Bank of Baroda's loan scheme for education abroad covers most of the expenses incurred during the study period. These expenses may be such as tuition fees, boarding and lodging, books, study tours, laptops, travel and any other requirements. The student will get a maximum loan of Rs. 20 lakh. He or she has to arrange the margin money in this case, that is 15 percent.
Applicant should be a national of India. Candidates those studying Graduation, Post Graduation, Doctorate studies, Job oriented professional courses and technical courses are eligible to apply for the loan. They should have secured a seat in any of the above course offered by reputed universities in foreign countries.
Coming to the security concerns, Bank of Baroda does not ask any security for a loan amount below Rs. 4 lakh. For a loan amount of Rs. 4 to Rs. 7 lakh, a third party guarantee along with assignment of future income is required. If the required amount is up to Rs. 15 lakh, candidate should provide 100 percent collateral security. Bank of Baroda offers abroad education loans with two kinds of interest rates. BOB charges 10 percent interest for a loan of less than Rs. 4 lakh. It can provide above that and upto a maximum of Rs. 20 lakh as loan with an increased interest rate of 12 percent per annum.
Bank of Baroda framed liberal norms for loan repayment considering the post education situation of the students. If the student crack a job with in one year after completion of the course, the repayment will start from seventh month after joining in the job. If the student failed to secure a job immediately, the Bank will consider 12 months as repayment holiday and EMIs will start from 13th month after completion of the course. Total loan amount has to be repaid with in 5 to 7 years.