Bank of Baroda Indian and Foreign Education Loan

Bank of Baroda Indian and Foreign Education Loan Bank of Baroda was established in the year 1908. Bank of Baroda is an Indian state-run funding and monetary services association and also the second major bank in India in terms of assets. Under its range of mortgage products, Bank of Baroda bids different types of education loans which have been specifically designed to finance different levels of academic needs. Basic school education (nursery to 10+2), graduation or post-graduation degree, the Bank of Baroda education loan scheme has something for everyone.

Education, a vital component in the helm of life. In today’s world however, quality education is always a pricey proposition. Thus, mortgages that benefit in this noble pursuit, such as the Bank of Baroda Education Loan, are enthusiastically lapped up an audience that is looking to pursue excellence of education domestically, or higher education abroad. In this esteem, Bank of Baroda bids a number of specialized possibilities that will suit every individual obligation- Baroda Vidya, Baroda Gyan, Baroda Scholar and Baroda Education Loan for Vocational Education & Training.

Features & Benefits of Bank of Baroda Education Loan

Following are the notable features of the various education loans offered by Bank of Baroda

Baroda Vidya

The Baroda Vidya education mortgage is designed for students seeking school education extending from Kindergarten up to Senior Secondary School. Following are the features of this loan-

Maximum Loan LimitRs. 4 lakhs
Eligibility1. Candidate must be an Indian national, residing in India.2.He/she must have open admission to a documented school/high school/Junior College (ICSE/CBSE/State Board) for the following courses:

Stage I – Nursery to Std. V

 

Stage II – Std. VI to Std. VIII

 

Stage III- Std. IX to Std. XII

Interest Rate1.Loans up to Rs.4 lakhs : Base Rate + 2.50%2.Loans from Rs.4 lakhs to Rs.7.50 lakhs : Base Rate + 2.50%

 

3.Loans above Rs.7.50 lakhs : Base Rate + 1.75%

 

4.Baroda Education Loan for Job-related Education & Training : Base Rate + 2.00%

 

Note-

 

1. Loans to girl students get an appropriate 0.50% concession.

 

2. Interest must be serviced as and when applied during the moratorium period.

 

3. If mortgage amount exceeds Rs.2 lakhs, penal interest at the rate of 2% applies on the overdue amount.

 

4.Added concession of 1.00% applies to students who are seeking their studies in premier institutes like IIT, IIM, IIFT, AIIMS, ISB, NIT, XLRI, MDI, IISc, SPJIM etc.

Processing FeeNone. No certification charges as well.
SecurityNone. However, if the loan is being taken for the purchase of a computer, then the same will be pledged as security for the loan.
MarginNone
Repayment TenureYearly sub-limit must be repaid in 12 EMIs. First installment is due 12 months after the disbursal of each year’s loan constituent.
Expenses Covered1. Fees that must be paid to school or college.2. Fees appropriate for Examination, Library, Laboratories, and Hostel etc.

 

3. The purchase of uniforms, books, equipment and instruments.

 

4. Personal Computers/ Laptops, if the course needs the same for successful completion.

 

5. Additional expenditures like Building fund, Caution deposit, Refundable deposit etc. These however, need to be backed up by proper bills or receipts.

Baroda Gyan:

This loan applies to students who are seeking graduation, post-graduation and other professional courses in India. The Baroda Gyan mortgage is a feature rich package that is also massively student friendly,

Maximum Loan LimitRs. 10 lakhs
Eligibility1. Candidate must be an Indian national, residing in India.2. Candidates Should have secured admission into any of the courses listed under the section ‘Course Eligibility’ below.

 

3. This Bank of Baroda Education Loan scheme applies to merit students (eligible for a seat under the merit quota) but choose to seek a course under the management quota.

 

4. Management quota seats considered under the Bank of Baroda education loan scheme, fees as appropriate to these payment seats (authorized by State Government/ Regulatory body sanctioned by the Government) will be taken, subject to the feasibility of repayment.

Interest Rate1.Loans up to Rs.4 lakhs : Base Rate + 2.50%2.Loans from Rs.4 lakhs to Rs.7.50 lakhs : Base Rate + 2.50%

 

3.Loans above Rs.7.50 lakhs : Base Rate + 1.75%

 

4.Baroda Education Loan for Vocational Education & Training : Base Rate + 2.00%

 

Note-

 

1. Loans to girl students get an appropriate 0.50% concession.

 

2. Simple interest will be charged through the moratorium period with monthly rests.

 

3. If loan amount exceeds Rs.2 lakhs, penal interest at the rate of 2% applies on the overdue amount.

 

4.Added concession of 1.00% applies to students who are seeking their studies in premier institutes like IIT, IIM, IIFT, AIIMS, ISB, NIT, XLRI, MDI, IISc, SPJIM etc.

Processing FeeNone.
SecurityLoan amount up to Rs.4 lakhs : NoneLoan amount from Rs.4 lakhs to Rs.7.5 lakhs: Third party guarantee and assignment of future salaries towards loan repayment.

 

Loan amount above Rs.7.5 lakhs: Tangible collateral as security that is equivalent to 100% of the loan amount. Plus, assignment of future salaries towards loan repayment.

MarginLoans up to Rs.4 lakhs : NoneLoans above Rs.4 lakhs : 5.00%

 

Note- Margin is appropriate on pro-rata basis on annual basis as and when expenditures are availed.

Repayment TenureLoan amount up to Rs.7.50 lakhs : Reimbursement in max 120 installmentsLoan amount above Rs.7.50 lakhs : Reimbursement in max 180 installments
Moratorium PeriodThe repayment holiday applies from, Course Period + 1 year or 6 months after getting the job (whichever comes first).
Expenses Covered1. Fees that must be paid to school or college.2. Fees appropriate for Examination, Library, Laboratories, and Hostel etc.

 

3. The purchase of uniforms, books, equipment and instruments.

 

4. Personal Computers/ Laptops, if the course requires the same for successful completion.

 

5. Additional payments like Building fund, Caution deposit, Refundable deposit etc. These however, need to be backed up by proper bills or receipts.

 

6. Additional expenditures that are considered to be important for course completion, including and not limited to projects, study tours, thesis etc.

Course Eligibility1. All Graduation, Post-Graduation and Doctorate courses.2. All courses conducted by IIT, IIM, IISc, XLRI, NIFT etc.

 

3.All professional courses, conducted by recognized institutions.

 

4. Courses such as C.A, ICWA, CFA, CS, etc.

 

5. Computer certificate courses from reputed institutions with alignments to recognized Universities.

 

6. Degree/Diploma from colleges/universities/National Institutes/private institutions/evening courses that are sanctioned by a renowned Government body such as UGC/AICTE/ AIBMS/ ICMR etc.

 

7. Degree/Diploma in Aeronautical, pilot training etc. (approved by Director General of Civil Aviation/shipping).

 

8. Educational courses

Offered in India by prominent foreign Universities.

PerksFree Debit card.

Baroda Scholar:

This specialized offering from Bank of Baroda education mortgage is exclusively for students who wish to seek their higher professional and/or technical studies at reputed educational institutions abroad. The salient features of this Bank of Baroda education loan scheme is as follows-

Maximum Loan LimitRs. 20 lakhs
Eligibility1. Candidate must be of an Indian nationality.2. Candidate Should have secured admission into any of the professional/ technical courses at a documented foreign university or educational institution.
Interest RateLoans up to Rs.4 lakhs : Base Rate + 2.50%Loans from Rs.4 lakhs to Rs.7.50 lakhs : Base Rate + 2.50%

 

Loans above Rs.7.50 lakhs : Base Rate + 1.75%

 

Baroda Education Loan for Vocational Education & Training : Base Rate + 2.00%

 

Note-

 

A loan to girl students gets an applicable 0.50% concession.

 

Simple interest will be charged through the moratorium period with monthly rests.

 

If loan amount exceeds Rs.2 lakhs, penal interest at the rate of 2% applies on the overdue amount.

 

Added concession of 1.00% applies to students who are pursuing their studies in premier institutions like IIT, IIM, IIFT, AIIMS, ISB, NIT, XLRI, MDI, IISc, SPJIM etc.

Processing Fee1.00% that is refundable upon acquisition of loan.
SecurityLoan amount up to Rs.4 lakhs : NoneLoan amount from Rs.4 lakhs to Rs.7.5 lakhs: Third party guarantee and assignment of future salaries towards loan repayment.

 

Loan amount above Rs.7.5 lakhs: Tangible collateral as security that is equivalent to 100% of the loan amount. Plus, assignment of future salaries towards loan repayment.

Margin15.00%
Repayment TenureLoan amount up to Rs.7.50 lakhs : Repayment in max 120 installmentsLoan amount above Rs.7.50 lakhs : Repayment in max 180 installments
Moratorium PeriodThe repayment holiday applies from, Course Period + 1 year or 6 months after getting the job (whichever comes first).
Expenses Covered1. Admission fees that is payable to College/ University.2. Fees appropriate for Examination, Library, Laboratories, Hostel, and Mess etc.

 

3. The purchase of uniforms, books, equipment and instruments.

 

4. Personal Computers/ Laptops, if the course requires the same for successful completion.

 

5. Additional payments like Building fund, Caution deposit, Refundable deposit etc. These however, need to be backed up by proper bills or receipts.

 

6. Additional expenses that are deemed important for course completion, including and not limited to projects, study tours, thesis etc.

 

7. Expenditures for one-way travel.

Course Eligibility1. All Graduation, Post-Graduation, Doctorate, Technical courses and other Job oriented courses offered by reputed foreign Universities.2. Degree/Diploma in Aeronautical, pilot training, shipping etc. (approved by Director General of Civil Aviation/shipping in India as well as a competent local aviation / shipping authority).

Baroda Education Loan for Vocational Education & Training

As the name so clearly advises, this Bank of Baroda education loan scheme applies for students who are looking to seek a job-related course or similar training. This Bank of Baroda Education Loan scheme is available the basic features of this popular loan product are as follows-

Maximum Loan Limit1.Course duration up to 3 months : Rs.20,0002.Course duration from 3- 6 months : Rs.50,000

3.Course duration from 6 months- 1 year : Rs.75,000

 

4.Course duration exceeds 1 year : Rs.1,50,000

Eligibility1. The candidate must be of an Indian nationality.2. He/she must have secured admission in a vocational course that is duly sanctioned by Government Ministry/Department/Organization or a similar undertaking that is appropriate and supported by the National Skill Development Corporation or State Skill Mission/Corporation.

 

3. The final certification/diploma/degree etc. must be completely recognized by the Government or by any organization that is certified by the Government.

 

4. The applicant must not be a minor. However, if such is the case, then the bank will ensure that the concerned documents are executed by the candidate’s parents and a letter of confirmation will be collected from the candidate when he/she achieves maturity. There is no maximum age limit to apply for this loan.

Processing FeeNone. No documentation charges as well.
SecurityNone. However, the parent will execute the loan documents, alongside the student borrower, as the joint borrower.
MarginNone
Repayment Tenure1.Loan amount up to Rs.50,000 : Reimbursement in max 2 years2.Loan amount from Rs.50,000- Rs.1 lakh : Reimbursement in max 2- 5 years

 

3.Loan amount above Rs.1 lakh : Repayment in max 3- 7 years

PrepaymentBorrower can prepay the loan at any time without any penalties.
Moratorium PeriodThe reimbursement holiday applies as thus- When course period is maximum 1 year = 6 months from the completion of the course. When course period exceeds 1 year = 12 months from the completion of the course.
Expenses Covered1. Fees with regards to Examination, Library, and Laboratories.2. The applicable Tuition and Course fee.

 

3. Costs incurred in purchase of books, equipment and instruments.

 

4. Additional expenses including Caution Deposit.

 

5. Any other expenses that is considered crucial for the completion of the course.

Course Eligibility1. Vocational/Skill development courses that stretch from 2 months to 3 1/2 years.2. The selected course must be duly supported and recognized by the Government of India (in its direct capacity), or any organization that is recognized by the Government and/or sanctioned to act on its behalf. Such organizations include the National/State Skill Development Corporation(s).

 

3. The final certification/degree/diploma accorded, must be fully recognized by the Government or any organization that has its official authorization.

 

4. Vocational courses that have good employability, including but not limited to courses offered by State Level Bankers committee (SLBC), State level Co-ordination Committee (SLCC), etc.

5. Courses/training programs approved by the National Skill Certification and Monetary Reward Scheme.

InsuranceThe applicant can opt for the Group Credit Life Insurance Cover. The insurance premiums will be financed by the bank, and eventually recovered along with the loan EMIs.

Interest Rate

The following interest rate applies to all the educational mortgage plans from Bank of Baroda. You will notice that the Bank of Baroda education loan interest rates are some of the best in its very competitive class. Note that, the current Bank of Baroda education loan base rate is 10.00%.

  • Loans up to Rs.4 lakhs : Base Rate + 2.50%
  • Loans from Rs.4 lakhs to Rs.7.50 lakhs : Base Rate + 2.50%
  • Loans above Rs.7.50 lakhs : Base Rate + 1.75%
  • Baroda Education Loan for Job-related Education & Training : Base Rate + 2.00%

 Note

  • Loans to girl learners get an appropriate 0.50% concession. For Job-related Education & Training, the concession will be 1.00%.
  • Simple interest will be charged through the moratorium period with once-a-month rests.
  • If loan amount exceeds Rs.2 lakhs, penal interest at the rate of 2% applies on the overdue amount.
  • Added concession of 1.00% applies to students who are seeking their studies in premier institutions like IIT, IIM, IIFT, AIIMS, ISB, NIT, XLRI, MDI, IISc, SPJIM etc.

Subsidy Schemes

When it comes to Bank of Baroda Education Loan funding systems, there are two on offer, namely-

  • Central Scheme of Interest Subsidy for Education Loans
  • The National Skill Certification and Monetary Reward scheme covered under Baroda Education Loan for Vocational Education & Training

These schemes are explained in detail below,

Central Scheme of Interest Subsidy for Education Loans

  • Verbalized by Government of India, Ministry of Human Resources Development and Department of Higher Education, to help economically backward students to seek technical/professional courses in India.
  • Bank of Baroda Provides loan interest subsidy through the moratorium period.
  • Subsidy amount tops up at Rs.10 lakhs. The course fee however, may exceed this limit.
  • The interest will be borne by the learner post the moratorium period.
  • The student’s parental family income must not exceed Rs.4.5 lakhs/annum, rendering him a part of the Economically Weaker Section of the society. This fact must be confirmed via an income certificate that is issued by the State Government/ Organization appointed by the State Government.
  • Subsidy only applies if the student is registered for a course that is properly well-known by all concerned certification bodies/ Government organizations.
  • Subsidy applies to a student only once (first undergraduate course or post graduate degrees/diplomas that are conducted in India). Also, subsidy is appropriate on integrated courses (graduation + post-graduation).
  • Subsidy will be ended if the student discontinues or gets banished from the concerned course.
  • In order to avail this Bank of Baroda education loan subsidy, an agreement must be signed by the student borrower and the Bank.

The National Skill Certification and Monetary Reward scheme covered under Baroda Education Loan for Vocational Education & Training-

A rather long name, this inventiveness from the National Skill Development Corporation, is intended to encourage the Indian youth with financial rewards after they have successfully completed a skill development course as part of a sanctioned training program. As part of the Baroda Education Loan for Vocational Education & Training, Bank of Baroda offers loans to entitled students who wish to seek skill development programs as part of the National Skill Certification and Monetary Reward Scheme.

The salient features of this Bank of Baroda Education Loan subsidy scheme are as follows-

  • The National Skill Development Agency (NSDA) is the implementer of this scheme.
  • The complete list of accepted skill development courses, with their related training institutions, can be sourced from the NSDA website as well as the National Skill Development Corporation (NSDC) website.
  • Minimum training duration is 30 days. A whole range of social skills, job training and other such skill training may also be included in this program.
  • Post the training, an accepted third party will conduct the valuation and issue the certificate.
  • Appropriate financial rewards for attaining the documentation is as follows-
Domain.NSQF Level 1 & 2NSQF Levels 3 & 4
ManufacturingRs. 10,000Rs. 15,000
Service Sector & OthersRs. 7,500Rs. 10,000

*NSQF: National Skill Qualification Framework.

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