Bank of Baroda presents a one of its kind finance option for parents of students pursuing school education. These loans are available for studies from Nursery to Senior Secondary School.
- No processing charges.
- No Margin on loans upto 4 lacs.
- Free Debit Card.
- Graduation: For job oriented professional / technical courses offered by reputed universities.
- Post Graduation: MCA, MBA, MS. etc.
- Courses conducted by CIMA-London, CPA in USA etc.
- Regular Degree/ Diploma courses like Aeronautical, Pilot training, Shipping etc, provided these are recognized by local Aviation / Shipping authority and Director General of Civil Aviation/ shipping in India or the competent regulatory bodies in India / abroad for the purpose of employment in India / abroad.
- List of Institutions Please click here for Specified List of Institutions in Abroad (286 KB).
- List of Premier Institutes for Management course
- List of Premier Institutes for STEM Courses (Science, Technology, Engineering and Mathematics) (after 10+2 course & above)
- List of Premier Institutes for Medical and
- List of Premier Institutes for Other Education (Law, Economincs, econometrics, Art, performing arts and Design Courses)
- (All the above Institutions to be treated at par)
- Operating units may also consider loans for any other courses,other than the Management course, STEM Courses,Medical and Other Education courses offered by Institutes/Universities featured in above Lists D under our normal education loan scheme for study abroad without any preferential treatment.
- Education Loans for courses offered by Universities/Institutes for study abroad other than specified in the above mentioend Lists can also be considered without any preferential treatment.
- Should be an Indian National.
- Secured admission to professional / technical courses Abroad through Entrance Test / Merit Based Selection process.
Interest Rates & Charges
- 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.
- Please click on below link for Rate of Interest and Processing Charges
Central Scheme of Interest Subsidy for Education Loan
Government of India, Ministry of Human Resources Development, and Department of Higher Education has formulated an Interest Subsidy for Education Loans for the students of economically weaker section (EWS) for pursuing technical / professional courses in India
Please click here for detailed guidelines of the Scheme (1.4 MB)
Padho Pardesh Scheme of Interest Subsidy for Education Loans.
Padho pardesh - scheme of interest subsidy on educational loans for overseas studies for the students belonging to the minority communities.
Please click here for detailed guidelines of the Scheme (477 KB)
Dr. Ambedkar Central Sector Scheme of Interest Subsidy for Educational Loans.
Dr. Ambedkar Central Sector Scheme of Interest Subsidy - scheme of interest subsidy on educational loans for overseas studies for Other Backward Classes (OBCs) and Economically Backward Classes (EBCs)
Please click here for detailed guidelines of the Scheme (265 KB)
Most Important Terms & Conditions
Target group Students going abroad for Professional / Technical studies
Quantum of finance
- RS. 80.00 lakh for Institutions specified in List of Premier Institutions
- RS. 60.00 lakh for Institutions not specified in List of Premier Institutions
- Need based finance subject to repayment capacity of parents
- For Institutions specified in List of Premier Institutions : NIL (irrespective of loan amount)
- Institutions not specified in List of Premier Institutions
- Up to RS.4.00 lakh: NIL
- Above RS.4.00 lakh:10%
Repayment Holiday/ Moratorium Period Course period + 1 year.
Coverage of expenses for
- Fee payable to College / Institution / University / Hostel / Mess charges
- Examination / Library / Laboratory fee
- Purchase of books / equipments / instruments / uniforms
- Personal Computers / Laptops wherever required
- Caution deposit, Building fund / Refundable deposit supported by institution bills / receipts, subject to condition that the amount does not exceed 10% of the total tuition fees for the entire course.
- Purchase of computers, if essential for completion of the course.
- Insurance premium for student borrower
- Any other expenses required to complete the course – like study tours, project works, thesis, etc.
- Travel expenses / passage money (to and fro)
- Cost of external coaching / tution is NOT to be considered.
Note: The details of expenses for the entire course period to be obtained from college / institution.
- The loan is repayable in maximum 10 – 15 years after the completion of moratorium period as mentioned above
- For loans up to RS. 7.50 Lakhs : Moratorium Period +Maximum -120- installments
- For Loans above RS. 7.50 Lakhs : Moratorium Period +Maximum -180- installments
Unified Processing charges
- 1.00% of Loan amount (maximum ₹ 10,000/-) to be recovered upfront which will be refundable on availment (first disbursement) of loan. The amount can be refunded to the credit of Saving Bank account / Loan account of the student / borrower.
- A non refundable Lump sum amount Rs.7,500/- per property (towards Advocate and Valuer charges) to be taken upfront in case of all Education Loan accounts, wherever property is mortgaged .
- Up to RS. 4.00 lacs: Co-obligation of parent. No Security.
- Above RS. 4.00 Lacs and up to RS. 7.50 lacs
- Collateral in the form of a suitable third party guarantee along with assignment of future income.
- The Regional authority may, at its discretion, waive third party guarantee in following cases:
- if satisfied with the net-worth / means of parent who would be executing the document as “Joint borrower”.
- to support highly meritorius / deserving students who have secured admission in an institution of a high repute, but unable to offer suitable third party guarantee
Above RS. 7.50 lacs
- Tangible collateral security equal to 100% of the loan amount along with assignment of future income of the student for payment of instalments.
- Directly to School / Institution / hostel -- term wise / year wise, in stages as per the requirement / demand.
- Directly to book seller / shop for purchase of books, instruments, equipments.
- In case student does not secure hostel facility with educational institute, he may be allowed to make his own arrangement if required. Lodging / boarding charges in such cases to be paid directly to concerned establishment, after verifying bonafides of the same.
- Branch which is in close proximity to the permanent residence of parent/at the place of posting/service of the parent Branch
Who can apply for the loan?
Any Indian National fulfilling criteria stated above is eligible for education loan.
Who can be co-obligant?
The parents, guardians, friends and relative can be co-obligant.
How much does Bank of Baroda lend?
Bank of Baroda extend need based finance subject to repaying capacity of the parents/student with margin upto following ceilings.
List of FAQs
|Studies in India
||Maximum Rs. 10.00 lacs
||Maximum Rs.20.00 lacs.
For how long a period can I get the loan?
We grant loan for a term of 5-7 years after repayment holiday/moratorium.
What is the repayment holiday / moratorium period?
Course period + 1 year or 6 months after getting job whichever is earlier.
What is the mode of repayment?
The accrued interest during the repayment holiday period to be added to the principal and repayment in Equated Monthly Instalment (EMI) is fixed.
Do you offer any concession?
Yes, we do offer 1% interest concession to student loanee, if the interest is serviced during the study period when repayment holiday is specified for interest / repayment under the scheme. Additionally, 1% interest concession is provided to girl students.
What type of interest do you charge under your Education Loan Scheme?
We charge simple interest at monthly rests during the repayment holiday /moratorium period.
Do you levy any penalty for default under the scheme?
Yes, we charge penal interest @ 2% on overdues amount in the loan exceeding Rs.4 lacs.