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 fro Nursery to Senior Secondary School. The main features of this type of loan are:
| Loan Amount | Rs. 4 lakhs |
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| Eligibility | - Only for Indian nationals, residing in India
- 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).
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| Interest Rate | - Bank of Baroda education loan up to Rs.4 lakhs: Base Rate + 2.50 percent
Note :-- Fee payable to college / school.
- Examination / Library / Laboratory Fee.
- Fee and other charges payable to hostel.
- Purchase of books / equipments / instruments / uniforms.
- Personal Computers / Laptops wherever required.
- Caution deposit / building fund / refundable deposit supported by instituion bills / receipts.
- Cost of external coaching/tuition is not to be considered
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| Processing Fee | There are no processing fees and documentation charges in Baroda Vidya’s under Bank of Baroda education loan. |
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| Security | No 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. |
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| Margin | None |
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| Repayment Tenure | It 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. |
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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 Limit | Rs. 60 lakhs for non Premier, 80 Lakhs for Premier |
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| Eligibility | - The applicant must be an Indian citizen and should have got admission in 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 State Government will be taken subject to viability of repayment |
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| 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. |
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| Processing Fee | INR 10,000 that is refundable upon acquisition of the loan. |
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| 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. |
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| Margin | 0 to 10.00 percent |
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| 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 |
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| Moratorium Period | The repayment holiday applies from the course Period + six months or one year after getting the job (whichever comes first). |
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| Expenses Covered | - The fee of the institute
- Fee for the library, examination, hostel, and laboratories
- Purchase of books, uniform, instruments, and equipment
- Purchase of personal laptop or computer only if it is necessary for the course
- Extra payments like Caution deposit, building funds, and Refundable deposit which are backed up with proper receipts and bills.
- Additional expenses that are important for the completion of the course including projects, study tours, and thesis.
- Expenses for one-way travel.
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| Course Eligibility | - All undergraduate, Doctorate, post-graduate, and Technical courses along with other job oriented courses offered by recognized foreign Universities.
- 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.
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Baroda Scholar
This is one of the specialized offerings from 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:
| Parameters | Bank of Baroda Education Loan Eligibility Criteria |
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| Age of the Applicant | - Up to 35 years for non-employed people
- Up to 45 years in the case of working employees and executives
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| 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.
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| 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 IIT’s, ISB’s, and IIM’s.
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| Repayment Frequency | - Quarterly or monthly rests.
- Repayment of Education Loans typically starts one year after completing the course or six months after getting a job, whichever is earlier.
- Loan interest re‐payment will start immediately after disbursement of the first installment of the loan.
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| Repayment Period | - The entire tenure of a Education Loan includes Duration of Study, Grace Period after the Study, and Repayment Period.
- For Indian courses, repayment tenure is maximum of 15 years after the commencement of repayment.
- For Abroad courses, repayment tenure is maximum of 15 years after the commencement of repayment.
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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 who 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
- Loan Amount
The Bank of Baroda provides loans upto 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.
- Percentage of Loan Against Collateral Provided
The bank provides a loan amount upto 90 percent of Property’s Realizable Value and FD value and loan upto 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 upto 100 percent of the property value.
- 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 occupational certificate and completion certification registered by the Municipal corporation of India. Also the property should be a non-agriculture land and should be inside the premises of the city.
- Student’s Profile
To provide 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.
- Interest Rate
Bank of Baroda charges are prime lending rate + 2% for non premier and for premier they are lending rate + 0.75% on repo rate. The bank also gives a concession of .5 percent for female applicants and .75 percent discount for Preferential List Universities.
- 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.
| | Courses in India | Courses Abroad | IIT, IIM, ISB Courses |
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| Max Loan Amount | Rs. 80 Lakh | Rs. 80 Lakh | Rs. 80 Lakh |
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| Loans upto Rs. 4 lakh | 8.40% – 10.40% | 9.65 % – 10.40% , for Girls – 9.15% | 8.40 % |
| Loans Rs. 4.0 – 7.5 lakh | 8.40 % – 10.40% | 9.65 % – 10.40% , for Girls – 9.15% | 8.40 % – 10.40% |
| Loans > Rs. 7.5 lakh | 8.40 % – 10.40% | 9.65 % – 10.40% , for Girls – 9.15% | 8.40 % – 10.40% |
| Margin requirement (own contribution by student/ family) | | | |
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| Loans upto Rs. 4 lakh | 0% | 0% | 0% |
| Loans above Rs. 4 lakh | 5% | 10% | 5% |
| Max Tenure Post Moratorium | | | |
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| Loans upto Rs. 7.5 lakh | 10 years | 10 years | 10 years |
| Loans above Rs. 7.5 lakh | 15 years | 15 years | 15 years |
| Co-Applicant required (Y/N) | Yes | Yes | Yes |
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| Third Party Guarantee | | | |
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| Loans upto Rs. 4 lakh | Not required | Not required | Not required |
| Loans Rs. 4.0 – 7.5 lakh | Required | Required | Required |
| Loans > Rs. 7.5 lakh | Not required | Not required | Not required |
| Collateral Security (Fixed deposit/ Property, LIC) | | | |
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| Loans upto Rs. 4 lakh | Not required | Not required | Not required |
| Loans Rs. 4.0 – 7.5 lakh | Not required | Not Required | Not Required |
| Loans > Rs. 7.5 lakh | Required | Required | Required |
| Prepayment Charges (Y/N) | Nil | Nil | Nil |
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| Moratorium Period (lower of the two) | | | |
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| After course period | 12 months | 12 months | 12 months |
| After getting job | 6 months | 6 months | 6 months |
