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Learn about Bank of India education loan disbursement process. Get step-by-step insights on how to secure funds for your studies abroad and manage the loan efficiently.
The Bank of India is a well-known public sector bank in India that was established in 1906. The bank provides about eight distinct programs for school loans, each suited to a different set of requirements. The Star Education Loan for Study Abroad program, which offers education loans for postsecondary study overseas as the name implies, will be the main topic of this blog. We shall talk about the Bank of India education loan payout process as part of the loan application process. To guarantee on-time payments for items like tuition, housing, and other expenses, it is essential to comprehend this.
There are various schemes offered by the Bank of India for education loans, specifically tailored for different public sector banks. However, when it comes to financing education abroad, the primary scheme provided by the Bank of India is the 'Star Education Loan for Study Abroad.' A brief overview of this scheme is provided below.
Feature | Description |
---|---|
Loan amount |
Up to INR 1.5 Cr |
Starts at 11.50% |
|
Interest rate type |
Floating |
Processing fee |
INR 5,000 + GST |
0-15% |
|
Moratorium period |
Course + 1 Year |
Repayment tenure |
Up to 15 years |
Courses eligible |
Education loans for higher studies abroad i.e. regular full-time degree/post-graduation courses |
Collateral requirement |
Tangible Collateral security of suitable value acceptable to the Bank. Agricultural land is also acceptable in some cases. |
The procedure used by the Bank of India (BOI) to issue education loans is quite efficient. The numerous steps that make up this procedure are as follows:
Once your loan application is approved, you will receive an agreement that you need to sign before proceeding with the disbursement process of the BOI education loan. Depending on the circumstances, you can be asked to provide evidence of income, bank account details, and other documentation. You must also fill out the disbursement form, which contains information on the payout, including university account data.
After receiving the application, the bank checks the student’s eligibility and verifies all the documents. They consider academic performance, chosen courses, and the reputation of the educational institution. If it’s a secured loan, they also check collateral details. After analysing the completed information properly, the bank decides the maximum eligible loan amount for the students.
If you are ready to get the loan amount specified by the bank, then the bank will finally sanction the loan and initiate the disbursement process. However, you must submit the visa approval letter to the bank before the disbursement. Meanwhile, you can take an official loan sanction letter from the bank to submit the same to the university as evidence of financial support.
The bank conducts a thorough examination of the documents you previously submitted, possibly employing a method known as Original Seen and Verified (OSV) to verify accuracy. Upon completing the verification, the bank issues a letter specifying the approved loan amount. Before receiving the funds, it is necessary to complete and have your the disbursement letter.
It's crucial to schedule the BOI school loan disbursement process appropriately because the final transfer may take place 7–10 days after the first stage. The money can be sent straight to the university for housing, or it can be deposited into the applicant's account. Tuition fees are typically paid to the institution directly, however, they may also be transferred to your account upon request. The bank might provide you with a FOREX Card, which can assist in managing initial expenses upon your arrival until you establish a foreign bank account.
Here are several benefits you can experience when obtaining an education loan for abroad studies through the Bank of India:
Challenges commonly faced by borrowers during the disbursement of education loans include:
Students should be proactive, knowledgeable about the procedure, and organized during the loan application and distribution stages in order to lessen or avoid these problems. Thankfully, these issues are avoided and the BOI payout procedure is simple.
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Now that you know how to get disbursement from the Bank of India for your studies, you can start applying for a loan. Getting the money is usually straightforward, but sometimes there can be problems. If you want to avoid any issues, you can get help from GyanDhan. They have people who can help you for free. Just check if you are eligible, and they'll take care of the rest.
Disbursement is the stage in the education loan process where, after the approval or sanctioning of your education loan, the funds are transferred to your bank account. This process is referred to as disbursement.
Bank of India, a government-owned bank in India, provides education loans for both domestic and international studies. Given its public status, one can anticipate more favorable interest rates and other advantageous loan terms when applying for education loans through the Bank of India.
For the education loan disbursement, it will generally take 7-10 working days after the disbursal form has been submitted.
The disbursement typically takes place in the applicant’s bank account, in addition to the tuition fee being sent directly to the university if required.
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