Education Loan interest rates

Bank of India Education loan Interest Rates

Education Loan covered under Credit Guarantee Fund Scheme for Education Loan(CGFSEL) limit upto Rs.7.50 lacs – 11.00%
1% int. concession if interest is serviced during moratorium period, where repayment holiday is specified for interest/repayment under the scheme (concession available for moratorium period only)
Above Rs.7.50 lacs – 2.50% above Base Rate, (presently 11.80 %)
Int. Concession of 0.50% p.a. for woman beneficiaries for limits up to Rs.50,000/- and 1% for limits over Rs.50,000/-

For Professional courses (like Engg./Medical/ Management, etc.) int. concession : 0.50% (Maximum under a) and b), above is 1%)
Upto Rs.7.50 lacs – 3% above Base Rate, (presently 12.30 %)
Simple interest during the repayment holiday/moratorium period. Penal interest @2% for loans above Rs.4 lakh for the overdue amount and overdue period.

ELIGIBILITY CRITERIA:

STUDENT’S ELIGIBILITY:

Should be an Indian National
Secured admission to professional/technical courses in India or Abroad through Entrance Test/Merit based selection process.
Good academic career.
The student should not have outstanding education loan from any other Institution.
Father/Mother should be co-borrower
Collateral: No additional collateral is required

ELIGIBLE COURSE :

Graduation/ Post Graduation courses
Professional courses : Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer, etc
Courses conducted by IIM, IIT, IISc, XLRI, NIFT, NID and other Institutes set up by Central/State Govt.
Other courses leading to diploma/degree, etc. conducted by colleges/universities approved by UGC/Govt./AICTE/AIBMS/ ICMR, etc.

Note :

Professional courses not approved by AICTE and conducted by Institutes not recognized by State Universities is outside the purview of the eligibility under the scheme.

Studies abroad :

Graduation : For job oriented professional/technical courses offered by reputed universities.
Post Graduation : MCA, MBA, MS, etc.
Courses conducted by CIMA – London, CPA in USA, etc.

EXPENSES CONSIDERED FOR LOAN :

Fee payable to college/school/hostel*
Examination/Library/Laboratory fee.
Purchase of books/equipments/instruments/uniforms.
Caution deposit/building fund/refundable deposit supported by Institution bills/receipts.
Travel expenses/passage money for studies abroad.
Purchase of computers – essential for completion of the course.

*As per brochure/ demand letter from the institution.

QUANTUM OF FINANCE :Need based finance subject to repaying capacity of the parents/students with margin and the following ceilings :

MARGIN :

Upto Rs.4 lakh : Nil
Above Rs.4 lakh – Studies in India : 5%
Studies Abroad : 15%· Scholarship could be included in margin.· Margin to be brought in on year to year basis as and when disbursements are made.

OTHER CONDITIONS :

Loan to be disbursed in stages as per requirement / demand, directly to the Institution/ Vendors of books/equipments/instruments to the extent possible Student to produce mark list of previous term/semester before availing next installment Student / Parent to provide latest mailing address, in case of any change Student /Parent to inform Branch immediately on change of course /completion of studies/termination of studies/ any refund of fees by college /institution /successful placement /obtention of job/change of job etc. On Line facility available for submission of application, tracking of application status and resume completion of incomplete application.