Bank of Baroda Fixed Interest Rate Abroad Education Loan

 In order to build a strong career ahead, there is a need for stronger base in the form of higher education. However, there isn’t a doubt that education in the modern times has become so expensive that it may be a roadblock to your success destination. In order to achieve your dreams, you must step these stones and take a plunge. Education loans come in very handy to help you achieve your dreams in the modern times. These higher tuition fee shouldn’t be a hinderance to your dreams. That is why, Bank of Baroda education loanoffers various kinds of facilities and benefits to the students and parents.

Foreign education loan for abroad through Bank of Baroda is served under the category- Baroda Executive Development Programme for Premier institutions, and Baroda Scholar.

Talking specifically about the Bank of Baroda fixed interest rate for education loan, the bank has made its list of Premier Institutions, which can be checked on the website. For these institutions, the rate of interests are as

BRLLR+SP+1.00% Spread  For institutions not listed

BRLLR+SP+1.75% spread (0.50% concession for girl students)

Baroda Scholar: The most popular Bank of Baroda education loan scheme

This scheme is available for MBA, MCA, MS, and a range of other professional courses, which in turn, help the students with job creation. In order to avail loans under this scheme, it is mandatory for the student to have secured the admission in the notified course under notified college/university.

However, there are certain colleges/universities for which the loan amount is limited to Rs. 80 lakhs. The non-specified institutes have a loan amount of Rs. 60 lakhs.

The list of Premier institutions are nearly 200 and many of the Indian students fall under these Universities. Bank of Baroda supports these universities globally and students studying in these Universities can avail the most economical rate in the market.

Interest Rates & Charges

Bank of Baroda education loan comes with simple interest, which is charged monthly, and rests during the moratorium period and holiday. The bank offers 0.50% Concession for rate of interest to loans for girl students. In case the loan amount is exceeding Rs. 4 lakhs, the Bank charges Penal interest @ 2% p.a. on the overdue amount. During the period of Study you do not need to pay anything  for Bank of Baroda education loan.

This is one of the most popular education loans for students going abroad after having worked in jobs for certain numbers of years. The students who wish to upskill themselves with executive courses, such as MCA, MBA, MS. etc., find Bank of Baroda education loan absolutely lucrative.

There are also students who opt for Bank of Baroda education loan for studying abroad after 12^th grade, especially for STEM Courses (Science, Technology, Engineering and Mathematics) .

Eduloans- Seek assistance under one umbrella

Edu loans was the first empanelled digital DSA for the education loan. It was the pioneer wherein we revamped the process of Bank of Baroda education loan . In case the student visits us we fill up the form of Edu loans which digitally hits the bank of Baroda server. The lead is automatically uploaded on bank of Baroda central server and allocated to the closest special market store. The student did not go to the branch and directly interact with the education loan officer thereby reducing the turnaround time of an education loan by over 50%. This innovative approach has benefited hundreds of students and please visit at loans and start filling up your portal to meet the bank of Baroda education on specialist smartly.

All You Need to Know About Study Abroad Unsecured Education Loan

 A study abroad education loan is one of the most important considerations while applying for masters in a foreign land. As soon as students decide upon their academic platforms, they seek education loans with or without collateral from reputed financial institutions to meet all the study expenses that are yet to be incurred during the course of the program. Education loan without collateral would want a higher profile of Student and Parent. An Unsecured Education loan is only given at the masters level.  In this blog post, we shall study about study abroad education loans in detail. Take a look!

Types of Education Loans

You must have understood why taking a study abroad education loan is the pre-requisite of studying abroad. Now, allow us to throw some light on the various sorts of overseas education loans available for our readers. Basically, there are two sorts of student loans for studying abroad. they're - Secured Loans and Unsecured Loans. allow us to discuss all of them below.

 

Unsecured Student Loan - It's a student loan in which the borrower doesn't need to pledge any security (collateral). This loan is best for college kids who prefer taking education loans without collateral. However, it should be remembered that an unsecured education loan features a higher rate of interest (as against secured loan) and is harder to be approved. They even have a shorter repayment period and need certain repayments to be done during the study period too. Also, a minimum parental income is mandatory for this type of education loan.

 

Secured Student Loan - A secured education loan is one where the borrower has got to offer tangible or intangible security. The safety is often within the sort of immovable property, FDs, LIC insurance, land, etc. This type of loan takes longer for approval because the bank has got to verify all the documents associated with the safety being pledged. However, it's lower student loan Interest Rates, longer repayment periods, and no repayment during the study period. This loan also has higher chances of approval and parental income isn't a deciding factor when it involves approval.

Options for Education Loan Without Collateral

 

Features	Public Banks	Private Banks	NBFCs
Maximum Amount	Only up to INR 7.5 Lakhs, which is not sufficient.	INR 50 lakhs	INR 40 lakhs
Rate of Interest	8% - 10%	11.25%-13%	12%-14%
Processing Charges	INR 10,000 only	0.5% - 2% of the Total Sanction	1% - 2% of the Total Sanction
Number of Colleges Supported	Although many colleges are eligible, PSUs don’t offer unsecured loans for higher amounts	More than 200	More than 500

 

 

An unsecured loan is heavily dependent on the student profile and the parent profile.

The student profile consists of his GPA, competitive exam score, course, country, University. An unsecured loan provided by private lenders and NBFCs are limited to students studying Masters courses. Generally only students studying stem focused programmes or MBA are provided unsecured loans by the lenders. In case of the parent profile most institutions are looking at a minimum ITR of 4 lakhs to 8 lakhs. The private banks Require a better parent profile than compared to NBFCs.

 

Repayment Tenure - People choosing unsecured student loans for studying abroad from private banks get 20 years to repay their loans. NBFCs give 10 years to the borrowers to repay the loan. Avail a customized foreign loan through us as we request the lenders for an extension within the repayment period on your behalf.

Processing Period - 5-7 days is what private banks got to process unsecured student loans. If the loan has been applied through Eduloans, and there's a delay from the side of the lender, we contact them and quicken the sanction of the study abroad education loan.

Expense Coverage - If you decide for an unsecured loan from an NBFC, you'll get 100% of your expenses covered, whereas, within the case of personal banks, you'll get 85% of your expenses covered. Eduloans also makes sure that if a rustic requires you to point out a selected amount in your checking account as proof of funds for a visa, that quantity is disbursed before visa.

Income Requirement of Co-applicant - Student education loans without collateral from private and public banks need the co-applicant to earn a minimum of INR 35,000 per month. the precise income requirement is subject to vary consistent with the loan amount. In our experience, typically, 50% of the income should be capable bear the interest during the moratorium period for loans from NBFCs and 65% of the income for loans from banks.

Reasons for Decline - A personal bank or NBFC decline foreign studies education loan thanks to inadequate monthly income requirement and poor CIBIL score. However, you are doing have chances to secure an education loan albeit your CIBIL score is weak. Eduloans’s counselor can come up with solutions for you to cross the hurdle and obtain your loan sanctioned.

Different Options for Loans With Collateral

 

Features	Public Banks	Private Banks	NBFCs
Maximum Amount	upto INR 1.5 crore	upto INR 60 lacs	upto INR 50 lacs
Rate of Interest	8.85%-10.25%	11%-13%	12%-14%
Processing Charges	INR 11800 (Can be refundable)	No fee for loan above INR 20 lacs and INR 750 on each lac above a loan of INR 20 lacs	1%-2% loan amount
Payment During Study Period	None	Simple Interest	Simple Interest

Repayment Tenure - There's a 15-year repayment tenure for overseas education loan from public banks. For NBCFs, it's 10 years, and for personal banks, it's 20 years.

Processing Period - It takes public banks 12-15 days (only if applied via Eduloans, otherwise can take months) to process student education loans with collateral and 8-10 for personal banks. NBFCs manage to urge the loans processed in 5-7 days.

Expense Coverage - there's a 90%-100% coverage of the prices including living expenses within the case of loans from public banks, but private banks cover only 86%. Loans from NBFCs offer 100% coverage of expenses.

Reasons for Decline - The common reason why a public bank will decline a secured loan is incomplete collateral documents. Incomplete documents and low CIBIL score are the explanations which private banks cite for rejecting loans. For NBFCs, CIBIL and low income cause the rejection of loans.

 

With Edu Loans, you can increase your chances of getting your loan sanctioned by 50% because of the thorough analysis done by our team. We also brief you about the  funding requirements and suggest to you only that lender which is most likely to get your loan approved.

We at Edu loans carefully assess your profile and requirements for a study abroad education loan. In case you are looking at an education loan without collateral, we have over eight lenders who provide the same provided you fit into their eligibility criteria. We also have international funds or purely funds on the university and course in which you seek admission. Hence a student looking at an education loan without collateral has a lot of options. We at Edu Loans can help and guide him for the best available option that suits his profile. Please reach out to us at www.eduloans.org immediately to assess your credit for a study abroad education loan.