The Indian financial market is rife with potential lenders for students headed to foreign Universities. Nationalized and Private Banks, Non-Banking Financial Companies (NBFCs), and International Lenders offer attractive schemes to cover the rising cost of education all over the world. These overseas education loan schemes are a popular way for students to cover the tuition fees, living expenses, health insurance, and flight tickets to their preferred destination.
Many students prefer Nationalized Banks for their competitive interest rates and long repayment tenures, which make loan repayment a breeze. The Bank of Baroda (BOB) enjoys a particularly strong reputation among Nationalized Banks in India due to its Baroda Scholar overseas education loan scheme.
In this article, we will learn about the bank’s exclusive loan scheme, the BOB education loan documents required, and other important information.
Features of the Baroda Scholar Loan Scheme
BOB offers the Baroda Scholar overseas education loan scheme for aspiring students applying for competitive courses abroad. The loan scheme is accompanied by benefits like 0 documentation charges, inclusive application criteria, and a free debit card to boot. Let us learn about the Baroda Scholar scheme below.
- Quantum of Finance: Secured education loans for up to INR 1.5 crore for Premier-Listed Universities
- Interest Rate: Starts at 9.20% per annum for Premier-Listed Universities and at 9.70% per annum for non-Premier-Listed Universities, with a 0.20% concession for female students
- Loan Margin: 100% funding for Premier-Listed Universities and 90% funding with a 10% margin for non-Premier-Listed Universities
- Study Level and Courses: Students can get secured loans for Master’s degrees, Bachelor’s degrees, Diplomas, Pathway, and Foundation courses
- Moratorium Period: Course duration + 12 months
- Repayment Tenure: Up to 15 years, including the course duration
- Processing Fees: INR 10,000 + 18% GST
- Processing Time: Around 20-30 business days
Knowing details like the overseas education loan interest rate, repayment tenure, and the differences between Premier-Listed and non-Premier-Listed Universities can help students negotiate for the best possible deal according to their requirements and profile. Having understood all about the Baroda Scholar scheme, we can now move on to the BOB abroad education loan documents required.
BOB Abroad Education Loan Documents Required for Application
Before applying for the Baroda Scholar overseas education loan scheme, students need to go through the eligibility criteria specified by the bank. The main things to keep in mind are the academic profile of the applicant and the financial profile of the co-applicant, as well as the validity of the asset used as collateral against the loan amount. This helps students avoid a loan rejection from BOB. Once they determine their eligibility, they must gather the documents mentioned below.
BOB Abroad Education Loan Documents Required from the Student
- Proof of identity, such as an Aadhar Card or a Driver’s License.
- Proof of residence, such as a Utility Bill or a Voter ID card.
- A valid Passport and recent passport-sized photographs.
- Academic records, including previous results, qualifications, English Language Proficiency Test scores, and Standardized Test scores.
- Proof of admission from a foreign University recognized by the bank.
- A detailed tuition fee breakdown or schedule, as well as a statement of the living costs in the city.
- Prospectus of the course chosen by the student.
- Account statement for the last year.
BOB Abroad Education Loan Documents Required from the Co-Applicant
- Proof of Identity and Residence.
- Recent passport-size photographs.
- Account statement for the past year.
- Income Proof such as a Salary Slip or a copy of the latest Income Tax Returns.
- A proof of Business address for self-employed individuals.
- Security/collateral documents, as specified by the bank.
Students must carefully check and submit these documents alongside the filled version of the BOB overseas education loan application form. Their documents will then be verified by the bank, which will then sanction the loan.
Once the student has agreed to all the details of the loan mentioned on the loan sanction letter, the disbursement process begins. Here, the bank may need additional documents, as mentioned in the upcoming section.
BOB Abroad Education Loan Documents Required for the Disbursement Process
The disbursement period of the BOB abroad education loan requires a different set of documents. These documents are used to complete the remaining formalities, so students should know what to prepare to make the disbursement process as smooth as possible.
- 7 security cheques, post-dated
- Complete NACH form to activate ECS
- Details of the account used for fee remittance (usually the University account)
- Stamp papers to create a mortgage on the asset pledged as collateral against the loan amount
The bank may also ask for other documents related to the collateral at this point. Once the student submits the BOB abroad education loan documents required, students can sign the loan agreement and expect a smooth disbursement schedule ahead.
In the end, students have a clear picture of the BOB abroad education loan documents required so that they can prepare for the loan application process. To get options for collateral free education loan for abroad studies or learn negotiation tactics, students can consult nearby overseas education loan consultants. Their expert advice will help them have a smooth loan application process ahead.
