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Bank of Baroda Education Loan

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Bank of Baroda Education Loans

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.

About Bank of Baroda

Bank of Baroda is an Indian state-owned International banking and financial services company headquartered in Vadodara (earlier known as Baroda) in Gujarat, India. It has a network of 5538 branches and 10,441 ATMs. Bank of Baroda provides a wide range of banking products and financial services to corporate and retail customers.

An Introduction to Bank of Baroda Education Loans

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 Baroda 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 Baroda education loans.

Advantages of Bank of Baroda Education Loan

Following are some of the advantages of applying for an educational loan with Bank of Baroda.

  • Low interest rate
  • Less paperwork
  • No processing fees
  • Faster Disbursal
  • No prepayment charges
  • No pre-closure charges
  • 0.50% of concession for girl students

Key Highlights of Bank of Baroda Education Loan

Eligibility CriteriaStudents who have secured admission
Loan AmountUp to 60 Lakhs
Interest RateBase Rate 10%
Processing FeesNIL
Repayment PeriodUp to 15 years

Features of Bank of Baroda Vidya Education Loan

Objective: To provide term loan to Indian students starting their education from Nursery to 12th standard

Quantum of Loan: Maximum of 4 Lakhs

Margin: No margin required

Security: No security required

Processing Fees: There are no processing fees for availing Bank of Baroda education loan.

Repayment Period:Starts after 12 months of disbursal of the loan

Courses Covered

  • Stage I: Nursery to V th STD.
  • Stage II: VI th to VIII STD.
  • Stage III: IX th to XII th STD.
  • Evening courses of institutes approved by State /Central Govt. li

Expenses Covered

The loan amount will cover the expenses of tuition fees, hostel charges and purchase of books, equipments etc.

Eligibility Criteria: Who Can Apply?

  • Must be an Indian Resident
  • Applicant should have secured admission with the educational institution

Features of Bank of Baroda Gyan Education Loan

Objective: TTo provide term loan to Indian students pursuing graduation, post-graduation and other professional courses in India

Quantum of Loan:Maximum of 30 Lakhs

Margin: No margin is required for loans up to 4 Lakhs and 5% of margin for above 4 Lakhs

Security: No security required for up to 4 Lakhs and above that limit suitable collateral with third-party guarantee.

Repayment Period:For loans up to 7.5 Lakhs the tenure is 10 years and the repayment starts after 1 year of completion of the courses or after 6 months of getting the job. For loans above 7.5 Lakhs, the tenure is 15 years.

Processing Fees: There are no processing fees for availing Bank of Baroda education loan.

Courses Covered

  • All Graduation courses.
  • All Post Graduation courses & Doctorate courses.
  • Professional Courses viz. Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer, Ayurveda, Homeopathy, Physiotherapy, Hotel Management, Hospital Management, Interior Designing, Architecture, Event Management, Mass Communication, Fashion Technology, etc.
  • Computer certificate courses of reputed institutes accredited to Dept. of Electronics or institutes affiliated to Universities.
  • Courses like C.A, ICWA, CFA, CS, etc.
  • Courses conducted by IIM, IIT, IISc, XLRI. NIFT etc.
  • Regular Degree/ Diploma courses like Aeronautical, pilot training, shipping etc., approved by Director General of Civil Aviation/shipping.
  • Other courses leading to diploma / degree etc. conducted by colleges/universities approved by UGC/Govt.
  • Courses offered in India by reputed foreign Universities.
  • Evening courses of institutes approved by State/Central/Govt./UGC/AICTE/AIBMS/ICMR/ICAR.
  • Courses offered by National Institutes and other reputed private institutions. The College/Institute must have been approved by the State/Central Govt./UGC/AICTE,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 education loan under our “Baroda Gyan Scheme” for the above courses conducted by institutions approved by Central / State Government and leading to Degree or Diploma courses and not to Certificate Courses

Expenses Covered

  • Fee payable to college / Institution / University.
  • Examination / Library / Laboratory Fee.
  • Fee and other charges payable to hostel.
  • Purchase of books / equipments / instruments.
  • Personal Computers / Laptops wherever required.
  • Caution deposit / building fund / refundable deposit supported by institution bills / receipts.
  • Any other expenses required to complete the course - like study tours, project works, thesis, etc.
  • Insurance premium for student borrower
  • Cost of external coaching /tuition is not to be considered

Eligibility Criteria: Who Can Apply?

  • Must be an Indian Resident
  • Applicant should have secured admission with the educational institution

Features of Bank of Baroda Scholar Abroad Education Loan

Objective: To provide term loan to Indian students pursuing graduation, post-graduation and other professional courses overseas

Quantum of Loan: Maximum of 60 Lakhs

Margin: No margin is required for listed institutions, and 10% of margin for institutions not in the list.

Security: No security required for up to 4 Lakhs and above that limit suitable collateral with third-party guarantee.

Repayment Period:For loans up to 7.5 Lakhs the tenure is 10 years and the repayment starts after 1 year of completion of the courses or after 6 months of getting the job. For loans above 7.5 Lakhs, the tenure is up to 15 years.

Processing Fees: 1% of the loan amount.

Courses Covered

  • Professional / technical courses offered by reputed foreign universities
  • Post-graduation courses like MBA, MCA, MS etc.
  • Courses conducted by CIMA- London, CPA in USA etc.
  • Regular Degree/ Diploma courses like Aeronautical, Pilot Training, Shipping etc. The institute should be recognized by local aviation / shipping authority and Director General of Civil Aviation / Shipping in India.

Expenses Covered

  • Fee payable to college / Institution / University.
  • Examination / Library / Laboratory Fee.
  • Fee and other charges payable to hostel.
  • Purchase of books / equipments / instruments.
  • Personal Computers / Laptops wherever required.
  • Caution deposit / building fund / refundable deposit supported by institution bills / receipts.
  • Any other expenses required to complete the course - like study tours, project works, thesis, etc.
  • Insurance premium for student borrower
  • Cost of external coaching /tuition is not to be considered

Eligibility Criteria: Who Can Apply?

  • Must be an Indian Resident
  • Applicant should have secured admission with the educational institution

Features of Bank of Baroda Education Loan to Students of Premier Institution

Objective: To provide term loan to Indian students pursuing graduation, post-graduation and other professional courses overseas in premier institutions

Quantum of Loan: Maximum of 60 Lakhs

Margin: No margin is required

Security: No security required for up to 4 Lakhs and above that limit suitable collateral with third-party guarantee.

Repayment Period:For loans up to 7.5 Lakhs the tenure is 10 years and the repayment starts after 1 year of completion of the courses or after 6 months of getting the job. For loans above 7.5 Lakhs, the tenure is up to 15 years.

Processing Fees: Nil

Courses Covered

Courses offered at the premier institutions in India

Expenses Covered

  • Fee payable to college / Institution / University.
  • Examination / Library / Laboratory Fee.
  • Fee and other charges payable to hostel.
  • Purchase of books / equipments / instruments.
  • Personal Computers / Laptops wherever required.
  • Caution deposit / building fund / refundable deposit supported by institution bills / receipts.
  • Any other expenses required to complete the course - like study tours, project works, thesis, etc.
  • Insurance premium for student borrower
  • Cost of external coaching /tuition is not to be considered

Eligibility Criteria: Who Can Apply?

  • Must be an Indian Resident
  • Applicant should have secured admission with the educational institution

Interest Rate of Bank of Baroda Education Loans

Education Laon SchemeRate of Interest
Baroda Vidya (For School Education from Nursery to XII)Up to Rs 7.50 Lacs: One-year MCLR + Strategic Premium + 2.50%
Above Rs 7.50 Lacs: One-year MCLR + Strategic Premium + 1.75%
Baroda Gyan (For Higher Studies in India)Up to Rs 7.50 Lacs: One-year MCLR + Strategic Premium + 2.50%
Above Rs 7.50 Lacs: One-year MCLR + Strategic Premium + 1.75%
Baroda Scholar (For Studies abroad)For Listed Institutions: One-year MCLR+ Strategic Premium+ 1.00%
Other Institutions: One-year MCLR+ Strategic Premium+ 2.50%
Baroda Education Loan to Students of Premier Institutions (For Studies in India)Up to Rs 15 Lacs: One-year MCLR + Strategic Premium + 0.25%
Above Rs 15 Lacs: One-year MCLR + Strategic Premium

Documents Required

  • Letter of admission
  • Filled in Loan Application Form
  • 2 passport size photographs
  • Statement of cost of study
  • PAN Card of the student and Parent/ Guardian
  • AADHAR Card of the student and Parent/ Guardian
  • Proof of identity (Driving Licence/Passport/Aadhar/ any photo identity)
  • Proof of residence (Driving Licence/Passport/Electricity bill/Telephone bill)
  • Student/Co-borrower/ guarantor's bank account statement for last 6 months
  • IT return/ IT assessment order, of previous 2 years of Parent/ Guardian/ other co-borrower (if IT Payee)
  • Brief statement of assets & liabilities of Parent/ Guardian/ other co-borrower
  • Proof of income (i.e. salary slips/ Form 16) Parent/ Guardian/ other co-borrower

EMI Payment Methods

Bank of Baroda education loan can be repaid in following three ways.

Standing Instruction (SI): If you are an existing account holder with Bank of Baroda, 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 Baroda account you specify.

Electronic Clearing Service (ECS): This mode can be used if you have a non-Bank of Baroda 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 Baroda account at your nearest Bank of Baroda 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.

How to Apply for Bank of Baroda Education Loan?

You can either apply online or visit a nearby Bank of Baroda branch for the application. You can also download the education loan application form from the Bank of Baroda 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.

Bank of Baroda Education loan FAQ

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 Baroda offers up to INR 60 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 Baroda?

No, there are no processing fees on Bank of Baroda education loan. However, for scholar scheme 1% of the loan amount will be charged 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 Baroda 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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