Bank of Baroda Education Loan

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Bank of Baroda Education Loan

Set up under the aegis of the then princely state of Baroda by Maharaja Sayajirao Gaekwad III in the year 1908, Bank of Baroda grew leaps and bounds both during pre and post independent India and still expanding its base and services across different verticals of banking. With its core strength of 84,000 employees, Bank of Baroda has made its presence felt in more than 21 countries and operates more than 9000 branches across India.

Overview of variants in education loan schemes offered by Central Bank

Scheme Name Details
Baroda Vidya (for school education from Nursery to XII)
  • Loan facility for students currently in school (covering both primary and secondary)
Baroda Gyan (Higher Studies in India)
  • Loan facility for students wanting to pursue higher education in India (Graduation / PG/ Technical/ Diploma/ Medical etc)
Baroda Scholar (For Studies Abroad)
  • The scheme offers loan to students who have secured admission to foreign universities abroad for post graduate degree/ Diploma/ Certificate/ Doctoral/ Professional in any discipline.
Baroda Education Loan to Students of Premier Institutions
  • Loan facility specifically for students who have secured admissions to premier institutions of India
Baroda Education loan for EDP (premier institutions in India)
  • The facility offers loan to students wanting to pursue Executive Development Programmes offered by premier institutions and have gained admission for the same.
Baroda Education loan for EDP (premier institutions in abroad)
  • Loan scheme for students wanting to pursue Executive Development Programmes offered by premier institutions abroad
Few Schemes the bank provides as part of government initiative:

(Kindly look into this from the website as the article will only cover the core loan schemes of the bank).

Central Scheme of Interest Subsidy for students belonging to EWS
  • The MHRD had introduced the full interest rate subsidy for the duration of moratorium, on education loan availed by students of economically weaker sections, willing to pursue higher education courses offered by recognized and renowned institutions in India.
  • The maximum family income permitted under this scheme is ₹4.50 lacs per annum.
  • Follow the link: https://www.bankofbaroda.in/central-scheme-of-interest-subsidy-for-education-loans.htm
Higher Education & Skill Devp. Guarantee Scheme for Delhi students
Skill Loan Scheme
  • Loan scheme to provide financial support for students wanting to pursue skill development courses from either Industrial Training Institutes or in any Polytechnic institutes or in any Skill Development and Training Institutes affiliated to NSDC or in any state government promoted skill development programmes and workshops that leads to a diploma or certificate courses.
  • Follow the link – https://www.bankofbaroda.in/skill-loan-scheme.htm

 

Further details on Bank of Baroda’s Education loan schemes mentioned in above table

** For the current Interest Rate – Click here

1. Baroda Vidya (for school education from Nursery to XII

The loan facility can be availed by Indian national students residing in the country and must have secured admission to any school that is recognized by Central / State governments. The admission can be for primary / secondary / higher secondary (junior college) in any of the boards (State Board / CBSE / ICSE / IB).

Schools conducting evening courses must also be approved by Central / State government.

The maximum quantum of loan amount that can be availed under this scheme is up to ₹4 lacs. However, the amount can be extended based on the needs of the course and repayment capacity of parents.

Both margin and processing fees are not applicable under the scheme. While there is no security required, but in case the loan is provided for purchasing of computer, it will have to be hypothecated to the bank till the period amount is fully repaid.

Almost all expenses of the course (including study tours, hostels, library, equipment, books, project work, examination, etc.) are covered under the scheme. However, additional coaching / tuition class charges are not covered.

Repayment period – the availed loan is repayable in 12 EMIs wherein the first instalment will be due within 12 months post the first disbursement of loan component for each year. Interest payment is applicable from the moratorium period itself.

Disbursement – The loan is directly disbursed to the institute / school as per their fee structure. Each and every year disbursement is done only if the student passes out from the current year and when the relevant scorecard and marksheet is provided in that effect.

A concession of 0.5% in interest rate is made applicable for female students, under this scheme.

2. Baroda Gyan (Higher Studies in India)

The loan facility can be availed by students wanting to pursue higher education in India and have secured admission for the same. The courses would include – graduation / PG/ Engineering/ Diploma/ Medical/ other professional or job-oriented courses.

The quantum of loan amount differs according to the courses taken. The maximum amount for medical and aviation studies is up to ₹80 lacs and for all other courses, the ceiling is up to ₹60 lacs. However, the loan amount is need based and will be subject to the repayment capacity of co-borrowers. (parents)

No margin is applicable for any loan amount of up to ₹4 lacs and an amount above ₹4 lacs will attract a margin of 5%.

Almost all expenses of the course (including study tours, hostels, library, equipment, books, project work, examination, caution deposit etc.) are covered under the scheme. However, additional or outside coaching / tuition chargers are not covered under the scheme.

No collateral security is required for amount of up to ₹4 lacs, while parents/guardian will be required to sign up as co-borrower. For any loan amount between ₹4 lacs and ₹7.5 lacs, third-party guarantee and parent as joint borrower would be required. For any amount above ₹7.5 lacs, tangible security is mandatory. Such tangible security must be in equivalent value of the loan amount and must be acceptable to the bank as per their guidelines.

The moratorium period covers the course duration and an additional 1. The repayment period will be to a maximum of 10-15 years which excludes the moratorium period.

For any loan amount up to ₹7.50 lacs, the maximum number of instalments will be 120 and for loan amount more than ₹7.50 lacs, the instalments will be up to 180.

Interest payments – During the course and moratorium period, the interest payment is calculated on simple basis. Concession of 0.5% rate is applicable for female students availing the loan.

3. Baroda Scholar (For Studies Abroad)

The loan facility is for Indian national students who have secured admission abroad for specified courses in premier institutes. The student must have secured admission by way of merit i.e., through entrance exam scores and competitive selection process.

The courses could be that of professional / Technical/ MBA/ MS/ MCA/ Doctoral/ Medicine/ aeronautical / pilot training/ STEM / other courses as applicable.

List of Institutions can be viewed here – Please click here for Specified List of Institutions in Abroad PDF file that opens in new window. To know how to open PDF file refer Help section located at bottom of the site. (649 KB).

The quantum of finance for institutions listed in the above-mentioned link is up to a maximum of ₹80 lacs. For institutions that are not listed, the maximum amount is up to ₹60 lacs. However, the loan amount is need based and will be subject to the repayment capacity of co-borrowers. (parents)

No margin is applicable for loan amounts availed towards the institutions mentioned in the list above. For those institutions not specified in the list and the loan amount is more than ₹4 lacs, the margin is applicable at 10%.

Unified processing charges of up to 1% of loan amount is applicable, but will be refundable post the disbursement of first loan component. If the loan involves attaching security, there will be a non-refundable charge of ₹7,500/- per security / property as part of advocate and other charges.

The moratorium period covers the course duration and an additional 1 year with simple interest being charged during this period. The repayment period will be to a maximum of 10-15 years which excludes the moratorium period.

For any loan amount up to ₹7.50 lacs, the maximum number of instalments will be 120 and for loan amount more than ₹7.50 lacs, the instalments will be up to 180.

No collateral security is required for amount of up to ₹4 lacs, while parents/guardian will be required to sign up as co-borrower. For any loan amount between ₹4 lacs and ₹7.5 lacs, third-party guarantee and parent as joint borrower would be required. For any amount above ₹7.5 lacs, tangible security is made mandatory. The security can be that of any immovable property or investments that is equivalent to the value of loan amount availed.

Almost all expenses of the course (including study tours, hostels, library, equipment, books, project work, examination, travel expenses for studies in abroad, etc.) are covered under the scheme.

Interest payments – During the course and moratorium period, the interest payment is calculated on simple basis. Concession of 0.5% rate is applicable for female students availing the loan.

4. Baroda Education Loan to Students of Premier Institutions

The loan scheme is applicable for Indian national students wanting to pursue higher education and have secured admission to regular full-time courses in premier institutions in India by way of merit / entrance tests.

These courses would include – Graduation / PG/ Engineering/ Medicine/ Diploma/ Technical / Professional / MBA/ MCA / MTech or any other course as recognized by the academic bodies and institutions in India.

The list of premier institutions – List of the institutions (List-AA, A, B & List-C)  PDF file that opens in new window. To know how to open PDF file refer Help section located at bottom of the site.

Quantum of Finance is described below –

No margin is applicable i.e., 100% financing is made available under the scheme.

The moratorium period covers the course duration and an additional 1 year. The repayment period will be to a maximum of 10-15 years which excludes the moratorium period.

For any loan amount up to ₹7.50 lacs, the maximum number of instalments will be 120 and for loan amount more than ₹7.50 lacs, the instalments will be up to 180.

Almost all expenses of the course (including study tours, hostels, library, equipment, books, project work etc.) are covered under the scheme.

Unified processing charges is applicable if the loan involves attaching security, wherein a non-refundable charge of ₹7,500/- per security / property as part of advocate and other charges is levied.

Security:

Institutions under List A:

Loan amount up to ₹20 lacs – No collateral security applicable. However, parents / guardian will have to sign up as co-borrowers.

Loan amount more than ₹20 lacs – Co-obligation of parents / guardian along with 100% tangible collateral security applicable.

Institutions under List B & List C:

Loan amount up to ₹7.50 lacs – Parents to sign up as co-borrowers; No security applicable

Loan amount more than ₹7.50 lacs – 100% tangible security applicable; Parents to sign up as co-borrowers

Interest payments – During the course and moratorium period, the interest payment is calculated on simple basis.

5. Baroda Education loan for EDP (Premier Institutions in India & Abroad)

The loan facility can be availed by Indian national students wanting to pursue Executive Development Programmes (EDPs) in any format (Part time / Online / Distance / Weekend) offered by premier institutions both in India and abroad. The scheme is also applicable for EDP courses offered by institutions in partnership with tech platforms such as Times Pro.

Premier Institutions in India – List of the institutions (List-AA, A, B & List-C)  PDF file that opens in new window. To know how to open PDF file refer Help section located at bottom of the site.

Premier Institutions abroad – Please click here for Specified List of Institutions in Abroad.  PDF file that opens in new window. To know how to open PDF file refer Help section located at bottom of the site.

One of the main prerequisites to avail the loan is that the applicant / student must be employed and continue to be employed during the course tenure.

The maximum quantum of loan amount must not exceed that of ₹20 lacs for institutions in India. For institutions based abroad, the quantum of finance cannot exceed more than that of ₹80 lacs

No margin is applicable for any loan amount of up to ₹4 lacs and an amount above ₹4 lacs will attract a margin of 5%.

Almost all expenses of the course (including library, study tours equipment, books, project work, examination, caution deposit, thesis, purchase of computer / laptop etc.) are covered under the scheme.

The moratorium period covers the course duration and an additional 3 months. The repayment period will be to a maximum of 10-15 years which excludes the moratorium period.

For any loan amount up to ₹7.50 lacs, the maximum number of instalments will be 120 and for loan amount more than ₹7.50 lacs, the instalments will be up to 180.

Unified processing charges

For Institutions abroad – Up to 1% of loan amount is applicable, but will be refundable post the disbursement of first loan component.

For Institutions both in India & abroad – Applicable if the loan involves attaching security, wherein a non-refundable charge of ₹7,500/- per security / property as part of advocate and other charges is levied.

Security

For Institutions in India –

For loan amount up to ₹15 lacs – No collateral security is applicable.

Above ₹15 lacs – Tangible collateral security of 100% value of loan amount is mandatory.

For Institutions Abroad –

No collateral security is required for amount of up to ₹4 lacs, while parents/guardian will be required to sign up as co-borrower.

For any loan amount between ₹4 lacs and ₹7.5 lacs, third-party guarantee and parent as joint borrower would be required.

For any amount above ₹7.5 lacs, tangible security is made mandatory. The security can be that of any immovable property or investments that is equivalent to the value of loan amount availed.

Required Documents

In order to check for the documents that are required for the Education loans, follow the link –

https://www.bankofbaroda.in/education-loan-documents-required.htm

How to Apply for the loan

Online process – The above-mentioned Bank of Baroda Education loan schemes can be applied via online from Vidya Lakshmi Portal, which is a centralized portal specifically catering to students wanting to explore multiple options offered by various banks before choosing the appropriate loan scheme which is in tandem to the applicants’ needs.

Offline process – The applicant will have to visit the nearest branch of Bank of Baroda and file for application of loan by filling out the required forms and submitting the copies of mandatory documents.

Insurance –

Bank of Baroda has tied up with M/s. India First Life Insurance Co & M/s. Kotak Life Insurance company for group life insurance cover to such loan applicants. Although not being made mandatory as of now, the bank may as well implement it as a compulsory procedure, especially where collateral security is not applicable.

Few reasons for inclusion of insurance cover are –

  • Covering of default risk rising due to poor job markets
  • Exchange rate risks in the case of overseas education loans
  • Below satisfactory campus placement records
  • Possibility of discontinuation of course by student or debarring by institutions on disciplinary or academic grounds.

Note – At the time of enquiring about the various loan facilities, kindly confirm with the bank officials regarding the opening of savings bank account for loan disbursement.

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