BOI Education Loan 2026: Complete Education Loan Processing Guide

Students planning higher education in India or abroad often look for reliable public sector banks for education financing. A BOI Education Loan from Bank of India can help students cover tuition fees, hostel charges, books, laptops, travel expenses, and other educational costs.

Bank of India offers multiple education loan schemes, including the Star Education Loan and Star Vidya Education Loan for eligible students pursuing recognised courses in India and abroad.

An Introduction to Bank of India Education Loans

Bank of India offers education loans to students pursuing undergraduate, postgraduate, professional, technical, and vocational courses. These loans are designed to support students financially while providing flexible repayment options and long repayment tenure.

The bank’s major education loan schemes include:

• Star Education Loan for Studies in India and Abroad
• Star Vidya Education Loan
• PM Vidyalaxmi Education Loan Scheme

Students can apply through the official Vidya Lakshmi Portal or directly through BOI branches.

Also Read -  

Union Bank Education Loan Interest Rate

SBI Education Loan Interest Rate

Advantages of Bank of India Education Loan

Some major benefits of choosing a BOI bank education loan include:

• Loan amount up to ₹1.5 Cr
• Competitive floating interest rates
• Repayment tenure up to 15 years
• No prepayment penalties
• Coverage for studies in India and abroad
• Online application facility
• Bank of India is one of India’s public sector banks offering education financing solutions for higher studies. 

These features make BOI education loans popular among Indian students searching for affordable higher education financing.

Bank of India Education Loan with Collateral Option

Features of Bank of India Star Education Loan for Studies in India and Abroad

The BOI Star Education Loan scheme supports students pursuing recognised higher education courses.

Major Features

• Financing available for studies in India and abroad
• Covers graduation, postgraduation, professional, and technical courses
• Loan amount up to ₹1.5 Cr
• Moratorium during study period
• Long repayment tenure
• Collateral-free loan available up to the eligible limits
• Interest concession available for certain categories

Courses Covered

The BOI Star Education Loan covers:

• Undergraduate courses
• Postgraduate programs
• Engineering courses
• Medical programs
• MBA and management courses
• Professional and technical courses
• Diploma and certificate courses
• Vocational and skill-development programs

The course must be recognised by UGC, AICTE, Government authorities, or other regulatory bodies.

Expenses Covered

The education loan can cover:

• Tuition fees
• Hostel expenses
• Examination fees
• Laboratory charges
• Library fees
• Books and equipment
• Laptop/computer purchase
• Travel expenses for overseas education
• Insurance premium
• Caution: deposit and refundable deposits

Eligibility Criteria: Who Can Apply?

Students applying for BOI education loans must fulfil the following conditions:

• Applicant must be an Indian National
• Must secure admission to a recognised institution
• Admission should generally be merit-based or entrance-based
• Parent/guardian/co-borrower required
• Satisfactory academic background preferred

For overseas education, admission confirmation from a recognised foreign university is mandatory.

Interest Rate of Bank of India Star Education Loan for Studies in India and Abroad

BOI Education Loan Interest Rate 2026

Under selected schemes like PM Vidyalaxmi, rates may start from around 9.10%–10.35%, depending on the institute category and the applicant profile.

Interest rates are floating and linked to the bank’s Repo Linked Benchmark Lending Rate (RBLR).

Features of Bank of India Star Vidya Education Loan

The Star Vidya Education Loan is another education financing option from Bank of India for students pursuing approved educational programs.

Key Features

• Simplified loan structure
• Flexible repayment tenure
• Financing for academic expenses
• Suitable for recognized educational institutions
• Available for higher education programs

Courses Covered

The Star Vidya Education Loan covers:

• School education
• Undergraduate programs
• Postgraduate courses
• Technical education
• Vocational education
• Professional certification programs

Expenses Covered

The following expenses may be financed:

• Tuition fees
• Hostel fees
• Study material
• Equipment and books
• Examination fees
• Uniform and project expenses where applicable

Eligibility Criteria: Who Can Apply?

Students eligible for Star Vidya Education Loan generally include:

• Indian nationals
• Students with confirmed admission
• Applicants enrolled in recognized educational institutions
• Students meeting BOI credit assessment norms

Interest Rate of Bank of India Star Vidya Education Loan

The interest rate under the Star Vidya Education Loan depends on:

• Loan amount
• Applicant profile
• Institution category
• BOI’s prevailing RBLR

Students should verify the latest floating interest rate directly from the official BOI portal before applying.

Official Source: BOI Star Vidya Education Loan Page

Documents Required

List of Documents Required for BOI Education Loan

Student Documents

• Aadhaar Card
• PAN Card
• Passport-size photographs
• Admission letter
• Fee structure
• Academic mark sheets and certificates
• Address proof

Co-Applicant Documents

• Aadhaar and PAN
• Income proof
• Salary slips/Form 16/ITR
• Bank account statements
• Address proof

Additional Documents

• Collateral documents (if applicable)
• Passport and visa for overseas studies
• Scholarship details if applicable

How to Apply for Bank of India Education Loan?

Step 1: Visit the Official Portal

Go to the official Vidya Lakshmi Portal

Step 2: Register Yourself

Create an account using email ID and mobile number.

Step 3: Fill the Application Form

Complete the Common Education Loan Application Form (CELAF).

Step 4: Select Bank of India Scheme

Choose the preferred BOI education loan scheme.

Step 5: Upload Documents

Upload all required academic, KYC, and financial documents.

Step 6: Submit Application

Submit the loan application online.

Step 7: Verification & Approval

The bank verifies documents and processes the application.

Step 8: Loan Sanction & Disbursement

After approval, the loan amount is disbursed according to the institution’s fee schedule.

Bank of India Education Loan FAQ

What is the maximum BOI education loan amount?

Bank of India offers education loans up to ₹1.5 Cr for eligible higher education programs.

What is the BOI education loan interest rate in 2026?

The interest rate is floating and 9.10%-10.35%

Can I apply for a BOI education loan online?

Yes. Students can apply online through the official Vidya Lakshmi Portal.

Is collateral required for BOI education loans?

Collateral may not be required for eligible loans up to ₹7.5 lakh. Higher loan amounts may require security.

Does BOI provide education loans for studying abroad?

Yes. The Star Education Loan scheme supports eligible higher education programs abroad.

What is the repayment tenure for BOI education loans?

The repayment tenure can go up to 15 years after the moratorium period.

Are processing charges applicable?

BOI generally does not charge processing fees for eligible education loan schemes.

What is the interest charged during the moratorium period?

Only simple interest will be charged during the moratorium period. After the moratorium period the actual interest mentioned will be charged.

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.

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.

Is there a processing fee for an education loan with the Bank of India?

No processing fees are charged. However, students who pursue studies abroad will have to pay INR 5000 as a processing fee.

Is there a way I can reduce the interest paid?

There is a special subsidy provided according to the Central Government subsidy for education loans. Bank of India also provides special interest rates for some premier institutions. The other option is that 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.

Disclaimer : Please note that the loan schemes proposed above are subject to change from time to time and are not static.