What is Bank of Baroda Vidya Loan?
Bank of Baroda Vidya Education Loan is an education loan provided by Bank of Baroda, specifically designed to support school education from Nursery to Standard XII. Bank of Baroda Education Loan provide range of education loans to cater need of students at different stages of their studies in India and abroad. The Baroda Vidya Loan is designed to support school education for students enrolled in recognized schools from Nursery to Class XII.
Under this loan, you can borrow up to ₹4 lakhs. The repayment period begins 12 months after the loan is first disbursed, with the total amount repayable in 12 equal installments.
If you’re a parent looking to finance your child’s school education, Bank of Baroda Vidya school education loan is a great option. Find here detail about its benefits, features, eligibility criteria, interest rates, charges, required documents, and how to apply online. We’ll also cover EMI calculations and answer common questions to make the process easy to understand.
Benefits of Bank of Baroda Vidya Education Loan
Highlights of BOB Vidya Education Loan
- No processing charges
- No documentation charges
- No margin
- No security required
Purpose of Bank of Baroda Vidya Education Loan
-Supports School Education: Baroda Vidya covers all school-related expenses such as tuition fees, books, uniforms, and other essentials.
-No Collateral Required: You don’t need to provide any security or collateral for this loan.
-Flexible Repayment Options: The loan offers easy repayment terms that allow you to repay over a period that suits your financial situation.
-Quick and Easy Application: The application process is straightforward and can be done online or at the nearest Bank of Baroda branch.
Features of Baroda Vidya Education Loan
-Loan Amount: You can avail a loan amount of up to ₹4 lakh to cover school expenses.
-Interest Rate: BRLLR+SP+ 3.10% i.e. competitive interest rates with potential concessions for girl students.
-Moratorium Period: You can start repaying the loan one year after the completion of the course.
-Repayment Tenure: The loan can be repaid over a maximum period of 12 years, including the moratorium period.
-No Margin: For loans up to ₹4 lakh, there is no margin required, meaning you don’t need to contribute any initial amount.
Baroda Vidya Education Loan Eligibility Criteria
– The applicant should be an Indian citizen residing in India.
– The student must have secured admission to a recognized school, high school, or junior college, including institutions under CBSE, ICSE, or State Boards.
– The loan is applicable for different educational stages:
-Stage I: Nursery to 5th Standard
-Stage II: 6th to 8th Standard
-Stage III: 9th to 12th Standard
– Evening courses at institutes approved by the State or Central Government are also eligible.
– The loan will be granted in the name of the student’s father or mother.
-Student: The loan is for students who are studying from Nursery to Standard XII.
-Parents/Guardians: Parents or guardians who are Indian citizens and have a stable source of income can apply for the loan.
-School Admission: The student must have secured admission to a recognized school in India.
Interest Rates and Charges of Bank of Baroda Vidya Loan
Bank of Baroda Vidya Loan interest rate and charges Details are as under
Product: Baroda Vidya Education Loan
Conditions: For students studying in recognized schools in India
Interest Rate: The effective interest rate is based on the Bank’s Repo Rate Linked Lending Rate (BRLLR) plus a spread. The rate for Baroda Vidya is BRLLR + SP + 3.10%, which results in an effective interest rate of 12.50%.
Special Concessions:
– Female students receive a 0.50% concession on the interest rate.
– Interest during the moratorium period needs to be paid as it accrues.
Penal Interest:
– A penalty of 2% is charged on overdue amounts if the loan exceeds ₹2 lakhs.
Service Charges (Excluding GST, effective from 20/06/2019):
– For studies in India: No service charges.
– For studies abroad: A 1% charge on the loan amount (up to ₹10,000) is applied upfront, refundable upon the first loan disbursement.
– Loans for students of premier institutions (studies in India): No charges.
– Loans for vocational education and training: No charges.
– Career Development Loan: 0.50% charge applies.
Additional Notes:
– A non-refundable lump sum of ₹8,500 per property is charged upfront for advocate and valuer services if the property is mortgaged for the education loan.
– No charges for creating a mortgage for any type of education loan.
-Pre-payment Charges for Fixed Rate Loans:
– If pre-paid from the borrower’s own sources: No charges.
– If the loan is taken over by another lender: A 0.50% charge on the outstanding amount at the time of takeover.
– Pre-payment charges are calculated separately for each account in case of multiple accounts.
Documents Required for Bank of Baroda Vidya Loan
When applying for the Baroda Vidya loan, you’ll need to provide the following documents:
–KYC Documents: For both the applicant and co-applicants like Aadhar Card, PAN card, Address Proof etc.
-Academic Records: Relevant documents showing academic performance.
–Proof of Admission: Official admission letter from the school/institution.
– Entrance Exam Results: If applicable, provide the score or rank.
– Cost of Study/Expense Schedule: A detailed breakdown of study-related costs.
–Income Proof: For salaried co-applicant or guarantor, if required.
– Bank Account Statement: Last 6 months’ bank statement.
– Property Documents: If applicable, provide relevant property papers.
Most Important Terms and Conditions (MITC) of Baroda Vidya Loan
-Repayment: The loan repayment begins after one year of course completion, with flexible EMI options.
-Moratorium Period: The repayment holiday is for the duration of the course plus one year.
-Collateral: No collateral or third-party guarantee is required for loans up to ₹4 lakh.
-Loan Disbursement: The loan is disbursed directly to the school.
-Finance Provided Based on Need: The loan amount is determined by the financial capacity of the parents to repay maximum to 4Lakh
Apply Online: Step-by-Step Process
1.Visit the Bank of Baroda Website: Go to the official website and navigate to the Education Loans section.
2.Select Baroda Vidya: Choose the Baroda Vidya loan option and click on ‘Apply Now.’ You will be redirected to Vidya Lakshmi Portal.
3. Register as student: First time user need to register by providing email id and password and filling captcha. Then login and select Bank of Baroda Vidya Loan from list of 38 Banks.
4.Fill the Application Form: Provide details such as your personal information, course details, and loan amount required.
5.Upload Documents: Attach scanned copies of the required documents.
6.Submit the Application: Review the details and submit your application.
7.Wait for Approval: The bank will process your application and may contact you for further information.
7.Loan Disbursement: Upon approval, the loan amount will be disbursed directly to the school.
Bank of Baroda Vidya Loan EMI and Interest Calculator
Bank of Baroda provides an EMI calculator on its website to help you calculate your monthly repayments. You can enter the loan amount, interest rate, and tenure to see your EMI and plan your finances accordingly.
Bank of Baroda Vidya Loan Application Form
The application form for Baroda Vidya can be found online on the Bank of Baroda website or Vidya Lakshmi Portal or obtained from a branch. It includes sections for personal details, course details, financial information, and the loan amount required.
Frequently Asked Questions (FAQs)
1. What is the maximum loan amount under Baroda Vidya?
– The maximum loan amount is ₹4 lakh.
2. Do I need to provide collateral for the loan?
– No, collateral is not required for Baroda Vidya.
3. How long can I take to repay the loan?
– You can repay the loan over a period of up to 12 years.
4. Is there any processing fee for Baroda Vidya?
– Typically, there is no processing fee.
5. When do I start repaying the loan?
– Repayment starts one year after the course is completed.
6. Can I repay the loan early?
– Yes, you can prepay the loan without any penalties.
7. What expenses does Baroda Vidya cover?
– It covers tuition fees, books, uniforms, and other school-related expenses.
8. Who can apply for the loan?
– Parents or guardians of students studying from Nursery to Standard XII can apply.
9. Is there a concession for girl students?
– Yes, there is often a concession on interest rates for girl students.
10. How is the loan disbursed?
– The loan is disbursed directly to the school.
11. Can I apply for the loan online?
– Yes, you can apply online through the Bank of Baroda website.
12. What documents are required for the application?
– You need proof of admission, identity proof, address proof, income proof, and school fee structure.
13. What is the interest rate on the Baroda Vidya loan?
– The interest rate is competitive and can be checked on the Bank of Baroda website.
14. Is the loan available for all schools?
– The loan is available for students studying in recognized schools in India.
15. What if my child fails in school?
– The bank will review the situation, but repayment is still required.
16. Can I transfer my existing education loan to Baroda Vidya?
– This is generally not applicable as Baroda Vidya is specific to school education.
17. What happens if I miss an EMI payment?
– Missing an EMI can affect your credit score and may incur penalties.
18. Is there any age limit for applying for the loan?
– The loan is for students in Nursery to Standard XII, with parents/guardians applying on their behalf.
19. How do I check the status of my application?
– You can check the status online or by contacting the bank.
20. Can I apply for multiple children?
– Yes, you can apply for loans for multiple children, provided the eligibility criteria are met.
21. Can a minor get Education Loan?
–Yes, a minor can get Education Loan as there is no specific restriction with regards to the age of the student.
22. Can I take education loan for school fees?
Yes, you can use the Bank of Baroda Vidya Loan to pay your school fees.
Conclusion
Bank of Baroda Education Loan Baroda Vidya is a reliable and accessible education loan option for parents looking to finance their children’s school education. With its competitive interest rates, flexible repayment terms, and easy online application process, it ensures that quality education is within reach for everyone. For more details and to apply, visit the Bank of Baroda Education Loan Page.
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