Bank of Baroda Loan For Higher Education Scheme

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bank of baroda loan for higher educationAn abroad education loan procedure can turn out to be stressful when you approach the wrong kind of lender. A hassle-free government bank education loan procedure greatly depends on the bank’s terms and conditions regarding the same. One name that is known for its student-friendly education loan terms is the Bank of Baroda. The Bank of Baroda, or BoB, as it is more famously called, has been a front-runner in the government bank education loan market. The bank is known to have implemented many advanced technology methods to ease the whole education loan process for their students. This article aims to give you information about the various Bank of Baroda loan for higher education schemes and the overall Bank of Baroda education loan process.

 

The Bank of Baroda Loan for Higher Education Schemes

Any education loan process starts with the research of the various schemes offered by your preferred bank. Here’s some detailed information about the various schemes of Bank of Baroda loan for higher education and which of those schemes will help you fund your higher education abroad.

The different BoB education loan schemes listed below are designed to cater to the funding needs of loan applicants who need to study with the help of a Bank of Baroda loan for higher education abroad belonging to different categories.

The Baroda Vidya scheme – Exclusively for school-going students who need education loans to complete their studies. Loans available for students of up to class 12.

The Baroda Gyan scheme – This Bank of Baroda loan for higher education scheme is for students who require education loans to complete their higher studies at universities within India.

The Baroda Scholar scheme – This Bank of Baroda loan for higher education scheme is aimed at students who wish to fund their higher studies abroad with the aid of education loans.

Baroda Skill Development Loan – BoB education loan scheme for small skill development courses in India.

Bank of Baroda Executive Development Program– This is another Bank of Baroda loan for higher education scheme which is aimed at working professionals who need funds for pursuing distance, part-time and online programs from universities both in India as well as abroad.

It is pretty easy to get information on the education loan process for educational institutes in India. An abroad education loan process, on the other hand, is a slightly complicated topic as most bank officers are seldom aware of the exact procedure themselves.

Candidates can avail of information regarding two major Bank of Baroda loans for higher education schemes for abroad education, namely the Baroda Scholar Loan and the Baroda Executive Development program.

The Bank of Baroda University List 

  • The Bank of Baroda has put together two primary lists of universities abroad for the reference of students who wish to fund their studies abroad with the help of a bank of baroda loan for higher education. The interest rates set by the bank for institutes belonging to these lists are different.

 

  • The Bank of Baroda university list is primarily divided into two categories, based on their overall ranking.

 

  • These lists are called the Bank of Baroda list of premier institutes and the Bank of Baroda list of non-premier institutes. They are more commonly known as Bank of Baroda List A institutions and the Bank of Baroda List B institutions. Other foreign universities are listed as List D institutions by the Bank of Baroda.

 

  • These premier and non-premier institutes are categorised further, based on the types of courses offered by them. There are four sub-categories of Bank of Baroda university lists. Below is the exact number of universities which have been listed under the Bank of Baroda specified list of premier institutes for various courses abroad.
Course No. of Listed Universities
Premier universities offering STEM courses 262
Premier universities offering Management Courses 171
Premier universities offering Medical courses 100
Premier universities offering other courses* 40

Other courses include the fields of Law, Economics & Econometrics, Art, Performing Arts and Design courses.

The terms and conditions laid by the Bank of Baroda for students seeking abroad education loans differ depending on which list the candidate’s chosen university belongs to. The Bank of Baroda has compiled these lists for the convenience of meritorious students who have secured admission into any of the prestigious universities around the world.

Not all factors are different for universities belonging to both categories. Parameters such as the interest rates, maximum offered loan amount, the loan margin are some of the major differentiating factors for students attending universities under these lists. Do remember to reach out to the financial team of WeMakeScholars in order to clear any doubts which you may have regarding the Bank of Baroda loan for higher education.

 

BoB Education Loan Details

The Bank of Baroda loan for higher education policies are more or less similar to those of major nationalised banks functioning in India. A 0.5% reduction in education loan interest rates for female candidates,a payment-free moratorium period, the maximum loan tenure, etc are a few of them. 

Parameters For universities in the premier list For universities in the non-premier list
Interest Rate 9.35% (Female Candidates)

9.85% (Male Candidates)

10.1%(Female Candidates)

10.6% (Male Candidates)

Available Loan Amount  Rs.8 Lakhs – Rs.80 Lakhs Rs.8 Lakhs – Rs.60 Lakhs
Total Loan Tenure  15 Years 15 Years
Moratorium Period Course Duration + 6 Months Course duration + 6 Months
Processing Time 15 Days if processed through our team 15 Days if processed through our team
Loan Margin 0% 10%
Expenses Tuition + All expenses related to the candidate’s course. Tuition + All Expenses related to the candidate’s course
Repayment Begins 12 months post course 

duration

12 months post course 

duration

 

Bank of Baroda loan for Higher Education Interest Rate 2020

The interest rates of all nationalized banks in India are calculated based on a benchmark lending rate called the MCLR (Marginal Cost of Funds Based Lending Rate). As of July 2019, the BoB education loan base rate is fixed at 8.60%

The interest rates are different for students who are attending the Bank of Baroda List A institutions (Premier list) and for those attending the  Bank of Baroda List B institutions (Non-premier list).

In addition to the BoB education loan base rate, the Bank of Baroda also adds a certain percentage as a ‘Spread’. So, the total interest rate is calculated as:

Bank of  Baroda loan for higher education base rate + Spread = bank of Baroda loan for higher education interest rate.

Below are the interest rates specified for Bank of Baroda loan for higher education abroad, for both the university lists:

The interest rate for Bank of Baroda loan for higher education List A Institutions: MCLR +1.25%.

The interest rate for Bank of Baroda loan for higher education  List B Institutions: MCLR + 2%.

  • The Bank of Baroda offers a 0.5% reduction in BoB education loan interest rates to meritorious students who have secured admission for courses such as STEM (Science, Technology, Engineering & Mathematics) courses, medical, management and certain other courses in the Bank of Baroda List A institutions.
  • The Bank of Baroda loan for higher education interest rates for female candidates already comes with a 0.5% waiver.
  • The Bank of Baroda loan for higher education base rates are subject to change from time to time. However, these changes are rarely significant. Hence this change does not affect the total interest rate too much.
  • Currently, the Bank of Baroda education loan interest rate 2020 has been declared to be at 8.5% for male candidates and 8% for female candidates (for Prim universities) and 9.25% and 8.75% for non-prime universities.

 

Bank of Baroda Eligible Countries & Courses

The Bank of Baroda offers abroad education loans under two different schemes. These schemes are aimed at two different categories of candidates who are likely to apply for an education loan.

Before we elaborate on the education loan schemes from Bank of Baroda, here are a few basic details of the courses and countries which are eligible for the same.

The Bank of Baroda eligibility criteria for the Baroda Scholar scheme:

  1. Candidate should be an Indian Resident.
  2. The Student should have secured admission into a university abroad.

The  Bank of Baroda loan for higher education eligibility criteria for the Baroda Executive Development Program.

  1. Candidates should be Indian citizens.
  2. The candidate should have secured admission into any Executive Development courses offered by premier institutions abroad.
  3. The candidate should be gainfully employed and should be in gainful employment during the study course.

The Baroda Scholars Scheme

The Baroda Scholars scheme is a collateral-based abroad education loan scheme which has been introduced for candidates who need to fund their education abroad with the help of a Bank of Baroda loan for higher education.

The Bank of Baroda loan for higher education policies are slightly different for meritorious students who have secured admission into prestigious universities for any of the top courses such as the STEM category, management courses, medical courses and other courses such as Law, Economics & Econometrics, Art, Performing Arts and Design.

The Bank of Baroda also offers abroad education loans to students who have secured admission for courses other than the ones mentioned above, without any preferential treatment.The Bank of Baroda offers abroad education loans under the Baroda Scholar scheme without any preferential treatment to candidates who have secured admission into any of the List D institutions

Eligible courses and universities for the Baroda Scholar Scheme:

This BoB education loan for abroad study is applicable to the following courses in abroad universities:

  1. Graduation – for job-oriented and professional/technical courses offered by prestigious universities abroad.
  2. Post Graduation – MCA, MBA, MS, etc.
  3. Regular Degree/ Diploma courses like Aeronautical, Pilot Training, Shipping etc, provided these are recognized by local Aviation / Shipping authority and Director General of Civil Aviation/ shipping in India or the competent regulatory bodies in India / abroad for the purpose of employment in India / abroad.
  4. The Bank of Baroda also considers candidates who have secured admission for courses other than the ones mentioned above in institutions which are not listed in any of the Bank of Baroda university lists.

Major highlights of applying under the Baroda Scholars scheme:

  1. Competitive interest rates offered.
  2. Payment-free moratorium period.
  3. Faster processing.
  4. Refundable processing fees – this clause is subject to certain conditions. Click here to know more.
  5. 0% Loan margin for candidates studying in any of the Bank of Baroda List A universities abroad.

Although it has been mentioned in their abroad education loan policies, many candidates have been rejected by bank officers on the basis of their courses when they have directly approached their local Bank of Baroda branches. To avail the better end of the Baroda Scholar abroad education loan scheme and to avoid any problems, apply here.

 

The Bank of Baroda Executive Development program

This Bank of Baroda abroad education loan scheme is a unique education loan program offered by the bank for working professionals who wish to study for executive development programs in any university abroad with the aid of abroad education loans.

This education loan scheme in BoB is provided to working professionals who have secured admissions for various executive development courses of all nature (online/part-time/ distant learning programmes)

The only criteria asked by the Bank of Baroda of such candidates is that they need to remain employed throughout their course duration. All the remaining policies are similar to that of the Baroda Scholars scheme for abroad education loans.

 

The Bank of Baroda Processing Fees and Other Charges

The Bank of Baroda levies the following charges as processing fees to students who borrow a BoB education loan:

Type of Loan/Service Processing Fees
BoB education loan taken for Career Development programs 0.50% of the total loan amount
Study in India Nil
Bank of Baroda study abroad education loan INR 10,000 to be paid upfront*
Lawyer and Valuator charges INR 8,500 regardless of the type of property placed as collateral

*The processing fees charged for BoB education loan for abroad studies are refundable to students who have borrowed abroad education loan under the Baroda Scholar scheme to study in any of the Bank of Baroda loan for higher education List A institutions abroad.

*For eligible candidates, the processing fee will be refunded after the first disbursement of the abroad education loan is availed by them. The WeMakeScholars team helps students with their abroad education loan process. If you happen to have any confusion regarding the Bank of Baroda education loan processing fees, do get in touch with their financial team at the earliest instance.

The Bank of Baroda Loan For Higher Education Procedure

An education loan from nationalized banks is always beneficial for candidates. However, before applying for one, it is essential that you know the entire procedure well. Here’s a glimpse of the Bank of Baroda education loan procedure:

  1. Visit the branch and get the BoB education loan form and further details. This process can be avoided if you apply for a BoB education loan for abroad studies, here.
  2. Along with the education loan application form, the branch will also provide a checklist of the required education loan documents.
  3. Collect all the documents mentioned in the checklist and submit it, along with the duly filled education loan form, back to the branch.
  4. You are likely to face a hurdle in the above step. Most students face a difficult time while submitting the documents as their assigned loan officers find some discrepancy with the same and send the students back.
  5. Once all the BoB education loan documents are accounted for, the assigned bank officer is required to log in your application form along with your file into the online Bank of Baroda education loan portal.
  6. After the successful logging of the Bank of Baroda education loan profile of a candidate, the bank sends the file to a lawyer for approval. 
  7. The above step is applicable to candidates who have pledged immovable property as collateral security against their BoB education loan. This step is not applicable to candidates who have pledged liquid assets as collateral.
  8. On completing the verification, the bank-approved lawyer sends his report to the candidate’s respective branch.
  9. The report is further sent by the branch to a bank-approved valuator.
  10. The evaluator visits the property in question, estimates the value, prepares a report and sends the same back to the branch.
  11. Once the documents are received by the branch, the file is sent for further processing to the nearest Regional Processing Center (RPC).
  12. The RPC sends the file for further verification to a lawyer and a property valuator and the further steps are similar to the ones mentioned above.
  13. On the successful completion of this verification process, the officials at the RPC create a loan account of the candidate.
  14. After the creation of a loan account, the branch schedules an appointment with the loan applicant and the co-applicant for the purpose of mortgage creation and for signing the loan agreement.

Although the steps involved in the Bank of Baroda abroad education loan process may sound simple, Students end up spending a lot of time running from pillar to pole in order to fulfil the document requirements placed by their respective branches. This is why it takes a lot of time for the bank to process Bank of Baroda education loan applications.

When you apply with us, around 80% of your time and effort will be saved as you will not be required to personally go through the initial steps involved in the Bank of Baroda education loan procedure.

 Our team directly sends our applicant’s file to the respective RPC, thus skipping the first few steps. Candidates will only be required to visit their BoB branch for submitting their collateral documents at the beginning and then towards the end, for the mortgage creation and for signing the loan agreement. Any hurdle faced by the candidate during the Bank of Baroda education loan process will be addressed by our team.

The BoB Education Loan Processing Time

The entire BoB education loan processing time will be ideally two months-long if candidates directly apply with any Bank of Baroda branch.

The maximum amount of the Bank of Baroda education loan processing time is spent by candidates convincing the bank about various requirements of their abroad education loan. Our team, on the other hand, has deep knowledge about the education loan process followed by most nationalized banks in India and helps candidates with their education loan process accordingly. The Bank of Baroda education loan processing time taken is less; 2-3 weeks at the most, if you happen to apply through the financial team of WeMakeScholars.

 

The BoB Education Loan EMI Calculator

Now calculating your Bank of Baroda education loan EMI becomes easier with the Bank of Baroda education loan EMI calculator which has been made available on the BoB online portal. 

Using this Bank of Baroda education loan EMI calculator is simple! Candidates simply need to enter the loan amount, their Bank of Baroda education loan interest rate, and the loan term into this online BoB education loan EMI calculator. 

The BoB Education Loan Status

Unfortunately, there is no easy way for students to keep track of their Bank of Baroda education loan status. Candidates may now get in touch with the Bank of Baroda education loan customer care section by requesting a callback on their Bank of Baroda education loan customer care number provided on the online portal for the purpose of knowing their Bank of Baroda education loan status.

If you happen to approach your respective branch for your Bank of Baroda education loan status, they will advise you to approach the Bank of Baroda education loan customer care section or contact through the Bank of Baroda education loan customer care number. However, prompt assistance is not guaranteed in this case.

On the other hand, our candidates will be able to track their BoB education loan status without any trouble with our team’s assistance. 

The Bank of Baroda Loan Repayment 

The Bank of Baroda loan repayment policies is pretty simple. 

  • Maximum Loan Tenure: 15 years.
  • Moratorium period: Course duration + 6 months to 1 year.
  • Interest to be paid during the moratorium period: Nil

Interest accumulated during moratorium period calculated on Simple Interest basis.

The Bank of Baroda education loan disbursal

The Bank of Baroda disburses the education loan on a pro-rata basis. This means that once sanctioned, the Bank of Baroda education loan for abroad studies will be disbursed in two different parts. The tuition fee component is disbursed according to the university’s tuition fee payment requirements.

The embassies of a few countries like Australia and Canada and very few universities in the USA, require students to deposit their living expenses according to their rules and regulations before their visa process. Any component of an education loan which has to be disbursed before the visa process is called a pre-visa disbursement in the banks’ terms. The Bank of Baroda branches is ideally required to do the needful for students who have to fulfil such financial preconditions set by their respective countries.

However, many bank officers, due to their ignorance about this existing education loan clause, hesitate to approve this pre-visa disbursement. The same issue is faced by a lot of students who require a Bank of Baroda education loan sanction letter for the purpose of fulfilling their US student visa requirements. Many officers hesitate to provide a Bank of Baroda education loan sanction letter to such students. These hurdles can be avoided when you apply through the WeMakeScholars team.

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

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Bibliophile, wanderer, major foodie. I write too :)

 

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