How to Get a Bank of Baroda Education Loan : A Detailed Guide

_x000D_
• Home
_x000D_
• BOB Education Loan
_x000D_
• How to Get a Bank of Baroda Education Loan
_x000D_

_x000D_ _x000D_

 

_x000D_ _x000D_

Education loans are a boon for students who want to pursue their favored stream of education, without having to be weighed down by the high fees accompanying it. Nowadays there are plenty of financial institutions who are offering education loans to students both for the graduate & the postgraduate courses as well.

_x000D_ _x000D_

---

_x000D_

Public Sector Banks also offer education loans. In the recent past, public sector banks have been a little conservative in their education loan offerings due to the high amount of NPA (Non-Performing Assets) associated with these loans. Despite this, PSUs remain the most trustworthy source for an education loan. Bank of Baroda education loan that offers education loans for a variety of courses.

_x000D_ _x000D_ _x000D_

Get BOB Education Loan From the Comfort of Your Home with GyanDhan.

_x000D_ _x000D_

Fill this form and get in touch with an expert

_x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_

The bank is one of India’s oldest banks in existence and was established in 1903. Subsequently, the bank was nationalized in 1969 and is now 100% state-owned. Although it is based out of Gujarat, it operates in several cities across India and also has a considerable overseas presence.

_x000D_ _x000D_ _x000D_ _x000D_

Being a regulated entity, BOB is restrictive in terms of the courses, countries, and institutions for which it offers loans. They have several products, which are tailor-made for different students/courses. Depending on whether a student wants to pursue a course in India or abroad, there are different loans for the same.
_x000D_  

_x000D_ _x000D_

 

_x000D_ _x000D_ _x000D_ _x000D_

 

_x000D_ _x000D_ _x000D_ _x000D_

Here is a list of products that are geared towards students opting to study in India.

_x000D_ _x000D_

1) Baroda Gyan

_x000D_ _x000D_

This loan is targeted at students aiming to pursue their higher education in India. 

_x000D_ _x000D_

Here are some key features of the scheme:

_x000D_ _x000D_

_x000D_
• Courses Covered: Graduate & Post Graduation including degree & diplomas from UGC / Government or other authority approved institutions. Professional Courses such as Charter Accountancy are also covered.
_x000D_
• Items Covered under the Loan: Fees to the Institute, Library Fees / Cost of Course Material, Purchase of a Computer / Laptop needed to complete the course, Caution Deposits and likes (up to 10% of the Fees), Cost of Mortgage / Credit Insurance Premium.
_x000D_
• Maximum Loan Amount – Rs. 80,00,000 for Medical & Aviation. Rs. 10,00,000 for all other courses. In some instances, BoB approves higher loan amounts subject to the parent’s repayment capacity.
_x000D_
• Margin – This is an amount that has to be borne by the student in addition to the Loan. For Loans upto Rs. 4,00,000 there needs to be no contribution, whereas for loans above Rs. 4,00,000 5% of the fees should be borne by the student.
_x000D_
• Security – Only Parent / Guardian assurance for loans up to Rs. 4,00,000 but a third party assurance is required for loans between Rs.4,00,000 and Rs.7,50,000. For loans above Rs. 7,50,000, a tangible property must be attached as collateral.
_x000D_
• Maximum Repayment Period – 15 Years
_x000D_
• Interest Rate The overall interest rate is calculated as the Baroda Repo Linked Lending Rate (i.e. BRLLR) + a defined spread. It is currently 6.85% per year, plus a spread that is 2.00%, making the effective rate of interest 8.85%. The interest rates are variable every year and you can check out this link to get the current value.
_x000D_
• Processing Fee – Nil
_x000D_

_x000D_ _x000D_

 

_x000D_ _x000D_ _x000D_ _x000D_

2) Bank of Baroda Education Loan for Premier Institutes:

_x000D_ _x000D_

This loan is targeted at students aiming to pursue their graduate and higher education in Premier Institutes in India like IIMs or IITs. 

_x000D_ _x000D_

Here are some key features of the scheme:

_x000D_ _x000D_

_x000D_
• Courses Covered: Full Time Regular Courses offered by the Institutes. Admission must meritorious and follow an entrance test.  
_x000D_
• Items Covered under the Loan: Fees to the Institute, Library Fees / Cost of Course Material, Purchase of a Computer / Laptop needed to complete the course, Caution Deposits and likes (upto 10% of the Fees), Cost of Mortgage / Credit Insurance Premium.
_x000D_
• Maximum Loan Amount & Security – The loan amount and loan security vary depending on the Grade of Institute:
_x000D_

_x000D_ _x000D_

 

_x000D_ _x000D_ _x000D_ _x000D_

Security must be tangible collateral like a house.

_x000D_ _x000D_

_x000D_
• Margin – NIL
_x000D_
• Maximum Repayment Period – 15 Years
_x000D_
• Interest Rate – Interest Rates vary depending on the Grade of Institute. It is calculated as Baroda Repo Linked Lending Rate (i.e. BRLLR) + a defined spread. Also, the interest rates are variable every year and you can check out this link to get the current value.
_x000D_

_x000D_ _x000D_

 

_x000D_ _x000D_ _x000D_ _x000D_

 

_x000D_ _x000D_

_x000D_
• Processing Fee – Nil. However, a non-refundable deposit amount of Rs. 7,500 towards Advocates & Valuer charges, is levelled when a property is mortgaged.
_x000D_

_x000D_ _x000D_

 

_x000D_ _x000D_

3) Baroda loan for EDP offered by Premier Institutes

_x000D_ _x000D_

This loan is exclusively targeted at students aiming to pursue Executive Development Programs (EDP) in Premier Institutes in India like ISB etc. 

_x000D_ _x000D_

Here are some key features of the scheme:

_x000D_ _x000D_

_x000D_
• Courses Covered: EDP offered by Premier Institutes as per the list. The program can be part-time/full time/weekend or even offered online. However, students must be gainfully employed during the course of education and after.
_x000D_
• Items Covered under the Loan: Fees to the Institute, Library Fees / Cost of Course Material, Purchase of a Computer / Laptop needed to complete the course, Caution Deposits and likes (upto 10% of the Fees), Cost of Mortgage / Credit Insurance Premium.
_x000D_
• Maximum Loan Amount – The Maximum Loan Amount offered under this scheme is Rs. 20,00,000.
_x000D_
• Security – Nil for loans upto Rs. 15,00,000 and 100% collateral for loans above Rs. 15,00,000
_x000D_
• Margin –Nil upto Rs. 4,00,000 and for loans above that students must bear 5% of the fees.
_x000D_
• Maximum Repayment Period – 15 Years
_x000D_
• Interest Rate – Interest Rates vary depending on the Grade of Institute.  It is calculated as Baroda Repo Linked Lending Rate (i.e. BRLLR) + a defined spread. The interest rates are variable every year and you can check out this link to get the current value.
_x000D_

_x000D_ _x000D_

 

_x000D_ _x000D_ _x000D_ _x000D_

 

_x000D_ _x000D_

_x000D_
• Processing Fee – Nil. However, a non-refundable deposit amount of Rs. 7,500 towards Advocates & Valuer charges, is levelled when a property is mortgaged.
_x000D_

_x000D_ _x000D_

 

_x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_

BoB also offer a range of products that are targeted towards students pursuing education abroad. These include:

_x000D_ _x000D_

1) Baroda Scholar:

_x000D_ _x000D_

This loan is targeted at students aiming to pursue their graduation or post-graduation abroad. 

_x000D_ _x000D_

Here are some key features of the scheme:

_x000D_ _x000D_

_x000D_
• Courses Covered: Full-Time Degrees / Post Graduations or Diploma Courses. CPA / CIMA and other such certifications offered abroad. The courses must be job oriented. BoB have a list of approved universities/institutes. However, exceptions from these institutes can be made on a case to case basis, subject to Bank Approval.
_x000D_
• Items Covered under the Loan: Fees to the Institute, Library Fees / Cost of Course Material, Purchase of a Computer, Insurance Premium for Borrower, Caution Deposits and likes (upto 10% of the Fees), Travel Expenses.
_x000D_
• Maximum Loan Amount – Rs. 80,00,000 for institutes categorized as Premier and Rs. 60,00,000 not categorized as Premier.
_x000D_
• Margin – Nil for Premier Institutes. For non-Premier Institutes loans upto Rs. 4,00,000 margin is nil and loans above this would require a margin of 10%.
_x000D_
• Processing Fees – 1% of Loan Amount subject to Maximum of Rs. 10,000, which is refunded after the First Disbursement of the Loan by the Bank. A non-refundable deposit amount of Rs. 7,500 towards Advocates & Valuer charges,  when a property is mortgaged
_x000D_
• Security – For Loans upto Rs. 4,00,000 only Parent / Guarantee as co-borrower. For loans between Rs. 4,00,000 and Rs. 7,50,000 a Third Party Guarantee is acceptable. For Loans above Rs. 7,50,000 a 100% collateral of tangible security is required.
_x000D_
• Maximum Repayment Period – 15 Years
_x000D_
• Interest Rate – Based on the institute, the interest rates also vary. It is calculated as the Baroda Repo Linked Lending Rate (i.e. BRLLR) + a defined spread. The interest rates are variable every year and you can check out this link to get the current value.
_x000D_

_x000D_ _x000D_

 

_x000D_ _x000D_