annual parental income up to INR 4.5 LPA; admission to an NAAC/NBA accredited institution or CFTI.
- Benefit: 100% interest borne by the government during course + 1 year moratorium on loans up to INR 10 lakh. Now integrated with the PM-Vidyalaxmi portal.
Dr. Ambedkar Central Sector Scheme
- Purpose: Interest subsidy for OBC and EBC students pursuing overseas Masters / M.Phil / Ph.D.
- Eligibility: Annual parental income up to INR 8 LPA for OBC and INR 5 LPA for EBC.
- Benefit: Full interest subsidy during the moratorium period.
Are you worried about whether you will qualify for the BOI education loan or not? If yes, then read the criteria below.
Bank Of India Education Loan: Eligibility Criteria
Securing a Bank of India education loan can open doors to a wealth of educational opportunities. The eligibility criteria are essential to ensure a smooth application process.
| Eligibility Criteria | Details |
|---|---|
| Citizenship | Must be an Indian citizen. |
| Admission Requirement | Must have secured admission to a recognised educational institution in India or abroad. |
| Age Limit | No specific age limit, but the borrower should be able to repay the loan by the end of the repayment period. |
| Co-applicant | A co-applicant (parent, guardian, or spouse) is required for all education loans. |
| Academic Record | Students must have a consistent academic record. |
Now, let's mark down all the important documents you'll need when applying for a Bank of India education loan.
Bank Of India Education Loan Documents Required
Application for a Bank of India education loan is now a no-time process, provided you have all the necessary documents in place.
Here's a detailed list:
- Aadhaar Card
- Passport
- Voter ID
- PAN Card
- Utility Bills (Electricity, Water, Gas)
- Rent Agreement
- Previous year's mark sheets and certificates
- Admission letter from the educational institution
- The fee structure provided by the institution
- Latest salary slips (for salaried individuals)
- Income tax returns (for self-employed individuals)
- Bank statements for the last six months
- Form 16 (if applicable)
- Identity proof of co-applicant
- Address proof of co-applicant
- Income proof of co-applicant
- Bank statements of co-applicant for the last six months
- Duly filled and signed loan application form, which you can obtain from the nearest Bank of India branch or download from their official website.
- 2 passport-size photos of both you and the co-applicant.
Why wait? Secure your education loan from Propelld with no collateral needed and experience swift, hassle-free approval. Propel your academic dreams into reality now!
You might be thinking of your EMI payments; BOI provides an online EMI calculator for your ease. See the detailed steps below.
Bank Of India Education Loan EMI Calculator
Bank of India Education Loan EMI Calculator helps you estimate your monthly instalments (EMIs), enabling you to manage your finances effectively. Here's how you can do it:
Using the Bank of India education loan EMI calculator is straightforward. Here's a step-by-step guide:
| Step | Details |
|---|---|
| Input Loan Amount | Enter the total loan amount you wish to borrow. |
| Interest Rate | Enter the applicable interest rate (e.g., ~8.40% per annum in May 2026). |
| Repayment Tenure | Select the repayment period, which can be up to 15 years. |
| EMI Calculation | The EMI amount will automatically reflect based on the provided details. |
Example:
Let's say you plan to take a Bank of India student loan of INR 10 lakh for your higher education in India. You have the following details:
- Loan Amount: INR 10,00,000
- Interest Rate: 8.40% per annum
- Repayment Tenure: 10 years (120 months)
At ~8.40% p.a. on a 10-year tenure, your EMI works out to approximately INR 12,350 per month. Use the official BOI EMI calculator for an exact figure based on your scheme and disbursal date.
Now, let's move on to how you can easily apply for the BOI education loan
How To Apply For BOI Education Loan Online/ Offline?
You can choose to apply for a Bank of India education loan either online (via the PM-Vidyalaxmi / Vidya Lakshmi portal or BOI's own website) or offline at a branch. Here's a step-by-step guide to help you through both methods:
Applying Online:
| Step | Details |
|---|---|
| Step 1: Visit Portal | Go to pmvidyalaxmi.co.in / vidyalakshmi.co.in or BOI's education loan page. |
| Step 2: Choose Loan Scheme | Select the specific education loan scheme that suits your needs, such as the BOI Star Education Loan or BOI Star Vidya Loan. |
| Step 3: Fill in the Details | Enter accurate personal, academic, and loan amount details in the Common Education Loan Application Form (CELAF). |
| Step 4: Upload Documents | Upload identity proof, address proof, academic records, and income proof of the co-applicant. |
| Step 5: Review & Submit | Review your application for accuracy and submit it. Receive an acknowledgement with an application reference number. |
| Step 6: Track Application | Use the reference number to track the status of your application on the portal. |
Applying Offline:
| Step | Details |
|---|---|
| Step 1: Visit Branch | Arrive at your nearest BOI branch with the required paperwork. |
| Step 2: Obtain Application | Fill out the application form, which you can acquire from the branch. |
Read more: How to Apply for Education Loan in India - Complete Process.
Get your Loan Disbursed 10 times Faster than Banks. Apply Now.
Do you want to transfer your existing loan to BOI but are not aware of the process? Worry not, here you go!
How To Transfer Your Education Loan To BOI?
Transferring your education loan to the Bank of India can be a wise decision. If you're looking for better interest rates or more favourable repayment terms, here's a process to follow:
| Step | Details |
|---|---|
| Step 1: Gather Loan Details | Collect all details of your existing loan, including the outstanding principal, interest rate, and remaining tenure. |
| Step 2: Check Eligibility | Ensure you meet the Bank of India's eligibility criteria, such as a consistent repayment history and meeting the bank's income requirements. |
| Step 3: Visit BOI | Visit the nearest Bank of India branch or their official website to initiate the transfer process. |
| Step 4: Fill Out Application | Complete the loan transfer application form with accurate details. |
| Step 5: Provide Documents | Submit required documents, including identity proof, address proof, academic records, income proof of co-applicant, loan statements, and NOC from the lender. |
| Step 6: BOI Verification | BOI will verify your documents, assess your application, and check your credit score and repayment history. |
| Step 7: Loan Sanction | Upon approval, BOI will sanction the loan and disburse the outstanding amount directly to your existing lender. |
| Step 8: Repay to BOI | Begin repaying your loan to the Bank of India as per the new terms and conditions. |
If you're planning to switch lenders, knowing how the Education Loan Moratorium Period works can help time your transfer to BOI more efficiently without early repayment pressure.
Are you stuck with how you can proceed with repayment? Here are all your answers with tips and information.
Bank Of India Education Loan Repayment Process
Repaying your Bank of India education loan is a crucial part of your financial planning. Understanding the repayment process helps you manage your finances effectively and ensures you stay on track with your repayments. Here's how you can do it:
| Step | Details |
|---|---|
| Step 1: Start Repayment | After the moratorium period, your loan repayment will begin. The bank provides a repayment schedule with your EMI details. |
| Step 2: Choose Repayment Mode | Repay through online transfers, post-dated cheques, or set up standing instructions for automatic debit from your bank account. |
| Step 3: Monitor Statements | Regularly check your loan account statements to ensure payments are credited correctly and to stay informed about your outstanding balance. |
| Step 4: Make Prepayments | Consider making prepayments if you have surplus funds. BOI does not charge prepayment penalties, allowing you to reduce loan tenure and interest. |
| Step 5: Maintain Records | Keep copies of loan documents, repayment receipts, and correspondence with the bank for your records. These are important for future reference. |
Why Propelld?
Need an easy education loan to achieve your academic goals? Propelld is here for you! With a simple application process, competitive interest rates, and flexible repayment plans, Propelld is designed for students. It helps you manage finances so you can concentrate on your studies. Let Propelld support you in reaching your educational dreams effortlessly!
Benefits Of Propelld Education Loan
| Feature | Details |
|---|---|
| Max Loan Amount | 50 Lacs |
| Collateral | Not Required |
| Moratorium | Available |
| Processing Time | 10 Times Faster than Banks |
| Disbursal Time | 7 Days |
| Approval Rate | Higher than Banks |
| Special USP | Marks Based Approval |
| % Financed | 100% of Fees |
