Bank of India Star Vidya Loan Scheme
This education loan helps students who have gained admission into premier educational institutions in India to pay for their course fees. The maximum loan amount that you can apply for depends on the categorisation of institutes done by BOI. Details are below.
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Features of BOI Star Vidya Loan Scheme
Why this Loan?
- The loan is meant for you if you have gained admission into a graduate, post-graduate, PhD, professional or any other course in a premier educational institution in India through entrance test or other selection process
- The bank disburses the BOI Star Vidya Loan Scheme as a series of payments over the required number of terms or years to pay the course fees or other approved charges
- No collateral security is required to avail this loan
- Bank of India has classified the premier institutions in India into three categories, viz. List A, List B and List C. To see the complete list of educational institutions under each category under the BOI Star Vidya Loan Scheme, visit your nearest bank branch or click here to find the details on the bank’s website
- List A Institutes: Maximum loan you can get if you gain admission into a List A institute is Rs. 30 lakh
- List B Institutes: Maximum loan you can get if you gain admission into a List B institute is Rs. 20 lakh
- List C Institutes: Maximum loan you can get if you gain admission into a List C institute is Rs. 10 lakh
- Whether you get admission into a List A, List B or List C Institute, the interest rate charged will be Repo Based Lending Rate (RBLR). The RBLR of Bank of India is 6.85%
- The repayment moratorium is for the course duration and an additional grace period of 1 year
- The loan must be repaid in 15 years from the date of commencement of repayment as EMIs
- Bank of India does not ask you to provide any security
- It only needs the co-obligation of parents for the loan. This is to ensure that the parents will pay off the loan if the student is unable to do so
- The bank will also need an assignment of future income
- It is important to remember here that the maximum loan you can get depends on the categorisation of your institute (List A, B or C)
- The borrower should be an Indian national
- As a student, you should have secured admission in a professional or technical course through Entrance Test or Merit-Based selection process
- Graduate, postgraduate, doctorate, professional or any other course from one of the approved premier institutes
- The list of premier institutes and their categories as specified by Bank of India can be seen here
Borrower Contribution to Total Cost (Margin Money)
- The bank does not charge any margin money on this loan
Note: Margin money refers to the amount the borrower contributes to the overall amount required.
Processing and Other Charges
- There are no processing charges for this loan
- The borrower may have to pay charges levied by third-party service providers, if any for loan creation or loan application
Uses of the Loan
- The loan amount can be used to pay any fees or other charges that are a part of the standard tuition, hostel or any other institution-approved cost that are necessary to complete the course
- The loan can also be met to cover any expenses on study tours, project works, thesis and so on
- The loan can be used to meet the expenses of books, laptops or other equipment necessary for the course
- The loan can be used to pay for any insurance premium if it is opted for by the student. Currently, Bank of India offers an optional Term Life Insurance cover to education loan borrowers
- However, the loan cannot be used to pay for external coaching or tuition
Other Features to Know
- The bank asks for details of expenses for the course that the applicant(s) need to obtain from the institute
- During application, the borrowers should provide an affidavit that they have not taken an education loan from another bank
- The student’s mark list of previous term or semester has to be submitted with the bank before availing the next loan instalment
- The loan is disbursed directly to the college, book seller or publisher, computer seller, and so on and not to the applicant(s)
- 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 Records 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
- Bank of India Website: www.bankofindia.com and www.bankofindia.co.in
- Headquarters: Mumbai, Maharashtra
- Call Centre Toll-Free Number: 1800 220 229, 1800 103 1906