Bank of Baroda Education Loan

Education is the most important investment one makes in life. Higher studies and specialization in certain fields call for additional financial support from time to time.
Whether you are planning school education (nursery to standard XII) of your child, pursuing a graduate or post-graduate degree, the Bank of Baroda Education Loans, can help finance your ambitions and goals.
Following are the loan options available:
• Baroda Vidya
• Baroda Gyan
• Baroda Scholar

Baroda Vidya

Bank of Baroda presents a one of its kind finance option for parents of students pursuing school education. These loans are available for studies from Nursery to Senior Secondary School.
No processing & documentation charges.
No Margin.
No security required.
Terms & Conditions

Eligibility :
• Should be an Indian national residing in India.
• Student should have secured admission to a recognized school / Highschool / Jr. College (including CBSE / ICSE / State Board) for any of the following courses
1. Stage I : Nursery to V th STD.
2. Stage II : VI th to VIII STD.
3. Stage III : IX th to XII th STD.

Coverage of expenses for :
• 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.

Maximum Loan Amount : Rs.4.00 Lacs

Repayment Period :
• Loan for each yearly sub limit is repayable in 12 equal monthly instalments. First instalment to be due 12 months after first disbursement of each year's loan component.
The parents must be residing in the place for a minimum period of -3- years, except in the case of transferable job.
Security :
• In case the loan is given for purchase of computer the same is to be hypothecated to the bank.
Rate of Interest :
• FOR PRESENT RATE OF INTEREST: CLICK HERE.
• 1% concession in rate of interest to loans for girl students.
• Interest to be serviced as and when applied during moratorium period.
• Penal Interest @ 2% on overdue amount if the loan amount exceeds Rs. 2/- lacs.

Baroda Gyan

A loan product specially designed for students pursuing Graduation, Post - Graduation, Professional & Other courses in India. Bank of Baroda extends a helping hand to energize your studies and promote education of the youth.
• No processing charges.
• No Margin on loans upto 4 lacs.
• Free Debit Card.

Terms & Conditions

Courses Eligible :
• All Graduation courses.
• All Post Graduation courses & Doctorate courses.
• Professional Courses viz. Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer, Ayurved, 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./ AICTE/ AIBMS/ ICMR etc.
• 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.

Student Eligiblity :
• Should be Resident Indian.
• Secured admission to either of above courses
Coverage of expenses :
• 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.

Maximum Loan Amount : Rs.10.00 Lacs.
Margin :
Upto Rs. 4.00 lacs :- NIL

Above Rs. 4.00 lacs :- 5%
• Margin is to be contributed on pro rata basis on year to year basis as and when disbursements are availed.

Repayment Holiday / Moratorium Period :
• Course period + 1 year or 6 months after getting job, whichever is earlier.

Repayment Period :
• The loan is repayable in 5-7 years after the above period.
Security :
• Upto Rs.4 lacs : No security
• Above Rs. 4.00 Lacs and up to Rs. 7.5 lacs: Collateral in the form of a suitable third
party guarantee alognwith assignment of future income.
• Above Rs.7.5 lacs: Tangible collateral security equal to 100% of the loan
amount along with assignment of future income
Rate of Interest :
• Simple interest to be charged at monthly rests during the repayment holiday / moratorium period.
• 1% interest concession is provided if interest debited during repayment holiday is serviced.
• 1% Concession in rate of interest to loans for girl student.
• Penal interest @ 2% p.a. on overdue amount, if the loan amount exceeds Rs.4.00 lacs.
• FOR PRESENT RATE OF INTEREST: CLICK HERE.

Baroda Scholar

Bank of Baroda presents financial assistance to students going abroad for Professional / Technical studies. The loan offering is designed to empower you with the financial capability to realise your dreams... Achieve your goals... Reach out to the maximum limits...

Terms & Conditions

Eligiblity of Courses :

Graduate/Post Graduate / Doctorate / Job Oriented Professional / Technical Courses offered by reputed Universities overseas.
Regular Degree/ Diploma courses like Aeronautical, pilot training, shipping etc. The Institute should be recognized by the competent local aviation / shipping authority and Director General of Civil Aviation/shipping in India.
Student Eligiblity :
• Should be an Indian National.
• Secured admission to Professional/Technical Courses at foriegn Universities/Institutions.
Coverage of expenses (for overseas studies) :
• Admission/Tuition fees to College/University.
• Hostel/Mess charges.
• Examination/Library/Laboratory fee.
• Purchase of books/equipments/instruments.
• Caution deposit/building fund/refundable deposit supported by institution bills/reciepts.
• One way travel expenses/Passage money.
• Purchase of computers if essential for completion of the course.
• Any other expense required to complete the course e.g. study tour, project work, thesis etc.

Maximum amount of loan : Rs. 20.00 Lacs.
Margin : 15%

Repayment Period :
Repayment Holiday/Moratorium Period :
• Course period + 1 year or 6 months after getting job, whichever is earlier.

The loan is repayable in 5-7 years after the above period.

Security :
• Upto Rs.4.00/- lacs : No security
• Above Rs. 4.00 Lacs and up to Rs. 7.5 lacs: Collateral in the form of a suitable third
party guarantee alognwith assignment of future income.
• Above Rs.7.5 lacs: Tangible collateral security equal to 100% of the loan
amount along with assignment of future income
Rate of Interest :
• Simple interest during repayment holiday/moratorium period.
• 1% interest concession, if interest debited during the repayment holiday is serviced.
• 1% Concession in rate of interest to loans for girl student.
• Penal interest @ 2% p.a. on overdue amount if loan exceeds Rs.4/- lacs.
• PRESENT RATE OF INTEREST: CLICK HEREbankofbaroda.com.

Frequently Asked Question

Education Loans in India  - FAQ

Students perusing Higher Education don’t have to struggle hard anymore to finance their Studies as now many Banks in India have are providing student loans. Not only loans, private foreign banks also seem to be interested in funding students, enthusiastic enough to announce scholarships for bright and deserving students.

With expensive professional education becoming mandatory for people across the country, a student loan seems the most effective way to tide over these expenses. Most students expect to land high salaries at the end of their professional training and are likely to be in a position to repay these loans over a period of time

What does one needs to look at in order to choose a loan?

Ideally, take a loan from a bank located at your place of study than one located where you reside, unless it concerns overseas studies. This is because you will have better access to funds if you take a loan from the place of your study. Secondly, Make sure the repayment period starts only after six to twelve months after you begin your working life. And thirdly, Banks typically prefer to finance students who opt for traditional courses.

For What Professional Courses do Banks generally provide education loans ?

Management students are among the top choices for most of the banks. Technology students from the country's premier institutions can also get student loans from Banks and Medical and engineering college students.

Banks don’t provide loans for students with a bachelor's/master's in Arts . Also, for courses where employment prospects are less (as per Bank’s own evaluation), loans are sanctioned on the basis of the parents' income.

How much Loan you can get ?

Loan for Studies in India Most of the Public Sector Banks in India have categorized Student Loans in two categories. For Studies in India , Students can borrow up to Rs 4 lakh without providing any security or margin. A loan amount of Rs 4 lakhs to Rs 7.5 lakhs can be availed against a third-party guarantee. This loan comes with a five percent margin (what this means is that you will get five percent less the amount sanctioned as loan; you will have to put together the rest of the money). The third-party guarantee can come from an uncle, neighbor or friend standing guarantee for the full amount.

Overseas study loans : Amounts worth Rs 7 lakhs and above are usually sanctioned against fixed deposits, NSC certificates, property worth the loan amount and a margin amount of 15 percent (what this means, again, is that you will get 15 percent less the amount sanctioned as loan; you will have to put together the rest of the money). Also, if a loan below Rs 4 lakhs comes at x rate of interest, the loan over Rs 4 lakhs is usually charged one percent higher interest. The Reserve Bank of India prescribes the specifics (amount, rate, repayment period) of education loans and the government provides a two per cent subsidy on these loans to the banks.

Important Note : Indian Banks’ Association (IBA) has recently formed a working group to address the issue of student loans and the rising rate of default. The group has submitted its findings to the Reserve Bank of India and the main suggestion is to make it mandatory for parents or guardians, of the student borrowing loans, to be co-borrowers thereby making them liable for repayment.

 

Repayment - Course period + 1 year or 6 months after getting job, whichever is earlier.

Documents required for applying a Student Loan ?

All students are required to submit mark sheets of last qualifying examination, poof of admission scholarship, schedule of expenses for the specified course, his/her bank account statement for the last six months, an income tax assessment order for the previous two years, a brief statement of assets and liabilities, of the co-borrower, which is usually the parent or guardian and proof of income, if any.

Some banks require all or any of the following documents as pre sanction documents:

To furnish the following documents along with the completed application form. Relevant information would relate to the guardian and the student both, when the loan is jointly taken.

1)Mark sheet of last qualifying examination for school and graduate studies in India
2)Proof of admission to the course
3)Schedule of expenses for the course
4)Copies of letter confirming scholarship, etc.
5)Copies of foreign exchange permit, if applicable.
6) 2 passport size photographs
7) Statement of Bank account for the last six months of borrower.
8) Income tax assessment order not more than 2 years old
9) Brief statement of assets and liabilities of borrower.
10)If you are not an existing bank customer you would also need to establish your identity and give proof of residence.

What is the Interest rate charged for Student/education loan ?

Most banks are vying with each other to aggressively market personal loans. The student loan segment is being viewed as vast untapped potential. Citibank and ICICI Bank are offering equally competitive schemes. Almost every prominent bank in the country has a student loan scheme in some form. What matters the most to an individual is obviously the cost of credit the terms and conditions for education loans. These, like any other loan, vary among banks. Besides pricing of the product, the most important thing is documentation requirement and the quality of service offered by the bank and the speed at which the loan is approved.

Some banks, such as SBI, also give you a choice between fixed and floating interest rate. Whereas, private and foreign banks offer loans with a fixed interest rate, some banks charge interest on a daily or monthly reducing balance.

 

Eligibility for getting a loan:

The applicant should be an India National
The applicant must have secured admission to professional/ technical courses through Entrance Test   Selection process
Secured admission to foreign university/ Institution

Which Banks are offering Education Loans in India ?

Most of the Private Sector banks, Foreign Banks and Public Sector Banks in India are providing Student Loans. You can visit Banks offering Student Loans in India for an overview of various loan Schemes offered by banks in India