Bank of Baroda Education Loan

Bank of Baroda Education Loan

Quality education is one of the important gears in the wheel of life which in today’s world has become an extremely expensive proposition. To help aspiring students reach their goals and attain a good academic background, Bank of Baroda has come up with a number of Bank of Baroda education loan options that can help students seek financial help at affordable interest rates. The bank makes sure that its specialized options like Baroda Vidya, Baroda Scholar, Baroda Gyan, and Baroda Education Loan for Vocational Education & Training suit the requirements of every individual requirement.

Overview

Bank of Baroda is one of the premier Indian state-run financial services institutions which was established in the year 1908, serving across 21 countries. It has been a beautiful journey which started with a small building in Baroda and now has a new hi-rise and hi-tech Baroda Corporate Centre in Mumbai. With almost 9445 branches in India and 100 branches abroad, the bank has been the second-largest bank in India in terms of assets. Under its range of domestic Bank of Baroda education loan and Bank of Baroda overseas education loan product, the institute provides numerous offers that have been customized to finance different levels of students’ academic needs starting from the basic school education (nursery to 10+2) to undergraduate and postgraduate degrees.

Bank of Baroda Education Loan Key Features and Benefits

Some of the important features of various Bank of Baroda Education loan are:

Baroda Vidya

One of the major features of Bank of Baroda education loan is the Baroda Vidya education loan which is customized for the students who wish to pursue school education starting from Nursery to Senior Secondary School. The main features of this type of loan are:

Loan AmountRs. 4 lakhs
Eligibility
  1. Only for Indian nationals, residing in India
  2. The applicant should have secured admission in a recognized institute with ICSE, state board, or CBSE for courses like Stage I( Nursery to Std. V), Stage II(Std. VI to Std. VIII), and Stage III( Std. IX to Std. XII).
Interest Rate
  1. Bank of Baroda education loan up to Rs.4 lakhs: Base Rate + 2.50 percent

Note:-

  1. The fee is payable to the college/school.
  2. Examination / Library / Laboratory Fee.
  3. Fee and other charges payable to the hostel.
  4. Purchase of books / equipments / instruments / uniforms.
  5. Personal Computers / Laptops wherever required.
  6. Caution deposit / building fund / refundable deposit supported by instituion bills / receipts.
  7. The cost of external coaching/tuition is not to be considered
Processing FeeThere are no processing fees and documentation charges in Baroda Vidya’s under the Bank of Baroda education loan.
SecurityNo security. If the loan is being taken for the purchase of items like a computer or laptop, then those items will be pledged as security for the loan.
MarginNone
Repayment TenureIt is important to repay the yearly sub-limit in 12 EMIs. The first installment is due 12 months after the dispersal of every year’s loan component.

Baroda Gyan

Baroda Gyan is one of the features that come under the Bank of Baroda education loan and applies to the students who wish to pursue their undergraduate and postgraduate courses or any other professional courses within India. Some of the features that make this loan student-friendly are:

Maximum Loan LimitNormal 10 Lakhs. The maximum loan amount is Rs. 80 lakhs for medical & aviation education and Rs. 60 lakhs for other courses
Eligibility
  • Graduation courses: BA, B.Com, B.Sc., etc
  • Post Graduation courses: Masters & PhD.
  • Professional courses like Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Architecture, Computer, etc.
  • (Management courses include Hotel Mgt., Hospitality Mgt., Event Mgt., Mass Communication, etc offered by reputed institutions having assured employment prospects)
  • Computer certificate courses of reputed institutes accredited
  • to Dept. of Electronics or institutes affiliated to an approved university.
  • Courses like ICWA, CA, CFA, etc.
  • Courses conducted by IIM, IIT, IISc, XLRI. NIFT etc.
  • Regular Degree / Diploma courses like Aeronautical, Pilot training, Shipping, etc., approved by the Director-General of Civil Aviation / Shipping.
  • Courses offered in India by reputed Foreign Universities.
  • Evening courses of approved institutes.
  • Other courses leading to diploma / degree etc. conducted by colleges / universities approved by UGC / Govt./ AICTE / AIBMS / ICMR etc.
  • Teachers Training Course / Nursing Course / BEd will be eligible for education loan provided the training institutions are approved either by the Central Government or by State Government and such courses should lead to Degree or Diploma Courses and not to Certificate Course. Branches can consider the request for an education loan under our “Baroda Gyan Scheme” for the above courses. The fees to be considered for the purpose should be the fees structure as approved by the State Government or Government approved Regulatory Body for merit seats in Government Colleges / Private Self Financing Colleges, Cooperative and Colleges run by Universities, as the case may be.

The Bank of Baroda Education Loan scheme applies to merit students who are eligible for a seat under the merit quota but pursue a course under the management quota.

The management quota seats that are under the Bank of Baroda education loan scheme and the fees applicable to these seats (authorized by the State Government will be taken subject to the viability of repayment

Interest Rate
  1. BRLLR +2.00% (including Strategic Premium)

Note:-

  1. Female students get an applicable 0.50 percent concession.
  2. The bank will charge simple interest through the moratorium period with monthly rests.
  3. If the loan amount is more than two lakhs, the penal interest at the rate of two percent will apply to the overdue amount.
  4. Added concession of one percent applies to the students who are admitted in some of the premier institutions like IIT, AIIMS, IIM, IIFT, ISB, NIT, IISc, XLRI, MDI, and SPJIM.
Processing FeeNo processing charges.
Security

No security for loan amount up to rupees four lakhs.

Loan amount from to rupees four lakhs to rupees seven and a half lakhs: third party assignment towards future salaries and guarantee towards loan repayment.

Loan amount above seven and a half lakh: Tangible collateral as security that is equal to 100 percent of the loan amount. Also the assignment of future salaries towards loan repayment.

Margin

None for loans up to rupees four lakhs.

Five percent for loan above rupees four lakhs.

Note- Margin is applied on a pro-rata basis on a yearly basis as and when disbursements are availed.

Repayment Tenure

For loan amount up to rupees seven and a half lakhs, repayment should be in maximum 120 installments

Loan amount above rupees seven and a half lakhs and a repayment in max 180 installments

Moratorium Period

The repayment holiday starts from the Course Period + one year or six months after getting the job (whichever comes first).

Expenses Covered
  1. The fee of the institute
  2. Fee for the library, examination, hostel, and laboratories
  3. Purchase of books, uniform, instruments, and equipment
  4. Purchase of personal laptop or computer only if it is necessary for the course
  5. Extra payments like Caution deposit, building funds, and Refundable deposit which are backed up with proper receipts and bills.
  6. Additional expenses that are important for the completion of the course including projects, study tours, and thesis.
PerksFree Debit Card.

Baroda Scholar

This is one of the specialized offerings from the Bank of Baroda overseas education loan department exclusively for the students who want to take up higher studies in some reputed universities in the foreign land. Some of the key features of this loan are:

Maximum Loan LimitRs. 60 lakhs for non Premier, 80 Lakhs for Premier
Eligibility
  • The applicant must be an Indian citizen and should have got admission to a reputed college abroad in some professional/technical course.

The Bank of Baroda Education Loan scheme applies to merit students who are eligible for a seat under the merit quota but pursue a course under the management quota.

The management quota seats that are under the Bank of Baroda education loan scheme and the fees applicable to these seats (authorized by the State Government will be taken subject to the viability of repayment

Interest Rate

Loans up to rupees four lakhs: Base Rate + 2.50 percent

Loans from rupees four lakhs to rupees seven and a half lakhs: Base Rate + 2.50 percent

Loans above rupees seven and a half lakhs: Base Rate + 1.75%

Bank of Baroda Overseas Education Loan for Vocational Education and Training: Base Rate + 2.00 percent

Note- Female students will get a concession of .5 percent. Also, the simple interest will be charged through the moratorium period with monthly rests. If the loan amount is more than two lakhs rupees, a panel interest rate of two percent will be applied to the overdue amount. Students admitting to some premier institutions like IIT, IIFT, IIM, AIIMS, NIT, MDI, XLRI, and SPJIM will get an added concession of one percent.

Processing FeeINR 10,000 is refundable upon acquisition of the loan.
Security

Loan amount up to rupees four lakhs: None

Loan amount from four lakhs to seven and a half lakhs: Third-party guarantee and assignment of future salaries towards loan repayment.

Loan amount above rupees seven and a half lakhs: Tangible collateral as security equivalent to 100 percent of the loan amount. Plus the assignment of future salaries towards loan repayment.

Margin0 to 10.00 percent
Repayment Tenure

Loan amount up to rupees seven and a half lakhs and the repayment in maximum 120 installments

Loan amount above rupees seven and a half lakhs and the repayment within180 installments

Moratorium PeriodThe repayment holiday applies from the course Period + six months or one year after getting the job (whichever comes first).
Expenses Covered
  1. The fee of the institute
  2. Fee for the library, examination, hostel, and laboratories
  3. Purchase of books, uniform, instruments, and equipment
  4. Purchase of personal laptop or computer only if it is necessary for the course
  5. Extra payments like Caution deposit, building funds, and Refundable deposit which are backed up with proper receipts and bills.
  6. Additional expenses that are important for the completion of the course including projects, study tours, and thesis.
  7. Expenses for one-way travel.
Course Eligibility
  1. All undergraduate, Doctorate, post-graduate, and Technical courses along with other job-oriented courses offered by recognized foreign Universities.
  2. Degree/Diploma in Aeronautical, shipping, and pilot training which are approved by Director General of Civil Aviation/shipping in India as well as a competent local aviation/shipping authority.

Bank of Baroda Education Loan Documentation

Bank of Baroda education loan documentation is a simple process and doesn’t involve any hard-core paperwork. It can be conducted online without paying any physical visits to the banks. However, the process may vary depending on the criteria set by different banks or lending organizations. Some banks that are extremely strict with their conditions may reject the application with failure to submit all the required documents.

Required Documents

  • Duly filled and signed application form with the applicant’s affixed photographs
  • Two passport size photographs
  • One copy of exam mark sheets of the latest education certificate
  • Statement of course expenses/cost of study
  • Aadhaar Card and Pan Card of the Student and Parent/ Guardian

Age proof

  • Copy of Aadhaar Card /Voter ID/Passport/Driving License

Identity proof

  • Copy of Voter ID/Aadhaar Card/Driving License/Passport

Residence proof

  • Rental agreement/guarantor/Bank statement of 6 months of the student or co-borrower/Copy of Ration card/Gas Book/Electricity Bill/Tel Bill

Income proof

  • Most recent salary slips or Form 16 of the parent/ co-borrower/guardian
  • Six months bank statement of the borrower or updated passbook of bank
  • Updated ITR (Income Tax Return with income computation) of two years or IT assessment order of last two years of parent/ guardian/co-borrower
  • Documents stating the assets and liabilities of the parent/co-borrower/guardian

Bank of Baroda Overseas Education Loan/ Bank of Baroda Student Education Loan Features

1. Loan Amount

The Bank of Baroda provides loans up to 80 lakhs with deviation for preferential list universities and 60 lakhs with deviation for other universities. In some cases, it can provide a loan above 60 lakhs for universities that are not listed in the preferential list.

2. Percentage of Loan Against Collateral Provided

The bank provides a loan amount up to 90 percent of the Property’s Realizable Value and FD value and a loan up to 80 percent of the LIC Surrender value and KPV and NSC Value. If the student is admitted to one of the universities listed in the preferential list, they can get a loan up to 100 percent of the property value.

3. Collateral Property

If the students are keeping their property as security, they will have to submit all the required registered documents of the property along with an occupational certificate and completion certification registered by the Municipal corporation of India. Also, the property should be non-agriculture land and should be inside the premises of the city.

4. Student’s Profile

To provide a Bank of Baroda overseas education loan to any applicant, the bank will check the academic background of the student (no. of KTs throughout his last education) along with the course and institution he is applying for.

5. Interest Rate

Bank of Baroda charges are prime lending rate + 2% for non-premier and for premier they are lending rate + 0.75% on the repo rate. The bank also gives a concession of .5 percent for female applicants and a .75 percent discount for Preferential List Universities.

6. Interest Paying During Moratorium Period

The bank also provides an option of paying the interest on

Bank of Baroda overseas education loan

during moratorium period or along with EMIs.

Bank of Baroda Education Loan Eligibility

ParametersBank of Baroda Education Loan Eligibility Criteria
Age of the Applicant
  • Up to 35 years for non-employed people
  • Up to 45 years in the case of working employees and executives
Who can apply
  • Indian Nationals with secured admission to any professional or technical course in a recognized institution.
  • Permanent employees who are employed at least for three years with any organization and wish to gain higher professional qualifications. These professionals should also have secured admissions in a reputed institute.
Maximum Loan Amount
  • Upto Rs. 8,000,000 for studies in India
  • Upto Rs. 8,000,000 under Bank of Baroda overseas education loan studies abroad.
  • Upto Rs. 8,000,000 for studies at IITs, ISB’s, and IIM’s.
Repayment Frequency
  • Quarterly or monthly rests.
  • Repayment of Education Loans typically starts one year after completing the course of six months after getting a job, whichever is earlier.
  • Loan interest re‐payment will start immediately after the disbursement of the first installment of the loan.
Repayment Period
  • The entire tenure of an Education Loan includes Duration of Study, Grace Period after the Study, and Repayment Period.
  • For Indian courses, repayment tenure is a maximum of 15 years after the commencement of repayment.
  • For Abroad courses, repayment tenure is a maximum of 15 years after the commencement of repayment.

Bank of Baroda Education Loan EMI Calculator

 Courses in IndiaCourses AbroadIIT, IIM, ISB Courses
Max Loan AmountRs. 80 LakhRs. 80 LakhRs. 80 Lakh
    
Loans up to Rs. 4 lakh8.40% – 10.40%9.65 % – 10.40%, for Girls – 9.15%8.40 %
Loans Rs. 4.0 – 7.5 lakh8.40 % – 10.40%9.65 % – 10.40% , for Girls – 9.15%8.40 % – 10.40%
Loans > Rs. 7.5 lakh8.40 % – 10.40%9.65 % – 10.40% , for Girls – 9.15%8.40 % – 10.40%
Margin requirement (own contribution by student/ family)   
Loans up to Rs. 4 lakh0%0%0%
Loans above Rs. 4 lakh5%10%5%
Max Tenure Post Moratorium   
Loans up to Rs. 7.5 lakh10 years10 years10 years
Loans above Rs. 7.5 lakh15 years15 years15 years
Co-Applicant required (Y/N)YesYesYes
Third-Party Guarantee   
Loans up to Rs. 4 lakhNot requiredNot requiredNot required
Loans Rs. 4.0 – 7.5 lakhRequiredRequiredRequired
Loans > Rs. 7.5 lakhNot requiredNot requiredNot required
Collateral Security (Fixed deposit/ Property, LIC)   
Loans up to Rs. 4 lakhNot requiredNot requiredNot required
Loans Rs. 4.0 – 7.5 lakhNot requiredNot RequiredNot Required
Loans > Rs. 7.5 lakhRequiredRequiredRequired
Prepayment Charges (Y/N)NilNilNil
Moratorium Period (lower of the two)   
After course period12 months12 months12 months
After getting job6 months6 months6 months

Bank of Baroda Overseas Education Loan FAQs:

  1. What is a ‘Financing Branch’ under Bank of Baroda Education Loan?

     The Bank of Baroda branch that is closest to the applicant’s permanent address usually dispenses the Bank of Baroda education loan and therefore is termed as ‘Financing Branch’.

  2. How will Bank of Baroda track the educational progress of the applicant, borrower, or student?

     To apply for the Bank of Baroda education loan, the bank will ask the applicant to submit their progress reports to the bank regularly so that the bank can keep a record of their progress.

  3. Are the applicant’s or student’s lodging and boarding covered in the subscribed Bank of Baroda education loan?

     If the student doesn’t secure the hostel facility offered by the concerned college or institution, they can seek to lodge elsewhere. The student has to confirm the authenticity of the place they are staying at to allow the bank to directly remit the expenses to the boarding and lodging facility.

  4. What does ‘Margin’ mean in the context of education loans?

     ‘Margin’ is termed as the difference between the loan amount promised by the bank and the actual disbursed amount. For instance- The Bank of Baroda Scholar education loan comes with a margin of 15 percent, which means, if the loan amount is four lakhs, only 85 percent of that amount, i.e 3 lakhs forty thousand will actually be disbursed to you. The margin will demand that collateral/security worth this amount be deposited with the bank before the students receive the four lakhs funds.

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