Studying abroad is a dream for many Indian students, but the high costs of international education can be a challenge. The Bank of India (BOI) offers the Star Education Loan Scheme, a need-based financial solution designed to help students pursue higher education abroad.
This comprehensive guide explores all about Bank of India abroad education loan, its eligibility criteria, interest rates, application process, and more, ensuring you have all the information needed to make an informed decision.
Table of contents
What is Bank of India Abroad Education Loan?
The Bank of India abroad education loan is a financial product under the BOI Star Education Loan Scheme, tailored for Indian students pursuing full-time degrees or postgraduate courses at recognized international institutions.
The Bank of India education loan for abroad studies covers a wide range of expenses, making it easier for students to achieve their global education goals without financial stress.
Key Features of the BOI Abroad Education Loan
- Loan Amount: Up to INR 30 lakhs for studies abroad, ensuring coverage for most educational expenses.
- Flexible Repayment: Up to 15 years repayment tenure with a moratorium period (course duration + 1 year).
- No Processing Fees: No charges for loan processing, making it cost-effective.
- Collateral-Free Options: Loans up to INR 7.5 lakhs require no collateral, only a co-borrower (parent/guardian).
- Concessions: 0.50% education loan interest rate concession for female students and additional discounts for professional courses.
Also Read: Top Private Student Loans for Study Abroad [2025]
Eligibility Criteria for Bank of India Abroad Education Loan
To qualify for the BOI abroad education loan to study abroad, students must meet specific criteria to ensure a smooth application process. Understanding these requirements helps streamline your loan approval.
Who Can Apply for BOI Abroad Education Loan?
- Nationality: Must be an Indian citizen.
- Admission: Secured admission to a recognized foreign university for a professional or technical course through a merit-based selection process.
- Age: Typically between 16 and 35 years.
- Co-Borrower: Parent or guardian must co-sign the loan, with evidence of income to support repayment.
- No Existing Loans: The applicant should not have outstanding education loans from other banks.
Eligible Courses for BOI Abroad Loan
The BOI abroad education loan supports a variety of programs, including:
- Graduate and postgraduate degrees (e.g., B.Tech, MBA, MS).
- Professional courses like CFA, CA, ICWA, or CPA (USA) and CIMA (London).
- Diploma programs such as aeronautical, pilot training, or nursing, provided they are offered by recognized institutions.
BOI Abroad Loan Amount and Covered Expenses
The BOI Abroad Education Loan provides comprehensive financial support to cover various expenses associated with studying abroad, ensuring students can focus on their education.
Maximum Loan Amount for BOI Abroad Studies
- Studies Abroad: Up to INR 30 lakhs (increased from INR 20 lakhs as per updated 2025 guidelines).
- Collateral-Free Loan: Up to INR 7.5 lakhs without collateral; loans above this require security.
- Margin Money: No margin for loans up to INR 4 lakhs; 15% margin for loans above INR 4 lakhs for studies abroad.
Expenses Covered Under BOI Education Loan Abroad
The loan covers a wide range of costs, including:
- Tuition fees for college, school, or hostel.
- Examination, library, and laboratory fees.
- Purchase of books, equipment, and uniforms.
- Travel expenses for studying abroad (e.g., airfare).
- Purchase of a laptop/computer if essential for the course.
- Life insurance premiums for the student/co-borrower.
- Other expenses like study tours, projects, or thesis work.
Interest Rates for BOI Abroad Education Loan
Understanding the interest rates is crucial for planning your loan repayment. The Bank of India offers competitive rates with concessions for specific groups. Here are the BOI’s current interest rates:
- BOI Star Education Loan: 10.85% to 11.05% p.a. for loans up to INR 20 lakhs.
- BOI Star Vidya Loan (for premier institutes): 9.35% p.a. for loans up to INR 40 lakhs.
- Concessions:
- 0.50% discount for female applicants.
- An additional 0.50% discount for students pursuing professional courses (e.g., engineering, medicine, management).
- Moratorium Period: Simple interest is charged during the course duration plus 1 year; compound interest applies post-moratorium.
Note: Interest rates are subject to change based on the bank’s Repo-Based Lending Rate (RBLR). Check the official BOI website for the latest rates.
Also Read: RBI Guidelines for Education Loans
Documents Required for BOI Abroad Loan Application
Submitting the correct documents for the BOI Abroad Loan Application is essential for a hassle-free loan application process. Below is a detailed list for both the student and co-applicant.
- Completed loan application form (available online or at BOI branches).
- Two recent passport-size photographs.
- Proof of identity (Aadhaar card, passport, PAN card, or voter ID).
- Proof of residence (Aadhaar card, voter ID, or utility bill).
- An admission letter from the foreign university.
- Academic records (10th, 12th, and undergraduate mark sheets).
- Standardized test scores (GRE, GMAT, TOEFL, IELTS, if applicable).
- Statement of study costs (tuition, living expenses, etc.).
Co-Applicant Documents
- Proof of identity (Aadhaar card, PAN card, driver’s license, etc.).
- Proof of residence (Aadhaar card, voter ID, utility bill).
- Income proof:
- Salaried: Last 3 months’ salary slips, Form 16 (past 2 years), employer ID card.
- Self-employed: Profit & Loss statement, balance sheet (past 3 years), business address proof.
- Two passport-size photographs.
Application Process for BOI Abroad Education Loan
Applying for the BOI Abroad Education Loan is straightforward, with options for online or offline submission. Follow these steps to ensure a smooth process.
- Visit the BOI Website or Branch: Access the loan application form on the Bank of India’s official website or visit a nearby branch.
- Check Eligibility: Verify that you meet the eligibility criteria and have all required documents.
- Complete the Application: Fill out the form with accurate details about the course, university, and loan amount.
- Submit Documents: Provide all necessary documents for yourself and the co-applicant.
- Loan Sanction: Upon approval, receive a sanction letter detailing the loan amount, interest rate, and repayment terms.
- Disbursement: Funds are disbursed directly to the university or as per the agreed schedule.
Tip: Apply early to account for processing time (typically 15-20 working days).
Repayment Terms and Moratorium Period with BOI
The BOI Abroad Education Loan offers flexible repayment terms to ease the financial burden on students post-graduation.
- Moratorium Period: Course duration + 1 year (simple interest applies).
- Repayment Tenure: Up to 15 years after the moratorium period.
- Repayment Options: Pay simple interest during the moratorium to reduce the loan burden, or defer payments until after the moratorium.
- No Prepayment Penalty: Pay off the loan early without additional charges.
Collateral Requirements
- Loans up to INR 7.5 lakhs: No collateral; only co-borrower required.
- Loans above INR 7.5 lakhs: Collateral required (e.g., immovable property, government securities, fixed deposits, or public sector bonds).
Benefits of Choosing Bank of India Abroad Education Loan
The BOI Abroad Education Loan stands out for its student-friendly features, making it a preferred choice for Indian students.
Why Choose BOI?
- No Processing Charges: Saves on upfront costs.
- Collateral-Free Up to INR 7.5 Lakhs: Accessible for students without assets.
- Comprehensive Coverage: Includes tuition, travel, and other study-related expenses.
- Tax Benefits: Interest paid is eligible for tax deductions under Section 80E of the Income Tax Act.
- Concessions: Special discounts for female students and professional courses.
Also Read: Maximum Education Loan for Abroad Studies in India (2025 Guide)
The Bank of India abroad education loan is an excellent option for Indian students aspiring to study abroad in 2025. With competitive interest rates, flexible repayment terms, and comprehensive expense coverage, it eases the financial burden of international education. By understanding the eligibility criteria, required documents, and application process, you can secure funding to pursue your academic dreams.
FAQs
Non-Banking Financial Companies (NBFCs), private banks, and other private lenders do cover the full cost of studying overseas. However, public banks may require students to self-finance 10-15% of the cost; the remaining balance will be covered by the student loan.
Indian citizens aged 16-35, admitted to recognized foreign universities for merit-based professional/technical courses, with a parent/guardian as co-borrower and no existing education loans, are eligible for the BOI education loan for abroad studies. The loan is processed at the nearest BOI branch.
The BOI abroad education loan interest rate is 10.85%-11.05% p.a. (up to INR 20 lakhs) or 9.35% p.a. for premier institutes (up to INR 40 lakhs). Female students get a 0.50% discount, plus 0.50% for professional courses.
The BOI abroad education loan rate is 10.85%-11.05% p.a. (up to INR 20 lakhs) or 9.35% p.a. for premier institutes. Concessions include 0.50% for female students and professional courses. Check BOI’s website for other loan rates.
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