When it comes to studying abroad, international students first choose the United Kingdom, one of the most popular study abroad destinations. The UK is a popular study abroad destination because of its high standard of living, excellent educational system, and plenty of opportunities.
International students are constantly searching for funding sources such as fellowships, scholarships, and student loans for studying abroad in order to pay for their higher education in the UK. In the UK, there are two types of loans available to finance higher education: secured education loans and unsecured education loans. Let’s dive inside and go through the complete article.
Since the cost of education is typically higher than most, the majority of international students apply for education loans. A vast array of financial institutions, including government and private banks, non-bank financial centers (NBFCs), and international lenders, provide loans for higher education intended for study abroad.
We will examine the most popular education loan provider Bank of Baroda in this blog, as well as the features that set student loans apart for study abroad.
Unsecured Education Loan
For an overseas education loan, an unsecured loan is one in which the borrower is not obliged to pledge any kind of collateral against the loan balance. For an unsecured education loan to study in UK, the Visa Officer only accepts a select few financial institutions, such as State Bank of India, Bank of Baroda, Axis Bank, etc. Let’s examine each financial institution’s unsecured school loan procedure one by one. We’ll learn about the Bank of Baroda’s unsecured education loan for studying in the UK in this blog post.
Bank of Baroda
| Study Level & Courses | Secured Loan for all Level and courses
No loan for UG Diploma / Certificates |
| Quantum of Finance | Premier Listing : Upto 80 Lakhs (No limit)
Non Premier Listing : Upto 60 lakhs |
| Margin Money | Premier Listing : 100% of funding Non Premier Listing : 90% + 10% |
| Rate of Interest | Premier Listing – For Boys : 9.25% and Girls : 8.75%
Non Premier Listing – For Boys : 10.00% and Girls : 9.5% |
| Tenure | Repayment period – 15 years [EMI starts after Moratorium period]
No compulsion of paying Simple Interest during the Moratorium period. There is no compound interest calculation |
| Income Tax Benefit | Deduction under section 80 E for payment of Simple interest on education loan. |
| Property Acceptable | Residential Flat, House, Open Plot, Shop, Commercial Property |
| Charges Applicable | Processing fee of Rs. 10,000/- + GST Valuation Report Fee + Search Report fee of Rs. 7,500/- + GST No pre-payment and pre-closure charges |
Overseas Education Loan at Bank of Baroda – Benefits, Popular Schemes and More
Many students who cannot afford the high cost of education and living abroad can now study abroad by choosing to take out an overseas education loan. However, the most crucial step is choosing the appropriate financial lender. We shall thus discuss the Bank of Broda, one such well-known lender.
The Bank of Baroda has been nationalized. It was founded in 1908 and now boasts a vast global network of 9,288 branches. Due to its many programs and advantages, this bank is preferred by many students. They provide both secured and unsecured education loans. This article will cover a variety of topics, including the interest rate on Bank of Baroda’s overseas education loans and other programs. So continue reading and paying attention.
Key Benefits
It’s crucial to understand the advantages and perks the Bank of Baroda provides before applying for an international education loan. Therefore, we have listed some of the main advantages below for your better understanding.
- You are qualified for a loan with 100% funding and no upper limit if you are applying to a university that is on the bank’s prime list.
- The bank has a maximum 15-year repayment period.
- The co-applicant is eligible for a tax deduction benefit on the interest under section 80E.
These were a few of the main advantages of applying to Bank of Baroda for an international education loan. Let’s now take a quick look at some of the bank’s well-liked programs.
Popular Schemes
It’s critical to be aware of the well-liked programs that the Bank of Baroda offers in order to receive the most benefits. So you can look them up below.
- Baroda Education Loan for Elite Institution Students
- Program for BOB Executive Development
These are the bank’s well-liked programs for education loans in India intended for study abroad students. Undergraduate and graduate students can use loan programs to study abroad. Universities are split into two groups by the bank: prime and non-prime. Now let’s examine the number of universities that fit into the various course categories.
| BOB University List | STEM Courses | Management Courses | Medical Courses | Arts & Humanities Courses |
| Total Number of University | 263 | 171 | 100 | 40 |
Now that you know how many universities are on the Bank of Baroda’s prime list. Let’s take a quick look at interest rates.
Interest Rates at Bank of Baroda
The effective interest rate for the list of elite universities is 9.50%. For universities that are not on the list, the effective interest rate for a secured loan is 10.20%, while the interest rate for an unsecured loan begins at 11.50%.
Since it’s always a good idea to plan ahead, let’s take a quick look at the requirements and eligibility for a Bank of Baroda overseas education loan.
Eligibility Criteria
You can verify the requirements needed to apply for an education loan to pursue your studies overseas.
- The applicant should be a resident of India.
- The applicant should have secured admission to a program at a recognized foreign university.
Essential Documents
- Offer Letter from the universities with tuition fees stated on it
- Academic transcripts
- Applicant’s employment documents (if any)
- KYC documents
- Residential proof
- Collateral Documents
- Identity Proof
- Valid Passport
Concluding Insights
We hope you found this article useful. You can contact foreign education loan advisors for all the latest information if you need more details about Bank of Baroda education loans, both with and without collateral.
It is advised that students speak with Elan Loan’s experts in order to clear up any confusion. We are a dedicated platform created to answer study abroad applicants’ questions about loans for overseas education.
Our team of loan specialists will offer students complete support and direction for education loans for studying in the UK. Rest assured by visiting www.elanloan.com, our website. Contact us today to schedule a free counselling session.
