The Bank of Baroda Education Loan Process
The Bank of Baroda education loan scheme for abroad studies is one of the most sought after government bank education loan schemes in India, as the bank is viewed to be one of the reliable sources of abroad education loans. One of the biggest advantages of the Bank of Baroda education loan process is that it is speedy, secure and absolutely reliable. However, very few people are well aware of the exact steps involved in the Bank of Baroda education loan process.
Some of the numerous benefits of borrowing a Bank of Baroda education loan for abroad studies include 100% coverage of higher education expenses and a payment-free moratorium period before the repayment begins. Episode seven of the Loanflix web-series discusses the various schemes of Bank of Baroda education loan for abroad studies. The complete details of a typical Bank of Baroda education loan process are described in this article.
Bank of Baroda Education Loan For Abroad Studies: An Overview
The Baroda Scholar Scheme is Bank of Baroda’s premier education loan scheme for abroad studies. Students who have been accepted into universities of various categories all over the world are eligible to apply under this education loan scheme. The Bank of Baroda maintains two different university lists. The universities have been categorized as premier institutions and non-premier institutions based on their overall ranking all over the world.
The students who have been admitted into any of the universities mentioned in the Bank of Baroda prime university list can avail secured education loans of up to INR 80 Lakhs, based on the value of their collateral security. Students can avail 100% funding when they borrow this Bank of Baroda education loan for abroad studies to attend any of the prime universities.
The non-prime list contains the names of lesser ranked universities around the world. Students who have been admitted into the institutions mentioned in the Bank of Baroda non-prime list are allotted a maximum secured education loan of INR 60 Lakhs. This is again, dependent on the value of the collateral security being pledged. Under the Baroda Scholar education loan scheme for abroad studies, candidates are disbursed 90% of funding.
Now that the important aspects of the Bank of Baroda education loan scheme for abroad studies have been discussed, let us move on to understand the Bank of Baroda education loan process in detail.
The Bank of Baroda Education Loan Process: Step 1
The process of applying for any Bank of Baroda Education Loan is simple. Similar to many other government banks, students can now register for the Bank of Baroda education loan process online. When students visit the Bank of Baroda education loan website for the purpose of applying for an education loan, they are redirected to the Vidyalakshmi education loan portal and complete the further steps as directed by the rules and regulations mentioned in the portal.
Navigating through the Vidyalakshmi education loan portal is pretty much self-explanatory. Hence, students will not find it difficult to complete their application process. All candidates are given the option to apply to three different banks through the portal. On reaching this stage of the application process, they need to choose the Bank of Baroda as one of the options.
Depending on certain factors in their online application form, the online portal allots the respective bank and branch to candidates. However, this part of the Bank of Baroda education loan application process can be tricky, as it is difficult to determine which bank and branch will be allotted to a particular candidate at a time.
What are the Limitations of Applying Through The Vidyalakshmi Portal For Education Loans?
In an attempt to digitize the education loan application process for students, the government of India had introduced the Vidyalakshmi portal which is a common, centralized online education loan application platform. In order to apply for a study in India education loan amounting to INR 10 Lakhs and an abroad education loan amounting to INR 20 Lakhs, many government banks recommend students to apply through this common education loan portal.
However, one of the biggest challenges of this portal is that once students submit their application form on the Vidyalakshmi portal, they do not have the option to modify their options unless and until one of the banks with which they have applied to, accepts their application.
It is important to understand that the education loan requirements of different students are different. Once students have applied for an education loan online, they are required to get in touch with the respective banks for further assistance. Many students have reportedly had a terrible time trying to convince the bank officials to approve their education loan applications.
The financial team of WeMakeScholars has made it possible for many such students to acquire their education loans successfully, helping them bypass a lot of unnecessary steps in the entire education loan process. So if you are struggling with yours, get in touch with their team today for a faster education loan process. Let us move on to the next step in the Bank of Baroda education loan process.
The Bank of Baroda Education Loan Process: Step 2
- Once the application is received at the respective branches, banks verify the information provided on the application by speaking directly with the candidates. Students may be required to visit their respective bank branches to submit photocopies of relevant documents related to their academic records, co-applicant’s financial statements, and those related to the asset being pledged as collateral security. When the application is received at the branch, students are handed a checklist of the documents to be submitted.
- After having successfully verified all the documents, the respective branches forward the set of documents to their respective processing centers. In the Bank of Baroda education loan process, this processing center is called a Special Mortgage Store (SMS). So, if your loan officer happens to use these education loan terms while interacting with you, they are basically referring to processing centers.
- The SMS conducts a legal verification of the collateral with the help of a bank-appointed lawyer and monetary valuation by a valuator, also appointed by the bank. Their respective reports are then collected at the SMS and then sent to a Central Processing Center.
- All the further steps are undertaken only after the reports are received at the Central Processing Centers.
- After successfully verifying the legal and valuation reports, the CPC sanctions the education loan application.
- Post this process, the loan is sanctioned successfully.
When students directly try to register for the Bank of Baroda education loan process through the Vidyalakshmi education loan portal, the system takes longer than 15 days to allot the respective branches to them. At the same time, when they approach the WeMakeScholars, their education loan applications are sanctioned within the same time duration.
The next phase of the Bank of Baroda education loan process involves the disbursement of the education loan amount.
Bank of Baroda Education Loan Process: Step 3
In this phase of the Bank of Baroda education loan process, once the education loan application is approved for a sanction and an education loan sanction letter has been granted, students are required to visit their respective branches for mortgage creation of their government bank education loan. This process simply comprises a re-verification of the original property documents, before a mortgage account is created. Once the mortgage account has been created, the loan agreement is ready to be signed by candidates and co-applicants.
The signing of the loan agreement marks the end of the Bank of Baroda education loan process. Post this, the abroad education loan is ready to be disbursed. The disbursement process of a government bank education loan takes place in the following order.
- Students are required to submit a disbursement letter to their respective Bank of Baroda branch. They need to include the preferred method of payment of tuition fees by respective educational institutions in this letter.
- Once banks receive this letter, the tuition fees will be deposited as per the directions received from students. It will either be disbursed directly to the university’s tuition fee account or via a third-party payment software.
- The living expenses are deposited into a foreign travel card. Students may use this card to withdraw their living expenses in the initial days of their stay abroad. It is valid for upto three months, once students start using it. Post this time period, students will be required to create a savings account with a local bank abroad and convey their account details to respective banks. The remaining living expenses will be transferred to this savings account for the remaining course period.
The pre-visa disbursement hassle
The education loan disbursement process marks the end of the Bank of Baroda education loan process. Now, students who wish to study in countries like Canada, Germany, Australia and New Zealand are bound by rules to make a prepayment of their one year’s living expenses in order to qualify for their student visas.
In order to fulfil the financial obligations, abroad education loan applicants must request their lending banks to approve a pre-visa disbursement. Bank officials dismiss such requests most of the time as they are unaware of the financial obligations for student visas of these countries. Hence, students have a tough time trying to convince the authorities.
One of the biggest advantages of applying for abroad education loans with government banks through WeMakeScholars is that students get instant approval of their pre-visa disbursement with the assistance of the financial team. If you are stuck at this phase of your abroad education loan procedure, get in touch with the WeMakeScholars team today.
Also read about Education Loan Repayment: Process- Steps to know
Bank of Baroda Education Loan Process: Step 4
Any education loan procedure does not end until the loan is repaid entirely. The education loan repayment policy of government banks offers an exclusive benefit which is not applicable to any other loan category; a moratorium period.
Moratorium period basically refers to a loan holiday which is granted to students before their repayment period begins. This advantage is only applicable to loans like an SBI education loan or a Bank of Baroda education loan.
The concept of moratorium period was introduced by government banks after having given due consideration to the fact that students require sufficient time to find employment once their course period gets over. This feature of the Bank of Baroda education loan process is what attracts a majority of students. The education loan repayment tenure granted for Bank of Baroda education loans is 15 years.
With this point, we come to an end of the entire Bank of Baroda education loan process. Do keep reading our blog to gain more insight into the education loan process.
Note: WeMakeScholars is an organization funded and supported by the Government of India that focuses on International Education finance. We are associated with 10+ public/Pvt banks/ NBFCs in India and help you get the best abroad education loan matching your profile. As this initiative is under the Digital India campaign, it’s at free of cost. The organization has vast experience dealing with students going to various abroad education destinations like the US, Canada, UK, Australia, Germany, Sweden, Italy, China, France among others