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Bank of Baroda Education Loan

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Education Loan of Bank of Baroda

Education, a very important cog in the wheel of existence. In the modern world however, quality instruction is almost always a costly proposal. Therefore, loans which assist in this noble pursuit, like the Bank of Baroda Education Loan, are eagerly gearing up an audience that's wanting to pursue quality instruction school or higher education overseas. In this respect, Bank of Baroda provides lots of technical choices which will suit every person condition - Baroda Vidya, Baroda Gyan, Baroda Scholar and also Baroda Education Loan for Vocational Education & Training.

Summary:
Launched in the year 1908, Bank of Baroda is an Indian state-run banking and financial services company as well as the 2nd biggest bank in India in terms of resources. Underneath its assortment of loan products, Bank of Baroda provides several kinds of education loans that have been specifically made to fund unique heights of academic demands. Be it fundamental school education (toddlers to 10+2), graduation or post-graduation level, the Bank of Baroda education loan scheme includes something for everybody.

Features & Advantages of Bank of Baroda Education Loan:
Following are the noteworthy features of the Variety of education loans provided by Bank of Baroda,

Baroda Vidya
The Baroda Vidya schooling loan is made for students pursuing college instruction ranging from Nursery up to Senior Secondary school. Following are the features of this loan-

Maximum Loan Limit

Rs. 4 lakhs

Eligibility

  1. Applicant must be an Indian national, residing in India.

  2. He/she must have secured admission to a recognized school/high school/Junior College (ICSE/CBSE/State Board) for the following courses:

Stage I – Nursery to Std. V

Stage II – Std. VI to Std. VIII

Stage III- Std. IX to Std. XII

Interest Rate

  1. Loans up to Rs.4 lakhs : Base Rate + 2.50%

  2. Loans from Rs.4 lakhs to Rs.7.50 lakhs : Base Rate + 2.50%

  3. Loans above Rs.7.50 lakhs : Base Rate + 1.75%

  4. Baroda Education Loan for Vocational Education & Training: Base Rate + 2.00%

Note-

  1. Loans to girl students get an applicable 0.50% concession.

  2. Interest must be serviced as and when applied during the moratorium period.

  3. If loan amount exceeds Rs.2 lakhs, penal interest at the rate of 2% applies on the overdue amount.

  4. Added concession of 1.00% applies to students who are pursuing their studies in premier institutions like IIT, IIM, IIFT, AIIMS, ISB, NIT, XLRI, MDI, IISc, SPJIM, etc.

Processing Fee

None. No documentation charges as well.

Security

None. However, if the loan is being taken for the purchase of a computer, then the same will be pledged as security for the loan.

Margin

None

Repayment Tenure

Yearly sub-limit must be repaid in 12 EMIs. The first installment is due 12 months after the disbursal of each year’s loan component.

Expenses Covered

  1. Fees that must be paid to school or college.

  2. Fees applicable for Examination, Library, Laboratories, Hostel, etc.

  3. The purchase of uniforms, books, equipment, and instruments.

  4. Personal Computers/ Laptops, if the course requires the same for successful completion.

  5. Additional payments like Building fund, Caution deposit, Refundable deposit, etc. These however, need to be backed up by proper bills or receipts.
 

Baroda Gyan:

This loan applies to students who are pursuing graduation, post-graduation and other professional courses in India. The Baroda Gyan loan is a feature-rich package that is also immensely student-friendly,

 

Maximum Loan Limit

Rs. 10 lakhs

Eligibility

  1. Applicant must be an Indian national, residing in India.

  2. Should have secured admission into any of the courses listed under the section ‘Course Eligibility’ below.

  3. This Bank of Baroda Education Loan scheme applies to merit students (eligible for a seat under the merit quota) but choose to pursue a course under the management quota.

  4. Management quota seats considered under the Bank of Baroda education loan scheme, fees as applicable to these payment seats (authorized by State Government/ Regulatory body approved by the Government) will be taken, subject to the viability of repayment.

Interest Rate

  1. Loans upto Rs.4 lakhs : Base Rate + 2.50%

  2. Loans from Rs.4 lakhs to Rs.7.50 lakhs : Base Rate + 2.50%

  3. Loans above Rs.7.50 lakhs : Base Rate + 1.75%

  4. Baroda Education Loan for Vocational Education & Training : Base Rate + 2.00%

Note-

  1. Loans to girl students gets an applicable 0.50% concession.

  2. Simple interest will be charged through the moratorium period with monthly rests.

  3. If loan amount exceeds Rs.2 lakhs, penal interest at the rate of 2% applies on the overdue amount.

  4. Added concession of 1.00% applies to students who are pursuing their studies in premier institutions like IIT, IIM, IIFT, AIIMS, ISB, NIT, XLRI, MDI, IISc, SPJIM etc.

Processing Fee

None.

Security

Loan amount upto Rs.4 lakhs : None

Loan amount from Rs.4 lakhs to Rs.7.5 lakhs: Third party guarantee and assignment of future salaries towards loan repayment.

Loan amount above Rs.7.5 lakhs: Tangible collateral as security that is equivalent to 100% of the loan amount. Plus, assignment of future salaries towards loan repayment.

Margin

Loans upto Rs.4 lakhs : None

Loans above Rs.4 lakhs : 5.00%

 

Note- Margin is applicable on pro-rata basis on yearly basis as and when disbursements are availed.

Repayment Tenure

Loan amount upto Rs.7.50 lakhs : Repayment in max 120 installments

Loan amount above Rs.7.50 lakhs : Repayment in max 180 installments

Moratorium Period

The repayment holiday applies from, Course Period + 1 year or 6 months after getting the job (whichever comes first).

Expenses Covered

  1. Fees that must be paid to school or college.

  2. Fees applicable for Examination, Library, Laboratories, Hostel etc.

  3. The purchase of uniforms, books, equipment and instruments.

  4. Personal Computers/ Laptops, if the course requires the same for successful completion.

  5. Additional payments like Building fund, Caution deposit, Refundable deposit etc. These however, need to be backed up by proper bills or receipts.

  6. Additional expenses that are deemed important for course completion, including and not limited to projects, study tours, thesis etc.

Course Eligibility

  1. All Graduation, Post-Graduation and Doctorate courses.

  2. All courses conducted by IIT, IIM, IISc, XLRI, NIFT etc.

  3. All professional courses, conducted by recognized institutions.

  4. Courses such as C.A, ICWA, CFA, CS, etc.

  5. Computer certificate courses from reputed institutes with alignments to recognized Universities.

  6. Degree/Diploma from colleges/universities/National Institutes/private institutions/evening courses that are approved by a recognized Government body such as UGC/AICTE/ AIBMS/ ICMR etc.

  7. Degree/Diploma in Aeronautical, pilot training etc. (approved by Director General of Civil Aviation/shipping).

  8. Educational courses offered in India by prominent foreign Universities.

Perks

Free Debit Card.
 

Baroda Scholar:
This specialized offering from Bank of Baroda schooling loan is solely for students who want to pursue their high technical or professional research at reputed academic institutions overseas. The salient features of the Bank of Baroda education loan strategy would be as follows-

Maximum Loan Limit

Rs. 20 lakhs

Eligibility

  1. Applicant must be an Indian national.

  2. Should have secured admission into any of the professional/ technical courses at a recognized foreign university or educational institution.

Interest Rate

Loans upto Rs.4 lakhs : Base Rate + 2.50%

Loans from Rs.4 lakhs to Rs.7.50 lakhs : Base Rate + 2.50%

Loans above Rs.7.50 lakhs : Base Rate + 1.75%

Baroda Education Loan for Vocational Education & Training : Base Rate + 2.00%

Note-

Loans to girl students gets an applicable 0.50% concession.

Simple interest will be charged through the moratorium period with monthly rests.

If loan amount exceeds Rs.2 lakhs, penal interest at the rate of 2% applies on the overdue amount.

Added concession of 1.00% applies to students who are pursuing their studies in premier institutions like IIT, IIM, IIFT, AIIMS, ISB, NIT, XLRI, MDI, IISc, SPJIM etc.

Processing Fee

1.00% that is refundable upon acquisition of loan.

Security

Loan amount upto Rs.4 lakhs : None

Loan amount from Rs.4 lakhs to Rs.7.5 lakhs: Third party guarantee and assignment of future salaries towards loan repayment.

Loan amount above Rs.7.5 lakhs: Tangible collateral as security that is equivalent to 100% of the loan amount. Plus, assignment of future salaries towards loan repayment.

Margin

15.00%

Repayment Tenure

Loan amount up to Rs.7.50 lakhs: Repayment in max 120 installments

Loan amount above Rs.7.50 lakhs: Repayment in max 180 installments

Moratorium Period

The repayment holiday applies from, Course Period + 1 year or 6 months after getting the job (whichever comes first).

Expenses Covered

  1. Admission fees that is payable to College/ University.

  2. Fees applicable for Examination, Library, Laboratories, Hostel, Mess etc.

  3. The purchase of uniforms, books, equipment and instruments.

  4. Personal Computers/ Laptops, if the course requires the same for successful completion.

  5. Additional payments like Building fund, Caution deposit, Refundable deposit etc. These however, need to be backed up by proper bills or receipts.

  6. Additional expenses that are deemed important for course completion, including and not limited to projects, study tours, thesis etc.

  7. Expenses for one-way travel.

Course Eligibility

  1. All Graduation, Post-Graduation, Doctorate, Technical courses and other Job oriented courses offered by reputed foreign Universities.

  2. Degree/Diploma in Aeronautical, pilot training, shipping etc. (approved by Director General of Civil Aviation/shipping in India as well as a competent local aviation/shipping authority).

Baroda Education Loan for Vocational Education & Training:

As the name so clearly indicates, this Bank of Baroda education loan scheme applies for students that want to pursue a postsecondary class or similar training. This Bank of Baroda Education Loan strategy can be obtained the fundamental features of this popular loan product are as follows-

Maximum Loan Limit

  1. Course duration up to 3 months: Rs.20,000

  2. Course duration from 3- 6 months : Rs.50,000

  3. Course duration from 6 months- 1 year : Rs.75,000

  4. Course duration exceeds 1 year : Rs.1,50,000

Eligibility

  1. The applicant must be an Indian national.

  2. He/she must have secured admission in a vocational course that is duly approved by Government Ministry/Department/Organization or a similar undertaking that is approved and supported by the National Skill Development Corporation or State Skill Mission/Corporation.

  3. The final certification/diploma/degree etc. must be completely recognized by the Government or by any organization that is certified by the Government.

  4. The applicant must not be a minor. However, if such is the case, then the bank will ensure that the concerned documents are executed by the applicant’s parents and a letter of ratification will be collected from the applicant when he/she attains maturity. There is no maximum age limit to apply for this loan.

Processing Fee

None. No documentation charges as well.

Security

None. However, the parent will execute the loan documents, alongside the student borrower, as the joint borrower.

Margin

None

Repayment Tenure

  1. Loan amount up to Rs.50,000: Repayment in max 2 years

  2. Loan amount from Rs.50,000- Rs.1 lakh : Repayment in max 2- 5 years

  3. Loan amount above Rs.1 lakh: Repayment in max 3- 7 years

Prepayment

The borrower can prepay the loan at any time without any penalties.

Moratorium Period

The repayment holiday applies as thus- When the course period is maximum 1 year = 6 months from the completion of the course. When the course period exceeds 1 year = 12 months from the completion of the course.

Expenses Covered

  1. Fees with regards to Examination, Library, Laboratories.

  2. The applicable Tuition and Course fee.

  3. Costs incurred in the purchase of books, equipment and instruments.

  4. Additional expenses including Caution Deposit.

  5. Any other expenses that is considered crucial for the completion of the course.

 

Course Eligibility

  1. Vocational/Skill development courses that stretch from 2 months to 3 1/2 years.

  2. The selected course must be duly supported and recognized by the Government of India (in its direct capacity), or any organization that is recognized by the Government and/or authorized to act on its behalf. Such organizations include the National/State Skill Development Corporation(s).

  3. The final certification/degree/diploma accorded must be fully recognized by the Government or any organization that has its official authorization.

  4. Vocational courses that have good employability, including but not limited to courses offered by State Level Bankers Committee (SLBC), State level Co-ordination Committee (SLCC), etc.

  5. Courses/training programs approved by the National Skill Certification and Monetary Reward Scheme.

Insurance

The applicant can opt for the Group Credit Life Insurance Cover. The insurance premiums will be financed by the bank, and eventually recovered along with the loan EMIs.
 

Interest Rate:
The subsequent interest rate applies to all the educational loan programs from Bank of Baroda. You'll observe that the Bank of Baroda education loan interest rates are some of the very best in its competitive category. Note the current Bank of Baroda schooling loan base rate is 10.00percent.

Loans up to Rs.4 lakhs: Base Rate + 2.50%
Loans from Rs.4 lakhs into Rs.7.50 lakhs: Base Rate + 2.50percent
Loans above Rs.7.50 lakhs: Base Rate + 1.75%
Baroda Education Loan for Vocational Education & Training: Base Rate + 2.00%


Note-

Loans to girl students receive an applicable 0.50percent concession. For Vocational Education & Training, the concession will be 1.00%.
Simple interest will be charged through the moratorium period with monthly rests.
If loan amount exceeds Rs.two lakhs, penal interest at the rate of 2% applies on the late amount.
Additional concession of 1.00% applies to pupils that are pursuing their studies in premier institutions such as IIT, IIM, IIFT, AIIMS, ISB, NIT, XLRI, MDI, IISc, SPJIM etc.


Subsidy Schemes:
In Regards to Bank of Baroda Education Loan subsidy schemes, you will find just two on offer, namely-

Central Scheme of Interest Subsidy for Education Loans
The National Skill Certification and Monetary Reward scheme covered under Baroda Education Loan for Vocational Education & Training


These strategies are explained in detail below,

Central Scheme of Interest Subsidy for Education Loans:
Formulated by Government of India, Ministry of Human Resources Development and Department of Higher Education, to help economically backward students to pursue technical/professional classes in India.


Provides interest subsidy throughout the moratorium period, on Bank of Baroda Education Loan.
Subsidy level tops up at Rs.10 lakhs. The training course fee however, may exceed this limit.
The interest is going to be borne by the pupil post the moratorium period.
The pupil's parental family income must not exceed Rs.4.5 lakhs/annum, which makes him a component of the Economically Weaker Section of the society. This fact must be confirmed via an income certificate that is issued from the State Government/ Organization appointed by the State Government.
Subsidy only applies if the student is registered for a course that is properly recognized with worried certification bodies/ Government associations.
Subsidy applies to a student just once (first undergraduate course or postgraduate degrees/diplomas that are conducted in India). Additionally, the subsidy is applicable on integrated classes (graduation + post-graduation).
The subsidy will be terminated when the student discontinues or gets disconnected from the concerned class.
So as to avail this Bank of Baroda schooling loan subsidy, an agreement has to be accepted by the student borrower and the Bank.


The National Skill Certification and Monetary Reward scheme covered under Baroda Education Loan for Vocational Education & Training:

A fairly long name, this initiative from the National Skill Development Corporation, is meant to encourage the Indian youth with monetary rewards after they have successfully completed a skill development course as part of an approved training program. As part of this Baroda Education Loan for Vocational Education & Training, Bank of Baroda offers loans to eligible students Who Would like to pursue skill development programs as part of their National Skill Certification and Monetary Reward Scheme.

The salient features of this Bank of Baroda Education Loan subsidy scheme are as follows:

1. The National Skill Development Agency (NSDA) is the implementer of the scheme.
2. The complete list of accepted skill development classes, with their affiliated training institutions, may be sourced by the NSDA website in addition to the National Skill Development Corporation (NSDC) web site.
3. Minimum training duration is 30 days. An entire gamut of social skills, job training and similar skill training might also be included within this program.
4. Post the training, an approved third party will conduct the examination and issue the certificate.
5. Applicable monetary rewards for attaining the certification is as follows-

 

Domain.

NSQF Level 1 & 2

NSQF Levels 3 & 4

Manufacturing

Rs. 10,000

Rs. 15,000

Service Sector & Others

Rs. 7,500

Rs. 10,000

*NSQF: National Skill Qualification Framework.

Bank of Baroda Education Loan FAQs:
1. What's considered a'Lending Branch' in the case of the Bank of Baroda Education Loan?

The Bank of Baroda division that's closest to the permanent address of this debtor is generally the one which dispenses the instruction loan. Thus, this division is called the'Lending Branch'.

2. How can the lender monitor the educational progress of the debtor/student?

The borrower/student is anticipated to submit their progress reports on the lender frequently, for record keeping purposes.

3. Is your pupil's boarding and accommodation coated in the student loan that is subscribed?

In situations wherein the pupil does not secure the hostel center as offered from the concerned educational institution, he/she could want to stay elsewhere. After confirming the validity of the concerned location, the lender will directly remit the related expenses into the lodging and boarding facility.

4. What's the significance of'Margin' from the context of loans?

The expression'Margin' identifies the gap between the loan amount guaranteed and the real disbursed amount. For instance - The Baroda Scholar schooling loan includes a margin of 15 percent, meaning, if your loan amount is currently Rs.4 lakhs, just 85 percent of the sum will actually be disbursed for you. The margin will require that collateral/security value the 15 percent sum be deposited with the lender until you get the Rs.4 lakh funds. This movement from the lender is supposed to promote the responsible use of this loan from the debtor's conclusion, as the latter is very likely to be lenient when a private stake was not involved.

5. I've found this wonderful new class that's sure to have good job applicability in the not too distant future. But, it is not recorded on some of those lists regarding authorized classes. What should I do?'

Education Loan from Bank of Baroda are confined to specified classes which are properly recorded on specified sources. These records are handled by an educated and intellectual authority that's likely to focus on the development of educational classes which are in fashion. But if the class you would like to pursue is not among the, Bank of Baroda Education Loan is not very likely to assist. How about the upcoming Bank of Baroda to get a Private Loan??

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