Bank of India Education Loan: Key Features & Interest Rates

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In today’s world, education is more than just a degree, it is key to unlocking several student opportunities. However, with the rising cost of education, students find it difficult to pursue their dream of studying abroad and often need financial assistance. The Bank of India offers education loans to students who wish to pursue their dreams without financial burden.

Apply for an Abroad Education Loan!

Types of Education Loans in Bank of India

Bank of India offers several loans to students planning to study abroad. The loans are as follows:

Star Education Loan – Studies in India / Abroad
Star Vidya Loan
Star Progressive Education Loan
Star Pradhanmantri Kaushal Rin Yojana
Star Education Loan – Working Professionals

Bank of India Abroad Education Loan

Bank of India offers a Star Education Loan for studies abroad. The education loan is offered to students pursuing higher education in full-time degree / post-graduation courses. Students can get loans up to INR 1.5 crores. The details of the Bank of India abroad education loan are as follows:

Particulars	Details
Loan Amount	Up to INR 1.5 crores
Repayment	15 Years
Tax Benefit	Fees payable to College / School / Hostel Examination/library fees Purchase of books/equipment / instruments Travel expenses or passage money (one-way fare) Purchase of computer/laptop Caution deposit/building fund / refundable deposit supported by Institution bills/receipts Life Insurance Premium for life cover of student / co-borrower for the total tenure of the loan Other education-related expenses
Eligibility	Indian national with admission in a recognized abroad university after completion of 10 + 2
Expenses Covered	Fees payable to College / School / Hostel Examination/library fees Purchase of books / equipment / instruments Travel expenses or passage money (one-way fare) Purchase of computer/laptop Caution deposit/building fund / refundable deposit supported by Institution bills/receipts Life Insurance Premium for life cover of student / co-borrower for the total tenure of the loan Other education-related expenses
Security	Up to INR 7.5 lakhs Parent(s) or co-borrower as joint borrowers Obtention of cover under CGFSEL is mandatory
Security	Above INR 7.5 lakhs Parent(s) or co-borrower as joint borrowers Acceptable tangible collateral security of suitable value Assignment of the student’s future income for installment payments

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Bank of India Abroad Education Loan Interest Rate

The interest rate for every bank varies from one to another. Typically, government banks offer lower rates of interest than private banks. Here’s what Bank of India abroad education loan interest rates as of April 2025 look like:

Particulars	Rate of Interest – Floating	Rate of Interest – Fixed
Up to INR 7.5 Lakhs covered under CGFSEL	RBLR + 1.70% presently 10.55%	12.40%
Above INR 7.5 Lakhs	RBLR + 1.70% presently 10.35%	12.20%

Documents Required for Bank of India Abroad Education Loan

Several documents are required to apply for a Bank of India abroad education loan. The table given below will guide you through:

Document	Student	Co-Applicant
Proof of Identity (PAN & Aadhaar)	Yes	Yes
Proof of Address	Yes	Yes
Income proof (ITR/Form16/Salary slip etc.)	No	Yes
Academic Records (X, XII, Graduation if applicable)	Yes	No
Proof of Admission/ Qualifying Examination Result (if applicable)	Yes	No
Schedule of Study Expenses	Yes	No
2 Passport Size Photograph	Yes	Yes
1-Year Bank Statement	No	Yes
VLP Portal Reference Number	Yes	No
VLP Portal Application Number	Yes	No
Collateral Security Details and Documents, if any	No	Yes

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Frequently Asked Questions

Who is eligible for a Bank of India abroad education loan?

The student or applicant must be an Indian national and have secured admission to a recognized university abroad for higher education.

What is the moratorium period for a Bank of India abroad education loan?

The moratorium period helps students focus on their studies. Bank of India offers a moratorium period for abroad education loans to students of course period + 1 year.

Is collateral required for a Bank of India abroad education loan?

If you get a loan above INR 7.5 lakhs, collateral like property or security is required. For loans below INR 7.5 lakhs, no collateral is required. A joint borrower is sufficient.

How do I apply for a Bank of India abroad education loan?

You can apply online or visit the nearest branch of the Bank of India. You can also apply via Nomad Credit with a free consultation with study abroad experts to make it easier.