Bank of India Education Loan

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Table of content

  1. Education loan Products of Bank Of India
  2. Bank of India Star Education Loan – Studies in India
  3. Bank of India Star Education Loan – Studies Abroad
  4. Bank of India – Star Vidya Loan
  5. Bank of India – Star Progressive Education Loan
  6. Bank of India – Star Pradhanmantri Kaushal Rin Yogana
  7. Bank of India – Star Education Loan to Working Professional
  8. Documents Required for Bank of India Education Loan
  9. How to Apply for an Education Loan from Bank of India
  10. Why and how to transfer your education loan to Bank of India
  11. Bank of India Education Loan EMI Calculation as per Interest Rate
  12. Benefits of processing education loan through WeMakeScholars
  13. Education Loan Interest Subsidy Schemes
  14. FAQ's
  15. Need Help? Ask Here!

Bank of India offers a comprehensive range of education loans to support students in pursuing their academic aspirations. With low interest rates, minimal documentation, and hassle-free processing, Bank of India's education loans are designed to ease the financial burden of education. Whether you are a student looking to study in India or abroad, or a working professional seeking to enhance your skills, Bank of India provides tailored loan products to meet your specific needs. By understanding the importance of education, Bank of India aims to empower individuals to achieve their academic and career goals.

Bank of India education loans are offered to meritorious and deserving students planning to pursue their higher studies in India and abroad. The bank of india education loan interest rate starts from 9% for taking an education loan with collateral from Bank of India. 


Education loan Products of Bank Of India


Bank of India Star Education Loan – Studies in India

Loan Parameter Details
Purpose Education loans for higher studies in India (regular full-time Degree/Post Graduation courses).
  • Indian National/PIO/OCI
  • Admission secured in a recognized institution for approved courses by UGC/Govt./AICTE through Entrance Test/Merit-Based selection process after completion of HSC (10 plus 2 or equivalent). 
Loan amount Maximum Rs. 150.00 Lakh
Expenses Covered Fees payable to college/school/hostel, examination/library fees, purchase of books/equipment/instruments, purchase of computer/laptop, etc
Insurance Specially designed OPTIONAL Term Insurance cover offered to student borrowers.
Courses Covered Courses approved/recognized by the designated academic authority/regulatory body for the respective stream of study in India
  • Up to Rs. 4.00 lacs: Nil. 
  • Above Rs. 4.00 Lakhs: 5%.
Rate of Interest
  • For loans upto Rs. 7.50 lacs: 1 Year RBLR +1.70% 
  • For loans above Rs. 7.50 lacs: 1 Year RBLR +2.50%.

(NOTE-  click here to check the latest and detailed interest rate of the Bank of India)

Moratorium Period and Repayment Period
  • Moratorium up to course period plus 1 year. 
  • Repayment period: 15 years from the date of commencement of repayment.


  • Up to Rs. 4 lacs: Parent(s) or co-borrower as joint borrowers. Obligation to cover under CGFSEL is mandatory.
  • Above Rs. 4 lacs & up to Rs. 7.50 lacs: Parent(s) or co-borrower as joint borrowers. Obligation to cover under CGFSEL is mandatory.
  • Above Rs. 7.50 lacs: Parent(s) or co-borrower as joint borrowers. Tangible collateral security of suitable value acceptable to the Bank, assignment of future income of the student for payment of Installments, and agricultural land as tangible collateral security under certain conditions.


  • No processing charges.
  • VLP portal charges of Rs. 100.00 + 18% GST.
  • One-time charges for deviations from scheme norms including approval of courses outside the scheme:
    • Up to Rs. 4.00 lacs: Rs. 500/-
    • Over Rs. 4.00 lacs & up to Rs. 7.50 lacs: Rs. 1,500/-
    • Over Rs. 7.50 lacs: Rs. 3,000/-.
  • Student applicants may also need to pay fees/charges, if any, levied by third party service providers who operate a common portal for lodging loan applications. 
Looking for an education loan to study? Let us help you get it fast and hassle-free.

Bank of India Star Education Loan – Studies Abroad

Loan parameter Details
Features Education loans for higher studies abroad i.e. regular full-time Degree/Post Graduation courses
  • Indian National
  • Secured admission in recognized institution abroad for approved courses after completion of HSC (10+2)
  • Education loan based on employability of the student and reputation of the institution in some cases
Loan amount Maximum Rs.150.00 Lakh 
Expenses Covered
  • Fees payable to college / school / hostel
  • Examination / Library Fees
  • Purchase of books / equipment / instruments
  • Purchase of computer / laptop
Insurance Optional Term Insurance cover available; premium can be included as part of finance
Courses Covered
  • Course should be approved/recognized by designated local academic authority/regulatory body
  • Institutes or Universities up to world ranking provided on specific websites
  • Up to Rs.4.00 lakhs: Nil margin
  • Above Rs.4.00 Lakhs & up to Rs.7.50 Lakhs for all courses: 15%
  • Above Rs.7.5 lakhs – up to Rs 150.00 Lakhs: 10%
Rate of Interest
  • For loans up to Rs.7.50 lakhs: 1 Year RBLR +1.70%
  • For loans above Rs.7.50 lakhs: 1 Year RBLR +2.50%

(NOTE- Click here to check the latest and detailed interest rate of Bank of India)

Moratorium Period and Repayment Period
  • Moratorium up to course period plus 1 year
  • Repayment period: 15 years from commencement of repayment

Bank of India – Star Vidya Loan

Loan Purpose: STAR VIDYA LOAN is specifically designed to financially support students pursuing education in esteemed institutions across India.

Loan Amounts:

  1. Institutions under List “A”: Up to Rs. 40.00 Lacs
  2. Institutions under List “B”: Up to Rs. 25.00 Lacs
  3. Institutions under List “C”: Up to Rs. 15.00 Lacs

Covered Expenses:

  • Education Costs: Covers fees payable to college/school/hostel, examination/library fees, and purchase of books/equipment/instruments.
  • Technology Support: Includes the purchase of computers/laptops, aiding students in their academic endeavors.
  • Financial Security: Caution deposit/building fund/refundable deposit supported by institution bills/receipts.


Exclusive to Indian Nationals who have secured admission in select Premier Educational Institutions in India via Entrance Test/Selection process.

Covered Courses:

  • Full-time Degree/Diploma courses (certificate/part-time courses not covered).
  • Full-time Executive Management courses like PGPX (For IIMs) are included.

Margin & Security:

  • Requires NIL margin, ensuring financial ease for the applicants.
  • No collateral security needed; however, parents/guardians must join as Co-borrowers.
  • Assignment of future income acts as an additional form of security.

Interest Rate: Set at 10.45% for institutes listed in List A, B, or C by the bank.

(NOTE- To check the latest and detailed interest rate of Bank of India click here)

Repayment Period:

  • Moratorium offered up to the course period plus an additional year.
  • Repayment tenure extends up to 15 years from the commencement of repayment, providing ample time for repayment.

Bank of India – Star Progressive Education Loan

Key Features:

  • Parents of students enrolled in recognized Indian schools from pre-school to senior secondary education.
  • Offers a maximum loan amount of up to Rs. 4.00 Lakhs per educational stage, with repayment in 12 equated monthly installments immediately after loan disbursement.

Maximum loan: Rs. 4.00 Lakh (For each educational stage).

Expenses Covered:

  • Tuition and hostel fees, examination/library/lab charges, purchase of study materials, uniforms, computers/laptops, and other school-related expenses.
  • Additional expenses directly related to education.

Security and Insurance:

  • No requirement for collateral security, ensuring accessibility for a wider range of borrowers.
  • Optional Term Insurance cover available for student borrowers, with the premium included as part of the loan finance.
  • Eligibility for parents and students as Resident Indians with a reasonable source of income.

Course Coverage:

Aligned with specific educational stages:

  1. Pre-school (Play school to 2nd class)
  2. Primary School (3rd to 5th class)
  3. Upper Primary School (6th to 8th class)
  4. Secondary School (9th and 10th class)
  5. Senior Secondary School (11th and 12th class)

Margin and Interest Rate:

  • Nil Margin for loans up to Rs. 4.00 lacs.
  • Interest rate at RBLR+ CRP of 1.70% p.a., floating with monthly rests.

Bank of India – Star Pradhanmantri Kaushal Rin Yogana

Key Features:
This specialized loan is designed for individuals seeking to pursue skill development courses within India.

Loan Amount Range:

Applicants can avail themselves of loan amounts ranging between Rs. 5,000/- to Rs. 150,000/- for courses meeting the eligibility criteria.

Margin & Security Measures:

  • There is no necessity for a margin.
  • No collateral or third-party guarantee is mandatory.
  • The loan documentation involves the joint signing of the loan document by both the student borrower and a parent.

Expenses Covered:

  • The loan covers various expenses such as tuition/course fees, examination/library/lab fees, caution deposit, and the procurement of essential study materials.
  • Other justifiable expenses essential for course completion are also considered, such as accommodation and boarding where deemed necessary.

Eligible Courses:

  • The loan encompasses courses offered by Industrial Training Institutes (ITIs), Polytechnics, schools recognized by Central/State Education Boards, and colleges affiliated with recognized universities.
  • Additionally, courses conducted by training partners associated with the National Skill Development Corporation (NSDC), Sector Skill Councils, State Skill Missions, or State Skill Corporations leading to certifications, diplomas, or degrees aligned with the National Skill Qualification Framework (NSQF) are included.

Eligibility Criteria:

Applicant eligibility is contingent upon Indian nationality and securing admission to NSQF-aligned courses offered by recognized educational institutions.

Interest Rate Structure:

The interest rate is calculated at RBLR+ CRP of 1.50%.

Repayment Framework:

  • The loan offers a moratorium period extending up to the course duration plus an additional year.
  • Repayment tenure is categorized based on the loan amount:
    • Loans up to Rs. 50,000/-: Less than 5 years
    • Loans ranging from Rs. 50,000/- to Rs. 1.00 lakh: Up to 5 years
    • Loans exceeding Rs. 1.00 lakh: Up to 7 years

Bank of India – Star Education Loan to Working Professional

Loan Objective:
Facilitating working professionals pursuing part-time or distance education within India by offering financial assistance.

Loan Amounts:

Consideration extended up to a maximum of Rs. 20.00 Lakhs.

Covered Expenses:

  • Coverage includes tuition fees, examination charges, and deposits supported by institution-provided bills/receipts.
  • Additionally, it covers purchases like study materials, equipment, uniforms, computers/laptops, and any other supplementary expenses directly related to the course.

Eligibility Criteria:

  • Requirements include Indian nationality, employment in reputable sectors (Govt./Private Sector/MNCs), consistent employment throughout the course tenure.
  • Applicants must be below 55 years old, with a minimum of 2 years of work experience and a clean credit history.

Eligible Courses:

  • Recognized part-time or distance education courses from established universities.
  • Executive Diploma/Certificate Programs (EDP) from leading business schools listed in "List –A" under the Star Vidya Loan scheme.

Margin and Security Details:

  • Margin requirement varies based on the loan amount, starting from 5% for amounts up to Rs. 4.00 lakhs and up to 15% for amounts exceeding Rs. 7.50 lakhs.
  • Security measures involve no requirement for loans up to Rs. 4 lakhs, while collateral or future income assignment applies for higher amounts.

Interest Rates:

  • Interest rates follow a structure with 1 Year RBLR + 1.70% for loans up to Rs. 7.50 lakhs 
  • 1 Year RBLR + 2.50% for amounts more than 7.50 lakhs.

Charges and Repayment Terms:

  • Zero processing charges and defined portal charges, with one-time deviation fees as per the scheme norms.
  • Repayment specifics entail no moratorium post-course completion and a repayment period extending till the age of 60 or within 10 years after course conclusion, whichever arrives earlier.

Documents Required for Bank of India Education Loan

Initiating the education loan process involves submitting necessary documents to your lending bank. Our recent article contains a comprehensive list of documents crucial for securing an education loan. Meanwhile, here are the essential documents required specifically for Bank of India's education loan:

  1. Completed Application Form
  2. Admission Confirmation: Proof of admission to your chosen Institute.
  3. Identification Copies: Provide copies of Passport, Voter ID, Driving Licence, or PAN Card.
  4. Passport Photos: Two recent passport-size photographs of the applicant, co-applicant, and guarantor.
  5. Educational Records: Present the mark sheet of your latest qualified examination and result of the entrance exam through which admission is being taken (e.g. CAT, GRE, TOEFL, IELTS, etc.)
  6. Financial Records:
    1. Income Proof: Furnish the income proof of parents/guardians, supported by the last 2 years' income tax statements.
    2. Financial Statements: Provide six months' bank statements or recent salary slips.
  7. Course Expenses Plan: Detailed breakdown outlining your anticipated course expenses.
  8. Current Financial Obligations: Disclose details regarding existing loans and any scholarships received.
  9. Institute Prospectus: Include a copy of the institute's prospectus to estimate costs effectively.

How to Apply for an Education Loan from Bank of India

Offline Application Process:

  1. Bank Visit: Head to the nearest Bank Of India branch and inquire about their offered education loan products from the loan officer.
  2. Eligibility Check and Form Completion: Confirm your eligibility for the education loan and duly fill out the application form according to the requirements.
  3. Document Compilation and Submission: Gather all necessary documents and submit them at the bank during your subsequent visit to commence the loan application procedure.

Online Application Process:

  1. Visit the official website of Bank Of India or you can apply directly on WeMakeScholars official portal.
  2. Look for the "Apply Now" section specifically allocated for education loans.
  3. Enter your details in the application form, ensuring accuracy and completeness.
  4. Upload the mandatory documents as indicated in the loan application guidelines.
  5. After filling all required fields, submit the form electronically. Consider printing a copy for your personal records.
  6. Visit your nearest Bank Of India branch for any additional formalities or requirements related to your loan application, if needed.

Why and how to transfer your education loan to Bank of India

Students can transfer their existing loan from their current lender to the Bank of India to get the following benefits:

  • Cheaper rate of Interest
  • Repayment policies are easy
  • Broader coverage of loan schemes
  • Easy accessibility to bank
  • Multiple repayment options

Because of the above mentioned reasons if you are willing to transfer your education loan from current lender bank to Bank of India follow the below given steps:

Step 1 - Reach out to your current lender and ask for outstanding amount receipt of pending loan 

Step 2 - Request a callback from financial officer at WeMakeScholars, stating that you want education loan transferred to Bank of India

Step 3 - Submit the documents in the Bank of India according to the documents checklist given to you by your financial officer at WeMakeScholars

Upon approval of your loan transfer, you will be intimidated about the same by the Bank of India and your new education loan will be sanctioned from them, which you will have to repay as per the Bank of India payment plan.

Bank of India Education Loan EMI Calculation as per Interest Rate

Understanding your education loan's EMI and repayment options is essential. Imagine taking a Rs. 8 lakhs loan for a 36-month with an interest rate of 9.5% per annum and a 12-month moratorium. Here's how you'd calculate your EMI:

First, find the total amount due after the moratorium:

Total amount = Loan amount + (Loan amount * Interest rate * Moratorium period / 1)
Total amount = 8,00,000 + (8,00,000 * 9.5 * 12 / 100)
Total amount = Rs. 9,64,000

Now, compute the EMI using this formula:
EMI = [P x R x (1+R)N]/[(1+R)N-1]
P = Principal amount (loan amount)
R = Rate of interest (monthly)
N = Tenure (in months)
Monthly interest rate = Annual interest rate / 12
Monthly interest rate = 9.5 / 12 = 0.792%
Tenure = Course period + Moratorium period
Tenure = 36 + 12 = 48 months
EMI = [8,00,000 x 0.792% x (1+0.792%)48]/[(1+0.792%)48-1]
EMI = Rs. 24,603

Hence, the EMI for your loan would be Rs. 24,603. Remember, the repayment starts immediately after the moratorium ends. While the repayment period for Bank of India's education loan is 15 years, you have options to expedite repayment:

  • Opt for shorter repayment periods.
  • Consider pre-payment or part-repayment.
  • Explore transferring your education loan to potentially better terms elsewhere.

The student loan EMI calculator of Bank of India is given on its website along with bank of india education loan interest rate calculator, but we suggest you to use WeMakeScholars, education loan EMI calculator because of the following reasons:

  • Pin-point accuracy in calculation
  • Detailed analysis report of repayment plan
  • It is free of cost
  • Strategic advantage to decide repayment parameters

Benefits of processing education loan through WeMakeScholars

Efficient Processing: Timely processing within 21 days from government banks and 7 days from private banks/NBFCs post document submission.
Expert Financial Guidance: Access to our skilled financial officers aiding in selecting optimal lenders and suitable loan options aligning with your eligibility and bank propositions.
Reduced Interest Rates: Benefit from interest rates 0.5% to 2% lower than standard bank rates facilitated through our platform.
Negotiation Assistance: Our team negotiates improved terms and rates on your behalf, securing favorable conditions.
Convenient Online Application: Easily apply from home using our user-friendly portal, minimizing the need for multiple bank visits.
Comprehensive Support: Continuous assistance throughout the loan journey, from sanctioning to repayment, ensuring a smooth process.
Tax Saving Insights: Receive guidance on potential tax savings through government-approved schemes like Section 80E, 80C, etc.
Cashback Offer: Avail up to Rs 3,000 cashback upon loan approval as a part of our offer.
Free Services: All our services are free for applicants. We are supported and funded by the IT Ministry's Govt. of India as part of the Digital India Campaign.

Let us take care of the education loan process for you, so you can focus on your studies

Education Loan Interest Subsidy Schemes

The Government of India has introduced several interest subsidy schemes for students who wish to pursue higher education in India or abroad. These schemes provide financial assistance or interest subsidies to qualifying students. Some of the popular schemes include:

  1. Central Govt. Interest Subsidy Scheme (CSIS)
  2. Padho Pardesh Scheme
  3. Dr. Ambedkar Scheme for OBC and EBC

(To know more about these subsidy schemes click here)

Central Scheme for Interest Subsidy (CSIS)

Eligible students belonging to the EWS section of society are benefited under the CSIS scheme.

Eligibility criteria for CSIS 

  • Students should take admission in India only
  • Students should belong to the EWS section of society.
  • Student’s family income should not be more than Rs 4.5 lacs per annum
  • Benefit: Eligible students are not required to pay any interest on their education loan during the moratorium period.

Dr. Ambedkar Interest subsidy scheme for OBC and EWS students

Eligible students belonging to OBC and EBC sections, get interest subsidies in the moratorium period of their loan. It is only for study abroad aspirants.

Eligibility for Dr. Ambedkar Interest subsidy scheme for OBC and EBC students

  • Admission of students must be confirmed in M.Phil, Phd or masters courses abroad
  • Family income should be less than Rs 8 lacs annually for EBC category and OBC category students
  • Caste certificate is mandatory for students belonging to OBC category.
  • Only those loans which are taken from scheduled bank as per IBA guidelines are considered eligible

Benefit: Interest payable in moratorium period of the loan will be waived off.

Padho Pardesh Scheme

The Ministry of Minority Affairs launched the scheme to benefit abroad study aspirants, belonging from EWS of notified minority communities.

Eligibility criteria for Padho Pardesh Scheme

  • Students should enroll in M.Phil., Ph.D., and Masters-level courses.
  • According to the criteria of the Indian Banks Association, students should have obtained the loan from a scheduled bank.
  • The student's family's combined income should not exceed Rs 6 lacs annually.
  • Income documentation certified by the government is required.

Note: The scheme has been discontinued by the government, after 31st March 2022. But, the existing beneficiaries will continue to enjoy the benefits.

Education Loan FAQs

  • What is the education loan interest rate for the Bank of India?

    Bank of India charges an interest rate between 9% to 11% for taking an education loan with collateral and if a student take the loan without collateral from the bank of India then the rate of interest will be 12% to 14%.

  • How to apply online to get an education loan from the Bank of India?

    To apply online for an education loan from the Bank of India, request a callback from your financial officer at WeMakeScholars, and follow the instructions to process your education loan online at the comfort of your home through a 50% faster loan sanctioning process.

  • Can I get an education loan from the Bank of India?

    Yes, you can get an education loan of upto Rs 20 lacs with collateral and without collateral from the Bank of India to pursue your education abroad, and upto Rs 10 lacs for India. A higher loan amount can also be offered depending on your loan profile, when you process you apply through WeMakeScholars. Fill the loan eligibility check form to know your loan eligibility.

  • Where can I find the Bank of India education loan application form?

    You can find the Bank of India education loan application form online on WeMakeScholars website, fill the form to start your loan process in the Bank of India with us.


Bank of India Launches Dedicated Start-up Support Centres Across Major Cities

Bank of India (BOI) has launched three dedicated centres in Mumbai, Bengaluru, and Delhi to support startups. These centres are part of the government's initiative to promote innovation and entrepreneurship, overseen by the Department for Promotion of Industry and Internal Trade (DPIIT).

Under the DPIIT initiative, more than 93,000 startups are eligible for loans ranging from Rs 1 crore to Rs 10 crore. BOI has already sanctioned nearly Rs 12 crore to seven startups in the tech, restaurant, and manufacturing sectors.

BOI aims to extend these centres to nine more cities in the next year, with a target of 12 such hubs and plans to fund at least 200 startups, totalling around Rs 500 crore in assets under management.

The dedicated centres will offer comprehensive banking services to startups, acting as a one-stop destination for entrepreneurs seeking financial assistance. Borrowers under the DPIIT initiative will receive a one percent discount on interest rates from BOI's present lending rate of 9.25 percent. If the borrower meets the basic credit eligibility conditions, loan disbursement can be done within 15 days. BOI's initiative aligns with the government's vision to foster a conducive environment for startup growth in India's vibrant ecosystem.

Last updated - 26/07/2023

Bank of India Increases Loan Rates by 5 Basis Points

Bank of India has opted to implement a slight uptick of 5 basis points in its Marginal Cost of Funds Based Lending Rate (MCLR). This adjustment will have implications for the interest rates applicable to loans extended by the bank.

The revised rates are as follows:

  • Overnight rate: Adjusted to 8 percent from its previous level of 7.95 percent.
  • 1-month rate: Set at 8.25 percent
  • 3-month rate: Stands at 8.40 per cent
  • 6-month rate: Fixed at 8.60 percent
  • 1-year rate: Established at 8.80 per cent

This decision is in response to prevailing economic conditions and is aligned with the bank's ongoing evaluation of its lending practices. Borrowers maintaining accounts with Bank of India should take cognizance of these adjustments, as they may result in marginally higher monthly repayment obligations.

Our Education Loan team will help you with any questions

Naresh Kumar
WeMakeScholars- supported by IT Ministry, Govt. of India.
Published: | Updated: