Studying abroad is an experience of a lifetime, as one can learn and interact with people from around the globe. However, the burden of funding these dreams from scratch is often daunting. To cater to these needs, the Bank of Baroda has launched an education loan of ‘Baroda Scholar’ that assists students in bridging the financial gap to achieve their overseas education goal.
Why an Education Loan from the Bank of Baroda?
The flexibility, coverage, and affordability of the Bank of Baroda Education Loan is what makes it different from the other loans. It doesn’t matter if you’re undertaking a professional exam or a technical course in a reputed institution, this scheme gets you the financial assistance to study without having to worry about the funds.
Key Features of Bank of Baroda Education Loan
Loan Amount
- For Listed Institutions: 1.2 crore
- For Non-Listed Institutions: 60-80 lakhs
Interest Rates
- For Listed Institutions: Male and Female students 9.70%
- For Non-Listed Institutions: Male Students 10.20% and Female Students 10%
Processing Fees
- 10,000 plus GST (refunded for listed universities on first loan disbursement)
Solicitation Fee
- 10,000 plus GST (refunded for listed universities on first loan disbursement)
Flexible Repayment Options
- Tenure: 15 years
- Moratorium Period: The loan repayment module begins one year after course completion with the opportunity to make payments earlier for savings on interest.
Income Tax Benefits
Section 80E provides another tax benefit for education loans: a deduction on the interest paid. This section provides huge relief for the co-signor.
Eligibility Criteria
In order to obtain a Bank of Baroda Education Loan, you have to satisfy the following conditions:
- Nationality: An Indian National.
- Admission: Obtained admission into a professional or a technical course outside India.
- Co-Signor: Obtains IT returns for the last 2 years or Bank statements and salary to salaried persons.
Collateral and Coverage
- If you have a loan of up to ₹7.5 lakh, you won’t need any collateral.
- For any loans above this amount, you will need one or more of the following forms of collateral:
- Nonagricultural land
- Fixed Deposits (FDs)
- LIC traditional policies
- National Saving Certificates (NSC)
Expenses Covered
- Tuition fees, examination charges, travel and other living expenses, book and equipment purchases, and all other costs related to studying are covered.
Application Process
- Submission of a completed online or offline application, which can be submitted at the closest Bank of Baroda branch.
- Providing identity proof, academic records, co-signers income proof, and approved funds are all part of the application process.
Benefits of Choosing Bank of Baroda
- Low Interest Rates: Formulated to be affordable.
- Wide Coverage: Covers all the expenditures that include the course fee to homing cost.
- Extended Repayment Period: Up to 15 years infringe children not having any psychological burden after graduation.
- No Prepayment Penalties: There is no penalty for making early repayments to lenders.
Are you ready to take the next step in your educational journey? Eduloans is here to guide you every step of the way. From selecting the right university to visa assistance, we ensure a smooth and successful process. Contact us today to make your study abroad dream a reality.
FAQs
What is the rate of interest on the Bank of Baroda education loan for foreign studies?
The interest charged on loans varies according to circumstances: 9.70% for listed civil institutions and 10.20% for unlisted institutions for males (10% for females).
Which expenses does this loan offer?
The loan can finance tuition fees, daily expenses, traveling expenses, books, materials, and all other required equipment.
Is there a grace period for payment of the loan?
Yes, students are provided with a grace period of the time required to complete a course plus a year to start the EMI payments.
Is the collateral a must for the loan?
No security is needed for loans up to ₹7.5 lakh. For amounts exceeding this, non-agricultural land, FDs, or LIC policies may have to be used as security.
Is it possible to have a tax deduction on the loan?
Yes, subject to the specific provisions of the Income Tax Act of 1961, interest paid on the loan is entitled to a tax deduction.