Pursuing higher education abroad can be a dream come true for many Indian students. However, the financial burden of tuition fees, living expenses, and other study-related costs can be overwhelming as we come from a middle-income country.

But by providing the necessary financial support to help students achieve their academic goals without compromising on the quality of education, Overseas education loan schemes play a crucial role. Among the various lenders, the Bank of Baroda stands out with its comprehensive Baroda Scholar scheme, specifically designed to cater to the needs of students aspiring to study abroad. let us understand the Bank of Baroda’s Scholar Education Loan in detail.

About Bank of Baroda's Scholar Education Loan Scheme

The Bank of Baroda (BOI) offers a specialized education loan scheme called Baroda Scholar. This scheme provides financial assistance to students aiming to pursue professional and technical courses abroad. This scheme covers a wide range of expenses that make it easier for students to focus on their studies without worrying about financial constraints.

Benefits of Baroda Scholar Education Loan

The Baroda Scholar scheme offers several benefits that make it an attractive option for students:

• 1% Processing Charge Refund: For loans above ₹ 7.50 lakh, the processing charge (up to a maximum of ₹ 10,000) is refunded upon the first disbursement for premium institutions.
• No Processing Charge for Smaller Loans: Loans up to ₹ 7.50 lakh do not incur any processing charges.
• Free Debit Card: Students are provided with a free debit card.
• No Documentation Charges: There are no additional charges for documentation.
• No Security Required for Loans up to ₹ 7.50 Lakh: This reduces the initial financial burden on students and their families.

Interest Rates

Bank of Baroda education loan for abroad offers two types of Interest Rates - Floating and Fixed. This varies based on the type of institution and the loan amount:

Floating:

Fixed:

Required Documents

To apply for the Baroda Scholar education loan, students need to submit the following documents:

• Know Your Customer (KYC) Documents: Required for both the borrower and co-borrower.
• Academic Records: Mark sheets, certificates, etc.
• Proof of Admission: Admission letter from the institution.
• Entrance Exam Results: If applicable.
• Statement of Cost of Study: Detailed schedule of expenses.
• Income Proof: For salaried co-applicant/guarantor.
• Bank Account Statements: Last six months is required from the date of loan application.
• Property Documents: If applicable.
  
  

Quantum of Finance

The loan amount under the Baroda Scholar scheme is determined based on the institution's status:

• Premier Institutions: Up to ₹ 150 lakhs
• Non-Premier Institutions: Up to ₹ 60 lakhs

The repayment holiday or moratorium period for the Baroda Scholar loan is the course period plus one year.

Coverage of Expenses

Be it the Bank of Baroda’s collateral or non collateral education loan, it covers a comprehensive range of expenses, including:

• Tuition Fees
• Hostel and Mess Charges
• Examination, Library, and Laboratory Fees
• Books and Equipment
• Personal Computers/Laptops
• Insurance Premium
• Travel Expenses
• Other Study Related Expenses
  
  

Security Requirements

The security required for the loan depends on the amount:

• Up to ₹ 7.50 Lakhs: No collateral or third-party guarantee, but co-obligation of the parent is required.
• Above ₹ 7.50 Lakhs to ₹ 80 Lakhs: Collateral security required should be equal to 100% of the asked amount, along with the future income proofs.
• Above ₹ 80 Lakhs: Total security coverage should be 1.25 times the loan amount, along with the assignment of future income.

In conclusion, the Bank of Baroda's Baroda Scholar education loan scheme offers a comprehensive and flexible financial solution for students aiming to pursue higher education abroad. By covering a wide range of expenses and offering competitive interest rates and benefits, this scheme ensures that students can focus on their academic aspirations without financial worries.

To make an informed decision, it is advisable to consult a financial adviser who can provide personalized guidance based on your specific needs and circumstances.