Bank of Baroda Education Loan Interest 2024

Established in 1908, Bank of Baroda offers domestic and international financial services to individual and commercial clients.

Various low-interest education loans for up to 15 years to repay the debt are available from the Bank of Baroda. For loans up to Rs. 4 lakh, the bank does not require collateral.   

Scheme	Interest Rates
Baroda Vidya	12.50% p.a.
Baroda Gyan	11.05% to 13.05% p.a.
Baroda Education Loan to Students of Premier Institutions (For Studies in India)	8.15% to 9.95% p.a.
Baroda Scholar	9.70% to 11.70% p.a.
Baroda Executive Development Premier Institutions (For Studies in India)	8.15% to 11.95% p.a.
Baroda Executive Development Premier Institutions (For Studies overseas)	11.15% to 11.50% p.a.
Baroda Skill Loan Scheme	10.65% p.a.
Digital Education Loan	8.15% to 9.95% p.a.

A maximum loan amount may be available, depending on the type of loan that has been taken out. Speak with the Bank of Baroda to learn the maximum loan amount that could be provided.

Advantages of a Student Loan from the Bank of Baroda

Applying for a student loan with Bank of Baroda has the following advantages:

• low interest rate
• Less paperwork
• No processing fees
• Quicker Payment
• No up-front costs apply.
• There are no costs associated with early shutdown.
• The discount for female students is 0.5%.

BOB Education Loan for Abroad

Baroda Scholar

• Interest Rate: 9.70% to 11.70% p.a.
• Girl applicants get a 0.50% concession in interest rate.
• Processing Fee: Nil
• Loan Period: Up to 15 years.
• Documents required:
• Complete Know Your Customer (KYC) of the applicant
• Academic records
• Admission proof
• Entrance Exam Result (if applicable)
• Statement of cost of study/ Schedule of expenses
• Proof of income for Salaried Co-applicant/ Guarantor (if applicable)
• Bank account statement for last six months.
• Property Documents (if applicable)

Eligibility

• Indian nationality is required of the applicant.
• To be eligible for the loan, the applicant must be admitted to one of the following courses:
• graduation from reputable colleges’ technical programs
• courses taken after graduation (MCA, MBA, etc.)
• courses provided by CIMA-London, CPA in the USA, etc.
• top schools for management education.
• top universities offering STEM (science, technology, engineering, and mathematics) programs.
• prestigious medical schools as well as schools of law, business, design, and other subjects.
• Loans for education will be taken into consideration for courses taken abroad that are not listed above.
• Regular degree or diploma courses such as pilot training, aeronautical, shipping, etc. if they are recognized by local Shipping/ Authority and Director General of Civil Aviation/ Shipping in India or the competent regulatory authorities in India or abroad for the employment purposes in India or abroad.
• Certificate courses  

Different Education Loan Schemes

Baroda Vidya

• Interest Rate: 12.50% p.a.
• Processing Fee: Nil
• Collateral: No security or collateral is required.
• Credit Tenure: An annual loan that must be taken out and paid back in twelve equal installments. The first installment is due twelve months following the initial award.
• Qualifications: The following are the requirements that must be fulfilled in order to be eligible for the loan: Has to be a citizen of India. The pupil has to have been accepted into an accredited institution. The parent(s) of the student will be named as the beneficiary of the loan.

-Has to be a citizen of India.

-The pupil has to have been accepted into an accredited institution.

-The student’s mother or father will be listed as the beneficiary of the loan.

Baroda Gyan

• Interest Rate: 11.05% to 13.05% p.a.
• Processing Fee: Nil
• Collateral: The following list of collateral, which is required based on the loan amount: Up to Rs. 4 lakh: There is no requirement for security. Nonetheless, a parent’s co-obligation is necessary. If the amount exceeds Rs. 4 lakh, collateral must be given.
• Up to Rs. 4 lakh: There is no requirement for security. Nonetheless, a parent’s co-obligation is necessary.
• If the amount exceeds Rs. 4 lakh, collateral must be given.
• 10 to 15 years is the loan tenure.
• Eligibility: To be eligible for the loan, the borrower must enroll in one of the courses listed below: courses for graduation courses taken after graduation Expert classes courses in management courses leading to computer certificates Programs like Institute of Cost and Works Account (ICWA), Chartered Accountant (CA), and Chartered Financial Analyst (CFA) Diploma programs courses for teacher training:

-Graduation courses

-Post-Graduation courses

-Professional courses

-Management courses

-Computer certificate courses

-Courses such as Chartered Financial Analyst (CFA), Chartered Accountant (CA), -Institute of Cost and Works Account (ICWA)

-Diploma courses

-Teachers training courses

Bank of Baroda Processing Fee

The Bank of Baroda waives processing fees for loans up to Rs. 7.50 lakhs. If the loan exceeds Rs. 7.50 lakhs, the processing charge will be reimbursed. The total cost of the attorney and evaluator’s services is Rs. 8,500.

Options for Paying the Equated Monthly Installment (EMI)

• There are three ways in which you can return your education loan from Bank of Baroda:
• The best way to repay debt if you already have a Bank of Baroda account is through a Standing Instruction (SI). At the end of each month, your designated Bank of Baroda account will be automatically credited with the amount of your EMI.
• You can select the Electronic Clearing Service (ECS) mode if you want your EMIs to be automatically taken at the end of each month from an account that isn’t owned by the Bank of Baroda.
• Postdated EMI cheques from a bank account other than a Bank of Baroda can be delivered to the Bank of Baroda Loan Center that is most convenient for you. It is necessary to submit a new set of PDCs on time. Postdated checks can only be picked up at non-ECS locations, so please be aware of that. 

Bank of Baroda Education Loan Calculator

The EMI calculator can be used to calculate the monthly payments for education loans. The calculator is simple to use and saves time. You’ll need to know the loan amount, term, interest rate, and processing fee to calculate the EMI.

The outcomes are clear right away. All of the observable facts are the principal paid, interest paid, and outstanding balance.

How to Apply for an Education Loan from Bank of Baroda?

The following describes the exact steps involved in applying for an education loan:

Step 1: Go to the official Bank of Baroda website.

Step 2 entails selecting “Education Loan.” The ‘Loans’ tab is where you’ll find the option.

Step 3: Select ‘Apply Now’ on the following page.

Step 4: The URL https://www.vidyalakshmi.co.in/Students/ will be displayed to you.

Step 5: Select ‘Apply Now’.

Step 6: After that, click “Submit” to finish the registration process.

Step 7: To complete the request, a Bank of Baroda representative will get in touch with you.

How to Apply Offline for an Education Loan from Bank of Baroda

• Step 1: Complete the loan application at the nearest Bank of Baroda store.
• Step 2: You could be required to submit multiple documents following the examination of your profile.
• Step 3: Send all necessary paperwork to the BOB branch that is closest to your home.
• Step 4: After the documentation has been verified, the loan money will be disbursed into your account.

Bank of Baroda Education Loan Documents Required

The documentation that must be presented will change depending on the loan. The following list includes the primary paperwork you need to submit when applying for an education loan:

• Application form
• Passport-size photographs
• Proof of admission
• Income proof of the co-borrower or guarantor
• Collateral documents
• Bank statements

Academic Documents:

The academic records listed below need to be turned in:

• Exam mark sheets for grades 10 and 12
• marks reports for any further coursework
• Entry Mark sheet for exams
• GMAT, TOFEL, GRE, and IELTS mark sheets
• any supporting documentation for scholarships, if any

Provide Proof of Address:

You may provide any of the following documents as evidence of your address:

• Voter ID Card Driver’s License
• Aadhaar Card Identity

Identity Verification:

You may provide any of the following documents as identification proof:

• Adhaar Card PAN Card Passport
• Voter ID Card Driver’s License

It is also necessary to supply any additional documents that the bank has requested.

What documentation is required to be given by a co-applicant to apply for an education loan from the Bank of Baroda?

Identity Proof: PAN/ Passport/ Driver’s License/ Voter ID card

• Address: Phone bill, electric bill, water bill, gas bill, passport, voter ID, driving license or aadhaar card.
• 2 RECENT passport-size photographs.
• Legal documents of the collateral
• Property documents

Income Proof for Salaried Co-Applicant/Guarantor

• Salary slips (last 3 months).
• Copy of Form 16 (last 2 years)
• Bank account statement for the last 6 months (of Salary Account).

Proof of income for self-employed co-applicant/guarantor; proof of business address, if relevant.

• IT returns from the previous two years.
• TDS Certificate (if relevant, on Form 16A).
• Qualification certificate (for CAs, MDs, and other professionals).
• Statement of Bank Account for the previous six months.

Details on Bank of Baroda’s Education Loan Subsidy

• Students from the Economically Weaker Section (EWS), which has the lowest income, are eligible for the Central Scheme of Interest Subsidy for Education Loans. For the duration of the moratorium, they receive an interest subsidy.
• Students in the Other Backward Classes (OBC) and Economically Backward Classes (EBC) are eligible for the Dr. Ambedkar Central Sector Scheme. During the moratorium period, they receive a complete waiver of the interest.

Important Points to Consider Before Applying for BOB Education Loan

Here are some frequent obstacles you should be aware of to speed up your student loan application:

• Timeout for Procedure: An application is typically sent to a specific Bank of Baroda branch. Notably, the majority of branches decide not to approve your application for a student loan. Before sending your applications to the Specialized Mortgage Store (SMS), a specialized back-end office that assesses loan applications, the branch simply gathers all supporting papers.

• Technical issues with the Property: Civil engineers working under Bank of Baroda’s designated supervision must invest a substantial amount of time and effort in evaluating the applicant’s property. Civil engineers measure, inspect, and evaluate the property’s age and location before estimating its market value, fair price, and distress sale amount. The Turnaround Time (TAT) for a civil engineer might therefore vary greatly. However, thanks to our careful follow-up, we complete this phase in three business days.

• Legal Concerns About the Property: For the loan to be accepted, advocates chosen by the Bank of Baroda must confirm the applicant’s possessions and the accompanying legal documentation. However, the advocates’ and the bank’s Turnaround Time (TAT) is high, which means that when they find discrepancies in the property or associated documentation, the concerned officials usually delay the verification procedure.

Also Read: Top 10 Cheapest Countries to Study Abroad for 2024

FAQs

Will there be any charges for late payment?

Late EMI payments will indeed result in penalties. The penalty fees will change based on the bank.

Is it possible to move from RLLR to MCLR?

The option to switch from RLLR to MCLR is not available to you.

How are repayments calculated in light of the moratorium period?

Once the repayment plan begins, the amount of the loan that has been taken out is increased by the interest that is still owed for the moratorium period. This sum will serve as the basis for the EMI.

Will there be any processing fee?

The processing fees are subject to change based on the type of loan that has been obtained.