Bank of Baroda Education Loan - Interest Rates, Schemes & Eligibility

Bank of Baroda has around 78 million customers all around the world. The bank has 13 zonal offices and 75 regional offices. Bank of Baroda education loan offers various types of education loans depending on different age groups and the amount required as a loan.

About Bank of Baroda Education Loan Schemes

Bank of Baroda is one of the most reputed banks in India. The bank was established in the year 1908 in the city of Mumbai. At present, the bank has operations in 23 countries. The bank of Baroda provides all major services such as deposits, credit and debit cards, loans, etc. The bank offers different scheme under 4 categories of the educational loans which are as follow

 

Scheme	Interest Rates
Baroda Vidya	9.85%
Baroda Gyan	9.00%
Baroda Education Loan to Students of Premier Institutions (For Studies in India)	7.85% - 8.85%
Baroda Scholar	8.50% - 9.15%

With education loan interest rates ranging between 7.70% and 9.15%, the Bank of Baroda offers different schemes to the students which they can avail as per their study plan in Indian or foreign institutes. The following are the details about the types of Bank of Baroda education loans.

• Baroda Vidya Loan
• Baroda Vidya Loan Eligibility Criteria
• Interest Rates for Baroda Vidya Loan
• Baroda Vidya Loan Expenses Covered
• Baroda Vidya Loan Repayment Period
• Baroda Gyan Loan
• Baroda Gyan Loan Eligibility Criteria
• Courses Eligible for Baroda Gyan Loan
• Interest Rates for Baroda Gyan Loan
• Expenses Covered Under Baroda Gyan Loan
• Baroda Gyan Loan Repayment Period
• Baroda Scholar Education Loan
• Baroda Scholar Education Loan Eligibility Criteria
• Courses Eligible for Baroda Scholar Education Loan
• Interest Rates and Charges for Baroda Scholar Education Loan
• Expenses Covered Under Baroda Scholar Education Loan
• Baroda Scholar Education Loan Repayment Period
• Other Education Loans Provided by the Bank of Baroda

Baroda Vidya Loan

Baroda Vidya is one of the school education loan options for students studying in the nursery to the senior secondary school, including nursery class up to 12. This loan is given out to students studying in any recognized school or board of education. The maximum loan granted is INR 4 lakhs and is payable in 12 instalments after disbursement.

The key benefits of Baroda Vidya Loan are as follows.

• There will be no sort of collateral asked for this loan.
• There will be no processing or documentation charges.
• No margin will be charged.

Baroda Vidya Loan Eligibility Criteria

The student seeking the loan should be a residing citizen of India. And the loan will be issued in the parent's name of the student.

Below are the eligibility criteria to avail of the Baroda Vidya Loan.

• The student should have secured admission in a recognized educational institution affiliated with the CBSE Board, ICSE Board, or the State Board.
• The category of loans is divided into three stages:
• Stage 1: Nursery to Class 5
• Stage 2: Class 6 to Class 8
• Stage 3: Class 9 to Class 12
• Students doing an evening course that the state or the central government approves are also eligible for the loan.

Interest Rates for Baroda Vidya Loan

• The interest rate is 9.75% p.a.
• There will be a concession of 0.50% on the loans issued for female students.
• There will be a penal interest of 2% charged on the loans exceeding INR 2 Lakh.

Baroda Vidya Loan Expenses Covered

The primary expenses covered are tuition fees payable to the school or college and fees such as the examination fee, library fee, and laboratory fee.

Other expenses covered by the Baroda Vidya Loan are,

• Hostel fee and charges.
• Certain necessity purchases like books, equipment, instruments, and uniforms
• Personal Computers and laptops if required.
• Certain payments such as refundable deposits, building funds, and caution deposits should be instantiated with a bill or a receipt.
• External coaching fees will not be considered.

Baroda Vidya Loan Repayment Period

The repayment period for every loan is 12 months. The loan should be paid in equal monthly instalments.

Repayment Capacity

Even after all the deductions, the parents' net income shouldn't go below 60% of the total income. The income certificates of the parents should be presented while applying for the exam.

Baroda Gyan Loan

Baroda Gyan is a loan designed for students who want to pursue higher studies courses such as graduation, post-graduation, professional and other courses in India. To avail of this loan, the student should have secured admission to the course. The maximum loan amount of INR 80 lakhs is handed to medical students and those pursuing an education in the aviation stream. INR 60 lakhs for all the other courses covered and recognized by the bank. Baroda Gyan happens to be the most popular loan scheme from the bank. There are millions of students who have benefitted from this scheme.

The key benefits of the Baroda Gyan education loan scheme are,

• There is no margin charged for loans below INR 4 Lakh.
• There is no processing fee charged.
• A free debit card will be issued.

Baroda Gyan Loan Eligibility Criteria

The student should be a resident of India. The admission should be taken in institutes recognized and approved by the University Grants Commission, AICTE through Entrance Test, Merit-Based selection process after completion of HSC (10 plus 2 or equivalent).

A student who qualifies for a seat under the merit quota is eligible for a loan under this scheme even if the student chooses to pursue a course under Management Quota.

Courses Eligible for Baroda Gyan Loan

Various management courses are eligible for Baroda Gyan loan, such as hotel management, hospital management, mass communication, event management, and others that reputable institutions offer.

The courses eligible for Baroda Gyan education loan are,

• Graduation courses eligible are BBA, B.Com, B.Sc, etc.
• Post-graduation courses eligible are M.Sc, MBA, MA, etc.
• Computer certification courses.
• Professional courses eligible are CA, CS, CFA, CMA, ICWA, etc.
• Courses offered by reputable institutions eligible are NIFT, NID, IIM, IIT, NIT, etc.
• Directorate General of Civil Aviation (DGCA) approved diploma or certification courses in aviation and aeronautical engineering.
• Well-reputed foreign universities offer the courses.
• Evening courses that are approved by recognized institutes.
• Students applying for teaching courses and nursing courses can also avail of a loan through Baroda Gyan.

Interest Rates for Baroda Gyan Loan

• The interest rate is 9%.
• 0.50% Concession in rate of interest to loans for girl student.
• Penal interest @ 2% p.a. on overdue amount, if the loan amount exceeds Rs.4.00 lacs.
• Additional Risk Premium @ 0.05% (Loans above Rs 7.50 lakhs) over the above rates would be applicable for customers not obtaining Credit Life Insurance.

 

Quantum of Finance

• The maximum amount of INR 80 Lakh will be given to students pursuing aviation and medical courses.
• Other courses will be provided with a loan of INR 10 Lakh.
• The amount will be decided based on the need for the course.

Margin

• Loans below INR 4 Lakh: Nil
• Loans above INR 4 Lakh: 5%

Expenses Covered Under Baroda Gyan Loan

The cost of external coaching or tuition will not be considered. However, for admission taken under Management Quota Seats, fees, as approved by the State Government / Government, approved regulatory body for payment seats will be taken.

The expenses covered under the Baroda Gyan education loan scheme are as follows.

• Tuition fee payable to the college, institution, university, school, and hostel.
• Examination fee, library fee, laboratory fee, and hostel fees.
• Purchase of books, equipment, instruments, and uniforms.
• Caution deposit, Building Fund, and a refundable deposit will also be covered if supported by the institution bills/receipts. The amount should not exceed 10% of the total tuition fees for the entire course.
• The cost incurred while purchasing a personal computer or a laptop is essential for completing the course.
• Insurance premium for student borrowers, if any, opted by the student. Presently the bank has tied up an arrangement with M/s. India First Life Insurance Co & M/s. Kotak Life Insurance co for Group Credit Life insurance covers Education Loan borrowers.
• Any other expenses required to complete the course – like study tours, project works, thesis, etc.

Baroda Gyan Loan Repayment Period

The maximum repayable period allowed for an education loan is 10 years to 15 years.

The Baroda Gyan loan repayment period are as follows,

• Loans up to INR 7.5 Lakh: Moratorium period + Maximum 120 instalments
• Loans above INR 7.5 Lakh: Moratorium period + Maximum 180 instalments

Security

• Up to INR 4 Lakh: No security required, only co-obligation of parents
• Above INR 4 lakh and below INR 7.5 Lakh: A collateral needs to be provided in the form of a suitable third party along with a guarantee of future income.
• Above INR 7.5 lakh: 100% collateral needs to be provided to guarantee future income.

Baroda Scholar Education Loan

Baroda Scholar Education Loan is designed for students who aspire to study a particular course at a foreign university. The scheme is offered for MBA, MCA, MS, and other related courses. To avail Baroda Scholar education loan in India, the student must have secured admission to the notified institute and course. The loan limit for specified institutes is INR 80 lakhs, and for non-specified institutes is INR 60 lakhs.

Key benefits of Baroda Scholar Education Loan

• No margin is charged for loans up to INR 4 lakh.
• A free debit card will be issued to the students.
• There are no processing charges.

Baroda Scholar Education Loan Eligibility Criteria

The student eligibility criteria to apply for the Baroda Scholar Education loan are as follows.

• The student should be of Indian Nationality.
• The loan will be provided to only those students who have secured admission to a foreign university on a merit basis or an entrance test.
• The course should be a technical course or a professional course.

Courses Eligible for Baroda Scholar Education Loan

Graduation courses include job-oriented professional and technical courses offered by reputed universities.

The expenses covered under the Baroda Scholar education loan scheme are as follows.

• Post-Graduation such as MCA, MBA, MS., etc.
• Courses conducted by CPA in the USA, CIMA-London, etc.
• Courses like a regular degree or Diploma courses like Aeronautical, Pilot training, Shipping recognized by local Aviation or shipping authority, and Director General of Civil Aviation are also considered eligible for the loan.
• The students need to go through the list of foreign institutes approved for the provision of the loan.

Interest Rates and Charges of Baroda Scholar Education Loan

• The interest rate range between 8.50% to 9.15%.
• For Baroda Education Loans for Executive Development Programmes (Part Time /Online programmes / Distance Learning) being offered by Premier Institutions abroad: BRLLR +2.10%
• Simple interest to be charged at monthly rests during the repayment holiday / moratorium period.
• 0.50% Concession in rate of interest to loans for girl student.
• Penal interest @ 2% p.a. on overdue amount, if the loan amount exceeds Rs.4.00 lacs.
• Additional Risk Premium @ 0.05% (Loans above Rs 7.50 lakhs) over the above rates would be applicable for customers not obtaining Credit Life Insurance.

 

Quantum of Finance

• 80 Lakh for the list of specified premier institutions.
• 60 Lakh for the institutes not specified in the list of premier institutions.

Margin

• Institutions listed under premier institutions: Nil
• Institutions not specified in the list of premier institutions have to pay 10% for loans above INR 4 lakh.

Expenses Covered Under Baroda Scholar Education Loan

The primary expenses covered are fees payable to college, institution, university, hostel, and mess charges. The expense also includes the examination fee, library fee, and laboratory fee.

The expenses covered under the Baroda Scholar education loan scheme are as follows.

• The purchase of books, equipment, instruments, and uniform charges will be covered.
• Personal Computers and laptop purchases will be covered wherever required.
• Caution deposit, building fund, a refundable deposit will be covered only if supported by institution bills and receipts, subject to the condition that the amount does not exceed 10% of the tuition fees of the entire course.
• Purchase of computers, if essential for the completion of the course.
• Insurance premium for the student borrower
• Study tours, project works, thesis, and any other expenses required to the course completion.
• Travel expenses and passage expenses.
• The cost of external coaching and tuition will not be covered.

Baroda Scholar Education Loan Repayment Period

The loan is repayable in a maximum of 10 to 15 years after completing the moratorium period.

The Baroda Scholar education loan repayment period are as follows,

• For loans up to INR 7.50 Lakhs: Moratorium period + Maximum 120 instalments
• For loans above INR 7.50 Lakhs: Moratorium period + Maximum 180 instalments

Security

• Up to INR 4 Lakh: Only co-obligation of parents with no security.
• Above INR 4 lakh and below INR 7.5 Lakh: A collateral in the form of a third-party guarantee along with the assurance of future income.
• Above INR 7.5 lakh: A 100% collateral and an assurance of future income should be provided.

Other Education Loans Provided by the Bank of Baroda

The Bank of Baroda is well renowned for being one of the top banks in India concerning empowering the student community and boosting the education sector. They have, from time immemorial, provided different schemes, loans, and benefits hence establishing themselves as the go-to bank of choice for students seeking help/aid in India.

Below is a list of other education loans provided by the Bank of Baroda:

• Baroda Education Loan to Students of Premier Educations (in India)

The education loan is for students who want to continue their higher studies in the country's premier institutions. And the interest rate range between 7.85% to 8.85%.

• Skill Loan Scheme

Skill Loan Scheme is for training the employees in the banking sector.

• Government of India interest Subsidy Schemes for Education

These loans are provided for those who belong to the economically weaker section and want to pursue an education in a professional/technical course. The government of India designed this, the Ministry of Human Resource Development, and the Department of Higher Education.

• Baroda Educational Loan for EDP being Offered by Premier Institutions Abroad

These loans are provided for students who want to take entrepreneurial development courses in premier institutions or universities abroad.