Salient Features of Overseas Education Loans by Bank of Baroda

Bank of Baroda offers various international and domestic banking options to retail and corporate customers. Education loan from the Bank of Baroda (BOB) has been the wind under the wings of thousands of students looking to study both in India and abroad for decades now.

Baroda Scholar Scheme

This is the flagship scheme that offers financial aid to aspirants looking at pursuing programs or executive development courses internationally. The bank willingly gives an additional 0.5% subsidy to its female candidates.

Advantages of Baroda Scholar Scheme:

  • Prior sanction of the loan before i20 or visa.
  • Includes both tuition and accommodation costs, covering off-campus living expenses.
  • Comes under u/s 80(E).
  • Payment of interest is not required during the course tenure.
  • Pre-visa funds are credited as per the norms of visa offices.
  • Debit Card for free.
  • The loan is for aspirants going overseas for Professional/Technical courses.
  • Simple interest to be levied at monthly breaks during the repayment vacation/moratorium period.

BOB – a scheduled commercial bank:

The Bank offers subsidy on interest under the following schemes –

  • Central Scheme of Interest Subsidy (CSIS) – for those who need additional financial
  • Ambedkar Central Sector Scheme of Interest Subsidy – for the backward sections of society.
  • Padho Pardesh – for the communities that fall under the minority bracket.

Education Loans from Bank of Baroda for Executive Development Programme (EDP) offered by Premier Institutions Abroad:

Under this beneficial scheme –

  • The loan amount can be as much as 80 lakhs.
  • Interest rates as low as – Male – 8.95%, Female – 8.45%
  • Processing Charges are Rs 10,000 (refundable)
  • Loan duration – around 10-15 years depending on the loan amount.
  • The moratorium period spreads over the course duration and an additional 3 months leverage to start repayment.
  • There is no prepayment penalty.

The benefits are the same as mentioned above for the previous schemes.

Eligibility Criteria for an Education loan from the Bank of Baroda:

  • The learner must be a citizen of India.
  • The student should have secured admission to a standard institution for a professional or technical course through an entrance-based selection procedure.

Eligible Programs to avail of the BOB Education Loan

  • Graduation programs – BOB provides education loans for job-oriented professional and technical courses.
  • Post-Graduate programs such as MCA, MBA, MS, etc.
  • Programs directed by CIMA-London, CPA in the USA, etc.
  • Degree and Diploma programs such as Aeronautical, Pilot Training, Shipping, etc. The program and the institute must be reputed by the supervisory authority in India and overseas. This is for the purpose of employment in India and abroad.
  • STEM programs (after 10+2 course and above)
  • Medical and Management programs
  • Other programs include – Law, Economics, Econometrics, Art, Performing Arts, and Design programs.

The bank also considers institutes not mentioned in the list provided they are acknowledged by the governing authority.

Documents required for a BOB Education Loan:

Bank of Baroda education loan depends on the student’s and the co-applicant’s profile and also the property which is offered as collateral. Valid documents include:

  1. Pan card, Passport, Driver’s License, Aadhar Card, and Voter ID card.
  2. Address proof: Copy of recent Telephone Bill, Electricity Bill, Water Bill, Piped Gas Bill
  3. Previous Academic mark sheets
    • 10th mark sheet
    • 12th mark sheet
    • Under Graduate Semester Wise result
    • Entrance Exam mark sheet (e.g. GMAT, GRE, TOEFL, etc. for study overseas)
  4. Letter of Admission. A conditional letter is also accepted.
  5. Declaration of cost.
  6. 2 passport-size photos.
  7. Loan A/C statement of one year (if any). Also mentioned in case there is any previous loan from other lenders.

What happens if the co-applicant has not filed ITR?

In case the co-applicant has not filed the ITR, then there are chances that the loan is declined. However, the ray of hope is seeking professional assistance and starting a fresh application. The loan expert takes charge of the problems he faced post-disbursal of the loan, thus, focusing on the post-sales services offered as well.

If the property declared has multiple owners and one of them is a minor, then what is the education loan procedure?

In such cases, the loan is thoroughly scrutinized and the loan department team takes the case forward to the concerned officers of Bank of Baroda and coordinates with the legal experts. The team then demands for an NOC (No Objection Certificate) from the other members holding a share, and various other documents and essential affidavits in case of minors.

What if the property pledged as collateral is in a different place than the permanent address?

In such a situation the corporate officer steps in and demands the Specialised Mortgage Store of that state to intervene. Then the valuation details of the property are reviewed. In no time, the problem is resolved and the bank is obliged to grant the education loan to the aspirant.

When is third party guarantee required?

Third-party guarantee is usually demanded in loans ranging between Rs. 4 lakhs and Rs. 7.5 lakhs and tangible collateral security are mandatory for loans above Rs. 7.5 lakhs.

If you find the loan features and process complicated, you must contact an education loan marketplace like GyanDhan to get end-to-end help in getting an abroad education loan. Contact GyanDhan and get free from all the hassles of arranging funds for higher education abroad.

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