Bank of Baroda Education Loan for Foreign Education
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 in foreign countries is been on the rise for quite some time. Pursuing courses in best college and universities has become very expensive these days in foreign countries. Getting education loan for higher studies in abroad has become very common recently. Baroda Scholar Education loan is an attractive loan offered by bank of Baroda for meritorious students pursuing courses in foreign universities. It is mainly for those who are pursuing higher education in recognized educational institutions all over the world. In this article we are going to discuss all the important details related to this education loan.
Baroda Scholar Education Loan
Bank of Baroda offers financial support in form of education loan for higher studies to the meritorious students who want to study in foreign universities. Those who have secured admission in recognized institutions through merit based selection process can avail this education loan. Baroda Scholar Education Loan covers a multiple number of courses offered by different educational institutes abroad.
Important Details
This loan is offered to the scholar students who have secured admission in the top selected universities of abroad for higher educational courses.
Key points
1) Eligibility
- Should be an Indian national residing in India.
- The student should have secured admission in recognized college or university.
2) Loan Amount
- Maximum Loan amount for institutions specified in the list of recognized colleges is ₹150 lakh.
- Maximum Loan amount for institutions not specified in the list of recognized colleges is ₹60 lakh.
3) Repayment
- The Repayment period starts after 1 year of the completion of the course.
- 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. This amount will be refunded in case of premier institutes after first disbursement.
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
- For premier institutes there is no margin for loan below ₹4 lakh and above ₹7.5 lakh. However, there is a margin of 15% of the course fee for loans above ₹4 lakhs and below ₹7.5 lakhs.
- For non-premier institutes there is no margin for loan below ₹4 lakh. However, there is a margin of 15% of the course fee for loans above ₹4 lakhs and below ₹7.5 lakhs. The margin for loans above ₹7.5 lakh is 10% of the course fee.
7) Eligible Institutions and courses
- The list of premier institutions for the management courses is given below.
- The list of premier institutions for STEM courses (Science ,Technology, Engineering and Mathematics) is given below
- The list of premier institutions for medical courses is given below.
- The list of premier institutions for other education (law, economics, econometrics, art, performing arts and design courses)
8) Coverage
- Total course fee according to the guideline of the bank and will be paid directly to the institute.
- Hostel fee is covered under this education loan and will be paid directly to the hostel.
- If the student makes own arrangements for living other than hostel then the boarding charges will be paid directly to the establishment.
- 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 and will be paid directly to the seller.
- 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 and 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
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 Scholar education loan without any prior notice.