Bank of India Star Education Loan Scheme

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The Star Educational Loan Scheme aims at providing financial support from the bank to deserving/ meritorious students for pursuing higher education in India and abroad. The main emphasis is that every meritorious student is provided with an opportunity to pursue education with the financial support on affordable terms and conditions.

Eligibility :

Student

Should be an Indian National
Student should have secured admission to a higher education course in recognized institutions in India or Abroad through Entrance Test/ Merit based selection process after completion of HSC (10 plus 2 or equivalent).
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.

Courses

a) Studies in India (Indicative list)

Approved Courses leading to graduate /post graduate degree and P.G. diplomas conducted by recognized colleges/ universities by UGC/ Government/ AICTE/ AIBMS/ ICMR
Courses like ICWA,CA,CFA,etc.
Courses conducted by IIM, IIT, IISc, XLRI, NIFT, NID and other Institutes set up by Central/State Govt.
Regular Degree /Diploma courses like Aeronautical, Pilot Training Shipping, degree/diploma in nursing or any other discipline approved by Director General of Civil Aviation/ Shipping/ Indian Nursing Council

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.

b) 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.

Loan Details

Coverage of expenses

Fee payable to college/ school/ hostel.
Examination/ Library/ Laboratory fee.
Purchase of books/ equipments/ 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.
Any other expense required to complete the course - like study tours, project work, thesis, etc.

Quantum
Needbased 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 : Parents or Guardian to be joint borrowers ( To be covered under CGFSEL)
Above Rs.4 lakh & upto Rs.7.5 lakh : Parents or Guardian to be joint borrowers ( To be covered under CGFSEL)
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.

Note : The security can be in the form of land/building/Govt. Securities/Public Sector Bonds/NSC/KVP/LIP/ Banks Term Deposit etc., in the name of Student/ Parent/ Guardian/Guarantor with suitable margin.

Rate of Interest

For interest rate check out this link, BOI Interest Rate

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

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 Period is course period + 1 year

Repayment Period: 15 years after commencement of repayment

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/semester before 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.,

Contact Details
Head Office - Bank of India
Star House, C - 5, "G" Block, Bandra Kurla Complex, Bandra (East),
Mumbai 400 051
Phone : 022-66684444
Fax : 022- 66684408
E-mail : Contact Now
Website : visit

Click here for the nearest bank branches

Note : Since the rules, regulations, eligibility conditions, repayments and interests rates etc. are revised by the banks from time to time in keeping pace with the changing capital market conditions, students and parents are advised to thoroughly check the terms and conditions of educational loan scheme on offer at the time of application.

Tags

Bank of India Education Loan , Study Abroad Loan

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