Bank of Baroda Education Loans

Bank of Baroda is one of the oldest banks in India, and is a premier bank trusted by millions around the country. Bank of Baroda has numerous branches, along with ATMs and other modes of reaching out to the customer. It offers a wide range of services to customers, including home loans, e-terms, car loans, accounts, investments and insurance, education loans, and much more.

Education is of paramount importance today. Through education, we not only gain knowledge but also grow in our career. The quality of education is indeed crucial in today's environment. Whether your dream is:

• to gain professional skills or school education

• to study in India or abroad

• to study in a college or university,

• to choose a PG course or a graduation course,

• to select a degree course,

• or to choose a general course or a job-oriented course,

Bank of Baroda shall stand with you to fulfill these dreams. The bank is mindful of the fact that  sometimes, students and their families may not have the required funds. Hence, Bank of Baroda Education Loans have customer-centric regulations. Most of the loans have 10 to 15 years as the loan repayment period, along with a moratorium period. At the same time, securities are not required for loans of up to Rs. 4 lakhs.

Let us now take a look at the various Education Loan schemes on offer from Bank of Baroda.

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Bank of Baroda Education Loan Schemes

Baroda Vidya 

This loan is provided to students opting for education from nursery to Class 12 in any recognized school. As per the loan, the maximum loan amount is Rs. 4 lakhs. It will be disbursed in 12 monthly installments.

Purpose

The loan is for the parents of those students who wish to pursue education in standards ranging from nursery to Class 12.

Scope of the loan: The maximum amount to be provided is Rs. 4 lakh. The bank grants the loan in the name of the student's parent(s). This is a need-based loan and is dependent on the ability of the parents to repay. Included are the courses offered by institutes which are approved by the Central or State Government. 

Key Benefits

• No documentation and processing charges

• No loan margin

• No loan security needed

Eligibility

For the Student:

• Needs to be an Indian citizen residing in India

• Needs to have secured admission to a recognized institution, school, high school, or junior college for specific courses divided into stages.

  • Stage 1: from nursery to the 5th standard

  • Stage 2: from the 6th standard to the 8th standard

  • Stage 3: from the 9th standard to the 12th standard

Expenses Covered

• Fees for the school or college

• Library, exam, and lab fees

• Hostel fees and related charges

• Funds for buying books, instruments, uniforms, and equipment

• Purchase of a computer or laptop when required

• Building funds, caution deposit, and refundable deposits (supported by bills and receipts from the institute)

Note: Cost of external tuition is not covered under the loan

Repayment Term

Loan for the yearly sub-limit can be repaid in equal monthly installments by 12 months. The first installment will be due from 12 months after the first disbursement. The interest shall be adhered to as applied during the moratorium period.

Capacity for Repayment

Total deductions from the family's income, including the interest and installment payments should not be more than 60% of the loan taker's total revenue. If the spouse is working, his/her income shall be considered as well. For this, the bank needs proof of income.

Security

• Security is not needed.

• If the loan is for buying a computer, the loan should be hypothecated to the bank branch.

Loan Disbursement

• Loan disbursement is directly to the educational institution and hostel (either term-wise or year-wise).

• Loan disbursement is made to shops and booksellers directly for the purchase of instruments, books, and equipment.

• The disbursement shall be made only when the student has passed the year's annual exam and has got a progress report or mark sheet, which needs to be produced at the bank by the parents.

Where to Get the Loan

1. BOB branch near the institute

2. BOB branch near the student's/parent's residence

3. BOB branch near the service or posting of the main branch

Documents Needed

An affidavit or a stamped declaration that no other education loans have been availed from any other banks.

Interest Rates & Charges

The current rate of interest is under:

• One-year MCLR plus 2.5% strategic premium (SP). There is a 5% concession for girl students (when applicable).

• The penal interest is 2% on any overdue amount when the loan's total amount is more than Rs. 2 lakhs.

Processing Charges

• Studying in India: No charges

• Studying abroad: 1% of the total loan amount to a maximum of Rs. 10000. This amount is recovered upfront and is refunded by the bank when the first disbursement is received.

• Studying at premier institutions: No charges

• Taking vocational training and education: No charges

• Taking career development courses: 0.5% charge

• Career Development: 0.50%

To be remembered:

A non-refundable amount of Rs. 8500 per property shall be taken upfront in instances of education loan accounts when the said property is mortgaged.

• Mortgage creation charges: No charges

• Deviation charges: No charges

Baroda Gyan

Main Benefits

• Processing and documentation fees are not charged

• There is no loan margin on loan amounts of up to Rs. 4 lakhs

• The applicant gets a free debit card

Target Clientele

• Students who wish to get further education in:

  • UG courses

  • PG courses

  • Profession courses

  • Other courses within India

Range of Finance

• For medical and aviation training courses- maximum of Rs. 80 lakhs

• For other courses- maximum of Rs. 10 lakhs

• Need-based loan (depending on the repayment capacity of parents)

Eligibility

For the Student:

• Should be a resident of India.

• Should have completed the higher secondary exam.

• Should already have gotten admission through an entrance test or a merit-based test in any recognized educational institution, in a course that is approved by the government, the UGC, or the AICTE.

  • In cases where the selection made is not based on merit or marks, the sanctioning authority has the power to adopt an appropriate criterion based on the reputation and employability of the educational institution.

  • A deserving or meritorious student shall be eligible even if the student wishes to pursue a course in a management quota seat.

Courses Covered by the Loan

1. UG courses like B.Com, BA, B.Sc, and others

2. PG courses like Ph.D. and Masters

3. Professional and skill-building courses like medicine, engineering, agriculture, computers, etc.

4. Management courses such as hotel management, event management, event management, mass communication and other courses offered by reputed institutions providing assured employment possibilities.

5. Computer certification courses offered by reputed educational institutes which are Department of Electronics accredited and are accredited by a recognized university

6. Courses like CFA, ICWA, and CA, amongst other similar ones

7. Courses that are conducted by bodies like IIM, XLRI, NIFT, IISc, IIT, and others

8. Regular diploma and degree courses that are approved by the Director-General of Shipping or the Director-General of Civil Aviation

9. Courses offered by reputed foreign universities in India

10. Evening courses that are from an authorized institute

11. Courses that lead to a degree, diploma, or similar certification, and which is conducted by a UGC-approved university, by the government, AIBMS, AICTE, ICMR, or others

12. Teacher Training Course, BEd, and training courses shall be eligible for an education loan. The condition here is that the institution offering training needs to be approved by either the Central or State government. For such courses, the fees shall be determined and approved by regulatory bodies approved by either the Central or State governments.

The Bank shall endorse other courses and institution based on recognition and prospects.

Interest Rates and Charges

Simple interest shall be charged every month during the moratorium period. The interest rate is 1-year MCLR+2%. This is irrespective of the loan amount. For girl students, there shall be a concession of 5% on the interest rate .

The penal interest is 2% on any overdue amount when the loan's total amount is more than Rs. 2 lakhs.

Fees and Service Charges

• Studying in India: No charges

• Studying abroad: 1% of the total loan amount to a maximum of Rs. 10000. This amount is recovered upfront and is refunded by the bank when the first disbursement is received.

• Studying at premier institutions: No charges

• Taking vocational training and education: No charges

• Taking career development courses: 0.5% charge

• Career Development: 0.5%

To be remembered:

A non-refundable amount of Rs. 8500 per property shall be taken upfront in instances of education loan accounts when the said property is mortgaged.

• Mortgage creation charges: No charges

• Deviation charges: No charges

Margin

• No margin for loans of up to Rs. 4 lakhs

• 5% margin for loans beyond Rs. 4 lakhs

Moratorium Period

Total course period plus one year

Expenses Covered

• Fees for the institution

• Library, exam, and lab fees

• Hostel fees and related charges

• Funds for buying books, instruments, uniforms, and equipment

• Purchase of computer or laptop when required

• The student's insurance premium

• Other expenses like study tours, thesis, and project works essential for the course

• Building funds, caution deposit, and refundable deposits (supported by bills and receipts from the institute) as long as this amount is not more than 10% of the loan amount

• If admission is under management quota, the fees are approved by the state government or by a regulatory body approved by the government.

Note: The cost of external tuition is not covered under the loan

Repayment Period

• The loan repayment period is 10-15 years at most,  after the moratorium period.

• The repayment period is moratorium period plus a maximum of 120 installments in case of loans of up to Rs. 7.5 lakhs

• The repayment period is moratorium period plus a maximum of 180 installments in case of loans of more than Rs. 7.5 lakhs

Loan Security

• When the loan is up to Rs. 4 lakhs, no security or co-obligation is parents are needed.

• When the loan is above Rs. 4 lakhs and till Rs. 7.5 lakhs, securities include third-party guarantee with future income assignment.

However, a regional or local authority may employ the discretion to waive off the condition of third party guarantee when:

• the authority is satisfied with the parent's net worth, who would be the joint borrower,

• it wishes to financially support deserving and meritorious students who are otherwise unable to study due to lack of third-party guarantees.

For loans above Rs. 7.5 lakhs:

The security, in this case, needs to be tangible, and it should be 100% of the loan amount. The security shall further include the student's future income and shall be payable in installments.

Loan Disbursement

• Loan disbursement is direct to the educational institution and hostel either term-wise or year-wise.

• Loan disbursement is to shops and booksellers directly for the purchase of instruments, books, and pieces of equipment.

• If the student cannot get a residence or hostel facility from the institute, he or she is free to make an arrangement in which the loan shall aid them. However, in this case, the charges for boarding shall be disbursed directly to the establishment concerned after bonafide verification.

Where to Get the Loan

1. BOB branch near the institute

2. BOB branch near the student's/parent's residence

3. BOB branch near the service or posting of the main branch

Baroda Scholar

This loan is for students who wish to study MBA, MS, MCA, and other courses which aid in getting jobs. To get this loan within India, one needs to have admission in an institute or course. Specified institutes' courses have a loan limit of Rs. 80 lakhs. The loan limit for non-specified educational institutions is Rs. 60 lakhs.

Main Benefits

• There are no processing charges.

• The applicant gets a free debit card.

• There is no margin in case of loan amounts of up to Rs. 4 lakhs.

Courses Covered

• UG courses like professional and job-oriented courses, technical courses, etc. offered by well-known universities

• PG courses like MS, MCA, MBA, and others

• Diploma and regular courses in disciplines like pilot training, aeronautical, shipping, and others. These courses need to be recognized by the local Shipping or Aviation authority as well as the Directors of the respective organizations, or regulatory bodies in India or abroad for getting employment

• Management courses, STEM courses, vocational courses, job-oriented courses, and other courses

• The loan shall also be considered for those courses which have not been listed above, which fall under the regular education loan scheme and where the courses do not get any preferential treatment

• The loan shall be considered for courses abroad other than the ones listed above, and which are not specified either

Eligibility Criteria

• The student needs to be an Indian national.

• The student needs to have secured admission to a technical course/professional course through a merit-based/entrance test selection process.

Scope of Finance

If the institution is listed in the bank's list of premier institutes, the loan amount shall be up to Rs. 80 lakhs

If the institution is not listed in the bank's list of premier institutes, the loan amount shall be up to Rs. 60 lakhs

This is a need-based loan, the provision of which depends on the repayment capability of the parents.

Loan Margin

There is no margin for institutions that are listed in the bank's list of premier institutions. This is irrespective of the loan amount.

In case the institution is not listed, there is no margin for loans upto Rs. 4 lakhs, but there is a margin of 10% in case of a loan beyond Rs. 4 lakhs.

Moratorium

Course period plus one year

Expenses Covered

1. Fees for the institution

2. Library, exam, and lab fees

3. Hostel fees and related charges

4. Funds for buying books, instruments, uniforms, and equipment

5. Purchase of computer or laptop when required

6. Passage money

7. The student's insurance premium

8. Other expenses like study tours, thesis, and project works essential for the course

9. Building funds, caution deposit, and refundable deposits (supported by bills and receipts from the institute) as long as this amount is not more than 10% of the loan amount

Note: The cost of external tuition is not covered under the loan

Remember that the details of expenses for the whole course needs to be obtained from the institute.

Repayment Period

The loan repayment period is 10-15 years at most, after the moratorium period.

The repayment period is moratorium period plus a maximum of 120 installments in case of loans till Rs. 7.5 lakhs

The repayment period is moratorium period plus a maximum of 180 installments in case of loans of more than Rs. 7.5 lakhs

Security

• When the loan is up to Rs. 4 lakhs, no security or co-obligation of parents is needed.

• When the loan is above Rs. 4 lakhs and till Rs. 7.5 lakhs, securities include third-party guarantee with future income assignment.

However, a regional or local authority may employ the discretion to waive off the condition of third party guarantee when:

• the authority is satisfied with the parent's net worth, who would be the joint borrower,

• it wishes to financially support deserving and meritorious students who are otherwise unable to study due to lack of third-party guarantees.

For loans above Rs. 7.5 lakhs:

The security, in this case, needs to be tangible, and it should be 100% of the loan amount. The security shall further include the student's future income and shall be payable in installments.

Loan Disbursement

• Loan disbursement is direct to the educational institution and hostel either term-wise or year-wise.

• Loan disbursement is to shops and booksellers directly for the purchase of instruments, books, and pieces of equipment.

• If the student cannot get a residence or hostel facility from the institute, he or she is free to make an arrangement in which the loan shall aid them. However, in this case, the charges for boarding shall be disbursed directly to the establishment concerned after bonafide verification.

Where Can the Loan Be Availed From?

The loan can be availed online from the bank's website.

Interest Rates

If the institution is listed in the bank's list of premier institutions, the interest rate is one-year MCLR+1.25%. This is irrespective of the loan amount.

If the institution is not listed in the bank's list of premier institutions, the interest rate is one-year MCLR+2%, irrespective of the loan amount.

Simple interest shall be charged every month during the moratorium period.

For girl students, there shall be a concession of 2% on the interest rate .

The penal interest is 2% on any overdue amount when the loan's total amount is more than Rs. 2 lakhs.

For a complete list of specified institutions abroad, please click here.

Processing Fees

• Studying in India: No charges

• Studying abroad: 1% of the total loan amount to a maximum of Rs. 10000. This amount is recovered upfront and is refunded by the bank when the first disbursement is received.

• Studying at premier institutions: No charges

• Taking vocational training and education: No charges

• Taking career development courses: 0.5% charge

• Career Development: 0.5%

• Rs. 8500 shall be taken as a non-refundable sum for each article of property mortgaged.

Baroda Education Loan to Students of Premier Institutions

This loan is for Indian nationals who have already got admission in premier educational institutions within India. The amount of loan depends on the Bank's categorization of the institute.

Top Benefits

1. There are no processing charges.

2. There is no margin.

3. The applicant gets a free debit card.

Eligibility

Courses: Full-time courses conducted by premiere educational institutions. Here is the full list of institutions. 

Student: The student needs to be an Indian national, and should have already secured admission to technical or professional courses through merit-based processes or an entrance test as the selection process.

Charges and Interest Rates

• Under this loan scheme, there are no special concessions for female students.

• Simple interest shall be charged every month during the moratorium period.

• The penal interest is 2% on any overdue amount when the loan's total amount is more than Rs. 4 lakhs.

• The interest accrued during the moratorium period shall be added to the principal amount, and the repayment by EMIs is then fixed.

Fees and Service Charges

1. Studying in India: No charges

2. Studying abroad: 1% of the total loan amount to a maximum of Rs. 10000. This amount is recovered upfront and is refunded by the bank when the first disbursement is received.

3. Studying at premier institutions: No charges

4. Taking vocational training and education: No charges

5. Taking career development courses: 0.5% charge

6. Career Development: 0.5%

To be remembered:

A non-refundable amount of Rs. 8500 per property shall be taken upfront in instances of education loan accounts when the said property is mortgaged.

There are no mortgage creation charges for any education loans.

Interest Rates

List of supported and categorized premier institutes

Interest rates for institutions on List-AA - 1-year MCLR

Interest rates for institutions on List-A - 1-year MCLR

Interest rates for education institution on List B:

One-year MCLR along with SP (strategic premium) for those loans that are up to Rs. 7.5 lakhs.

One-year MCLR along with SP for those loans that are more than Rs. 7.5 lakhs.

Interest rates for institutions on List-B-

1-year MCLR plus 0.75% for loans till Rs. 7.5 lakhs.

1-year MCLR plus 0.50% for loans exceeding Rs. 7.5 lakhs.

Interest rates for institutions on List-C-

1-year MCLR plus 0.75% for loans of up to Rs. 7.5 lakhs.

1-year MCLR plus 0.50% for loans beyond Rs. 7.5 lakhs.

Skill Loan Scheme

The loan is provided to those students who are taking a technical course. Such courses can be taken from polytechnics and such other training institutes. The loan amount under this scheme is in the range of Rs. 5000 to Rs. 1,50,000. The repayment period is dependent on the loan, and can go up to seven years.

Eligibility

Training institutes

This loan supports a specific type of courses run by certain types of organizations. These include training courses which are run by ITIs or Industrial Training Institutes, Polytechnics or a school that is recognized either by the state or central education board. These can be recognized by the college as well.

Such a college needs to be affiliated by a recognized university or a training partner. Such training partners must be affiliated to the NSDC or the National Skill Development Corporation, Sector Skill Councils, State Skills Corporation, or State Skills Mission.

The course should preferably lead to a diploma, certificate, or degree that is issued according to the National Skill Qualification Framework.

Training Courses

When it comes to the courses approved under this loan, such courses come under the organizations listed above. These need to be aligned to the NSQF. Under this loan scheme, there is no minimum duration specified for a course.

The loan scheme supports skill development or vocational courses, which have a duration of two months to three years. Government ministries or public organizations that are supported by the NSDC, State Skill Missions/State Skill Corporations have to support the course.
The course has to lead to either a diploma, a certificate, a degree or some other recognition issued by a Government-recognized body.
The loan additionally supports those skill development courses or programs by State Level Bankers Committee, SLCC, or State Level Coordination Committee.

Student Eligibility

• Nationality

The applicant needs to an Indian National.

• Minimum Age

There is no minimum age restriction. However, in case the student happens to be a minor, his or her parents shall have to sign the documents on behalf of him/her. The bank shall also require a letter of acceptance or ratification from the child when he/she has reached the age of maturity.

• Minimum Qualifications

The minimum qualifications are as needed by the institution or organization where the student has enrolled, as per the guidelines of the NSQF.

• KYC Requirement

Along with other documents, as required by the institutes and lending banks, the Aadhar number shall be needed as well for verification.

Charges and Interests

There are no processing and documentation charges.

MCLR is at MCLR plus 1.50%.

It shall be the borrower's option to pay back the interest during the moratorium or study period.
In case the interest is paid back during the moratorium period, the borrower shall get an interest rate concession of 1% for the whole tenure of the loan.
Girl students shall get 0.5% interest concession as an incentive.
With or without any concessions, the interest rate shall not be below the base rate (MCLR).

Scope of the Loan

• Loans start from Rs. 5000 and shall be till the maximum amount of Rs. 1,50,000.

• If the course duration is three months, the loan amount shall be Rs. 50k max.

• If the course duration is more than three months and till six months, the loan amount shall be Rs. 75000 max.

• If the course duration is more than six months and till one year, the loan amount shall be Rs. 1 lakh max.

• If the course duration is more than one year, the loan amount shall be Rs. 150000 max.

Expenses Covered

• Course fee

• Lab, exam, and library fees

• Security deposit

• Cost of equipment, books, and instruments

• Other reasonable expenses essential for course completion

Loan Security

No third-party guarantee or collateral needed. However, parents will need to sign the loan documents as they shall be joint borrowers with their child as the primary borrower.

Moratorium Period

• From 6 months onwards after course completion if the course is one year long.

• From 12 months onwards after course completion if the course is more than one year long.

Loan Repayment

• Loan repayment period is a maximum of three years for loans of up to Rs. 50000.

• Loan repayment period is a maximum of five years for loans between Rs. 50000 and Rs. 100000.

• Loan repayment period is a maximum of seven years for loans more than Rs. 100000.

Baroda Education Loan for EDP Offered by Premier Institutions in India

This education loan from the Bank of Baroda is for Indian residents. The loan amount can be up to Rs. 20 lakhs. To qualify, the student needs to have been admitted to the institute and should be employed during the study period as well.

Top Features

1. There are no processing fees.

2. The applicant gets a free debit card.

3. There is no margin if the loan is upto Rs. 4 lakhs.

Eligibility

Course Eligibility

This course supports Executive Development Programs, both online and part-time. These are offered by the premier institutions as listed and categorized by Bank of Baroda. These also include those programs that impart education using technology platforms of Times Pro, Hughes Global Education, and others.

Here is the complete list of the approved institutions.

Student Eligibility

• The student needs to be an Indian resident.

• The student should already have gotten admission in technical or professional courses within India.

• The student needs to be employed already, and needs to be gainfully employed for the duration of the course.

Range of Finance

The maximum amount one can get is Rs. 20 lakhs.

Margin on Loan

There is no loan for loans till Rs. 4 lakhs.

There is a 5% margin for loans above Rs. 4 lakhs.

Moratorium Period

Course period plus three months.

Expenses Covered

• Fees for the institution

• Library, exam, and lab fees

• Hostel fees and related charges

• Funds for buying books, instruments, uniforms, and equipment

• Purchase of a computer or laptop when required

• The student's insurance premium

• Other expenses like study tours, thesis, and project works essential for the course

• Building funds, caution deposit, and refundable deposits (supported by bills and receipts from the institute), as long as the amount is not more than 10% of the loan.

• While external tuition is not supported, the loan does support hostel charges, living expenses, mess expenses, and other such charges.

Before getting the loan, the bank needs to get details of the expenses from the institution.

Loan Repayment Period

• Loans under this scheme need to be repaid within 10-12 years once the moratorium period is complete.

  • Moratorium period plus 120 installments when the loan is of up to Rs. 7.5 lakhs.

  • Moratorium period plus 180 installments when the loan is more than Rs. 7.5 lakhs.

Security

Rs. 15 lakhs is the limit until which there is no collateral.

100% of loan security coverage needs to be given for loans beyond that amount.

Loan Disbursement

• The loan is paid directly to the education institution per year in installments as needed.

• The loan is also disbursed directly to shops and booksellers for items needed for the course.

Interest Rates

There are no special concessions for girl students.

It is compulsory to repay the interest during the moratorium period.

Interest rates for institutions on List-AA - 1-year MCLR

Interest rates for institutions on List-A - 1-year MCLR

Interest rates for education institution on List B:

One-year MCLR plus SP (strategic premium) for loans of up to Rs. 7.5 lakhs.

One-year MCLR plus SP (strategic premium) for loans more than Rs. 7.5 lakhs.

Here is the complete list of supported institutions.

Processing Charges

• Studying in India: No charges

• Studying abroad: 1% of the total loan amount to a maximum of Rs. 10000. This amount is recovered upfront and is refunded by the bank when the first disbursement is received.

• Studying at premier institutions: No charges

• Taking vocational training and education: No charges

• Taking career development courses: 0.5% charge

• Career Development: 0.50%

To be remembered:

A non-refundable amount of Rs. 8500 per property shall be taken upfront in instances of education loan accounts when the said property is mortgaged.

• Mortgage creation charges: No charges

• Deviation charges: No charges

Baroda Education Loans for EDP Offered by Premier Institutions Abroad

Under this education loan, one can get a maximum of Rs. 80 lakhs for EDC or Executive Development programs abroad. The student should have gotten admission in an educational institution before getting the loan. The student should be employed while applying for the loan and during the course period as well.

Top Benefits

1. There are no processing fees.

2. The margin does not apply for loans till Rs. 4 lakhs.

3. The applicant gets a free debit card.

Eligibility Criteria

Criteria for Courses

• The EDC courses can be in part-time, online, and distance learning formats.

• These need to be offered by foreign premiere institutions and should be listed in the bank's own comprehensive list.

• Courses included are also those that are offered using Times Pro or Hughes Global Education technology.

• Here is the complete list of approved educational institutions.

Student Eligibility

• The student needs to be an Indian resident.

• The student should already have gotten admission in technical or professional courses within India.

• The student needs to be employed already and needs to be gainfully employed for the duration of the course.

Range of the Loan

One can get a maximum of Rs. 80 lakhs under this loan scheme.

Margin

There is no margin till Rs. 4 lakhs.

There is a 5% margin for loans above Rs. 4 lakhs.

Moratorium Period

Course period plus three months.

Expenses Covered

• Fees for the institution

• Library, exam, and lab fees

• Hostel fees and related charges

• Funds for buying books, instruments, uniforms, and equipment

• Purchase of a computer or laptop when required

• The student's insurance premium

• Other expenses like study tours, thesis, and project works essential for the course

• Building funds, caution deposit, and refundable deposits (supported by bills and receipts from the institute), as long as the amount is not more than 10% of the loan.

• While external tuition is not supported, the loan does support hostel charges, living expenses, mess expenses, and other such charges.

Before getting the loan, the bank needs to get details of the expenses from the institution.

Loan Repayment Period

• Loans under this scheme need to be repaid within 10-15 years once the moratorium period is complete.

  • Moratorium period plus 120 installments when the loan is of up to Rs. 7.5 lakhs.

  • Moratorium period plus 180 installments when the loan is more than Rs. 7.5 lakhs.

Loan Security

• When the loan is up to Rs. 4 lakhs, no security or co-obligation of parents is needed.

• When the loan is above Rs. 4 lakhs and till Rs. 7.5 lakhs, securities include third-party guarantee along with future income assignment.

However, a regional or local authority may employ the discretion to waive off the condition of third party guarantee when:

• the authority is satisfied with the parent's net worth, who would be the joint borrower,

• it wishes to financially support deserving and meritorious students who are otherwise unable to study due to lack of third-party guarantees.

Loan Disbursement

• Loan disbursement is made directly to the educational institution and hostel either term-wise or year-wise.

• Loan disbursement is made directly to shops and booksellers for the purchase of instruments, books, and pieces of equipment.

• If the student cannot get a residence or hostel facility from the institute, he or she is free to make an arrangement in which the loan shall aid them. However, in this case, the charges for boarding shall be disbursed directly to the establishment concerned after bonafide verification.

Interest Rates

Interest needs to be repaid during the moratorium period.

In case the institution is included in the list of premier institutions, the interest chargeable is 1-year MCLR plus 1.25% spread along with the SP. This is irrespective of the loan amount.

In case the institution is not included in the list of premier institutions, the interest chargeable is 1-year MCLR plus 2% spread along with the SP (irrespective of the loan amount).

Here is the full list of the foreign premier institutions approved by the bank for this loan.

(credit score check online for free at mymoneykarma website)

Processing Charges

• Studying in India: No charges

• Studying abroad: 1% of the total loan amount to a maximum of Rs. 10000. This amount is recovered upfront and is refunded by the bank when the first disbursement is received.

• Studying at premier institutions: No charges

• Taking vocational training and education: No charges

• Taking career development courses: 0.5% charge

• Career Development: 0.50%

To be remembered:

A non-refundable amount of Rs. 8500 per property shall be taken upfront in instances of education loan accounts when the said property is mortgaged.

• Mortgage creation charges: No charges

• Deviation charges: No charges

How to Apply for Bank of Baroda Education Loans

Loans can easily be availed online. Go to the bank's home page. On the very top you'll see a menu of various services and products. For the menu list, choose ‘Loans,’ and then ‘Education Loans.’ As you can see on the page that appears next, there are a few ways to apply or enquire about the loan. You can give a missed call to 846 700 1122  for enquiries. Once you have read about and have selected the loan you want, click on the 'Apply Now' button beside the chosen loan.

You can also go to your nearest Bank of Baroda branch to apply for a loan in person.

FAQs

Q) Who is eligible for the loan?

The applicant primarily needs to be an Indian national.

Q) What type of interest is charged on BOB education loan schemes?

Bank of Baroda charges a simple interest on a monthly basis during the moratorium period.