Bank of India Education Loan
Bank of India Education Loan Scheme
Objective & Purpose
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.
STAR EDUCATIONAL LOANS -
Eligibility Criteria
- 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.
Eligible Course
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.
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
Quantum of Finance
- Need based finance subject to earning potential of student upon completion of the course with and 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. 7.50 lakh |
Parents or Guardian to be joint borrowers (No collateral security or Third Party Guarantee since 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
| Particulars |
Rate of interest |
| Education Loan covered under Credit Guarantee Fund Scheme for Education Loan(CGFSEL) limit upto Rs.7.50 lacs |
1 Year MCLR +1.70% |
| For loans above Rs.7.50 lacs |
1 Year MCLR + 2.50% |
Note
- Simple interest to be charged during the repayment holiday/ moratorium period.
- 1% interest concession may be provided for loanees, if the interest is serviced during the study period when repayment holiday is specified for interest/repayment under the scheme. No concession will be available from the date of commencement of EMI.
- The accrued interest during the repayment holiday period to be added to the principal and repayment in equated monthly instalments (EMIs) be fixed accordingly.
- Penal interest @ 2% to be charged for loans above Rs. 4 Lacs for the overdue amount and overdue period.
- Interest concession for loans/advances to woman beneficiary: 0.50% p.a.
- All students pursuing professional courses (like Engineering/Medical/Management etc.) are eligible for 0.50% interest concession but max. Rate of Interest concession under (a) and (b) above is 1.00% p.a. subject to, minimum one year MCLR of the Bank
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
Repayment holiday/Moratorium: Course period + 1 year Repayment Period: 15 years after commencement of repayment
Processing Charges
| Limit upto Rs.7.50 lacs to covered under Credit Guarantee Fund Scheme |
1 Year MCLR +1.70% |
| Above Rs.7.50 lacs |
1 Year MCLR + 2.50% |
Concessions*:
- for Girl Students: 0.50 %
- All students pursuing professional courses (Like Engineering /Medical /Management etc.) are eligible for 0.50 % interest concession.
Maximum concession under (a) & (b) is 1 % p.a. subject to, minimum one year MCLR
No processing charges.
- No Processing charges – for study in India.
- For study abroad : Processing charges Rs.5,000/- (Processing charge excluding Service Tax to be refunded once actual loan is availed. Applicant/s to be suitably advised about this condition at the time of submission of application and consent letter to be obtained from the applicant/s to avoid dispute at later stage)
Student applicant may be required to pay fee/charges, if any, levied by third party service providers who operate common portal for lodging loan applications set up.
One time charges for any Deviations from the Scheme norms including approval of courses outside scheme –
| Up to Rs.4.00 lacs |
Rs. 500/-* |
| Over Rs.4.00 lacs up to Rs.7.50 lacs |
Rs.1,500/-* |
| Over Rs.7.50 lacs up to Rs.20.00 lacs |
Rs.3,000/-* |
*Per Deviation
a) Studies in India (Indicative list):
- Graduation courses : BA, B.Com., B.Sc., etc.
- Post Graduation courses : Masters & Phd.
- Professional courses : Engineering, Medical, Agriculture,Veterinary, Law, Dental, Management, Computer, etc
- Computer certificate courses of reputed institutes accredited to Department of Electronics or institutes affiliated to university.
- Courses like ICWA, CA, CFA, etc.
- Courses conducted by IIM, IIT, IISc, XLRI, NIFT, etc.
- Courses offered in India by reputed foreign universities with prior approval of Head Office.
- Evening courses of approved institutes.
- Other courses leading to diploma/degree, etc. conducted by colleges/universities approved by UGC/Govt./AICTE/AIBMS/ ICMR, etc.
- Courses offered by National Institutes and other reputed private institutions with prior approval of Head Office.
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.
2. STUDENT'S ELIGIBILITY:
- Should be an Indian National;
- Secured admission to professional/technical courses in India or
- Abroad through Entrance Test/Merit based selection process.
3. EXPENSES CONSIDERED FOR LOAN :
- 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.
4. QUANTUM OF FINANCE :
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.
5. MARGIN :
Upto Rs.4 lakh : Nil
Above Rs.4 lakh - Studies in India : 5%
Studies Abroad : 15%
6. SECURITY:
Upto Rs. 4 lakh : No security
Above Rs.4 lakh & upto Rs.7.5 lakh : Collateral security in the form of a suitable third party guarantee.
Above Rs.7.5 lakh : Collateral security of suitable value or at the discretion of the Bank suitable third party guarantee alongwith the assignment of future income of the student for payment of instalments.
7. RATE OF INTEREST:
- Upto Rs.15 lakh : @0.75% below BPLR,presently applicable Rate 12.50% p.a.
- Simple interest during the repayment holiday/moratorium period.
- Penal interest @2% for loans above Rs.4 lakh for the overdue amount and overdue period.
- Int. Concession for woman beneficiaries : Upto Rs.50,000/- - 0.50% and above Rs.50,000/- - 1.00%
- 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)
8. REPAYMENT:
Repayment holiday/Moratorium : Course period + 1 year or 6 months after
getting job, whichever is earlier.
- The loan is to be repaid in 5-7 years after commencement of repayment.
9. PROCESSING CHARGES:
No processing/upfront charges.
Documents charges at actual.
For further information, you may contact nearest branch of the Bank. Loan at the sole discretion of Bank of India.
