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Bank of India provides loan amounts up to Rs. 30 lakhs and tenure of up to 15 years. Faster disbursals and less paperwork. 0.50% concession on interest rate for girl students. Check eligibility now and apply exclusively through CreditMantri!
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What Is an Education Loan?
An Education loan is the loan or funds acquired by an individual to pursue higher studies in India or abroad. The loan repayment commences for the student after completing the education and a period of 6 months is given as grace period to students to get or join a job.
The repayment amount will be determined by your choice of interest, you need to decide how you want to repay the loan. That is if you want to start paying during the time of moratorium period itself or after the moratorium period. The Moratorium period is the time of your education plus 6 months or 1 year given to get a job. It is only after this time that you are expected to pay the loan.
The loan interest starts to accrue at the time of dispersal of funds, so at the time of your graduation you have a huge amount to repay. The other option is your parents or guardian can start paying the loan during the moratorium period itself where it is calculated as a simple interest.
This way your loan amount at the time of graduation is drastically reduced.
There are 4 types of education loans in India
1. Under Graduate education loan - These are given to students who have completed their secondary education and looking to do higher studies in the form of under graduation. It can be done in India or abroad.
2. Post graduate education loan - These are education loans given to individuals who want to pursue post-graduation after completing under graduation course from a reputed university/college. Here also the loan can be for studying in India or abroad.
3. Parents availing education loan - This is the case where the parents take loan for the education purposes of their children. This is an unsecured loan and need not be for graduate or post-graduation courses but also for elementary and higher secondary courses.
4. Career growth education loans - These are loans provided to young people who want to pursue courses or trainings, certifications that will benefit their career growth.
Bank of India is a leading commercial bank headquartered in Mumbai. The bank has 5100 branches as on 31 January 2017, including 56 offices outside India, which includes five subsidiaries, five representative offices, and one joint venture. It provides a wide range of banking products and financial services to its customers.
Education is one area where everybody is willing to spend a lot of money to live a prosperous life in the future. Being one of the major education loan providers, Bank of India understands the needs of the students and offers extremely competitive education loans at better interest rates. Every year, a large number of students secure admissions in top universities and colleges in India and abroad with Bank of India education loans.
Following are some of the advantages of applying for an educational loan with Bank of India.
Objective: To provide term loan to Indian students for pursuing higher education in India and overseas
Quantum of Loan: Maximum of 10 Lakhs for studies in India and 20 Lakhs for studies abroad
Margin: No margin Required for loans up to Lakhs, 5% of margin for studies in India and 15% for studies abroad
Repayment Period: The tenure is up to 15 years after completing the course with 1 year of moratorium period
Security: No security for loans up to 7.5 Lakhs with parents or guardian being a co-borrower and above that suitable collateral required
Processing Fees: No processing charges for studies in India and INR 5000 for studies abroad
Studies in India:
Objective: To provide term loan to Indian students pursuing higher education in premier educational institutions in India
Quantum of Loan: Maximum of 30 Lakhs
Repayment Period: The tenure is up to 15 years after completing the course with 1 year of moratorium period.
Security: No security is required provided the parent or guarding being the co-borrower.
Processing Fees: No processing charges
Bank of India education loan can be repaid in following three ways.
Standing Instruction (SI): If you are an existing account holder with Bank of India, Standing Instruction is the best mode of repayment. Your EMI amount will be debited automatically at the end of the monthly cycle from the Bank of India account you specify.
Electronic Clearing Service (ECS): This mode can be used if you have a non-Bank of India account and would like your EMIs to be debited automatically at the end of the monthly cycle from this account.
Post-Dated Cheques (PDCs): You can submit post-dated EMI cheques from a non-Bank of India account at your nearest Bank of India Loan Centre. A fresh set of PDCs will have to be submitted in a timely manner. Please note Post Dated Cheques will be collected non-ECS locations only.
It is recommended that you opt for either the SI or ECS mode of payment for faster and less prone to error than the use of PDCs.
You can either apply online or visit a nearby Bank of India branch for the application. You can also download the education loan application form from the Bank of India official website, complete the form and submit it the bank representative.
You can also check your eligibility for an education loan through CreditMantri and apply for it.
1. What is the interest charged during moratorium period?
Only simple interest will be charged during the moratorium period. After the moratorium period the actual interest mentioned will be charged.
2. Can I take an education loan without a co-borrower?
No, a co-borrower is needed to take an education loan. The loan will be taken as a joint loan in collaboration with your parent/ guardian or spouse.
3. I am planning to study abroad. Am I eligible to apply for an Education Loan?
Yes, Bank of India offers up to INR 20 Lakhs for courses pursued abroad which also includes travel expenses and study tours.
4. Is there a processing fee for an education loan with Bank of India?
No processing fees are charged. However, students who pursue studies abroad will have to pay INR 5000 as processing fee.
5. Is there a way I can reduce the interest paid?
There is special subsidy provided according to Central Government subsidy for education loans. Bank of India also provides special interest rates for some premier institutions. The other option is your parent/ guardian or spouse can pay the loan amount during the moratorium period due to which the loan amount you need to repay is less.
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