Bank of Baroda Educational Loan

Education is a vital cog in the wheel of life. In today’s world, however, quality education is always a costly proposition. Thus, loans that help in this noble pursuit, such as the Bank of Baroda Education Loan, are eagerly lapped up an audience that is looking to pursue quality education domestically or higher education abroad. In this regard, Bank of Baroda offers a number of specialized options that will suit every individual requirement- Baroda Vidya, Baroda Gyan, Baroda Scholar and Baroda Education Loan for Vocational Education & Training.

Eligibility

  • An Indian National having secured admission to professional/technical courses in recognized institutions.
  • Students seeking admission for higher studies
  • Permanent employees who are employed for not less than three years with any organization and who intend to acquire higher professional qualifications and have secured admissions in a reputed institute.

Maximum Loan Amount

  • Typically up to Rs. 1,000,000 for studies in India; with minimum margin money (own contribution by student/ family) of 5% of total cost for loan above 4 Lakh. No Margin for a loan less than 4 Lakh.
  • Typically up to Rs. 2,000,000 for studies abroad with minimum margin money (own contribution by student/ family) of 15% of total cost for loan above 4 Lakh. No Margin for the loan less than 4 Lakh.
  • Up to Rs. 2,000,000 for studies at IIT’s, IIM’s and ISB’s with minimum margin money (own contribution by student/ family) of 5% of total cost

Expenses covered under the Educational Loan

  • Fee payable to college / school.
  • Examination / Library / Laboratory Fee.
  • Fee and other charges payable to the hostel.
  • Purchase of books / equipments / instruments / uniforms.
  • Personal Computers / Laptops wherever required.
  • Caution deposit / building fund / refundable deposit supported by institution bills / receipts.
  • Maximum Loan Amount : Rs.4.00 Lacs

Courses Eligible

  • All Graduation courses
  • All Post Graduation courses & Doctorate courses
  • Professional Courses viz. Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer, Ayurveda, Homeopathy, Physiotherapy, Hotel Management, Hospital Management, Interior Designing, Architecture, Event Management, Mass Communication, Fashion Technology, etc.
  • Computer certificate courses of reputed institutes accredited to Dept. of Electronics or institutes affiliated to Universities.
  • Courses like C.A, ICWA, CFA, CS, etc.
  • Courses conducted by IIM, IIT, IISc, XLRI. NIFT etc.
  • Regular Degree/ Diploma courses like Aeronautical, pilot training, shipping etc., approved by Director General of Civil Aviation/shipping.
  • Other courses leading to diploma / degree etc. conducted by colleges/universities approved by UGC/Govt./ AICTE/ AIBMS/ ICMR etc
  • Courses offered in India by reputed foreign Universities.
  • Evening courses of institutes approved by State/Central/Govt./UGC/AICTE/AIBMS/ICMR/ICAR.
  • Courses offered by National Institutes and other reputed private institutions. The College/Institute must have been approved by the State/Central Govt./UGC/AICTE etc.

Rate of Interest

  • Simple interest to be charged at monthly rests during the repayment holiday / moratorium period.
  • 1% interest concession is provided if interest debited during repayment holiday is serviced.
  • 1% Concession in rate of interest to loans for girl student
  • Penal interest @ 2% p.a. on overdue amount, if the loan amount exceeds Rs.4.00

Tax Benefits

  • Interest paid on education loan can be claimed as deduction from income of borrower (student) as per Section 80E of the Income Tax Act, 1961
  • Rebate can be claimed without any upper ceiling or cap
  • Rebate is available for full-time courses, part-time courses and vocational courses pursued in India and abroad
  • Rebate can be claimed within eight (8) years post-moratorium period subject to actual payment of interest
  • Rebate is available for interest paid on loans for education of self, spouse, children or for the student of whom he/she is the legal guardian
  • No rebate is available for principal repayment

Co-borrower/ Guarantor/ Security

  • Loans up to Rs. 4 lakh: Parents or guardian or husband/ in-laws in case of married woman required as co-borrower
  • Loans above Rs. 4 lakh and up to Rs 7.5 lakh: Parents or guardian or husband/ in-laws in case of married woman required as co-borrower, guarantee from third party guarantor required
  • Above Rs. 7.5 lakh: Parents or guardian or husband/ in-laws in case of married woman required as co-borrower

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