Bank Of Baroda Education Loan

The following table gives the comparison of loan details of two loan products of the Bank of Baroda namely “Baroda Scholar” and “Baroda Education Loan for EDP” for students who want to pursue education in premier institutions in foreign universities. Loan limit, interest rate, concession, loan margin, processing fee, moratorium period, repayment period, acceptable security, and co-applicant are some of the areas that it embraces. 

(*In the case of premium institutions, a refund of processing charges will be granted upon the first disbursement of the loan. Additionally, a non-refundable fee of ₹8,500 per property, covering legal expenses for advocates and valuers, is required upfront for all education loan accounts where the property is mortgaged)

• For loans up to Rs. 7.5 Lakhs: Moratorium Period + Maximum 120 instalments (10 years)
  
• For loans above Rs. 7.5 Lakhs: Moratorium Period + Maximum 180 instalments (15 years)
  

Acceptable Collateral

Bank of Baroda's education loans may accept the following types of collateral for higher loan amounts:
Immovable property:

• Non-agricultural land
• Building
• Flat

Liquid security:

• Government bonds
• Life Insurance Corporation (LIC) policies
• Fixed deposits

Collateral Margin

Secured education loans involve the concept of collateral margin. When you provide collateral for an education loan, the bank may offer the full value of the collateral in some cases, but in others, they may deduct a margin. 

For instance, when you use immovable property as collateral, the bank may provide 100% of the loan amount. However, if you offer fixed deposits or government bonds, the bank may offer 90% and 80% of the loan amount, respectively. This margin is a percentage of the loan amount that the bank retains as a safety buffer in case the borrower defaults on the loan.

Collateral Security

When applying for an education loan from the Bank of Baroda to study abroad, the collateral required will depend on the loan amount.

• For loans up to Rs.7.50 lakh, no collateral or third-party guarantee is required, but a parent's co-obligation is necessary.
• For loans above Rs.7.50 lakh up to Rs.80.00 lakh, tangible collateral security equal to 100% of the loan amount is required, and future income must be assigned to secure the loan. 
• For loans exceeding Rs.80.00 lakh, the total security coverage should be 1.25 times the loan amount, and future income be assigned as part of the collateral

Acceptable Co-Applicant

The Co-applicants must be Parents, Parents-in-law, Siblings, parents’ siblings, spouses, and first cousins (in the order mentioned).  A guarantor or security is not mandatory for loan amounts less than INR 4 lakh, but a third-party guarantor is mandatory for loan amounts greater than INR 4 lakh.

Repayment Policy

In the schemes mentioned above, you will accrue simple interest during the moratorium period, but you have the option not to pay it. You can choose to opt-out and start your EMI after the moratorium period ends.

Eligible Courses/College List under the Baroda Scholar Scheme

The Bank of Baroda has a special preference for certain colleges for education loans around the world according to the course. Below is a specified list which is categorised according to the course and country for your ease

Courses:

• Technical and professional courses offered for career advancement from reputed universities
• PG courses such as MS, MCA, and MBA 
• Professional courses conducted by CIMA in London and CPA in the USA.
• Degree and diploma courses such as aviation, shipping, and aeronautical are recognized by regulatory bodies pertaining to the field for the purpose of employment in India or abroad.
• Certificate courses

Premier Universities list:

• For management courses: List of premier institutes
• For STEM courses: List of premier institutes 
• For medical courses: List of premier institutes
• For other disciplines: List of premier institutes

(Universities not on the list can also be considered without any preferential treatment.)

Eligible Courses Under Baroda Education Loan for EDP being offered by Premier Institutions Abroad Scheme

Premium educational institutions worldwide are offering part-time, online, and distance learning Executive Development Programs, which include those utilizing technology platforms such as Times Pro or Hughes Global Education, as well as other partnerships. 

(For any queries about any of the mentioned schemes, or confusion about your university, you can talk to our financial officers by requesting a callback or just comment your queries down.)

The following table presents the comparative analysis of Baroda Gyan, Baroda Digital Education Loan, Baroda Education Loan for EDP being offered by Premier Institutions in India, and the Skill Loan Scheme offered by the bank. It is important in defining other aspects of a loan including loan limit, interest rates, interest rate subsidies, loan margin, processing fee, moratorium period, and repayment period. These details help the potential borrower make the right decision on which loan to take to fund his or her education in India. More on the type of collateral acceptable, co-applicants and repayment terms are highlighted under ‘Bank of Baroda Education Loan Scheme For Study Abroad. 

NOTE- If you're looking for information on Acceptable Collateral, Collateral Margin, Collateral Value, Acceptable Co-Applicants, and Repayment Policies for these schemes, simply scroll up to find the section titled 'Bank of Baroda Education Loan Scheme For Study Abroad' There, you'll find all the details you need, as these parameters remain consistent for both studying abroad and within India.

Eligible Courses under Baroda Gyan:

• Bachelor's degrees: BA, B.Com, B.Sc., etc.
• Postgraduate studies: Masters, PhD.
• Technical fields: Engineering, medicine, agriculture, veterinary, law, dental, management, architecture, computer science, etc.
• Management-related courses: Hotel management, hospitality management, event management, mass communication, offered by reputable institutions with guaranteed employment prospects.
• Certificate courses from accredited institutions: ICWA, CA, CFA.
• Courses from prestigious Indian institutions abroad: IIM, IIT, IISc, XLRI.
• Standardized programs: Aeronautical, pilot training, shipping, approved by the Director General of Civil Aviation/Shipping.
• Courses offered by renowned universities worldwide.
• Evening courses from approved institutions.
• Diploma, degree, and certificate programs from universities and colleges approved by UGC, AICTE, ICMR, or state governments.
• Teacher training, nursing, and B.Ed. courses eligible for education loans, provided the institutions are approved by the Central or State Government and lead to a degree or diploma, not a certificate.
• Institution-specific courses: Baroda Corporate Centre may approve other institutions and courses based on prospects and recognition by user institutions.

Eligible Courses under the Baroda Digital Education Loan Scheme:

Standard educational programs offered by prestigious institutions on a full-time basis:
List of the institutions (List-AA, A, B & List-C)

Eligible Courses under Baroda Education Loan for EDP being offered by Premier Institutions in India

In India, renowned institutions offer executive development programs through various formats, including part-time, weekend, online, and hybrid options. These programs are listed under List AA, A, and B, and they also incorporate technology platforms such as Hughes Global Education and Times Pro all these courses are eligible under this scheme.

Eligible Courses under the Skill Loan Scheme

Individuals eligible for a Skill Loan may enrol in courses offered by:

• Industrial Training Institutes (ITIs)
• Polytechnics
• Schools recognized by central or state education boards
• Colleges affiliated with recognized universities
• Training partners affiliated with National Skill Development Corporation (NSDC), Sector Skill Councils, State Skill Missions, State Skill Corporations

These courses, aligned with the National Skill Qualification Framework (NSQF), may be vocational or skill development programs with a duration ranging from 2 months to 3 years and are supported by ministries, departments, organizations, or companies associated with NSDC or state-level entities.

The expenses covered in BOB’s education loan are pretty much the same for all schemes, whether you're studying abroad or in India. When figuring out how much you need for your studies, it's common for students to wonder what expenses they can include in their loan. To help you out, below is the complete list of expenses covered. It'll make it easier for you to decide on your total loan amount.

Payment to educational institutions:

• Tuition fees to colleges, institutions, universities
• Charges for hostel and mess facilities

Academic expenses:

• Examination fees
• Library and laboratory charges
• Purchase of books, equipment, instruments, and uniforms

Technological requirements:

• Acquisition of personal computers or laptops if necessary for coursework

Deposits and funds:

• Caution deposits
• Building funds
• Refundable deposits supported by institution bills/receipts, not exceeding 10% of total tuition fees

Essential course-related expenses:

• Purchase of computers integral to completing the program
• Insurance premiums for student borrowers
• Additional course-related expenditures such as study tours, project works, theses, etc.

Travel expenses:

• Passage money for round trips

Management Quota Fees:

• Fees as per State Government or government-approved regulatory body for management quota seats

Exclusions:

• External coaching or tuition costs are not to be included.

Offline education loan application process in Bank of Baroda
Step 1: Visit the branch nearest to you and fill in the Bank of Baroda education loan application form.

Step 2: Your profile will be evaluated and depending on that you will be asked to submit a list of documents.

Step 3: Submit all the documents you are asked for in the BOB branch closest to you

Step 4: After verification of documents the loan amount will be disbursed into your account.

Online education loan application process through WeMakeScholars

Step 1: Request a callback or Fill out the bank of baroda education loan form online.

Step 2: You will get a call from one of our financial officers to check your eligibility for the loan. Give them all the details you are asked for. 

Step 3: A comparison of all the loan lenders you are eligible for getting a loan from will be provided to you by your financial officer. 

Step 4: Collect those documents provided by your assigned financial officer and submit them directly to the bank or you can upload them to the WMS secure portal.

Step 5: After you’ve submitted all your documents your file will be logged in. You will get the sanction letter of your loan within a week in the case of private lenders and 15-20 days for public banks.

Step 6: You will sign the loan agreement after which you can collect your sanction letter.

The BOB Bank starts repayment process for education loans once the moratorium period ends. However, students can choose to pay simple interest on their loan during this period if they want. But the actual monthly payments, called EMIs, start only after the moratorium period.

While Bank of Baroda has its own EMI calculator, using the WeMakeScholars EMI calculator gives you a more detailed calculation. Let's see with an example:
If you take out a loan of 24 Lacs, with an interest rate of 8.5% and with a repayment tenure of 10 years, this would be your amortization schedule.

• Monthly EMI: 34,317
• Total payment: 41,18,067
• Total payable interest: 17,18,067

WeMakeScholars is committed to providing students with comprehensive and dependable services, and our post-sanction support is just one of the ways we strive to simplify the study loan application process.

The Indian government will pay the interest due during the moratorium, which is equal to the length of the course plus 12 months, under these programs.

Here are three education loan subsidy schemes in details:- 

Padho Pardesh Scheme:

• The Padho Pardesh Scheme offers interest subsidies to minority students pursuing master’s, M.Phil, or Ph.D. degrees abroad.
• Its objective is to award interest subsidies to meritorious students from economically weaker sections of notified minority communities.
• The scheme aims to provide better opportunities for higher education abroad and enhance employability.

NOTE: The scheme was discontinued by the authorities from 1st April 2022, but beneficiaries who applied until 31st March 2022 will continue to enjoy the interest subsidy benefits.

Central Government Interest Subsidy Scheme (CSIS):

• CSIS provides interest subsidies during the moratorium period of education loans.
• It targets students from economically weaker sections (EWS) and other backward classes (OBC) pursuing technical/professional courses in India.
• The scheme’s goal is to assist economically disadvantaged students in pursuing higher education and enhancing employability.

Dr. Ambedkar Interest Subsidy Scheme for OBC and EWS Students:

• This scheme provides interest subsidies on education loans for overseas studies.
• Eligible courses include approved studies abroad at the Masters, M.Phil., and Ph.D. levels.