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Know about the BOB education loan disbursement process, covering applications, loan sanctions, and more.
The education loan process may seem like a work of smoke and mirrors because of the long, complex, and tedious process involved. However, we understand the confusion among students and parents, and therefore, try to give you the lowdown.
In this blog, we will take you through the Education loan disbursement process by Bank of Baroda (BOB) & other important details about the BOB Education loan.
A loan sanction letter is issued by the lending institution to the applicant. It is a proof that the applicant is eligible to get a certain amount of loan, that is the sanctioned amount from the borrower, and includes the tenure of the loan repayment, applicable interest rates, the validity period of the sanction letter, applicable EMI, and terms and conditions of the lender.
Loan disbursement, on the other hand, refers to the transferring of funds to your loan account and then to the university/forex card/your account.
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The Bank of Baroda education loan process has multiple steps. The steps would become easy if the loan is applied via GyanDhan.
Once the loan is sanctioned, the applicant has to sign the agreement.
Disbursement of the loan requires another set of documents and at least a month’s time. To complete the disbursement formalities, there are some common documents to be submitted -
Other documents could be related to property/collateral.
Once the documents are submitted, the loan officer will draw up a loan agreement on the stamp paper, which the applicant will sign.
This agreement will include conditions of the loan, repayment schedule, collateral details, university, and course details, as well as any penalty in the case of non-payment of EMIs.
After the loan agreement is drawn up and signed, the education loan disbursement process in BOB can happen in a number of ways as per the customer’s instructions.
For Living Expenses, the branch transfers the amount in the Forex-cum-debit card. This is done upon the submission of the proof of living expenses such as lease agreement. If the customer has already paid the expenses, he/she can avail reimbursement. Again, the amount will be transferred to the savings account linked with the loan account.
Banks can offer pre-visa disbursal, if required and specifically requested by the customer. Bank of Baroda offers this service to all the countries. To avail this service, the customer has to inform the Special Mortgage Store (SMS) in writing regarding the pre-visa disbursement requirement.
As mentioned earlier, applying for an education loan via GyanDhan comes with assistance and guidance at every step. Our education loan counselors will be at your disposal and will help you through any obstacle you face ensuring you get your loan in a timely and hassle-free manner.
Bank of Baroda offers ‘Baroda Scholar for Study Abroad’ Education loan for students who wish to pursue technical and professional courses from abroad universities. The loan product has many benefits for students such as nil processing fees, high-value loans, and long loan tenure. The bank has divided the institutes into two lists - Specified List of Premium Institutes and Unspecified List of Premium Institutes and covers full-time postgraduate courses and diploma courses. Based on the list, the bank offers a secured education loan to students for up to INR 80 lakhs. The most distinctive feature of the loan is that the processing fee of INR 10,000 is refunded on the first disbursement of the loan amount. The students will only have to bear the one-time evaluation charges of INR 7,500.
Another favorable feature of the loan is that margin money is nil for the colleges in the Specified List i.e. the bank will fund the entire cost of your education irrespective of your loan amount. For a college from the Unspecified List, the margin money is 10%. To know how banks calculate margin money, read this blog.
This is an acknowledged fact that the loan process of nationalized banks is often too elaborate and lengthy. With multiple document submissions, branch visits, and evaluations, the entire process can take more than a couple of months. The process can drag along if even one document is missed or is inaccurate.
This is where GyanDhan becomes indispensable. Since we have streamlined the education loan process, students can apply for loans on our portals, submit documents online after receiving a customized document checklist from us.
Our doorstep document pickup service is another perk. We strive to eliminate any extra effort that might overwhelm the student and coordinate with the branch, lawyers, and the Special Mortgage Stores (SMS). The only work you will have to do is arrange all the documents in a timely manner. Rest, leave the worries to us. Our education loan counselors will go above and beyond to make your abroad education loan process easy and comfortable for you. You can also track your BOB education loan status on your GyanDhan account dashboard.
Complete your education loan process in a few clicks, contact GyanDhan right away! Check your loan eligibility here or request a call back here.
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