Bank of Baroda Education Loan

Given below are the details required to apply for a Bank of Baroda Education Loan. For any queries or problems the customer can contact Bank of Baroda customer care.

Bank of Baroda Education Loan Interest Rate

The Interest Rate for Bank of Baroda Education Loan is floating and vary with the changes in MCLR. Bank of Baroda Education loan interest rates is in the range of 8.40% and 10.40%. Some of the education schemes along with their interest rates are given below –

Bank of Baroda Education Loan Scheme

Given below are the details for Bank of Baroda Education Loan Scheme

Baroda Vidya

This Loan scheme by Bank of Baroda has an interest rate of 7.50% – 9.75% involving No Processing Fee. For the following scheme, No collateral or security needs to be provided. The loan tenure of the scheme suggests that the loan that is availed for each year must be paid back in 12 instalments. The first instalment of the loan scheme must be paid 12 months after the first disbursement has been paid. In order to be eligible for this scheme, The applicant must be an Indian citizen. Along with that, the applicant must have secured admission to a recognised school. The loan will be granted in the name of the student’s father or mother.

Baroda Gyan

This Loan scheme by Bank of Baroda has an interest rate of 9.25% (Inclusive of Strategic Premium) involving No Processing Fee. For the following scheme, the collateral that must be provided will depend on the loan amount. Loan amount up to Rs.4 lakhs requires no security to be provided but will need the co-obligation of a parent. Collateral needs to be provided for Loan amount above Rs.4 lakh. The Loan Tenure is up to 15 years. In order to be eligible for this scheme, the individual must join one of the given courses:

• Graduation courses
• Post-Graduation courses
• Professional courses
• Management courses
• Computer certificate courses
• Courses such as CFA, CA, ICWA
• Diploma courses
• Teachers training courses

Baroda Education Loan to Students of Premier Institutions (For Studies in India)

This Loan scheme by Bank of Baroda has an interest rate of 7.25% – 8.75% involving No Processing Fee. The Loan Tenure is up to 15 years. The eligibility criteria require the applicant to be an Indian citizen. Alongside the need to have secured admission for technical/ professional courses abroad through the Merit-Based Selection process or Entrance Test. For the following scheme, the collateral depends on the category of the institution. The collateral that must be provided for different categories as follows

Baroda Scholar

This Loan scheme by Bank of Baroda has an interest rate of 8.50% – 9.25%. The Processing Fee involved is 1% of the loan amount. Overall a maximum of Rs.10,000 can be charged. This Processing Fee amount is refundable after the first disbursement. An amount of Rs.7,500 will be charged per property and will be taken upfront. This amount taken from the applicant is non-refundable.

For the following scheme, the collateral depends on the amount of loan that has been availed. The collateral that must be provided may differ as per different loan amounts. Loan Amount up to Rs.4 lakh does not require security to be provided. Loan Amount above Rs.4 lakh and up to Rs.7.50 lakh may require a third-party guarantee as collateral along with an assignment of future income. For the amount above Rs.7.50 lakh, collateral security worth 100% of the loan amount is needed. Alongside, future income of the student must also be provided. This is done in order to ensure the bank that future payments can be made.

In order to be eligible for this scheme, the applicant must have received admission in one of the given courses.

• Graduation courses offered by reputed universities
• Post-Graduation courses
• Courses offered by CPA in the USA, CIMA London, etc.
• Regular Diploma/Degree courses
• Premier institutions that offer Management courses
• Renowned university/institutions that offer STEM Courses
• Elite institutions that offer medical courses
• Must be an Indian citizen
• Must have secured admission to technical/ professional courses via the Merit-Based Selection process or Entrance Test.

Bank of Baroda Education Loan Documents Required

The documents that need be submitted will vary depending on the loan. While applying for an education loan the important documents that need to be submitted are as follows

Any other document that has been requested by the bank must also be submitted.

Bank of Baroda Education Loan Eligibility

• The age of the applicant should be up to 35 years for non-employed personnel. In the case of working employees/ executives the age limit is up to 45 years
• People those who have an Indian Nationality having secured admission to professional/technical courses in recognized institutions can apply for the loan.
• Eligibility of Permanent employees – Loan can be availed by those who are employed for not less than three years with any organisation and who intend to acquire higher professional qualifications. The applicant must have secured admissions in a reputed institute.
• Maximum Loan Amount is up to Rs. 8,000,000 for studies in India. Upto Rs. 8,000,000 for studies abroad. Upto Rs. 8,000,000 for studies at IIT’s, IIM’s and ISB’s. These amounts are subjective to margin requirements as mentioned in the table above
• Repayment Frequency rests Quarterly or monthly. Repayment in Education Loans typically starts 1 year after completing the course of six months after getting a job. Whichever is earlier. Loan interest re‐payment will start immediately after disbursement of the first instalment of the loan.
• Repayment Period – The exists a grace Period between the Study and Repayment Period. The repayment tenure for both Indian and Abroad courses is a maximum of 15 years after the commencement of repayment.

Bank of Baroda Education Loan For Abroad

1. Maximum Loan Amount for Listed Universities is Rs.80 lakh and Unlisted Universities: Rs.60 lakh
2. Collateral/ Security – Loan amount must be <= 100% of collateral value.
3. BOB Education Loan Rate of Interest for Listed Universities is 8.1% for boys, and 7.6% for girls. For Unlisted Universities, it is 8.85% for boys and 8.35% for girls. Interest rates are linked to MCLR.
4. Processing Fee is Rs.10,000 + GST (Rs.10,000 refundable). in case of Real Estate collateral, there is additional property valuation charge of Rs. 7,500.
5. Margin Money for Listed Universities is NIL. Incase of Unlisted Universities if the loan is Up to Rs.4 lakh the charges are NIL. Loan amount above Rs.4 lakh it is 10%.
6. Loan Tenure for up to Rs.7.5 lakh it is Moratorium period + 10 years. Above Rs.7.5 lakh it is Moratorium period + 15 years
7. Moratorium Period is 12 months after the completion of the course.
8. Institutions Covered are for the ones in the list provided by Bank of Baroda
9. Prepayment Penalty is none.

Benefits & Other Features

1. Early approval of loan before i20 or visa.
2. Covers both tuition and living expenses, including off-campus living expenses.
3. Tax benefit u/s 80(E).
4. No need to pay interest during the course tenure.
5. Pre-visa disbursal as per the norms of visa offices.
6. Free Debit Card.
7. The loan is for students going abroad for Professional/Technical courses.
8. 0.50% concession in the interest rates for the girl student.
9. Simple interest to be charged at monthly rests during the repayment holiday/moratorium period.