How to Get a Bank of Baroda Education Loan : A Detailed Guide

    Updated on: 01 Jul 2022


    Education loans are a boon for students who want to pursue their favored stream of education, without having to be weighed down by the high fees accompanying it. Nowadays there are plenty of financial institutions who are offering education loans to students both for the graduate & the postgraduate courses as well.

    Public Sector Banks also offer education loans. In the recent past, public sector banks have been a little conservative in their education loan offerings due to the high amount of NPA (Non-Performing Assets) associated with these loans. Despite this, PSUs remain the most trustworthy source for an education loan. Bank of Baroda education loan that offers education loans for a variety of courses.

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    About Bank of Baroda

    The bank is one of India’s oldest banks in existence and was established in 1903. Subsequently, the bank was nationalized in 1969 and is now 100% state-owned. Although it is based out of Gujarat, it operates in several cities across India and also has a considerable overseas presence.

    What are the features of the education loan by Bank of Baroda?

    Being a regulated entity, BOB is restrictive in terms of the courses, countries, and institutions for which it offers loans. They have several products, which are tailor-made for different students/courses. Depending on whether a student wants to pursue a course in India or abroad, there are different loans for the same.

    What are the education loan options for students to study in India?

    Here is a list of products that are geared towards students opting to study in India.

    1) Baroda Gyan

    This loan is targeted at students aiming to pursue their higher education in India. 

    Here are some key features of the scheme:

    • Courses Covered: Graduate & Post Graduation including degree & diplomas from UGC / Government or other authority approved institutions. Professional Courses such as Charter Accountancy are also covered.
    • Items Covered under the Loan: Fees to the Institute, Library Fees / Cost of Course Material, Purchase of a Computer / Laptop needed to complete the course, Caution Deposits and likes (up to 10% of the Fees), Cost of Mortgage / Credit Insurance Premium.
    • Maximum Loan Amount – Rs. 80,00,000 for Medical & Aviation. Rs. 10,00,000 for all other courses. In some instances, BoB approves higher loan amounts subject to the parent’s repayment capacity.
    • Margin – This is an amount that has to be borne by the student in addition to the Loan. For Loans upto Rs. 4,00,000 there needs to be no contribution, whereas for loans above Rs. 4,00,000 5% of the fees should be borne by the student.
    • Security – Only Parent / Guardian assurance for loans up to Rs. 4,00,000 but a third party assurance is required for loans between Rs. 4,00,000 and Rs. 7,50,000. For loans above Rs. 7,50,000, a tangible property must be attached as collateral.
    • Maximum Repayment Period – 15 Years
    • Interest Rate The overall interest rate is calculated as the Baroda Repo Linked Lending Rate (i.e. BRLLR) + a defined spread. It is currently 6.85% per year, plus a spread that is 2.00%, making the effective rate of interest 8.85%. The interest rates are variable every year and you can check out this link to get the current value.
    • Processing Fee – Nil

     

    Check Your Education Loan Eligibility Apply Here

    2) Bank of Baroda Education Loan for Premier Institutes:

    This loan is targeted at students aiming to pursue their graduate and higher education in Premier Institutes in India like IIMs or IITs. 

    Here are some key features of the scheme:

    • Courses Covered: Full Time Regular Courses offered by the Institutes. Admission must meritorious and follow an entrance test.  
    • Items Covered under the Loan: Fees to the Institute, Library Fees / Cost of Course Material, Purchase of a Computer / Laptop needed to complete the course, Caution Deposits and likes (upto 10% of the Fees), Cost of Mortgage / Credit Insurance Premium.
    • Maximum Loan Amount & Security – The loan amount and loan security vary depending on the Grade of Institute:

     

      Grade  

      Amount without Security  

      Amount with 100% Security  

    List AA

    Rs. 40,00,000

    Rs. 80,00,000

    List A

    Rs. 20,00,000

    List B

    Rs. 7,50,000

    List C

    Rs. 7,50,000

    Security must be tangible collateral like a house.

    • Margin – NIL
    • Maximum Repayment Period – 15 Years
    • Interest RateInterest Rates vary depending on the Grade of Institute. It is calculated as Baroda Repo Linked Lending Rate (i.e. BRLLR) + a defined spread. Also, the interest rates are variable every year and you can check out this link to get the current value.

     

      Grade  

    Interest

    List AA

    BRLLR - 6.85% (for both girls and boys)

    List A

    BRLLR - 6.85% (for both girls and boys)

    List B

    Loan Amount

    • Up to Rs. 7,50,000 – BRLLR + 1.10% spread = 7.95%
    • Above Rs. 7,50,000 – BRLLR + 0.85% spread = 7.70%

    List C

    Loan Amount

    • Up to Rs. 7,50,000 – BRLLR +1.85% spread = 8.70%
    • Above Rs. 7,50,000 – BRLLR + 1.60% spread = 8.45%

     

    • Processing Fee – Nil. However, a non-refundable deposit amount of Rs. 7,500 towards Advocates & Valuer charges, is levelled when a property is mortgaged.

     

    3) Baroda loan for EDP offered by Premier Institutes

    This loan is exclusively targeted at students aiming to pursue Executive Development Programs (EDP) in Premier Institutes in India like ISB etc. 

    Here are some key features of the scheme:

    • Courses Covered: EDP offered by Premier Institutes as per the list. The program can be part-time/full time/weekend or even offered online. However, students must be gainfully employed during the course of education and after.
    • Items Covered under the Loan: Fees to the Institute, Library Fees / Cost of Course Material, Purchase of a Computer / Laptop needed to complete the course, Caution Deposits and likes (upto 10% of the Fees), Cost of Mortgage / Credit Insurance Premium.
    • Maximum Loan Amount – The Maximum Loan Amount offered under this scheme is Rs. 20,00,000.
    • Security – Nil for loans upto Rs. 15,00,000 and 100% collateral for loans above Rs. 15,00,000
    • Margin –Nil upto Rs. 4,00,000 and for loans above that students must bear 5% of the fees.
    • Maximum Repayment Period – 15 Years
    • Interest Rate Interest Rates vary depending on the Grade of Institute.  It is calculated as Baroda Repo Linked Lending Rate (i.e. BRLLR) + a defined spread. The interest rates are variable every year and you can check out this link to get the current value.

     

      Grade  

    Interest

    List AA

    BRLLR - 6.85% (for both girls and boys)

    List A

    BRLLR - 6.85% (for both girls and boys)

    List B

    Loan Amount

    • Up to Rs. 7,50,000 – BRLLR + 1.10% spread = 7.95%
    • Above Rs. 7,50,000 – BRLLR + 0.85% spread = 7.70%

    List C

    Loan Amount

    • Up to Rs. 7,50,000 – BRLLR +1.85% spread = 8.70%
    • Above Rs. 7,50,000 – BRLLR + 1.60% spread = 8.45%

     

    • Processing Fee – Nil. However, a non-refundable deposit amount of Rs. 7,500 towards Advocates & Valuer charges, is levelled when a property is mortgaged.

     

    Check Your Education Loan EMI Check Here

    What are the education loan options for students going abroad for studies?

    BoB also offer a range of products that are targeted towards students pursuing education abroad. These include:

    1) Baroda Scholar:

    This loan is targeted at students aiming to pursue their graduation or post-graduation abroad. 

    Here are some key features of the scheme:

    • Courses Covered: Full-Time Degrees / Post Graduations or Diploma Courses. CPA / CIMA and other such certifications offered abroad. The courses must be job oriented. BoB have a list of approved universities/institutes. However, exceptions from these institutes can be made on a case to case basis, subject to Bank Approval.
    • Items Covered under the Loan: Fees to the Institute, Library Fees / Cost of Course Material, Purchase of a Computer, Insurance Premium for Borrower, Caution Deposits and likes (upto 10% of the Fees), Travel Expenses.
    • Maximum Loan Amount – Rs. 80,00,000 for institutes categorized as Premier and Rs. 60,00,000 not categorized as Premier.
    • Margin – Nil for Premier Institutes. For non-Premier Institutes loans upto Rs. 4,00,000 margin is nil and loans above this would require a margin of 10%.
    • Processing Fees – 1% of Loan Amount subject to Maximum of Rs. 10,000, which is refunded after the First Disbursement of the Loan by the Bank. A non-refundable deposit amount of Rs. 7,500 towards Advocates & Valuer charges,  when a property is mortgaged
    • Security – For Loans upto Rs. 4,00,000 only Parent / Guarantee as co-borrower. For loans between Rs. 4,00,000 and Rs. 7,50,000 a Third Party Guarantee is acceptable. For Loans above Rs. 7,50,000 a 100% collateral of tangible security is required.
    • Maximum Repayment Period – 15 Years
    • Interest Rate – Based on the institute, the interest rates also vary. It is calculated as the Baroda Repo Linked Lending Rate (i.e. BRLLR) + a defined spread. The interest rates are variable every year and you can check out this link to get the current value.

     

    Grade

    Interest

    Premier Institutes

      BRLLR + 1.50% spread (including strategic premium)  

    • For Boys - 8.35%
    • For Girls - 7.85%

      All other Institutions  

    BRLLR + 2.15% spread (including strategic premium)

    • For Boys - 9.00%
    • For Girls - 8.50%

    2) Baroda Loans for EDP offered by Institutes Abroad

    This loan is targeted at students aiming to pursue EDP (Executive Development Program) abroad. 

    Here are some key features of the scheme:

    • Courses Covered: EDP offered by Institutes as per the list. The program can be part-time/full time/distance learning or even offered online. However, students must be gainfully employed during the course of education and after.
    • Items Covered under the Loan: Fees to the Institute, Library Fees / Cost of Course Material, Purchase of a Computer, Insurance Premium for Borrower, Caution Deposits and likes (upto 10% of the Fees), Travel Expenses.
    • Maximum Loan Amount – Rs. 80,00,000
    • Margin – Nil for loans upto Rs. 4,00,000 and loans above this would require a margin of 5%.
    • Security -  For Loans upto Rs. 4,00,000 only Parent / Guarantee as co-borrower. For loans between Rs. 4,00,000 and Rs. 7,50,000 a Third Party Guarantee is acceptable. For Loans above Rs. 7,50,000 a 100% collateral of tangible security is required.
    • Processing Fees – 1% of Loan Amount subject to Maximum of Rs. 10,000, which is refunded after the First Disbursement of the Loan by the Bank. A non-refundable deposit amount of Rs. 7,500 towards Advocates & Valuer charges,  when a property is mortgaged
    • Maximum Repayment Period – 15 Years
    • Interest Rate – Based on the institute, the interest rates also vary. It is calculated as Baroda Repo Linked Lending Rate (i.e. BRLLR) + a defined spread. The interest rates are variable every year and you can check out this link to get the current value.

     

    Grade

    Interest

      Premier Institutes  

    BRLLR + 2.10% spread

    • For Girls - 8.45%
    • For Boys - 8.95%

    What are the advantages of securing a Loan from BoB?

    1. The interest offered by BoB, being a Public Sector Bank, is much lower than most other Banks and significantly lower than NBFC loans.
    2. Processing Fees that are levied are refundable.
    3. Sometimes subsidies are offered by the Government to students from the weaker sections of the economy and these are passed on by BoB. This feature isn’t available when a student is securing a loan from an NBFC
    4. With one of the largest network of branches, loan accounts can be managed without any geographical restrictions
    5. Girl Students are offered a 0.5% concession on the Baroda Gyan, Baroda Scholar and EDP Loan abroad.
    6. No pre-closure penalties are levied

    What are the disadvantages of securing a Loan from BoB?

    1. The procedure is often too elaborate.
    2. Processing time & loan approvals also take a significant amount of time as Banks are regulated entities.
    3. Some Universities abroad insist that students show proof of funds/loans secured before they are offered admission. On the other hand, BoB will not approve a loan before a student receives an admit from a university. 

    These disadvantages can be overcome by processing the loan through GyanDhan.

    Check Your Education Loan Eligibility Apply Here

    How can GyanDhan help with your Bank of Baroda Education Loans?

    GyanDhan has helped hundreds of students get education loans from the Bank of Baroda in the most seamless way possible. Right from the application stage to the final disbursement stage, we handle all the issues and the roadblocks so that the student can get the loan in the most stress-free manner at the most attractive interest rates with an additional discount of 0.5% for girls. Check your loan eligibility here and fund your abroad studies with a hassle-free BOB education loan!

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