Bank of Baroda Education Loan for Higher Studies
Bank of Baroda is a well renowned bank of India. It was founded in 1908. It is among one of the first banks founded by Indians. Cost of higher education is been on the rise for quite some time. Pursuing courses in best college and universities has become very expensive these days in India. Getting education loan for higher studies has become very common recently. Baroda Gyan Education loan is an attractive loan offered by bank of Baroda for students. It is mainly for those who are pursuing higher education in recognized educational institutions. In this article we are going to discuss all the important details related to this education loan.
Baroda Gyan Education Loan
Bank of Baroda offers financial support in form of education loan for higher studies to the meritorious students. Those who have secured admission in recognized institutions through merit based selection process can avail this education loan. Baroda Gyan Education Loan covers a multiple number of courses offered by different educational institutes of India.
Important Details
This loan is offered to the bright students who have secured admission in the recognized universities of India for higher educational courses.
Key points
1) Eligibility
- Should be an Indian national residing in India.
- Non-Resident Indian (NRl), Person of India Origin (PlO) / Overseas citizen of India (OCl) and students who are born to Indian parents during their stay abroad
- The student should have secured admission in recognized college or university.
2) Loan Amount
- For aviation and medical courses the maximum loan amount is ₹125 lakh.
- For other courses the maximum loan amount is ₹25 lakh.
- The loan amount may be increased in case of need strictly based on the projected repayment capability of the borrower. It can be shown by using average packages offered to previous year pass outs of the college.
3) Repayment
- The Repayment period starts after 1 year of the completion of the course or 6 months after getting a job, whichever is earlier.
- The total repayment period is 10 years for loan up to ₹7.5 lakh and 15 years for loan above ₹7.5 lakh.
4) Processing fee
- There will be a ₹100 rupees charge for all cases which the VLP (Vidya Lakshmi Portal) charge.
- There is no processing fee in this scheme for loans up to ₹7.5 lakh.
- For loans above ₹7.5 lakh there will be a processing fee of 1% of the education loan or maximum ₹10000. This means that if 1% of the loan amount exceeds ₹10000 then the processing fee will be ₹10000.
5) Security
- For loans up to ₹7.5 lakh the parents have to act as co-borrower. No requirement for any collateral.
- For loans above ₹7.5 lakh and up to ₹80 lakh tangible collateral security amounting 100% of the loan amount is mandatory. The assignment of the future income is also required.
- For loans above ₹80 lakhs tangible security of 125% of the loan amount is mandatory along with the assignment of the future income.
6) Margin
- There is no margin amount, for loan up to ₹4 lakh.
- For loans above ₹4 lakh is 5% of the course fee. This means that the student have to cover 5% of the total expenditure on their own.
7) Eligible Institutions and courses
- Graduation, Post-graduation, professional courses, management courses offered by recognized Indian colleges and universities.
- Courses like ICWA, CA, CFA are also eligible.
- Courses offered by IIM, IIT, IISc, XLRI, NIFT.
- Aeronautical or pilot training courses approved by DGCA.
- Baroda Corporate Centre may approve other institution/courses depending on future prospects/.
8) Coverage
- Total course fee according to the guideline of the bank.
- Hostel fee is covered under this education loan.
- Examination fee, library fee, laboratory fee will be covered under this scheme.
- Caution deposit, Building fund and refundable deposits can be covered in the loan only if the valid receipt is produced by the students. The cost must not exceed 10% of the total tuition fee of the entire course.
- The cost of book, uniforms, instruments and equipment will also be covered.
- Cost of purchasing computer will be provided if necessary.
- The cost of coaching or tuition will not be considered.
- Any other cost of study tours, project works, thesis will be covered
9) Insurance
- For loans above ₹7.5 lakh group credit life insurance cover is mandatory.
- The cost of premium may be financed by the bank, which will be added along with the monthly EMI of the loan.
10) Rate of Interest
Condition | Floating rate | Fixed rate | |
Up to ₹7.5 lakh | 11.15% | 11.40% | |
Above ₹7.5 lakh | 11.05% | 13.05% | |
Special rate of Interest for Children of defense personal Under Baroda Yodha education Loan Scheme | 10.25% | Up to ₹7.5 lakh | 11.40% |
Above ₹7.5 lakh | 12.25% |
- A concession of 0.50% is given to female students.
11) Required documents
- KYC of the applicant and the co applicant.
- Academic records.
- Proof of admission.
- Entrance exam results if applicable.
- Schedule of expense.
- Income proof of the salaried co applicant/guarantor.
- Bank account statement for last 6 months.
** Bank of Baroda holds the authority of changing the terms and conditions of Baroda Gyan education loan without any prior notice.