Bank of Baroda Education Loan
Bank of Baroda offers education loans tailored to support students pursuing higher education in India and abroad. With competitive interest rates starting at 8.15% p.a., loans cover tuition, accommodation, and study materials. Key benefits include 0.5% interest concession for female students, collateral-free loans up to ₹40 lakhs for premier institutions, and repayment periods of up to 15 years. Programs like Baroda Scholar, Digital Education Loan, and Baroda Vidya cater to a range of academic needs, from school education to international studies. Applications can be processed online or at branches, with simplified documentation and flexible repayment options.
Quick Overview:
- Interest Rates: 8.15% - 13.05% p.a.
- Loan Amounts: Up to ₹125 lakhs (India), ₹150 lakhs (abroad)
- Repayment Period: Up to 15 years
- Special Benefits: 0.5% concession for female students, collateral-free loans for premier institutions
- Application Options: Branch or online platforms (e.g., GyanDhan)
Bank of Baroda is a solid choice for affordable, accessible education financing. For faster processing or flexibility, consider comparing options like Propelld.
Bank of Baroda Education Loan Programs
Bank of Baroda offers a range of loan programs designed to meet diverse educational needs, covering everything from school fees to international studies.
School and College Loans
- Baroda Vidya: Covers school education at recognized Indian institutions. Loans are available up to Rs. 4 lakhs at an interest rate of 12.50% p.a., covering expenses like tuition, books, and computers.
- Baroda Gyan: Designed for undergraduate, postgraduate, and professional courses in India. Offers funding up to Rs. 125 lakhs with interest rates ranging from 11.40% to 13.05% p.a.
- For students looking to study abroad, specialized global education programs provide additional benefits.
International Study Loans
The Baroda Scholar program supports students pursuing overseas education in fields like MBA, MCA, MS, and other approved courses. Key details include:
- Loan amounts up to Rs. 150 lakhs.
- Collateral-free loans up to Rs. 40 lakhs for students at premier institutions.
- A repayment period of up to 15 years.
Online Course Loans
- Baroda Digital Education Loan: Offers funding for full-time online courses at premier institutions. Interest rates range from 9.15% to 10.20% p.a.
- Baroda Skill Loan Scheme: Provides up to Rs. 1.50 lakhs at 10.65% p.a. for students enrolling in technical or skill-based programs.
These programs make educational financing more accessible, catering to a variety of academic goals.
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Requirements and Documents
Here's what you need to know about eligibility and the paperwork required for a Bank of Baroda education loan.
Loan Eligibility
To qualify for a loan, applicants must meet these criteria:
- Be an Indian citizen enrolled in recognized technical, professional, or specialized courses at accredited institutions.
- Eligible programs include:
- Technical courses from well-known universities
- Professional degrees like MBA and MCA
- International certifications such as CPA-USA or CIMA-London
- STEM, medical, law, economics, and design courses at top institutes
- Specialized training like pilot or aeronautical programs
- Regular degree or diploma courses from accredited institutions
Now, let's look at the documents you'll need to apply.
Minimal Documentation. Higher Chances of Approval. Easy Online Processes. Check Your Eligibility.
Required Documents
Prepare and submit these documents for your loan application:
For Students:
- Valid ID proof (PAN, Passport, Driver's License, or Voter ID)
- Address proof (e.g., utility bill, Aadhaar card)
- Academic records (10th and 12th mark sheets, undergraduate results)
- Admission letter from the institution
- Entrance exam scores (e.g., GMAT, GRE, TOEFL for international studies; CAT, JEE, NEET for domestic programs)
- Statement of educational expenses
- Two passport-size photographs
- Passport (mandatory for international studies)
For Co-applicants:
- Identity and address proof
- Income proof (last 3 months' salary slips for salaried individuals or 2 years' IT returns for self-employed applicants)
- Bank statements from the past 6 months
- Statement of assets and liabilities
- Collateral property documents (if applicable)
Processing fees are waived for loans up to Rs. 7.50 lakhs. For loans requiring collateral, ensure you provide verified property documents. Additional paperwork may be requested depending on your case.
Also, know about the banks that give education loans without collateral for abroad.
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How to Apply?
Bank of Baroda provides both online and offline options for applying for education loans. You can either visit a nearby Bank of Baroda branch or use online platforms. Applications through online platforms often get processed faster - around 15-20 days - compared to the 30-45 days it usually takes for direct branch applications. Here's a quick guide to help you navigate the process.
Application Options
You can choose between two main methods:
- Direct Bank Application: Head to your nearest Bank of Baroda branch with all the required documents. The branch staff will assist you throughout the process, from submission to loan disbursement.
- Facilitator-Assisted Application: Use online platforms. These platforms let you upload documents digitally, provide support from a financial officer, and allow you to track your application online.
No Collateral Required. Approval Based on Student Potential. Check Your Eligibility
Loan Repayment
Bank of Baroda education loans are structured to make repayment easier after your studies. With a repayment period of up to 15 years, borrowers can handle monthly installments more comfortably.
Payment Terms
The repayment plan includes a moratorium period, covering your entire course duration plus an additional grace period. This setup gives you time to find a job before starting repayments.
The moratorium period in the Model Education Loan Scheme typically covers the entire duration of your studies plus an additional grace period of 6 months or 1 year after completing your course, whichever is earlier. During this period, you are not obligated to make any principal repayments.
Interest accumulates during the moratorium and is added to the loan amount before repayment starts. These terms allow for flexible and convenient repayment options.
Payment Methods
Bank of Baroda provides three ways to repay your loan:
- Standing Instruction (SI): If you have a Bank of Baroda account, your EMI is automatically deducted, ensuring on-time payments.
- Electronic Clearing Service (ECS): For non-BOB accounts, ECS handles automatic EMI deductions.
- Postdated Checks (PDCs): Where ECS isn't available, you can submit postdated checks at your nearest BOB Loan Centre.
You can also make extra payments without penalties, helping you save on interest. Payments can be managed through net banking, mobile banking, branch visits, or other digital platforms.
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Other Loan Options
Once you're familiar with Bank of Baroda's terms, it's worth comparing them with newer fintech options.
Loan Comparison
Bank of Baroda and Propelld take different approaches to education loans. Here's a side-by-side comparison:
Bank of Baroda stands out for its lower interest rates and refundable processing fee. On the other hand, Propelld focuses on making loans accessible by skipping collateral requirements.
Why Consider Propelld?
Propelld prioritizes speed and accessibility. Here's what makes it stand out:
- Fast Digital Process: Their fully digital application system cuts down on approval time.
- Academic-Based Evaluation: Instead of relying heavily on credit scores, Propelld looks at a student's academic potential.
- Flexible Repayment Plans: Options like moratorium periods and income share agreements allow for more personalized repayment solutions.
"We help fuel educational dreams by removing the barrier to financial access through private student loans", says Propelld, emphasizing their goal to make education financing easier for students.
Choosing between Bank of Baroda and Propelld depends on your needs. If you're looking for lower interest rates and have collateral, Bank of Baroda is a solid option. Propelld, however, is ideal for students who need quick approval and flexibility without collateral.
Summary
Main Highlights
Bank of Baroda offers education loans with interest rates starting at 8.15% p.a., making them an affordable option for students in India. Here are some of their standout schemes:
- Baroda Scholar: Interest rates range from 9.70% to 11.15% p.a., with a refundable processing fee.
- Digital Education Loan: Interest rates between 8.15% and 9.95% p.a.
- Premier Institution Loans: Rates from 8.15% to 9.95% p.a., and no processing fee is charged.
Female students benefit from a 0.5% concession on interest rates, and the maximum loan amounts are ₹125 lakh for domestic studies and ₹150 lakh for international studies.
Choosing the Right Loan
When deciding on an education loan, keep these factors in mind:
For students enrolled in premier institutions, Bank of Baroda provides attractive benefits like lower interest rates and reduced collateral requirements. However, if quick approval or a fully digital process is a priority, you might consider digital lenders like Propelld, even if their interest rates are higher. Use this information to make an informed choice for your educational financing needs.
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