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Bank of Baroda Education Loan

Last Modified : June 05, 2018

Bank of Baroda Education Loan and Schemes have been formulated for easing out monetary burden on student’s education in Indian and Abroad. Baroda Vidya, Baroda Gyan, Baroda Education Loan to Students of Premier Institutions are three distinct Bank of Baroda Student Loan initiatives to study in India. The bank has a provision for no margin upto loan amount INR 4 lacs. 

With total assets of INR 3.58 trillion, Bank of Baroda (BoB) is  2nd largest bank by assets. It has an extended network of 5538 branches in India and abroad.  Bank of Baroda is an Indian State-owned financial services bank established in the year 1908. It offers Bank of Baroda Education Loan for Abroad for the students who wish to pursue studies overseas. 

There are various schemes offered by Government of India with Education Loans for India and Abroad. Interested students can avail these schemes such as National Skill Certification and Monetary Reward Scheme, Central Scheme of Interest Subsidy for Education Loan, and Skill Loan Scheme to ease their loan liability.

Why Bank of Baroda Education Loan?

The banks provide a variety of benefits to attract customers. Even though the loans provided might function on same guidelines, benefits are the key factors to distinct one bank from others. Bank of Baroda offers some key details for the benefit of borrowers. Have a look at them below:

  • Variety of Education Loan offered for studies in India and Abroad
  • Free Debit Card 
  • No Processing Charges
  • Additional benefits for students planning to study in premier Indian institutes

Variants of Bank of Baroda Education Loan

1. Baroda Vidya- for school education from Nursery to XII

Bank of Baroda launches its Baroda Vidya Scheme for parents who have their kids pursuing school level education. The loan covers education level from nursery to class XII. Bank of Baroda Education Loan aims to provide Education at schooling level with no processing and documentation Charges.

Eligibility to avail Baroda Vidya Education Loan

  • Indian National
  • Resident of India
  • High School/ Junior College recognized by CBSE, ICSE or any state board.
  • Courses that fall under the benefits of Bank of Baroda Education Loan are:
  1. Nursery to V Standard
  2. VI to VIII Standard
  3. IX to XII Standard
  4. Evening courses offered by institutes that are recognized by State/ Central Govt
  • Loan is sanctioned in the name of father/mother 

Key Benefits of Baroda Vidya Education Loan

  • No processing/ documentation charges
  • No specified margin
  • No security required
  • 0.5% concession in rate of interest to girl students

Present Rate of Interest

Baroda Vidya

1 year MCLR

Strategic Premium of 2.50% and

0.5% concession is given to girl students

Penal Interest of 2% on overdue amount if the loan amount exceed INR 2 Lacs

Margin

Zero Margin

 

Maximum Loan Limit

INR 4 Lacs

Security

No security required

If in case the loan is sanctioned for purchase of computer or laptop, this should be notified to the bank

Moratorium Period

Course Period + 1 year

Repayment (Maximum)

Repayment of the loan can be done after the moratorium period by mode of EMI

Each yearly sub limit is repayable in 12 EMI’s

Prepayment Charges

Nil

Expenses Covered under Baroda Vidya Education Loan

  • School/ Junior College Fee
  • Examination Fee
  • Library/ Laboratory Fee
  • Hostel Fee
  • Cost of Books, equipment, instrument or uniforms
  • Reasonable cost of computer or laptop (if required)

NOTE: Cost of external coaching or tuition is not to be considered

2. Baroda Gyan – for Higher study education in India

Baroda Gyan launched by Bank of Baroda is a product their loan scheme specially formulated for students pursuing graduation, Post- graduation, Professional or any other courses in India. BoB Education loan scheme promotes academic advancement in students by helping them to energize their studies.

Eligibility to avail Baroda Gyan Education Loan

  • Indian national
  • Resident of India
  • Admission to any of the approved courses
  • Merit-based admission

Key Benefits ofBaroda Gyan Education Loan

  • No Processing charges
  • No margin upto INR 4 Lacs
  • Free Debit Card 
  • 0.5% concession on interest subsidy to girl student

Present Rate of Interest

Baroda Gyan

1 year MCLR

Strategic Premium of 2% and

0.5% concession is given to girl students

Penal Interest of 2% on overdue amount if the loan amount exceed INR 4 Lacs

Margin

Upto INR 4 Lacs- NIL

Above INR 4 Lacs – 5%

 

Maximum Loan Limit

INR 30 Lacs

Security

Upto 4 lacs- No security required

From INR 4 Lacs to  7.50 Lacs – collateral security in form of third party guarantee

Above INR 7.50 Lacs- Tangible collateral security equal to 100% of loan amount

Moratorium Period

Course Period + 1 year or 6 months after getting job

Repayment (Maximum)

Upto INR 7.5 Lacs- 10 years (after moratorium period)

Above INR 7.5 Lavs- 15 years (after moratorium period)

Prepayment Charges

Nil

Courses Approved under Baroda Gyan Education Loan

  • Graduation/ Post- Graduation/ Doctorate courses
  • Professional Courses- Medical, Law, Dental, Engineering, Hospital Management, Hotel Management, Event Management, Mass Communication, Fashion Studies, Agricultural Studies, etc.
  • Computer Certificate courses but only from reputed institutes accredited to Department of Electronics or those institutes that are affiliated to reputed universities.
  • CA, CS, ICWA, CFA, etc. or courses provided by IIMs, IITs, IISc, XLRI, NIFT, etc.
  • Degree/ Diploma courses- Aeronautical, Pilot Training, Shipping and alike approved by Director General of Civil Aviation/ Shipping
  • Courses that are offered by reputed foreign universities in India
  • Regular/ Evening Courses conducted by colleges/ universities approved by UGC/ Government/ AICTE/ AIBMS/ ICMR etc.
  • Degree/ Diploma courses in Teacher Training, Nursing, B.Ed 

Expenses Covered under Baroda Gyan Education Loan

  • Tuition Fee
  • Examination Fee
  • Library/ Laboratory Fee
  • Hostel Fee 
  • Cost of Books, equipment, instrument or uniforms
  • Miscellaneous expenses- study tours, project work, thesis, etc.
  • Reasonable cost of computer or laptop (if required)
  • Insurance Premium for Student borrower

NOTE: Cost of external coaching or tuition is not to be considered

3. Baroda Education Loan for Students of Premier Institutions

Bank of Baroda has launched its Education Loan scheme for students of premier institutions. The scheme is launched to extend a helping hand to students who have secured admission to premier Institutions.

Eligibility to avail Baroda Education Loan for Students of Premier Institutions

  • Indian National
  • Resident of India
  • Professional/ Technical courses offered by one of the premier institutes (list of institutes is mentioned below)

Details ofBaroda Education Loan for Students of Premier Institutions

  • No Processing charges
  • No margin applied

Present Rate of Interest

For regular courses and Executive Development Programmes

 

 

Baroda Education Loan for Students of Premier Institutions

List AA Institutes- 1 year MCLR

List A Institutes- 1 year MCLR

List B Institutes –

Upto INR 7.50 Lacs: 1 year MCLR + Strategic Premium 0.75% spread

Above INR 7.50 Lacs: 1 year MCLR + Strategic Premium 0.50% spread

No concession for girl student

List C Institutes –

INR 7.50 Lacs: 1 year MCLR+ Strategic Premium 1.50% spread

Above INR 7.50 Lacs: 1 year MCLR+ Strategic Premium 1.25% spread

 

Margin

Nil

 

Maximum Loan Limit

INR 30 Lacs

Security

Upto 4 lacs- No security required

From INR 4 Lacs to 7.50 Lacs – collateral security in form of third party guarantee

Above INR 7.50 Lacs- Tangible collateral security equal to 100% of loan amount

Moratorium Period

Course Period + 1 year or 6 months after getting the job

Repayment (Maximum)

Upto INR 7.5 Lacs- 10 years (after moratorium period)

Above INR 7.5 Lacs- 15 years (after moratorium period)

Prepayment Charges

Nil

Courses Approved under Baroda Education Loan for Students of Premier Institutions

Full time regular technical or professional courses that are provided by premier institutes. (List of A and B Premier Institutes is mentioned below

Expenses Covered under Baroda Education Loan for Students of Premier Institutions

  • College/ Institute/ University Fee
  • Examination Fee
  • Library/ Laboratory Fee
  • Hostel Fee
  • Cost of Books, equipment, instrument or uniforms
  • Miscellaneous expenses- study tours, project work, thesis, etc.
  • Reasonable cost of computer or laptop (if required)
  • Insurance Premium for Student borrower

NOTE: Cost of external coaching or tuition is not to be considered

List of Premier Institutes underBaroda Education Loan for Students of Premier Institutions

List of A premier Institutes

S.No

Name of Institute

1

Indian Institute of Management (IIM)

2

Indian Institute of Technology (IIT)

3

Indian Institute of Foreign Trade (IIFT)

4

All India Institute of Medical Sciences (AIIMS)

5

Armed Force Medical College (AFMC)

6

Indian School of Business (ISB)

7

National Institute of Technology (NIT)

8

Xavier Labour Relations Institute (XLRI)

9

Management Development Institute (MDI)

10

SP Jain Institute of Management and Research (SPJIMR)

11

SPJIM

12

Indian Institute of Science (IISc)

13

Bangalore Medical College (BMC)

14

Birla Institute of Technology and Science (BITS) – Pilani

15

Christian Medical College (CMC)

16

Department of Industrial & Management Engineering, IIT, Kanpur

17

Department of Management Studies, IIT, Delhi

18

Grant Medical College (GMC), Mumbai

19

Indian School of Mining – Dhanbad

20

IT BHU, (IIT Varanasi)

21

Jawaharlal Institute of Post-Graduate Medical Education and Research (JIPMER), Pondicherry

22

Kasturba Medical College (KMC), Manipal

23

King Edward Medical College (KEMC), Mumbai

24

Lady Hardinge Medical College (LHMC), Delhi

25

Marine Engineering & Research Institute, Kolkata

26

Madras Medical College (MMC), Chennai

27

Maulana Azad Medical College (MAMC), Delhi

28

Post Graduate Institute of Medical Education & Research (PGIMER), Chandigarh

29

St. John's Medical College, Bangalore

30

Symbiosis Centre For Management & HRD (SCMHRD), Pune

31

Symbiosis Institute of Business Management (SIBM), Pune

32

Xavier Institute of Management (XIM), Bhubaneswar

33

International Institute of Information Technology, Bangalore, Hyderabad, Bhubaneswar, Delhi, Allahabad.

34

Indira Gandhi Rashtriya Udaan Academy, Raibareili.

35

Indian Institute of Space & Technology

List of B premier Institutes

S. No

Name of Institute

1

National Institute of Technology (NIT), Agartala

2

Alagappa Chettiar College of Engineering & Technology (Anna University), Chennai

3

Amrita School of Medicine (ASM), Kerala

4

Birla Institute of Technology (Mesra), Ranchi

5

Centre for Environmental Planning & Technology (CEPT), Ahmedabad

6

College of Engineering, Pune

7

College of Engineering, Guindy (Anna University), Chennai

8

College of Structural & Architectural Planning (Anna University), Chennai

9

Dayanand Medical College (DMC), Ludhiana

10

Delhi College of Engineering (DCE), Delhi

11

Dhirubhai Ambani Institute of Information & Communication Technology (DAIICT), Gandhinagar

12

Dr. B R Ambedkar National Institute of Technology (NIT), Jalandhar

13

Faculty of Engineering & Technology, Jadavpur University, Kolkata

14

Faculty of Management Studies (FMS), Delhi

15

Indian Institute of Forest Management (IIFM), Bhopal

16

Indian Institute of Science (IISc), Bangalore

17

Institute of Management Technology (IMT), Ghaziabad

18

Institute of Rural Management (IRMA), Anand

19

Jamnalal Bajaj Institute of Management Studies (JBIMS), Mumbai

20

LN Mittal Institute of Information & Technology (LNMIIT), Jaipur

21

Loyola Institute of Business Administration (LIBA), Chennai

22

Madras Institute of Technology (Anna University), Chennai

23

Malaviya National Institute of Technology (NIT), Jaipur

24

Manipal Institute of Technology (MIT), Manipal

25

Maulana Azad National Institute of Technology (NIT), Bhopal

26

Motilal Nehru National Institute of Technology (NIT), Allahabad

27

Mudra Institute of Communication (MICA), Ahmedabad

28

Narsee Monjee Institute of Management Studies (NMIMS), Mumbai

29

National Institute of Design (NID), Ahmedabad

30

National Institute of Industrial Engineering (NITIE), Mumbai

31

National Law School of India University (NLSIU), Bangalore

32

National University of Juridical Sciences (NUJS), Kolkata

33

Netaji Subash Institute Of Technology (NSIT), Delhi

34

Nirma Institute of Management, Ahmedabad

35

Sardar Vallabh Bhai National Institute of Technology (NIT), Surat

36

School of Planning & Architecture, New Delhi

37

Tata Institute of Social Sciences (TISS), Mumbai

38

University College of Engineering (UCE), Burla, Odisha

39

University Institute of Chemical Technology (UICT), Mumbai

40

Veermata Jijabai Technological Institute (VJTI), Mumbai

41

Visvesvaraya National Institute of Technology (NIT), Nagpur

42

IIIT, Gwalior

FAQs 

Q What schemes does Bank of Baroda considers for its education loans?

Ans. There are multiple other schemes offered by Bank of Baroda apart from the basic education loans. These are:

  • CSIS Scheme
  • Padho Pradesh
  • Baroda Education Loan for Vocational Education and Training
  • National Skill Certification and Monetary Reward Scheme

In whose name is the loan granted?

Ans. The loan is granted in the name of the student

Q Is the loan contract executed only in student’s name?

Ans. No, the loan can be executed both in name of student and co-borrower as both are equally responsible for repayment of loan.

Q What is the age limit for availing loan in Bank of Baroda?

Ans. There is no age restriction for the applicant applying for education loan from Bank of Baroda. He/ she should only meet the other stated eligibility criteria’s.

Q Are minors eligible to apply for Bank of Baroda Education Loan?

Ans. Yes, Minors aspiring for further studies can apply for education loan with help of legal representation from parents/ guardians.

Q What does margin on any loan mean?

Ans. Margin amount is the amount that a borrower has to pay through his/ her own sources in form of a down payment as his/ her contribution towards the education.

Q Should the student’s margin be paid upfront in the starting?

Ans. Margin can be paid on a year to year pro rata basis whenever bank disburses loan amount as per requirement.

Q Where can I avail Bank of Baroda Education Loan?

Ans. You can either contact your nearest branch for the application form or details regarding the loan or apply online from the official website.

Q Is there any provision to apply for loan online?

Ans. Yes, you can apply online through Vidyalakshmi portal to avail for this loan.

Q Can I view my loan statement online if I am an existing education loan borrower?

Ans Yes, by creating a login on Bank of Baroda web portal, you can view all details related to education loan online.

Q Is there any minimum aggregate marks to meet the eligibility criteria to avail Bank of Baroda education loan?

Ans. Yes, a student must have secured a minimum aggregate marks in their last qualifying examination (10+2 or Graduation). Relaxation in the marks is given to SC/ ST students

Q What is the discount/ rebate offered by Bank of Baroda?

  • 0.50% concession is given to girl students only in Baroda Gyan.
  • Eligibility criteria and margin on education loan is relaxed for SC/ST students

Q What all is included in tangible collateral security?

Ans Mostly Bank of Baroda asks tangible security in lieu of the loan amount sanctioned along with assignment of future salaries in favour of Bank of Baroda. Tangible security includes documents related to land/ building/ government security/ public sector bonds/ units of UTI, NSC, Life insurance policy/ bank deposits/ shares or debentures. The value of the security should be equal to the education loan amount.

Q Is scholarship or assistantship included in the margin?

Ans. Yes, any scholarship or assistantship will be a part of margin charged on education loan.

Q What is Moratorium Period?

Ans. Course Period plus one year, or six months after getting a job

Q What is tenure of an education loan?

Ans. Tenure of education loan provided by Bank of Baroda is maximum 15 years

Q What does MCLR stands for?

Ans. MCLR stands for Marginal Cost of funds based Lending Rate. It refers to the minimum interest rate of bank below which it cannot lend.

Q What all expenses are covered under this course?

  • Expenses covered by Bank of Baroda education loan are:
  • Tuition/ college/ hostel fee
  • Examination/ lab/ library fee
  • Books/ uniform/ instruments
  • Caution deposit
  • Passage money for studies abroad, etc.

Q I have taken admission through management quota. Am I eligible?

Ans. This depends totally on bank’s discretion as whether a student meets other eligibility criteria or not.

Q What do you mean by reputed or recognized institutes?

Ans. Institutes that are affiliated to state/ central universities and comes under UGC or AICTE are considered as recognized institutes. Reputed institutes are those which are well known and have standard course of repute. More often, banks provide the list of institutes they consider for loan. (You can contact nearest branch for the same)

Q Are there any special benefits if I have secured admission to one of the top premier institutes?

Ans. Bank of Baroda provides 1% concession to students who have secured admission in top rated institutes like IITs, IIMs, XLRI, ISB, IIFT, NITs, etc.

Q What is the processing fee or prepayment charges?

Ans. The education loan offered by Bank of Baroda have no prepayment, processing or documentation charges.

Q Will cost of my computer be covered under the loan sanctioned?

Ans. Reasonable cost for the computer or laptop well be covered under the loan if it is required to complete the course. 

Q Why is Pan Card necessary?

Ans. Pan Card is one of the mandatory document required by banks these days. It is mandatory because:

  • Easy to assess Income
  • Easy to trace borrowers

Q Are diploma or certificate courses considered under Bank of Baroda education Loan (both for India and Abroad)?

Ans. Diploma courses are eligible under Bank of Baroda Education Loan. Regular degree or diploma courses like, shipping, pilot training, and aeronautical that are approved by Director General of Civil Aviation or Shipping.

Q Is a co-borrower necessary for loan?

Ans. Yes, it is mandatory to have a co-borrower to avail loan from Bank of Baroda.  

Q Who can be my co-borrower?

Ans. Your parent/ spouse/ guardian can be a co-borrower. A co-borrower should be your immediate family member, should have a steady source of income, and a good credit history.

Q What all documents are required from the co-borrower?

Ans. Documents required from the co-borrower are:

  • Attested copies of age proof, residence proof and birth date.
  • Self-attested passport size photograph
  • Income proof and/or copy of income tax return file
  • Details of collateral security along with government approved valuation certificate (if any).

Q How many guarantors do I need to borrow loan from Bank of Baroda?

Ans. You need at least 2 guarantors to avail loan from Bank of Baroda.

Q What is the KYC requirement in education loan?

Ans. KYC requirements are the documents as a proof of personal identification and residence proof of the applicant as well as the co-borrower.

Q What are maximum term for repayment?

Ans. Maximum Term for repayment for Loan is 15 years

Q How can I repay the loan?

Ans. You can repay the loan after the moratorium period by mode of EMI or through post- dated cheques.

Q What is EMI? How are they calculated?

Ans. EMI stands for Equated Monthly Installments. It can be calculated by using the formula given below

EMI = [P x R x (1+R) ^n] / [(1+R)^ n-1]

Here, P is Amount of Education Loan, R is Rate of Interest, n is Tenure of the Loan.

Or simply you can use the EMI calculator provision available on Bank of Baroda’s official website.

Q What are the charges for late EMI payment?

Ans. 24% per annum on outstanding amount is charged for the late EMI payment and INR 500 for every bounced cheque.

Q Is the loan disbursed in name of individual applicant or to the institute/ university directly?

Ans. The loan is disbursed directly to the institute/ university that you have taken admission to. Hence, an applicant is supposed to submit institute brochure with proper division of the fee

Q If I am unable to complete my course in given tenure, will my repayment term be extended?

Ans. It is completely on the banks discretion to extend the moratorium period or not. It can be extended for maximum 2 years based on student’s reason. You can contact your nearest branch for more details.  

Q What is method of application of interest on education loan?

Ans. The interest will be charged at simple rate from the date of disbursement till commencement of repayment of loan. After that, compound interest is charged on reducing balance. 

Q What is interest rate of education loan?

Ans. The interest rate is different for different loan offered. Refer the tables below:

For Baroda Vidya

Baroda Vidya

1 year MCLR

Strategic Premium of 2.50% and

0.5% concession is given to girl students

Penal Interest of 2% on overdue amount if the loan amount exceed INR 2 Lacs

For Baroda Gyan

Baroda Gyan

1 year MCLR

Strategic Premium of 2% and

0.5% concession is given to girl students

Penal Interest of 2% on overdue amount if the loan amount exceed INR 4 Lacs

For Baroda Education Loan for Students of Premier Institutes

 

 

Baroda Education Loan for Students of Premier Institutions

List AA Institutes- 1 year MCLR

List A Institutes- 1 year MCLR

List B Institutes –

Upto INR 7.50 Lacs: 1 year MCLR + Strategic Premium 0.75% spread

Above INR 7.50 Lacs: 1 year MCLR + Strategic Premium 0.50% spread

No concession for girl student

List C Institutes –

INR 7.50 Lacs: 1 year MCLR+ Strategic Premium 1.50% spread

Above INR 7.50 Lacs: 1 year MCLR+ Strategic Premium 1.25% spread

 

Q What is interest subsidy on education loan?

  1. Bank of Baroda offers
  2. Interest Subsidy scheme for economically weaker sections and to promote education amongst them
  3. Baroda Education Loan for Vocational Education and Training- for students who wish to pursue vocational courses and enhance their career prospects.
  4. National Skill Certification and Monetary Reward Scheme- for students who complete skill development courses.

Q What documents do I need to submit to avail interest subsidy scheme?

  1. The documents that need to be submitted are:
  2. Income certificate issued by authorised authorities
  3. Bonafide student certificate
  4. Letter of undertaking or declaration signed by borrower/ co-borrower

Q What is employment verification in an education loan?

Ans. The bank takes the responsibility to cross verify all the employment details of the applicant and co-borrower. If the banks fails to cross verify every detail provided, it might reject the loan application.

Q Are there any tax benefits in education loans?

Ans. Under Section 80E of Income Tax Act, loan borrowers can avail the tax benefits. This benefit is only available over and above INR 1,50,000. Tax benefits can be availed once the borrower starts paying interest on loan. The deduction is available until borrower pays off full interest amount on loan or for maximum of 8 years (whichever is earlier).

Q Is it necessary to have bank account with the bank while availing loan from that particular bank?

Ans. It is not necessary to have a bank account while availing the loan but it makes it easier for the borrower to get loan application approved.

Q Why do banks require insurance policy as security?

Ans. The banks require insurance policy as security in lieu of education loan provided. The insurance policy should be equal or more to the amount of loan sanctioned. In case of untimely demise of the borrower, the bank recovers the amount from the insurance policy

Q Are there any additional benefits on availing loan from Bank of Baroda?

Ans. Borrower can opt for Group Credit Life Insurance Cover. The insurance premium of which will be financed by bank.

Q What is credit score? Is it important for education loan?

Ans. Credit Score is inclusive of various factors such as credit history (Loan history or credit card). If a student does not have a credit score, banks calculate it by considering factors such as University, College and the Course of admission. Banks consider the academic background of student and credit history of co-borrower.

Q If a student have any query, where or whom to contact?

Ans. Student can reach out to the nearest branch in case of any query.

Customer Care Number: 0265 236 1852/ 0265-256-3932/ 022-6698 5000 04

Local rates apply on every call