How to Get a Bank of Baroda Education Loan : A Detailed Guide

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How to Get a Bank of Baroda Education Loan

Education loans are a boon for students who want to pursue their favored stream of education, without having to be weighed down by the high fees accompanying it. Nowadays there are plenty of financial institutions who are offering education loans to students both for the graduate & the postgraduate courses as well.

Public Sector Banks also offer education loans. In the recent past, public sector banks have been a little conservative in their education loan offerings due to the high amount of NPA (Non-Performing Assets) associated with these loans. Despite this, PSUs remain the most trustworthy source for an education loan. Bank of Baroda education loan that offers education loans for a variety of courses.

About Bank of Baroda

The bank is one of India’s oldest banks in existence and was established in 1903. Subsequently, the bank was nationalized in 1969 and is now 100% state-owned. Although it is based out of Gujarat, it operates in several cities across India and also has a considerable overseas presence.

What are the features of the education loan by Bank of Baroda?

Being a regulated entity, BOB is restrictive in terms of the courses, countries, and institutions for which it offers loans. They have several products, which are tailor-made for different students/courses. Depending on whether a student wants to pursue a course in India or abroad, there are different loans for the same.

What are the education loan options for students to study in India?

Here is a list of products that are geared towards students opting to study in India.

1) Baroda Gyan

This loan is targeted at students aiming to pursue their higher education in India. 

Here are some key features of the scheme:

Check Your Education Loan Eligibility

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2) Bank of Baroda Education Loan for Premier Institutes:

This loan is targeted at students aiming to pursue their graduate and higher education in Premier Institutes in India like IIMs or IITs. 

Here are some key features of the scheme:

Courses Covered: Full Time Regular Courses offered by the Institutes. Admission must meritorious and follow an entrance test.  

Items Covered under the Loan: Fees to the Institute, Library Fees / Cost of Course Material, Purchase of a Computer / Laptop needed to complete the course, Caution Deposits and likes (upto 10% of the Fees), Cost of Mortgage / Credit Insurance Premium.

Maximum Loan Amount & Security – The loan amount and loan security vary depending on the Grade of Institute:

Security must be tangible collateral like a house.

Margin – NIL

Maximum Repayment Period – 15 Years

Interest Rate – Interest Rates vary depending on the Grade of Institute. It is calculated as Baroda Repo Linked Lending Rate (i.e. BRLLR) + a defined spread. Also, the interest rates are variable every year and you can check out this link to get the current value.

List AA	BRLLR - 6.85% (for both girls and boys)
List A	BRLLR - 6.85% (for both girls and boys)
List B	Loan Amount Up to Rs. 7,50,000 – BRLLR + 1.10% spread = 7.95% Above Rs. 7,50,000 – BRLLR + 0.85% spread = 7.70%
List C	Loan Amount Up to Rs. 7,50,000 – BRLLR +1.85% spread = 8.70% Above Rs. 7,50,000 – BRLLR + 1.60% spread = 8.45%

Processing Fee – Nil. However, a non-refundable deposit amount of Rs. 7,500 towards Advocates & Valuer charges, is levelled when a property is mortgaged.

3) Baroda loan for EDP offered by Premier Institutes

This loan is exclusively targeted at students aiming to pursue Executive Development Programs (EDP) in Premier Institutes in India like ISB etc. 

Here are some key features of the scheme:

Courses Covered: EDP offered by Premier Institutes as per the list. The program can be part-time/full time/weekend or even offered online. However, students must be gainfully employed during the course of education and after.

Items Covered under the Loan: Fees to the Institute, Library Fees / Cost of Course Material, Purchase of a Computer / Laptop needed to complete the course, Caution Deposits and likes (upto 10% of the Fees), Cost of Mortgage / Credit Insurance Premium.

Maximum Loan Amount – The Maximum Loan Amount offered under this scheme is Rs. 20,00,000.

Security – Nil for loans upto Rs. 15,00,000 and 100% collateral for loans above Rs. 15,00,000

Margin –Nil upto Rs. 4,00,000 and for loans above that students must bear 5% of the fees.

Maximum Repayment Period – 15 Years

Interest Rate – Interest Rates vary depending on the Grade of Institute.  It is calculated as Baroda Repo Linked Lending Rate (i.e. BRLLR) + a defined spread. The interest rates are variable every year and you can check out this link to get the current value.

List AA	BRLLR - 6.85% (for both girls and boys)
List A	BRLLR - 6.85% (for both girls and boys)
List B	Loan Amount Up to Rs. 7,50,000 – BRLLR + 1.10% spread = 7.95% Above Rs. 7,50,000 – BRLLR + 0.85% spread = 7.70%
List C	Loan Amount Up to Rs. 7,50,000 – BRLLR +1.85% spread = 8.70% Above Rs. 7,50,000 – BRLLR + 1.60% spread = 8.45%

Processing Fee – Nil. However, a non-refundable deposit amount of Rs. 7,500 towards Advocates & Valuer charges, is levelled when a property is mortgaged.

Check Your Education Loan EMI

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What are the education loan options for students going abroad for studies?

BoB also offer a range of products that are targeted towards students pursuing education abroad. These include:

1) Baroda Scholar:

This loan is targeted at students aiming to pursue their graduation or post-graduation abroad. 

Here are some key features of the scheme:

Premier Institutes	BRLLR + 1.50% spread (including strategic premium)   For Boys - 8.35% For Girls - 7.85%
All other Institutions	BRLLR + 2.15% spread (including strategic premium) For Boys - 9.00% For Girls - 8.50%

2) Baroda Loans for EDP offered by Institutes Abroad

This loan is targeted at students aiming to pursue EDP (Executive Development Program) abroad. 

Here are some key features of the scheme:

Premier Institutes	BRLLR + 2.10% spread For Girls - 8.45% For Boys - 8.95%

What are the advantages of securing a Loan from BoB?

1. The interest offered by BoB, being a Public Sector Bank, is much lower than most other Banks and significantly lower than NBFC loans.
2. Processing Fees that are levied are refundable.
3. Sometimes subsidies are offered by the Government to students from the weaker sections of the economy and these are passed on by BoB. This feature isn’t available when a student is securing a loan from an NBFC
4. With one of the largest network of branches, loan accounts can be managed without any geographical restrictions
5. Girl Students are offered a 0.5% concession on the Baroda Gyan, Baroda Scholar and EDP Loan abroad.
6. No pre-closure penalties are levied

What are the disadvantages of securing a Loan from BoB?

1. The procedure is often too elaborate.
2. Processing time & loan approvals also take a significant amount of time as Banks are regulated entities.
3. Some Universities abroad insist that students show proof of funds/loans secured before they are offered admission. On the other hand, BoB will not approve a loan before a student receives an admit from a university. 

These disadvantages can be overcome by processing the loan through GyanDhan.

Check Your Education Loan Eligibility

Apply Here

Apply Here

How can GyanDhan help with your Bank of Baroda Education Loans?

GyanDhan has helped hundreds of students get education loans from the Bank of Baroda in the most seamless way possible. Right from the application stage to the final disbursement stage, we handle all the issues and the roadblocks so that the student can get the loan in the most stress-free manner at the most attractive interest rates with an additional discount of 0.5% for girls. Check your loan eligibility here and fund your abroad studies with a hassle-free BOB education loan!

Student's Parent Speak About their Experience with GyanDhan 

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