The Bank of India offers need-based education loans for study overseas and in India, with repayment based on the student’s projected earnings after completing the programme. The loan covers a variety of costs, including tuition and travel costs for courses overseas. In a world where everything is getting more expensive, taking out student loans is the most straightforward way to pay for your higher education. The cost of education overseas is frequently beyond the means of an individual, which has increased the need for student loans.
One of the public sector banks, Bank of India (BOI), offers the Education Loan, a programme that provides loans for higher study overseas. The Bank of India Abroad Education Loan – Education Loan, a loan product for students who seek to finance their education abroad, will be covered in full in this blog.
What is Bank of India Abroad Education Loan?
Bank of India Abroad Education Loan is available for normal full-time degrees or postgraduate courses at higher education institutions abroad. The application process for Bank of India Abroad Education Loans is simple. However, students must first review the requirements for qualifying before applying for the loan. The amount of funding for education abroad is up to INR 20 lakhs.
Bank of India Abroad Education Loan Amount
The following ceilings apply to the need-based education loans offered by the Bank of India:
- Maximum 10 lakh rupees for studies in India
- 20 lakhs INR maximum for studies overseas
Also, students are eligible to qualify for an unsecured loan up to INR 7.5 lakhs. Any sum exceeding this will require the student to put up collateral and parents to act as co-borrowers.
Documents Required for a Bank of India Abroad Education Loan
Here is the paperwork needed by the student and co-application for applying to the Bank of India Abroad Education Loan:
Documents Required by Students
- University Admissions Documentation
- Application for a Loan
- Aadhar cards, current passports, voter identification cards, PAN cards, and other KYC documents serve as identification and residency proof.
- Results of standardised exams like the GRE, GMAT, TOEFL, IELTS, etc (if applicable).
- Previous academic records, including grade reports for the 10th, 12th, and undergraduate levels.
- Passport size photos
Documents Required by the Co-Applicant
- Aadhar cards, voter identification cards, etc. are examples of residence evidence.
- PAN cards, driver’s licences, etc. are examples of identity evidence.
- Last 3 months’ salary slips.
- Receipts of Tax returns (Previous two years)
- Form 16 (Previous two years)
- In the event that the co-applicant is working, an employer’s ID card
- If the co-applicant is self-employed, include a P&L statement and a balance sheet for (Previous three years).
- If the co-applicant is self-employed, proof of business address is required.
- 2 passport-size photos
Bank of India Abroad Education Loan: Eligibility Criteria
The following is a list of requirements for Bank of India Abroad education loans:
- The applicant must be a citizen of India.
- The student must have been accepted to a professional or technical programme at an Indian or international institution after being chosen on the basis of merit.
- The student shouldn’t still owe money on any other banks’ school loans.
- The co-applicant should be the parent or guardian.
- The branch that is most convenient for the student’s primary residence will possibly issue the loan.
Bank of India Abroad Education Loan Processing Fees
The cost of education overseas is INR 5000, including service fees. Once the real loan is obtained, the processing fees after deducting the service fees are repaid.
Bank of India Abroad Education Loan Collateral
A pledge of security as collateral for the loan amount is required in order to apply for a secured education loan from the Bank of India. The following are accepted by the bank as collateral:
- Immovable property includes a home, an apartment, a building, a plot with a boundary, etc.
- Government securities, KVP, public sector bonds, LIP, NSC, or bank term deposits are examples of liquid assets.
- Collateral must be registered in the name of the borrower—student, parent, co-borrower, or guarantor.
Bank of India Abroad Education Loan Interest Rate
For loans over INR 7.5 lakhs, the bank offers an interest rate of 9.85%. There is a 0.50% annual interest concession for female applicants. Those students pursuing professional programmes in fields like engineering, medicine, or management are also qualified for an additional 0.5% interest discount.
Bank of India Abroad Expenses Covered
Payments made with a Bank of India Education Loan. The following expenses are included in the Bank of India Abroad Education Loan:
- College, school, or hostel must pay the fee
- Test, library, and laboratory fees
- Buying books, supplies, and uniforms
- Building fund, refundable deposit, and caution deposit backed by institution bills and receipts
- The cost of travel to study abroad
- Purchase of a laptop or computer if one is required for passing the course.
- Life Insurance Premium for Student/Co-Life Borrower’s Coverage
- Any additional costs associated with finishing the course, such as those related to study abroad, projects, thesis, etc.
Bank of India Abroad Education Loan Eligible Programs
The list of programmes that qualify for the Education Loan has been provided by the Bank of India Abroad Education Loan:
- Approved graduate and postgraduate degree-granting courses, as well as P.G. certificates, such as ICWA, CA, or CFA programmes.
- Conventional degree or diploma programmes like nursing, pilot training, or aeronautical are examples.
- Courses offered by the CPA in the USA, the CIMA in London, etc.
Bank of India Abroad Education Loan payback schedule
The student receives a moratorium period of the course duration plus one year following the course completion under the Education Loan programme. Also, during this time period, simple interest is assessed and added to the principal sum. There are 15 years to return the loan in full.
Ans. The finest bank for international student loans is thought to be the State Bank of India.
Ans. 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.
Ans. The best bank for school loans is IDBI Bank, which can cover the majority of applicants’ tuition costs.
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