Bank of India (BOI) is one of India’s largest nationalized banks and a major provider of education loans for study abroad. Its flagship product for international students – the Star Education Loan for Studies Abroad – offers up to Rs 150 lakh with competitive interest rates starting from approximately 8.40% p.a. (May 2026) and a moratorium covering the full course duration plus one year.
As a public sector bank, BOI offers lower interest rates than most private banks and NBFCs, no processing fee (refundable on first disbursement), full eligibility for government interest subsidies including CSIS and PM-Vidyalaxmi, and Section 80E tax benefits. This guide covers everything you need to know before applying.
Bank of India Star Education Loan 2026 – Quick Reference
Feature | Details |
Product name | Star Education Loan – Studies Abroad |
Maximum loan amount | Up to Rs 150 lakh (Rs 1.5 crore) for studies abroad |
Interest rate (up to Rs 7.5 lakh) | RBLR + 1.70% p.a. – approximately 8.40-9.00% p.a. (May 2026) |
Interest rate (above Rs 7.5 lakh) | RBLR + 2.50% p.a. – approximately 9.20-10.00% p.a. (May 2026) |
Interest concession | 0.5% concession for girl students |
Processing fee | Rs 10,000 + GST (up to Rs 7.5 lakh) / Rs 20,000 + GST (above Rs 7.5 lakh). Fully refundable on first disbursement. |
Collateral (up to Rs 4 lakh) | Not required – parents as joint borrowers only |
Collateral (Rs 4-7.5 lakh) | Third-party guarantee required |
Collateral (above Rs 7.5 lakh) | Tangible collateral required (property, FD, government securities) |
Margin requirement | Nil up to Rs 4 lakh. 10% above Rs 7.5 lakh. |
Moratorium period | Full course duration + 1 year |
Repayment tenure | Up to 15 years after moratorium |
Prepayment charges | Nil |
Government subsidy eligibility | CSIS, PM-Vidyalaxmi (up to Rs 7.5 lakh), Dr Ambedkar, Padho Pardesh |
Section 80E tax benefit | Available – full interest deductible for up to 8 years |
Apply through | BOI official website, Vidya Lakshmi Portal, Jan Samarth Portal, or nearest branch |
Important: BOI’s interest rate is linked to its 1-Year RBLR (Repo-Based Lending Rate), which changes with RBI repo rate revisions. The rates above are indicative for May-June 2026. Always verify the current rate on bankofindia.bank.in before applying.
Bank of India Education Loan Schemes for Study Abroad
BOI offers multiple education loan schemes. For students studying abroad, the relevant products are:
Scheme | For | Max Amount | Key Feature |
Star Education Loan – Studies Abroad | Full-time UG, PG, Doctoral students going abroad | Rs 150 lakh | Main product for study abroad. Covers all major expenses. |
Star Education Loan – Studies in India | Full-time students in India | Rs 150 lakh | Domestic study – not for abroad. |
Star Vidya Loan | Premier institutions (IIMs, IITs, NITs, top international universities) | Rs 150 lakh | Higher loan amounts with structured terms for premier institutes. |
Star Education Loan – Working Professionals | Employed professionals doing part-time/distance courses | Rs 20 lakh | Not applicable for full-time abroad students. |
This guide focuses on the Star Education Loan for Studies Abroad – the primary product for Indian students planning full-time postgraduate or undergraduate degrees at international universities.
Bank of India Education Loan Interest Rates 2026
Loan Amount | Rate Formula | Approx. Rate (May 2026) | Concession Available |
Up to Rs 4 lakh | RBLR + 1.70% | ~8.40-9.00% p.a. | 0.5% for girl students |
Rs 4 lakh to Rs 7.5 lakh | RBLR + 1.70% | ~8.40-9.00% p.a. | 0.5% for girl students |
Above Rs 7.5 lakh | RBLR + 2.50% | ~9.20-10.00% p.a. | 0.5% for girl students |
What is RBLR? RBLR (Repo-Based Lending Rate) is Bank of India’s benchmark rate linked to RBI’s repo rate. When RBI changes the repo rate, BOI’s RBLR changes accordingly, and your loan interest rate adjusts. This means your EMI can change during the loan tenure if the RBI repo rate changes.
BOI Interest Rate vs Other Public Banks – 2026
Lender | Starting Rate (Secured, Abroad) | Max Loan (Abroad) | Processing Fee |
GradRight (18+ lenders) | 8.33% p.a. onwards | Up to Rs 1.5 crore+ | Compare all |
SBI Global Ed-Vantage | ~8.40% p.a. | Up to Rs 1.5 crore | Nil |
Bank of India Star Abroad | ~8.40-9.00% p.a. | Up to Rs 1.5 crore | Rs 10,000-20,000 (refundable) |
Union Bank of India | ~8.40-10% p.a. | Up to Rs 1.5 crore | Nil |
HDFC Credila | 10-13% p.a. | Up to Rs 1 crore+ | 0.5-1% |
Avanse Financial | 10.5-13% p.a. | Up to Rs 75 lakh | 1-2% |
Also Read: Compare Education Loan Interest Rates – All Lenders
What Does the BOI Star Education Loan Cover?
Expense Category | Covered? |
Tuition fees, admission fees | Yes – disbursed directly to institution |
Examination, library and laboratory fees | Yes |
Hostel and living expenses | Yes |
Books, study materials, equipment | Yes |
Computer or laptop (if required for course) | Yes |
Caution deposit and refundable fees | Yes – supported by institution receipts |
Travel expenses to country of study | Yes – passage money for studying abroad |
Life insurance premium (optional) | Yes – can be included in loan |
Study tours, project work, thesis expenses | Yes – realistic assessment made |
Health insurance | Confirm with branch – typically covered |
Compare BOI’s Star Education Loan against 18+ lenders before applying. Even 0.5% rate difference saves Rs 1.5 lakh+ over tenure. Compare Education Loans on GradRight
BOI Star Education Loan Eligibility
Student Eligibility
Criterion | Requirement |
Nationality | Indian national |
Admission | Confirmed admission to a recognized institution abroad through merit-based selection or entrance exam |
Courses | Full-time UG degree, PG degree (MS, MBA, PhD), diploma programs at recognized international universities. Also: CA, ICWA, CIMA London, CPA USA. |
Academic record | Satisfactory academic performance. No specific minimum percentage but academic profile is evaluated. |
Employment status | Should not be in full-time gainful employment during study |
No existing default | Should not have an outstanding education loan with another bank in default |
Co-applicant Eligibility
Criterion | Requirement |
Who can be co-applicant | Parent or guardian (mandatory). For loans above Rs 4 lakh, co-applicant joins as co-borrower. |
Income | Stable income source required. Income documented through salary slips/ITR. |
CIBIL score | Good credit history required. CIBIL score 700+ preferred. |
Age at loan maturity | Should not exceed 70 years at loan maturity. |
Collateral and Margin Requirements
Loan Amount | Collateral Required | Margin (Self-funding) |
Up to Rs 4 lakh | None – parents join as co-borrowers | None – 100% of cost funded |
Rs 4 lakh to Rs 7.5 lakh | Third-party guarantee satisfactory to bank | 5% for India, check abroad |
Above Rs 7.5 lakh | Tangible collateral: property, FD, government securities, LIC policies | 10% of total cost for study abroad loans |
On a Rs 40 lakh loan, the 10% margin means BOI funds Rs 36 lakh and you self-fund Rs 4 lakh. Collateral acceptable: residential or commercial property, fixed deposits, government securities, public sector bonds, or LIC policies with surrender value.
Documents Required for BOI Education Loan
Student Documents
- Completed loan application form with recent passport-size photographs
- Confirmed admission letter from foreign university with fee structure / cost of attendance
- Academic mark sheets – Class 10, 12, and all graduation semester transcripts
- GRE/GMAT/IELTS/TOEFL score cards
- Passport copy (valid)
- PAN card and Aadhaar
- Address proof
Co-applicant / Parent Documents
- PAN card and Aadhaar
- Address proof (utility bill, bank statement – less than 3 months old)
- Income proof: last 3 months salary slips + Form 16 (salaried) or 2 years ITR + computation (self-employed)
- Bank statements – last 6 months
- Statement of assets and liabilities
Collateral Documents (above Rs 7.5 lakh)
- Property title documents with complete chain of ownership
- Government-approved property valuation certificate (within 6 months)
- Fixed deposit certificates (if FD pledged as collateral)
- LIC policy documents (if applicable)
How to Apply for BOI Star Education Loan – Step by Step
- Apply via Vidya Lakshmi Portal (vidyalakshmi.co.in) or Jan Samarth Portal. BOI is a listed lender – you can apply to multiple public banks simultaneously. This is the recommended route for efficiency.
- Alternatively, apply directly on BOI’s official website (bankofindia.bank.in) under Education Loans > Star Education Loan Studies Abroad.
- Or visit your nearest BOI branch directly with all documents. The branch nearest to your permanent residence typically handles the application.
- Complete the loan application form with personal, academic, and financial details. Attach all required documents. Double-check everything before submitting.
- Pay the processing fee: Rs 10,000 + GST (loans up to Rs 7.5 lakh) or Rs 20,000 + GST (above Rs 7.5 lakh). Note: this fee is fully refundable when the first disbursement is made.
- BOI reviews and verifies. If collateral is provided, a bank-appointed valuer inspects the property. Typical processing: 15-25 working days from complete document submission.
- Receive the sanction letter. Review all terms carefully – loan amount, interest rate, margin requirement, moratorium formula, repayment tenure – before signing.
- Submit mark sheets from your previous term/semester before each subsequent instalment is disbursed. BOI disburses in stages directly to the institution as fees fall due.
Government Subsidies Available on BOI Education Loans
Scheme | Eligibility | Benefit |
CSIS (Central Sector Interest Subsidy) | Annual family income < Rs 4.5 lakh. IBA scheme loan. | 100% interest paid by govt during moratorium. Loan interest-free while studying. |
PM-Vidyalaxmi Scheme | Admitted to one of 860+ QHEIs. Annual family income < Rs 8 lakh. | 75% credit guarantee on collateral-free loans up to Rs 7.5 lakh + 3% interest subvention during moratorium. |
Dr Ambedkar Scheme (OBC/EBC) | OBC: income < Rs 3 lakh. EBC: < Rs 1 lakh. Masters/PhD abroad. | 100% interest subsidy during moratorium on IBA scheme loan. |
Padho Pardesh (Minority) | Minority community. Family income < Rs 6 lakh. Studying abroad. | 100% interest subsidy during moratorium on IBA scheme loan. |
Apply for all relevant subsidies through your BOI branch at the time of first disbursement – not retroactively. PM-Vidyalaxmi is a new 2024 scheme that many students are not yet aware of – if your family income is below Rs 8 lakh and you are admitted to a Quality Higher Education Institution (QHEI), check eligibility.
Also Read: Education Loan Moratorium Period – Complete Guide
BOI Education Loan Repayment Details
Repayment Feature | Details |
Moratorium period | Full course duration + 1 year. No EMI payments required during this period. |
Repayment tenure | Up to 15 years after moratorium ends |
EMI start | One year after course completion (or earlier if job obtained) |
Interest during moratorium | Simple interest accrues. Paying it during moratorium reduces your repayment burden. |
Prepayment charges | Nil – no penalty for early repayment |
Section 80E deduction | Full interest paid annually is deductible (no upper limit) for 8 consecutive years under old tax regime |
Disbursement | In stages directly to institution as fee demands arise. Next instalment after producing previous semester mark sheet. |
Before finalizing BOI, compare offers from 18+ lenders including SBI, Union Bank, NBFCs and international lenders in one place. Compare Education Loans on GradRight
Related Education Loan Guides
Compare Education Loan Interest Rates – All Lenders
IBA Model Education Loan Scheme Guide
Step-by-Step Education Loan Guide
Education Loan Moratorium Period Guide
Education Loan Without Collateral
SBI Education Loan for Study Abroad
HDFC Credila Education Loan
Education Loan Refinancing
Australia 
Canada 
France 
Germany 
India 
Ireland 
UAE 
United Kingdom 
United States 
