BARODA EDUCATION LOAN

As we are aware that our Bank was having different products related to Education Loan.
These Loan Schemes vide Bank’s Circular no. BCC: BR: 101:93 dated 28.03.2009 have
been realigned for operational convenience under the name “BARODA EDUCATION
LOAN” as below:

1) Baroda Education Loan (Baroda Vidya / Gyan / Scholar)

2) Baroda Loan for Career Development
3) Baroda Loan for Skill Dev. of Construction Workers.
For the convenience of the readers the salient features of the schemes as mentioned above
are detailed separately as under:

BARODA GYAN

TARGET GROUP:

Students pursuing Graduation, Post graduation, Professional, Teachers Training

Course, Nursing Course, B.Ed. & other courses in India. (Provided these courses are
degree / diploma courses and not certificate Courses )

COURSES ELIGIBLE:
1. Graduation / Post Graduation / Professional courses and courses like ICWA, CA,
CFA etc. as well as courses conducted by IIM, IIT, IISc, XLRI, NIFT etc.
2. Evening courses of approved institutes.
3. Other courses leading to diploma / degree etc. conducted by colleges / universities
approved by UGC / Govt. / AICTE / AIBMS / ICMR etc.

STUDENT ELIGIBILITY:
1. Should be Resident Indian.
2. Secured admission to professional / technical courses in India through Entrance
Test / Merit Based selection process.

COVERAGE OF EXPENSES:
1. Fee payable to College/Institution/University e.g. Exam, Library or Laboratory
fee etc
2. Purchase of books / equipments / instruments / uniforms / Computers = Laptop
etc.
3. Caution deposit, building fund, refundable deposit supported by institution bills
etc Other expenses required to complete the course – study tours, project works,
thesis etc [Cost of External Coaching / Tuition is Not to Be Considered]
QUANTUM OF FINANCE:

Need based finance subject to repayment capacity of parent / student, based on the
expected income to be generated after completion of the course.
Maximum Rs. 10.00 lacs

MARGIN:

 Up to Rs 4.00 lacs: NIL

 Above Rs 4.00 lacs : 5 %
 Scholarship / assistantship if any received to be included in the margin
 Margin may be brought in on year to year basis as and when disbursements are made
on a pro rata basis.

PROCESSING & DOCUMENTATION CHARGES: NILREPAYMENT &

MORATORIUM PERIOD:

1. Course period + 1 year or 6 months after getting job, whichever is earlier.

2. The loan is repayable in 5 – 7 years after the above period.
3. Extension of time to complete the course may be permitted for a maximum
period of
2 years and in such case the moratorium period will extend accordingly.
4. The accrued interest during moratorium period to be added to the principal for
fixing the Equated Monthly Installment (EMI) for repayment of the loan amount.

FINANCING BRANCH:

Loans up to Rs. 4.00 lacs: Loan may also be considered at the place of posting /
service of the parent after obtaining and recording the proof of permanent residence
for future reference.

Loans above Rs. 4.00 lacs: Loans may also be considered at the place of posting /
service of the parent who is either co-borrower or guarantor of the loan as the case
may be, after obtaining and recording the proof of permanent residence for future
reference.

SECURITY:

 Up to Rs. 4.00 lacs – No Security

 Above Rs. 4.00 lacs & upto Rs. 7.50 lacs –Third Party guarantee along with
assignment of future income.
 Above Rs. 7.50 lacs - Collateral and third Party guarantee along with assignment of
future income.
 The Loan documents to be executed by both – student and parent / guardian.
 The Regional Head may, at its discretion, waive third party guarantee.
DISBURSEMENT:

 Directly to school / institution / hostel – term wise / year wise, in stages.

 Directly to book seller / shop for purchase of books, instruments, equipments etc.
 Next year disbursement to be made only after student has passed the current year
annual examination & progress report / mark sheet to that effect is produced.
 In case student does not secure hostel facility with educational institute, he may be
allowed to make his own arrangement if required. Fees of lodging / boarding in such
cases to be paid directly to concerned establishment.

REIMBURSEMENT:

 The fee etc. paid by the student in first year from own resources may be reimbursed
after obtaining necessary proof of payment.
 In genuine cases, expenses for purchase of books etc. may be reimbursed after
obtaining necessary proof of purchase and payment.

DETAILS OF EXPENSES:

• The details of expenses for the entire course period to be obtained from college /
institutions. PROGRESS REPORT:
• Progress report to be obtained at regular intervals & be kept on record.

FREEBIES:
Debit card to the student on his account.

ADDITIONAL LOAN / ENHANCEMENT IN LIMIT:

 Loan for higher studies in India under Baroda Gyan can be considered even though
loan sanctioned earlier under Baroda Vidya is outstanding, subject to repaying
capacity and provided conduct of the loan account for previous stage is satisfactory.
 In this case, the holiday for repayment granted initially, will stand extended further as
per the duration of the course.

REPHASEMENT:

 The rephasement of repayment in genuine cases be considered by the next higher

authorities.
INSURANCE:

 W.e.f. 01.12.2008 Bank entered in tie up arrangement with Kotak Life Insurance for
all fresh sanctions / disbursement made to Education Loan Borrowers to provide life
insurance cover to them.
 Family of the borrower is not required to repay the loan in case of death of student
borrower and outstanding cover amount due, will be paid by Insurance provider (KLI)
as per cover schedule.
 Thus slippage of the account into NPA category due to death of the borrower can be
avoided.
 Life cover is available against payment of one time premium and amount of premium
is based on the amount and tenure of the loan which may be financed by bank
repayable in EMI along with EMI of Education Loan.
 In case of foreclosure of loan, proportionate excess premium paid shall be refunded
by KLI.
 The insurance cover will generally be available to educational loan borrowers to the
maximum extant of loan amount sanctioned as under :
 For study in India : Rs. 10 lacs
 For Study abroad : Rs. 20 lacs
 Maximum : Rs 50 lacs Premium is to be deposited in CBS A/C of KLI simultaneously, if
the branch is in
CBS operation and if branch is under BIBAS, premium may be deposited by raising I
schedule on nearer CBS branch for credit in the said A/C.

OTHER CONDITIONS:
 Simple interest to be charged at monthly rest during moratorium period.
 Penal interest @ 2 % on overdue amount if the loan amount exceeds Rs. 4 lacs.
 1 % concession in rate of interest to loans sanctioned on or after 1.11.2004 for the
benefit of girl student.
 1 % interest concession be provided if interest debited during repayment holiday /
moratorium is serviced.
 No documentation & processing charges.
 No exchange on Drafts issued in favour of school or student.
 A stamped declaration / an affidavit confirming that no Educational loan is availed
from other banks/ institutions.
 No dues certificate need not be insisted upon.
 BARODA SCHOLAR

TARGET GROUP:

Students going abroad for Professional / Technical studies.

ELIGIBILITY OF COURSES:

• Graduation: Job oriented professional / technical courses of reputed universities.

• Post Graduation: MCA, MBA, MS. Etc.
• Courses conducted by CIMA – London, CPA in USA etc.
•
STUDENT ELIGIBILITY:

• Should be an Indian National

• Secured admission to Professional / technical courses abroad through Entrance Test /
Merit Based Selection Process.

COVERAGE OF EXPENSES:

• Admission / Tuition Fees to College / University & Hostel / Mess charges.

• Examination/Library/Laboratory Fee/Purchase of Books /equipments / uniform etc.
• Caution deposit / building fund / refundable deposit supported by institution bills
/receipts.
• One way Travel expenses / passage money
• Purchase of computers if essential for completion of the course.
• Any other expense required to complete the course e.g. study tour, project work,
hesis etc.

QUANTUM OF FINANCE:

Need based finance maximum of Rs. 20.00 lacs.

MARGIN:
• Up to Rs. 4.00 lacs : Nil
• Above Rs. 4.00 lacs : 15 %
• Margin may be brought-in on year-to-year basis as and when disbursements are made
on a pro rata basis.

REPAYMENT HOLIDAY / MORATORIUM PERIOD:

• Course period + 1 year or 6 months after getting job, whichever is earlier
REPAYMENT PERIOD:

• The loan is repayable in 5 – 7 years after the moratorium period

• If the student is not able to complete the course within the scheduled time for
completion of course may be permitted for a maximum period of 2 years.
• In case of above extension, moratorium period will be extended accordingly.  If the
student is not able to complete the course for reasons beyond his control,
sanctioning authority may at his discretion consider such extensions as may be
deemed necessary to complete the course. The accrued interest during the repayment
holiday period to be added to the principal and repayment in Equated Monthly
Installments (EMI) be fixed.

FINANCING BRANCH:

• Loans up to Rs. 4.00 lacs: Loan may also be considered at the place of posting /
service of the parent after obtaining and recording the proof of permanent residence
for future reference.
• Loans above Rs. 4.00 lacs: Loans may also be considered at the place of posting /
service of the parent who is either co-borrower or guarantor of the loan as the case
may be, after obtaining and recording the proof of permanent residence for future
reference.

PROCESSING CHARGES:
• 1 % of the limit sanctioned to be recovered as upfront charges for issuing Capability
certificate, which shall be refunded, if applicant avails loan.

SECURITY:
 Up to Rs. 4.00 lacs – No Security
 Above Rs. 4.00 lacs and up to Rs. 7.50 lacs – Collateral in the form of a suitable third
party guarantee.
 Above Rs. 7.50 lacs – Collateral security equal to 100 % of the loan amount or
suitable third party guarantee along with the assignment of future income of the
student for payment of installments.
 The Loan documents to be executed by both – student and parent / guardian.
 The Regional Head may, at its discretion, waive third party guarantee.
 The security can be in the form of land / building / Govt. Securities / Public Sector
Bonds / Units of UTI, NSC,KVP,LIC policy, gold, shares / debentures, bank deposit,
Relief Bonds etc. standing in the name of student / parent / guardian or any other third
party with suitable margin. Margin on securities to be considered as per extant
guidelines.
 Wherever the land / building is already mortgaged, the unencumbered portion can be
taken as security on 2nd charge basis provided it covers the required loan amount.
DISBURSEMENT:
 No application for educational loan received should be rejected without the
concurrence of the next higher authority.
 The loan to be disbursed in stages as per the requirement / demand directly to the
institutions / vendors of books /equipments / instruments to the extent possible.

PROGRESS REPORT:
 Progress report to be obtained at regular intervals and be kept on record.

INSURANCE:
 W.e.f. 01.12.2008 Bank entered in tie up arrangement with Kotak Life Insurance for
all fresh sanctions / disbursement made to Education Loan Borrowers to provide life
insurance cover to them.
 Family of the borrower is not required to repay the loan in case of death of student
borrower and outstanding cover amount due, will be paid by Insurance provider (KLI)
as per cover schedule.
 Thus slippage of the account into NPA category due to death of the borrower can be
avoided.
 Life cover is available against payment of one time premium and amount of premium
is based on the amount and tenure of the loan which may be financed by bank
repayable in EMI along with EMI of Education Loan.
 In case of foreclosure of loan, proportionate excess premium paid shall be refunded
by KLI..
 The insurance cover will generally be available to educational loan borrowers to the
maximum extant of loan amount sanctioned as under :
 For study in India : Rs. 10lacs
 For Study abroad : Rs. 20lacs
 Maximum : Rs 50 lacs
 Premium is to be deposited in CBS A/C of KLI simultaneously, if the branch is in
CBS operation and if branch is under BIBAS, premium may be deposited by raising I
schedule on nearer CBS branch for credit in the said A/C.

OTHER CONDITIONS:
 A stamped declaration / an affidavit confirming that no Educational loan is availed
from other bank / institutions for the student for whom loan is sanctioned by us and
shall not avail educational loan from any other bank without obtaining NOC from our
bank during the pendency of our educational loan be obtained. No dues certificate
need not be insisted upon.
 Penal interest @ 2 % p.a. be charged for loan amount above Rs. 4.00 lacs for the
overdue amount and period.
 Simple interest to be charged during the repayment holiday / moratorium period.
 1 % interest concession be provided if the interest debited during the repayment
holiday is serviced.
 1 % concession in rate of interest to loans sanctioned on or after 1.11.2004 for the
benefit of girl students.

FREEBIES:
 Drafts in foreign currencies drawn on our branches / subsidiaries required in favour of
college / university / student will be issued free of exchange / commission.
ADDITIONAL LOAN / ENHANCEMENT IN LIMIT:
 If the student wants to pursue further education, additional loan / enhancement in limit
may be considered within the overall ceiling limit. In this case, the holiday for repayment granted
initially, will stand extended further as
per the duration of the course.
REPHASEMENT:
 The rephasement of repayment in genuine cases be considered by the next higher
authority.

BARODA LOAN FOR CAREER DEVELOPMENT

TARGET GROUP:
 Individuals desirous of pursuing Higher Education in India or Abroad, but are
presently gainful employed.
 Loan for pursuing vocational courses, trainings, pilot trainings, skill up gradation
trainings, diploma / degree courses offered in aviation, hospitability and travel
management, executive development etc.

COURSES ELIGIBLE:
 Graduate, Post Graduate, Diploma, Professional Courses, Specialization courses
offered by reputed Universities / Institutions (Indian or Overseas), having assured
employment prospects.
 Skill up gradation courses offered by various institutes (Indian / Overseas), having
assured employment prospects.
 Courses offered by Hospitality Management Institutes for skill upgrade / short course
/ Training etc.
 Pilot Training courses offered by reputed Institutions (Indian or Overseas) approved
by Director General of Civil Aviation (DGCA) / International Civil Aviation
Organization (ICAO).

ELIGIBILITY:
 Applicant should be a Resident Indian.
 He / She should have secured admission to the course through Entrance Test / Merit
based selection process.

COVERAGE OF EXPENSES:
 Tuition / Examination / Library fees etc charged by the Institute.
 Hostel fees
 Cost of books, equipments, instruments etc.
 Personal Computers / Laptops, wherever required
 Any other expenses required to complete the course viz. Study Tours, Project works,
thesis etc.
QUANTUM OF FINANCE:
 Need based finance, subject to repayment capacity of the applicant based on expected
income after course completion.
 Maximum Loan :
 Courses within India : Rs. 10.00 lacs
 Courses Abroad : Rs. 20.00 lacs
MARGIN:
 15 %
 Scholarship / Assistantship received if any, should not be included in margin. REPAYMENT
PERIOD:
 Loan to be repaid in 60 EMIs
 Repayment Holiday : Course period + 6 months or 3 months after getting a job,
which ever is earlier.
PROCESSING & DOCUMENTATION CHARGES:
 0.50 % of loan amount
SECURITY:
 Advance to be secured by way of 100% tangible collateral security in the form of
mortgage of property, Assignment of securities like NSCs, KVPs, LIC Policies and
Government Bonds etc.
 Assignment of Future income of the applicant
 Personal Guarantee of Father / Mother of the applicant or any other person having
sufficient worth.
DISBURSEMENT:
 Directly to the Institute / University, as per schedule specified Fees already paid may
be reimbursed against original receipt, within one year only.
SANCTIONING BRANCH:
 Branch, which is in close proximity to the permanent place of residence of the
applicant / parents.
OTHER CONDITION:
 Periodical (Yearly / Half Yearly) progress report to be obtained and kept on record.
 Accrued interest during repayment holiday to be added to the principal and EMI to be
then calculated.
 Penal interest @ 2 % p.a. on overdue amount and for non – compliance of terms and
conditions.