Bank of India Star Education Loan

BOI Star Education Loan (Higher Study in India and Abroad)

The Bank of India Star Education Loan is meant for students pursuing graduate, postgraduate or professional studies from recognised institutes in the country or abroad. The maximum loan amount is capped at Rs. 10 lakh for studying in India and at Rs. 20 lakh for studying abroad.

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Features of BOI Star Education Loan for Higher Studies in India and Abroad

Why this Loan?

  • The loan is meant for you if you have gained admission into a Bachelors, Masters, Doctorate (PhD) or a job-oriented programme in the country or abroad
  • You can apply for this loan if you do not have any other outstanding loan from other institutions
  • The Star Education Loan for Higher Studies in India and abroad is disbursed to the institution as required to pay the fees or other approved charges and expenses
  • The loan is disbursed as a series of payments over the loan period and not as a lump sum

BOI Star Education Loan Amount

  • The maximum loan amount is capped at Rs. 10 lakh for higher education in India and at Rs. 20 lakh for overseas

BOI Star Education Loan Interest

  • Loans up to Rs. 7.5 lakh: The interest rate for loan amount up to Rs. 7.50 lakh is a sum of Repo Based Lending Rate (RBLR) and an additional factor of 1.70%. The RBLR of BOI is 6.85% which brings the interest rate to 8.55%
  • Loans Above Rs. 7.5 lakh: The interest rate for loan amount above Rs. 7.50 lakh is a sum of Repo Based Lending Rate (RBLR) and an additional factor of 2.50%. The RBLR of BOI is 6.85% which brings the interest rate to 9.35%
  • All students pursuing professional courses can get a 0.5% concession in the interest rate
  • Girl students get a 0.5% concession in the interest rate
  • Simple interest is charged monthly during the repayment moratorium period. BOI offers the option to the borrower to pay the interest portion during the moratorium period. If the borrower chooses to do so, the interest rate is reduced by 1% for the tenure of the loan. No concession is applicable after the commencement of the repayment period
  • The bank charges a penal interest of 2% on overdue amount if the loan amount is over Rs. 4 lakh

BOI Star Education Loan Repayment

  • The repayment period starts one year after the date of completion of the course
  • The maximum repayment period is 15 years after the date of commencement of repayment
  • The loan has to be repaid in equal monthly instalments (EMIs) after the moratorium ends

BOI Star Education Loan Security Needed

  • Loans up to Rs. 7.5 lakh: The parents or guardians need to act as joint borrowers with the student to avail this loan
  • Loans above Rs. 7.5 lakh: These loans need tangible collateral security of suitable value such as land, building, government securities, public sector bonds, bank term deposits, etc. for the entire loan amount in addition to the assignment of future income of the student for payment of EMIs

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Bank of India Star Education Loan Eligibility

  • The borrowers should be Resident Indians (Indian citizens who have stayed in the country for over 180 days in the last financial year)
  • The student must have secured admission in a recognised institution for approved higher education courses through Entrance Tests or Merit-Based selection criteria after completion of Class 12, HSC or any equivalent level
  • As a student, you must have a good academic career
  • The student should not have any outstanding loan from any other institution

BOI Star Education Loan Eligible Courses in India and Abroad

  • Degree and Diploma courses from colleges and universities approved by the government, UGC, AICTE, AIBMS, ICMR, etc.
  • Professional courses approved by AICTE and conducted by institutes recognised by the state government
  • Regular degree and diploma courses in aviation and shipping approved by the Director General of Civil Aviation or Director General of Shipping
  • Regular diploma courses in nursing approved by the Indian Nursing Council
  • Courses from IIM, IIT, IISc, XLRI, NIFT, NID, etc. or other institutes set up by the central and state government
  • Study programmes that lead to ICWA, CA, CFA, etc. accreditations
  • Job-oriented, professional or technical courses offered at the graduation level by reputed universities abroad
  • Post-graduate programmes such as MS, MBA, etc. by reputed universities overseas
  • Special professional courses such as CIMA in London, CPA in USA, etc.

Borrower Contribution to Total Cost (Margin Money)

  • Loans of up to Rs. 4 lakh: No margin money is needed
  • Loans above Rs. 4 lakh: Loans above Rs. 4 lakh need a margin money contribution of 5% for study in India and 15% for study abroad

Note: Margin money refers to the amount the borrower contributes to the overall amount required. Suppose a course costs Rs. 40 lakh in which case the borrower will have to pay 5% of Rs. 40 lakh which is Rs. 2 lakh. The bank will cover the rest.

Processing and Other Charges

  • There are no processing charges for the BOI Star Education Loan if the student chooses to study in India
  • However, a refundable processing charges of Rs. 5,000 (excluding GST) has to be paid at the time of application for studying abroad. This is refunded once the loan is availed
  • The borrower might have to pay fees or charges levied by third-party service providers during loan application such as lodging loan application, etc.

Uses of the BOI Star Education Loan

  • Bank of India pays amount due for fees, books, laptops, etc. directly to the institute, book seller, computer seller, etc.
  • The loan does not cover any external tuition or coaching fees
  • The loan can be used to pay for the insurance premium of optional term insurance cover offered to education loan borrowers

BOI Star Education Loan Other Features to Know

  • During application, the borrowers should provide an affidavit that they have not taken an education loan from another bank
  • The student’s mark sheet for the previous term or semester has to be submitted with the bank before availing the next instalment of the loan
  • The lending branch should be near the institute (if the student is studying in India) or the place of residence of the borrower
  • The loan is disbursed directly to the college, book seller or publisher, computer seller, and so on and not to the applicant(s) as per the requirement or demand
  • The student or parents must provide the latest mailing address details in case of change

BOI Star Education Loan Documents Needed

  • Application Form duly filled and signed by applicant and/or guarantor along with details of applicant and/or guarantor and family
  • Two Passport Size Photographs of student, applicant and/or guarantor
  • Photocopy of PAN Card of the student that needs to be submitted at the time of application or during the course period
  • Personal Identification Proofs (Any One): Electoral I-Card, Passport, Driving License, PAN Card or Aadhaar Card
  • Residential Address Proof (Any One): Electricity Bill, Landline Telephone Bill, Electoral or Voter ID Card or Passport
  • Admission Letter, Course Details, and Prospectus
  • Fee Details with Demand of Fee by the Institution
  • All Proofs of Past Academic Record including Mark Sheets and Certificates
  • An Income Certificate from a Competent Authority to avail the interest subsidy under Central Interest Subsidy Scheme of Education Loans, if eligible
  • Property or other security documents wherever applicable

Apply for your international education loan without any worries

Reference Facts

  • Bank of India Website: and
  • Headquarters: Mumbai, Maharashtra
  • Call Centre Toll-Free Number: 1800 220 229, 1800 103 1906