Introduction
Bank of Baroda (BOB) is known as one of the prominent nationalized banks in India. Bank of Baroda was established on 20th July 1908 in Vadodara, Gujarat, India. BOB is the fourth largest nationalised bank in India with more than 132 million customers. With the increasing presence of BOB, the Government of India announced the merger of three banks i.e. Bank of Baroda, Vijaya Bank and Dena Bank respectively on 17th September, 2018 making it the third largest bank after State Bank of India and ICICI Bank.
Bank of Baroda Education Loan is a solid option to consider for students looking for the best education loan providers for their higher studies. BOB education loan is one such reliable source for students who are in need of funds. BOB education loan provides funds to the students with lower interest rates and with flexible repayment terms.
BOB education loan includes 100% coverage of higher studies expenses and a payment-free moratorium period before the repayment begins. So, to gain more insights on the same, read the article till the end. This article aims to shed light on the complete details of the BOB education loan process like the interest rates, schemes, procedure, advantages etc. So, stay tuned till the end.
Bank of Baroda Education Loan Overview
|
S.No |
Key Pointers of Bank of Baroda student loan |
BOB Prime University |
BOB Non Prime University |
|
1. |
BOB education loan interest rate for abroad studies |
Male: 8.25% |
Male: 8.9% |
|
2. |
BOB education loan interest rate for study in India |
6.75% |
7.6% - 8.35% |
|
3. |
Loan Amount |
Upto 1.5 Cr |
Up to 60 Lakhs |
|
4. |
Processing Fee |
Rs. 10,000 (refundable) + Rs. 1,800 (GST charges) + Rs. 7,500 approximately for legal and valuation charges. |
Rs. 10,000 (refundable) + Rs. 1,800 (GST charges) + Rs. 7,500 approximately for legal and valuation charges. |
|
5. |
Repayment tenure |
Upto 15 yrs |
Upto 15 yrs |
|
6. |
Loan Margin |
0% |
10% |
|
7. |
Moratorium Period |
Course duration + 6 months/1 year |
Course duration + 6 months/1 year |
|
8. |
Collateral margin |
100% loan (if immovable property) ; FD - 90% ; LIC - 75% |
100% loan (if immovable property) ; FD - 90% ; LIC - 75% |
|
9. |
Eligible expenses |
Everything - Tuition fee/Travel, Living expenses/ Hostel fee, Examination fee/ Purchase of Stationery |
Everything - Tuition fee/Travel, Living expenses/ Hostel fee, Examination fee/ Purchase of Stationery |
Note: Interest rates are subject to change with the change in the market conditions. In order to know about the accurate value of Bank of Baroda education loan interest rate, get in touch with the processing officer at Vidyaloans.
BOB Education Loan Interest Rate
Bank of Baroda Education Loan Interest Rate differs for students who are willing to study abroad and for those who are willing to study in India. To see the respective interest rates, refer to the table below.
|
S.No |
Destination |
Prime University or AA/A list |
Non-Prime University or B/C list |
|
1. |
For abroad studies |
Male: 8.25% |
Male: 8.9% |
|
2. |
For study in India |
6.75% (no discount for female candidates) | 7.6% - 8.35% (no discount for female candidates) |
These are the latest and the updated interest rates for BOB education loan. The Bank of Baroda Education Loan premier list institutions are edited every year. So, students who are wondering whether their university falls under which category of the list, approach your processing officers at Vidyaloans to know the details. VidyaLoans is an organization which helps Indian students in India to secure a non-collateral loan from Government banks up to 7.5 Lakhs. We have a dedicated team of professionals who assist students with queries and guide them throughout the loan process.
Now that the important aspects of the Bank of Baroda education loan are discussed, let’s move on to understand the Bank of Baroda education loan process in detail.
BOB Education Loan Process
Before going through the entire BOB Education loan process, it is essential to bear in mind that when it comes to processing education loan applications, the course of action taken by different banks are different. Government banks like BOB have a lot to offer to the students but despite all the advantages many students face hurdles in the government bank while processing their education loan. This is when the services of our organization like Vidyaloans come in handy.
Step 1: Bank of Baroda Education loan application process
- Students have to register for the education loan on the Vidyalakshmi education loan portal.
- Complete the further steps (basic details like name, loan requirement, address etc) mentioned in the portal.
- Select any three banks among the options provided to you on the Vidyalakshmi portal.
- Make sure to select for BOB education loan as you’re willing to process through BOB.
- Depending on the eligibility of the candidate, the online portal allots the respective bank and branch to candidates. However, this part of the Bank of Baroda education loan application process can be tricky, as it is difficult to determine which bank and branch will be allotted to a particular candidate at a time.
Note: Students who are directly applying for a an education loan through Vidyalakshmi portal may find it easy at first but the tricky part is that once students submit their application form on the Vidyalakshmi education loan portal, they do not have the option to modify their education loan application unless and until one of the banks with which they have applied to, accepts their application and is ready to make the changes. As the education loan requirement may depend from student to student, therefore it is mandatory to understand all the loan requirements before applying.
Therefore, we advise students to apply through Vidyaloans as we deal with education loan applicants on a daily basis. This provides us with adequate knowledge and expertise to handle your application. To connect with our team, request a callback to get in touch with the processing team at Vidyaloans.
Step 2: Application processing in the bank
- Soon after receiving the loan application, the bank verifies all the information mentioned on the application form by talking directly with the candidates.
- Students are provided with a checklist of the documents to be submitted to the branch.
- After verifying all the relevant documents, the bank forwards the set of documents to the processing centers (Special Mortgage Store (SMS)) for further processing.
- SMS conducts legal verification of the collateral with the help of a bank-appointed lawyer and monetary valuation by a valuator.
- Further reports are submitted to the Central Processing Center by the lawyer and the valuator.
- After successfully verifying the legal and valuation reports by the bank assigned officials, the CPC sanctions the education loan application.
- Tada! Your education loan is sanctioned.
Note: As we mentioned about the documents in this process, it’s necessary to bear in mind that there are multiple other documents which are mandated by the banks and may vary from region to region. Bank officials usually do not provide the latest checklist of the documents and demand state and region-specific documents at the last minute. To avoid this situation, connect with our processing officers at Vidyaloans. Our team will provide you with the latest checklist of the documents required and will also assist you through the entire education loan process. VidyaLoans is an organization which helps Indian students in India to secure a non-collateral loan from Government banks up to 7.5 Lakhs. We have a dedicated team of professionals who assist students with queries and guide them throughout the loan process.
Step 3: Disbursement process
- Soon after receiving the sanction letter, students are required to visit BOB for mortgage creation.
- Once the mortgage account is created, the loan applicant and the co-applicants are required to sign the loan agreement.
- For the disbursement of money, students are required to submit a letter to the allotted BOB branch.
- Once banks receive this disbursement letter, banks deposit the tuition fees as per the requests made by the students.
Note: Here a point to remember is that, despite the constant reminders by the students, banks may delay the disbursement of the money sometimes. We cannot help you if you have directly started your education loan process from the bank itself. Therefore, we know a danger foreseen should be avoided, after all. We advise students to connect with our team at Vidyalaons as we deal with a number of students who face similar issues and our processing team has the knowledge to deal with the same.
Step 4: Repayment process
- Government banks usually offer a moratorium period which is course duration plus 6 months and can extend upto 1 year. So, the education loan repayment tenure in BOB is upto 15 years maximum excluding the moratorium period.
- So, a student can begin his repayment soon after his moratorium period or repayment holiday is over.
Conclusion
With this, we have come to the end of this article. One thing to be highlighted here is the time taken for the entire education loan process. Government banks are usually known for their delayed processing of loan applications. This may take around 1-2 months to process an education loan. There are also many cases where bank officials directly reject the application of the candidate and do not even mention the reason for the same. This may lead to a delayed application of the process.
Therefore to avoid all these situations, connect with our team at Vidyaloans as our processing officer will navigate you through the entire process of an education loan and will assist students to tackle every problem faced by them.
Therefore, we recommend you to get in touch with our team if you are looking for Bank of Baroda student loan where our processing officers will assist you throughout your BOB education loan process.
Do keep reading our blog to gain more insight into the process of education loan in India.
About the organization: VidyaLoans is an organization which helps Indian students in India to secure a non-collateral loan from Government banks up to 7.5 Lakhs. We have a dedicated team of professionals who assist students with queries and guide them throughout the loan process. Our Team at Vidyaloans is committed to sanction the best loan option suiting the applicant's profile and needs, in a stipulated time frame.