Loan refinancing is one of the ways to pay off your existing student loan by taking a new loan. The new loan is lent at lower interest rates, optimised new monthly instalments, and a change in loan tenure. Bank of India is one such way to refinance your education loan among various banks for student loan refinance. You can benefit from the lower interest rates and get more favourable terms to pay off your student loan. To know more about the Bank of India refinance process and interest rates, continue reading this blog.
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Bank of India Education Loan Refinancing
Refinancing your education loan with the Bank of India is a smarter move. The applicant must qualify for lower interest rates and better loan terms than the existing education loan. When you opt for Bank of India loan refinancing, you get the new loan at lower interest rates and affordable EMIs. Here are some other benefits you can avail of-
- The applicant gets repayment flexibility with a longer payment schedule.
- The bank may help deserving students with top-up education loans for specialised programs.
- Zero processing fees to refinance your education loan with BOI.
- 100% transparency and no hidden charges.
- The Bank of India disbursement process is online and hassle-free.
Also Read: Here’s the checklist of documents required for BOI education loan. Check out the same to ensure you don’t miss any.
BOI Refinance Interest Rates
Bank of India education loan refinancing offers attractive features like online approval, longer repayment periods, and the lowest interest rates. BOI refinance interest rates range from 11% p.a to 12% p.a. These interest rates on takeover loans are calculated as the sum of RBLR (Repo Based Lending Rate) and Spread.
- RBLR is set at 9.35% and the spread ranges from 1.70% to 2.50%.
- All female students are eligible for a concession of 0.50.
- All students pursuing professional courses (Like Engineering /Medical /Management etc.) are eligible for a 0.50 % interest concession.
| Loan Amount | Rate of Interest | Effective ROI |
| Up to INR 7.5 lakhs | RBLR + 1.70% | 11.05% p.a. |
| Above INR 7.5 lakhs | RBLR + 2.50% | 11.85% p.a. |
Process of BOI Education Loan Refinance
If you are wondering about how to apply for an education loan refinance, the process is quite simple. The first step is to compare the different lenders and find the right one. Discuss the loan terms and conditions and evaluate if it fits your needs. Follow these steps to refinance your education loan with the Bank of India.
- Submit the foreclosure education loan application with the existing lender.
- Fill out the Bank of India education loan application and attach the required documents.
- Wait for the bank to assess your loan application, creditworthiness, income, and other financial factors.
- If approved, the Bank of India will offer new loan terms, including lower BOI refinance interest rates, flexible repayment periods, etc.
- Once you accept the new loan terms, the new lender will pay off your existing education loan.
- You have to start with new repayments according to the new terms and conditions.
Also Read: Check out the details of Bank of India processing time and the steps involved.
Important Guidelines for Education Loan Refinancing
One must keep in mind important things when planning to refinance your existing student loans to avail better loan conditions. Comparing different banks and checking their interest rates top the lists. Several other guidelines must be kept in mind to ensure that you make the best financial decision.
- Compare the interest rates, and repayment tenure, and predict monthly EMIs using the EMI Calculator. Choose the one that fits your needs.
- Always keep a check on your credit score. Lenders require a good credit score for loan refinancing and a higher score can help you avail better refinancing terms.
- Consider the prepayment or foreclosure charges of an education loan before refinancing.
- Many factors like interest rate trends, graduation and employment status, etc. determine the best time to apply for education loan refinance. It is always ideal to consider that.
- Make sure to read the terms and conditions carefully and attach the necessary documents as required.
This was all about the Bank of India refinancing interest rates. Always research well and compare the lenders. Choose the one that fits your needs and allows you to flexibly repay your education loan.
FAQs
Loan refinancing is one of the ways to pay off your existing student loan by taking a new loan. The new loan is lent at lower interest rates, optimised new monthly instalments, and a change in loan tenure.
Yes, borrowers with existing education loans can refinance their loans with the Bank of India. BOI allows the takeover of loan facilities from other banks to offer lower interest rates, flexible repayment options, and optimised monthly instalments.
BOI refinance interest rates range from 11% p.a to 12% p.a. These interest rates on takeover loans are calculated as the sum of RBLR (Repo Based Lending Rate) and Spread. RBLR is set at 9.35% and the spread ranges from 1.70% to 2.50%.
You need to submit the foreclosure education loan application with the existing lender. Fill out the Bank of India education loan application and attach the required documents. Wait for the bank to assess your loan application, creditworthiness, income, and other financial factors. If you fulfil the eligibility criteria, BOI will approve your loan application.
Absolutely. Refinancing your education loan with the Bank of India is a smarter move. You get the new loan at lower interest rates and affordable EMIs. Besides, there is zero processing fee, 100% transparency and no hidden charges.
To know more about education loans, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.
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