*Please note quotes shown will be from Our Partners

Education Loan

Education forms an integral cog in the cycle of life. However, in today’s world, quality education right from the primary level to higher studies is a costly proposition. To solve this burden of student and their families, banking institutions have taken a crucial step by lending education loans that will help the students in this noble pursuit of pursuing higher studies from recognized educational institutions within the country or abroad. Bank of Baroda is one such banking institution among the many offering education loans in India.

Bank of Baroda was established in the year 1908 and is an Indian government owned banking and financial service organisation. It is also the second largest bank in India in terms of credits. Under its range of loan products is the Bank of Baroda education loan. It helps students looking to pursue quality education from educational institutions in India or abroad. Keeping in mind this need, Bank of Baroda offers various schemes for education loans to students for pursuing higher education either in India or in a foreign country. Let us look at the various types of education loans offered by the bank.
 

2. Types of Bank of Baroda Education Loans

  1. Baroda Vidya – A unique student loan scheme offered to parents for students pursuing school education. The key loan features are as follows:
  • This Bank of Baroda education loan is available for studies from Nursery to Senior Secondary School.
  • There is no processing fees or documentation charges
  • There is no margin or security required to avail the loan
  • The loan covers a range of expenses including college tuition fees, fees for Laboratory/library/examination, hostel charges, equipment/uniform purchase, cost of laptop/PC and various refundable deposits. 
  • The maximum loan amount is Rs. 4 lakh with no collateral or guarantor requirement.
  • The loan sub-limit of each year is payable in 12 EMIs starting from 12 months after the first disbursement of each year’s loan component
  • 0.50% concession on regular interest rate for girl students.

Eligibility: The following criteria help determine education loan eligibility:

  • The individual should be a Resident Indian
  • The students should have secured admission in a school, high school or junior college for Nursery to XII Standard
  • The parents must be residing in the current place for a minimum of 3 years except in case of a transferable job.
  • In case of loan for purchase of computers, the computer should be hypothecated to the bank

Documentation: The table below gives you the list of loan documents required for availing a Bank of Baroda student education loan:

Objective

Salaried

Others

Proof of identity

  • Voter ID card
  • Driving license
  • Passport
  • Pan card, or
  • Any Govt. department ID card
  • Passport
  • Voter ID card
  • Pan card
  • Aadhar Card

Proof of income

  • Latest salary slip from the organisation you are currently working showing all the deductions, or
  • Form 16 along with latter salary certificate
  • IT return of past 2 years and computation of income for past two years certified by a CA

Proof of residence

  • Latest electricity bill / telephone bill /
  • Latest bank account statement
  • Latest statement of credit card or
  • Existing house lease agreement
  • Current bank account statement
  • Credit card statement
  • Latest telephone bill / mobile bill / electricity bill, or
  • Actual house lease agreement

Passbook or bank account where salary is credited

Required for the last 6 months

Required for the Last 6 months

Insurer form

Not mandatory but optional

Not mandatory but optional

Other documents/educational documents

  • Copy of fee slip
  • Admission letter to the educational institutions
  • Pass certificate
  • School leaving certificate and matriculation certificate
  • Copy of admission proof to the educational institution along with fees structure, and
  • Fee slip / mark sheet / pass certificate / school leaving certificate / degree courses especially for those opting loan for courses

Note: The loan documents required for various Bank of Baroda student scheme loan is almost same.

Interest Rate

  • Interest on education loan is calculated as 1yr. MCLR +2.5% + Strategic Premium as determined by the bank. 
  1.  Baroda Gyan – A student loan scheme for students pursuing Graduation, post-Graduation, Professional and other courses. The features of the loan is as follows:
  • There are no processing charges
  • No requirement of margin for loans up to Rs. 4 lakh and above Rs. 4 lakh there is a margin of 5%
  • The account offers free Debit Card
  • The Bank of Baroda education loan covers expenses for fees payable to school or college, examination/library/laboratory fee, hostel fees and charges, purchase of books/equipment/instruments or uniforms, personal computers or laptops, caution deposit or building fund or refundable deposits
  • The maximum amount of loan offered is Rs. 10 lakh
  • For a loan amount up to Rs. 7.5 lakh, the repayment period is 10 years and for amounts higher than Rs. 7.5 lakh it is 15 years
  • For a loan amount above Rs. 4 lakh and up to Rs. 7.5 lakh, collateral security is required which shall be a suitable third party guarantee and assignment of future income. For loans above Rs. 7.5 lakh, a tangible collateral security equivalent to 100% of the loan amount is required along with assignment of future incomes

Eligibility

  • The student should be a Resident Indian
  • The student should have secured admission in any of the eligible courses like Graduation, Post-Graduation, professional courses, computer certificate courses, CA, CS, ICWA, CFA, regular degree or diploma courses, etc.

The strategic premium component is dependent on individual client profiles and would vary from one loan applicant to another.

  1. Baroda Scholar – A student loan scheme offered to students going abroad to pursue higher studies. The features of the loan are as follows:
  • The Bank of Baroda student education loan covers expenses like admission or tuition fees payable to the College or University, hostel or Mess charges, examination / library / laboratory fees, purchase of books / equipment/ instruments, caution deposit / building fund / refundable deposit supported by institution bills or receipts, one way travel expense or passage money, purchase of computers if essential to complete the course, any other relevant expenses like study tours, project work, etc.
  • The maximum amount of education loan granted is Rs. 15 lakh
  • There is a requirement of margin which is 15%
  • For a loan amount up to Rs. 7.5 lakh, repayment period is 10 years and for amounts higher than Rs. 7.5 lakh it is 15 years
  • For a loan amount above Rs. 4 lakh and up to Rs. 7.5 lakh, collateral security is required which shall be a suitable third party guarantee and assignment of future income. For loans above Rs. 7.5 lakh, a tangible collateral security equivalent to 100% of the loan amount is required along with assignment of future incomes

Eligibility: The eligibility criteria of Bank of Baroda education loan are provided below:

  • The student should be an Indian National
  • He or she should have secured admission to a Professional or Technical courses offered by reputed Universities overseas
  • The courses which are covered include graduate, post-graduate, doctorate, job oriented professional course study in India, technical courses, regular degree or diploma courses like aeronautical, pilot training, shipping, etc. The Institute should be recognised by the local aviation or shipping authority and Director General of Civil Aviation or Shipping in India
  1. Baroda Education Loan for Vocational Education and Training – A loan for vocational education or training purpose. The features of vocational education loan and vocational training loan are as follows:
  • This vocational education and training loan is specifically granted to students who are pursuing specific trade or occupation programme from reputed educational institutions such as craftsmanship, technicians, nursing, etc.
  • Loan for vocational education was first initiated by Indian Banks Association and later it was adopted by major public sector and private sector banks. The reason why they came up with this student loan scheme was because of maximum dropouts of students from such vocational education and training programmes was due to lack of financial support and the high fee structure.
  • The amount of education loan offered is based on the need of the individual and the amount is Rs. 20,000 for courses with duration of up to 3 months, Rs. 50,000 for courses above 3 months and up to 6 months, Rs. 75,000 for courses above 6 months and up to 1 year and Rs. 1.5 lakh for courses above 1 year
  • Expenses covered under the vocational education and training loan scheme are tuition or course fees, examination / library / laboratory fees, caution deposit, cost of books / equipment and instruments, any other reasonable expense necessary to complete the course
  • There is no margin requirement under the loan for vocational education and training
  • There is no processing charge or documentation charge under the scheme for Bank of Baroda vocational education and training loan
  • A guarantor or collateral security is not required to avail the loan under vocational education and training. However, the parent or guardian of the student is required to execute the loan document along with the student as a co-borrower
  • Repayment of loan starts 6 months post the completion of course for courses with durations of up to 1 year. For courses above 1 year, the repayment period will start 12 months post the completion of the course.
  • The maximum period of repayment depends on the amount of loan availed. For loans up to Rs. 50,000, the repayment period is up to 2 years, for amounts between Rs. 50,000 to 1 lakh the repayment period is 2-5 years and for amounts above Rs. 1 lakh, the repayment period is 3-7 years
  • The Bank of Baroda loan for vocational education and training can be prepaid anytime as per the discretion of the borrower. There will be no application of any sort of prepayment charges for early repayment.
  • A Group Credit Life Insurance cover is available at the choice of the borrower who will have to pay the subsequent premium if the coverage is availed. The bank will include the relevant amount of premium in the cost of the loan and charge it from the customer.

Eligibility

  • The borrower should be an Indian National who has secured admission in a course approved or supported by a Ministry / Department / Organization of the Government or a Company / Society / Organization which has support from National Skill Development Corporation or State Skill Corporations/Missions which preferably leads to a certificate, diploma or degree issued by a Government organization or an organization that is recognized or authorized by the Government.
  • The eligible list of courses include vocational / skill development courses of durations from 2 months to 3 years which is run or supported by a Ministry / Department / Organization of the Government or a Company / Society / Organization supported by National Skill Development Corporation or State Skill Missions / State Skill Corporations preferably leading to a certificate / diploma / degree issued by a Government organization or an organization recognized / authorized by the Government to do so. State Level Banker’s Committee (SLBC)/ State Level Co-ordination Committee may add other skill developing courses or programs having good employability.
  • The student should not be a minor and if he or she is a minor, then the loan documents should be executed by the parents and the bank a letter of ratification from the student when he or she attains majority. There is no maximum age specification to avail the loan.
  1. Baroda Education Loan to Students of Premier Institutions – A loan granted to students who have secured admission in any one of the premier institutions mentioned in the bank’s pre-set list of institutions. The features are as follows:
  • The institutions are sorted in two lists called List A and List B
  • The expenses covered by the loan includes fees payable to the College / University / hostel / school / Institution, examination / library / laboratory fees, hostel fees and charges, purchase of books / equipment/ instruments, caution deposit / building fund / refundable deposit supported by institution bills or receipts provided the amount does not exceed 10% of the tuition fees of the entire course, purchase of computers or laptops if essential to complete the course, insurance premium for student borrower, any other relevant expenses like study tours, project work, etc.
  • For List A institutes, the maximum amount of loan available is Rs.  15 lakh with no security but only the obligation of parents or guardians to act as a co-borrower and Rs. 30 lakh with a tangible collateral security of the equivalent amount of loan and the obligation of the parents or guardians to act as a co-borrower. For List B Institutes, the maximum amount of loan granted is Rs. 7.5 lakh with no security but only the obligation of parents or guardians to act as a co-borrower and Rs. 30 lakh with a tangible collateral security of the equivalent amount of loan and the obligation of the parents or guardians to act as a co-borrower
  • There is no requirement of margin for the loan
  • For loans up to Rs. 7.5 lakh, the repayment period consists of a maximum of 120 instalments while for loans above Rs. 7.5 lakh, the repayment period consists of a maximum of 180 instalments.
  • The progress report of the student is required to be submitted to the bank regularly
  • For loans up to Rs. 10 lakh, there is no processing charge but for loans above this amount, a processing charge of 0.50% of the sanctioned amount is levied which is refunded after availing the first instalment of loan.

Eligibility

  • Full-time regular courses conducted by the mentioned Premier Educational Institutions are eligible for Bank of Baroda education loan
  • The student should be a Resident Indian who has secured admission to the professional or technical course of the listed Institution
  1. The National Skill Certification and Monetary Reward Scheme under Bank of Baroda Vocational Education and Training Loan:

This student loan scheme is an attempt from the National Skill Development Corporation which is indented to stimulate Indian youth with monetary rewards after they have successfully completed the skill development programme as part of their approved training course. As part of Bank of Baroda education loan for vocational education and training, it offers loans to deserving students who wish to pursue specific skill development courses as part of national skill certification and for brighter future job prospects.

The salient features of this special Bank of Baroda student loan scheme are:

  • The acclaimed National Skill Development Corporation is the implementer of this course
  • The complete list of accepted expertise development course and their associated training institutions can be taken from the National Skill Development Agency website as well as from National Skill Development Corporation website
  • Minimum training duration provided is for 30 days. The tenure of loan depends on the duration of the course and will vary accordingly for each course. An entire spectrum of job training, social skills and other such skill training may also be comprised in this programme
  • Once the job and other training are completed, an approved body will conduct the assessment and issue the certificate.

List of applicable monetary rewards: The table below represent the list of relevant financial bonuses for attaining the certification under Bank of Baroda education loan:

Domain

NSQF Level 1 and 2

NSQF Level 3 and 4

Manufacturing

Rs. 10,000

Rs. 15,000

Service sector and other

Rs. 7,500

Rs. 10,000

3. Interest Rate on Bank of Baroda Education Loan

  • Interest rate for this Bank of Baroda student scheme is up to Rs. 7.5 lakh is 1yr MCLR + 2.5% + Strategic Premium
  • Interest rate for loans above Rs. 7.5 lakh is 1yr. MCLR + 1.75% + Strategic Premium

4. Applying for Bank of Baroda Education Loan Online

Paisabazaar is your one-stop shop when seeking an education loan that suits your specific requirement. You can easily log on to the Paisabazaar website and click on the education loan tab in order to get to the education loan eligibility calculator. Once you have provided the basic details about yourself, you can view the various education loan options that you can qualify for. You can choose Bank of Baroda education loan from the list and select that specific loan option. If your application is accepted, you will be contacted by a BoB representative for completion of additional formalities.

Get Free Credit Report