Bank of India

 Bank of India’s Star Education loan

Objective of the Scheme :

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 of the Student  :

  • Should be an Indian National;
  • Secured admission to professional / technical courses in India or Abroad through Entrance Test / Merit based selection process.
  • 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.

Studies in India :

  • Graduation / Post Graduation courses
  • Professional courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer, etc.
  • Courses conducted by IIM, IIT, IISc, XLRI, NIFT, NID and other Institutes set up by Central / State Govt.
  • Other courses leading to diploma / degree, etc. conducted by colleges / universities approved by UGC / Govt. / AICTE /AIBMS / ICMR, etc.

Studies over a Wide Area :

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.

Liability of Finance :

Expenses allotted for the Loan :

  • Fee payable to college / school / hostel*
  • Examination / Library / Laboratory fee.
  • Purchase of books / equipment’s / 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.
  • Insurance cover for the student.

Quantum of Finance :

  • 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.

Processing Fee /  Mortgage Charges :

For India : NIL

For Abroad :

  • Up to Rs. 4 lacs : Rs. 500/-
  • Over Rs. 4 lacs up to Rs 7.50 lacs : Rs. 1,500/-
  • Over Rs. 7.50 lacs up to Rs 20.00 lacs : Rs. 3,000/-

Rate of Interest :

  • Upto Rs.7.50 lacs – 3% above Base Rate, ( presently 13.25 % )
  • Above Rs.7.50 lacs – 2.50% above Base Rate, ( presently 12.75 %)
  1. 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/-
  2. For Professional courses ( like Engg./Medical/ Management, etc. ) int. concession : 0.50% ( Maximum under a ) and b), above is 1%)
  3. 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 )

Repayment Period of the Loan

Repayment holiday / Moratorium: Course period + 1 year or 6 months after getting job, whichever is earlier.

  • After commencement of repayment :
  • Loan amount up to Rs.7.50 lacs: 10 years.
  • Loan amount over Rs.7.50 lacs: 15 years.

For more Details, Kindly refer the following link :

http://www.bankofindia.co.in/english/EducationLoan.aspx

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