Education Loan

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A Right Education.

Education Loan
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Education Loan

There is no doubt about the importance of education these days. Be it school education or college education, it serves as a stepping stool for you to achieve your dreams. Whether it is college education or post graduation, don’t let high tuition fees hamper your growth. Getting an education loan is an easy way to finance your dreams. A student loan can help you get into the university of your choice. The Government’s push on education means you can avail education loan subsidy, and you also get tax benefits for interest paid under Section 80E of the Income Tax Act. Bank of Baroda offers you different types of education loans in India to fulfill your dreams. Most of these student loans in India have a repayment period of 10-15 years and a moratorium of the course period and the specified number of months. All education loans do not need a security for a loan up to Rs. 4 lakhs.

Baroda Vidya (Education from Nursery to XII)

Baroda Vidya (Education from Nursery to XII)

  • No processing & documentation charges.
  • No Margin.
  • No security required.
Baroda Gyan (Higher Study in India)

Baroda Gyan (Higher Study in India)

  • No processing charges.
  • No Margin on loans upto 4 lacs.
  • Free Debit Card.
Baroda Scholar (for study abroad)

Baroda Scholar (for study abroad)

  • No processing charges.
  • No Margin on loans upto 4 lacs.
  • Free Debit Card.
Baroda Education Loan to students of premier Institutions

Baroda Education Loan to students of premier Institutions

  • No processing charges.
  • No Margin.
  • Free Debit Card.
Skill Loan Scheme

Skill Loan Scheme

  • This scheme is applicable at all our Branches across the country.
  • The applicant should be an Indian National
  • Minimum Qualification : As required by the enrolling institutions/organizations as per NSQF.
Government of India Interest Subsidy Schemes for Education Loan

Government of India Interest Subsidy Schemes for Education Loan

  • Government of India, Ministry of Human Resources Development, and Department of Higher Education has formulated an Interest Subsidy for Education Loans...
Vidya Lakshmi Portal

Vidya Lakshmi Portal

  • Vidya Lakshmi is a first of its kind portal for students seeking Education Loan. This portal has been developed under the guidance of Department of Financial Services...
Baroda Education Loan for EDP being offered by Premier Institutions in India

Baroda Education Loan for EDP being offered by Premier Institutions in India

  • No processing charges.
  • No Margin on loans upto 4 lacs.
  • Free Debit Card.
Baroda Education Loans for EDP being offered by Premier Institutions abroad

Baroda Education Loans for EDP being offered by Premier Institutions abroad

  • No processing charges.
  • No Margin on loans upto 4 lacs.
  • Free Debit Card.
View Terms & Conditions

Purpose

The Loan will be sanctioned for extending financial assistance to deserving/ meritorious students for pursuing Education

Scope of the Education Loan

Studies in India

  • For education from Nursery to standard XII (Parents shall be given loan in this case)
  • For Graduation Courses, Post Graduation Courses, Professional Courses like Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Architecture, Computer Education etc.
  • Courses like ICWA, CA, CFA etc.
  • Courses conducted by IIM, IIT, IISC, XLRI, NIFT etc
  • Regular Degree/ Diploma Courses like Aeronautical, Pilot Training, Shipping etc. approved by Director General of Civil Aviation/ Shipping.
  • Courses offered in India by reputed foreign Universities
  • Evening courses of approved institutes
  • Other courses leading to Diploma/ Degree etc. conducted by colleges/ universities approved by UGC/ Govt./ AICTE/ AIBMS/ ICMR etc

Studies abroad

  • Professional / technical courses offered by reputed foreign universities
  • Post graduation courses like MBA, MCA, MS etc
  • Courses conducted by CIMA- London, CPA in USA etc.
  • Regular Degree/ Diploma courses like Aeronautical, Pilot Training, Shipping etc. The institute should be recognized by local aviation/ shipping authority and Director General of Civil Aviation/ Shipping in India.

Student Eligibility

  • Should be an Indian resident
  • Should have secured admission in any courses as mentioned above in point 2

Coverage of Expenses

  • Fee payable to college/ school/ Institute/ University
  • Examination/ Library/ Laboratory fee
  • Purchase of Books/ Instruments/ Equipments/ Uniforms
  • Personal Computer/ Laptop wherever required
  • Caution Deposit, Building Fund/ Refundable deposit (supported by Institutional Bills/ Receipts), subject to condition that the amount does not exceed 10% of the total tuition fees for the entire course.
  • Insurance premium for student borrower (not for Loans up to 12th standard Student)
  • Any other expenses required to complete the Course- like study tours, project works, theses etc

Quantum of Finance

  • Loan to parent of students pursuing school education from Nursery to XII standard -- Maximum Rs 4.00 lac (subject to year wise sublimit)
  • For other courses in India- Maximum Rs.30.00 lac
  • For study outside India- Maximum Rs. 60.00 lac

Margin

  • Up to Rs.4.00 lacs- NIL
  • Above Rs. 4.00 lacs up to Rs.10.00 lacs for study in India- 5 % (Baroda Gyan- Normal Scheme)
  • Margin- Nil (Baroda Gyan- Students of Premier Institutions)
  • Above Rs. 4.00 lacs up to Rs. 60.00 lacs for studying abroad- up to 10% (scholarship/ assistance ship if any received to be included in Margin)

Security

Up to Rs. 4.00 lac- No Security. Co obligation/ Obligation of Parents

Above Rs.4.00 lac and up to Rs.7.50 lac-

  • Collateral in the form of a suitable third party guarantee alongwith assignment of future income.

Above Rs. 7.50 lac- Tangible collateral security equal to 100% of the loan amount alongwith assignment of future income of the students.

Disbursement : For study in India

  • 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
  • Next Year disbursement to be made only after Student has passed the Current Year annual examination & progress report/ Marksheet to that effect is produced to Bank.
  • In case student does not secure Hostel facilities with educational institute, he may be allowed to make his own arrangement, if required, fee of lodging/ boarding in such cases to be paid directly to concerned establishment, after verifying bonafides of the same
  • For the first year of study, at times institutions insist students to pay the fees upfront at the time of admission. Such amount can be reimbursed after obtaining proof of payment.

Progress Report

To be submitted to Bank regularly for records

Financing Branch

Branch which is in the close proximity of the permanent residence of the parent/ at the place of posting/ service of the parent, who will be borrower (in case of Loans for Education from Nursery to XII standard) & Co borrower in other cases.

Rate of Interest

For current interest rate visit http://bankofbaroda.com/int_adv.asp#retailloan

Repayment Period

In case of Loans for Education from Nursery to XII standard)

  • Loan for each yearly sub limit is repayable in 12 Equated Monthly Installments. First Installment to be due 12 months after first disbursement of each year’s loan component
  • Interest to be serviced as and when applied during the moratorium period.
  • Option to repay the loan after moratorium by way of EMI is also available.

In case of other Loans

  • Loan upto Rs.7.50 lac is repayable in 10 years after moratorium period (Course period+ 1 year or 6 months after getting job, whichever is earlier). And loans more than 7.50 lac is repayable in 15 years after moratorium period (Course period+ 1 year or 6 months after getting job, whichever is earlier)
  • If the student is not able to complete the course within the scheduled time, extension of time for completion of course may be extended for a maximum period of 2 years. In such cases moratorium period will stand extended accordingly

Other Terms

  • 0.50% concession in rate of interest to loans for girl students
  • Penal interest @ 2% p.a. on overdue amount if loan exceeds Rs 4 lac

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