This loan is given out for school education in any recognized school. The maximum loan granted is Rs. 4 lakhs and is payable in 12 installments after disbursement.
- No processing & documentation charges.
- No Margin.
- No security required.
- Should be an Indian national residing in India.
- Student should have secured admission to a recognized school / Highschool / Jr. College (including CBSE / ICSE / State Board) for any of the following courses
- Stage I : Nursery to V th STD.
- Stage II : VI th to VIII STD.
- Stage III : IX th to XII th STD.
- Evening courses of institutes approved by State /Central Govt.
- Loan to be granted in the name of father/mother of the student
Interest Rates & Charges:
- For Present rate of interest Click here
- 0.50% concession in rate of interest to loans for girl students.
- Interest to be serviced as and when applied during moratorium period.
- Penal Interest @ 2% on overdue amount if the loan amount exceeds Rs. 2/- lacs.
Most Important Terms & Conditions:
Target group Parents of Students pursuing school education from Nursery to Class XII.
Quantum of finance Maximum Rs. 4.00 Lakh
Need based finance subject to repayment capacity of parents.
Coverage of expenses for
- Fee payable to college / school.
- Examination / Library / Laboratory Fee.
- Fee and other charges payable to hostel.
- Purchase of books / equipments / instruments / uniforms.
- Personal Computers / Laptops wherever required.
- Caution deposit / building fund / refundable deposit supported by instituion bills / receipts.
- Cost of external coaching/tuition is not to be considered
- Loan for each yearly sub limit is repayable in 12 equal monthly instalments. First instalment to be due 12 months after first disbursement of each year's loan component.
- Interest to be serviced as and when applied during the moratorium period.
Total deductions from the income including the proposed instalment and interest should not exceed 60% of total income. The income of spouse, wherever spouse is working also to be considered. Suitable proof of income is to be obtained.
Unified Processing charges: NIL
- No security
- In case the loan is given for purchase of computer the same is to be hypothecated to the Bank
- Directly to School / Institution / hostel -- term wise / year wise.
- Directly to book seller / shop for purchase of books, instruments, equipments.
- Next year disbursement to be made only after student has passed the current year annual examination & progress report / marksheet to that effect is produced by parents.
- Branch in the vicinity of the Institute
- Branch which is in close proximity to the permanent residence of parent/at the place of posting/service of the parent Branch
A stamped declaration / an affidavit confirming that no Educational loan is availed from other banks / institutions for the child for whom loan is sanctioned by us and shall not avail educational loan from any other bank without obtaining NOC from our bank during the pendency of our educatinal loan, be obtained No dues certificate need not be insisted upon.
Who can apply for the loan?
Any Indian National fulfilling criteria stated above is eligible for education loan.
Who can be co-obligant?
The parents, guardians, friends and relative can be co-obligant.
How much does Bank of Baroda lend?
Bank of Baroda extend need based finance subject to repaying capacity of the parents/student with margin upto following ceilings.
List of FAQs
|Studies in India
||Maximum Rs. 10.00 lacs
||Maximum Rs.20.00 lacs.
For how long a period can I get the loan?
We grant loan for a term of 5-7 years after repayment holiday/moratorium.
What is the repayment holiday / moratorium period?
Course period + 1 year or 6 months after getting job whichever is earlier.
What is the mode of repayment?
The accrued interest during the repayment holiday period to be added to the principal and repayment in Equated Monthly Instalment (EMI) is fixed.
Do you offer any concession?
Yes, we do offer 1% interest concession to student loanee, if the interest is serviced during the study period when repayment holiday is specified for interest / repayment under the scheme. Additionally, 1% interest concession is provided to girl students.
What type of interest do you charge under your Education Loan Scheme?
We charge simple interest at monthly rests during the repayment holiday /moratorium period.
Do you levy any penalty for default under the scheme?
Yes, we charge penal interest @ 2% on overdues amount in the loan exceeding Rs.4 lacs.