Many might know about Bank of Baroda (BOB) as one of the oldest banks in India and, after its merger with Dena Bank and Vijaya Bank, as the third largest public sector banking conglomerate in the country. However, the bank is also carving out a niche for itself in the education loan market with a host of financial assistance schemes.
The growth of education loan market can be directly attributed to the growing aspirations of the middle class families which view better education as a ticket to a good life. The quest for good quality education often makes students seek higher education opportunities overseas. Each year lakhs of students apply for degree courses in prestigious universities and colleges all over the world.
However, one of the major drawbacks of higher education abroad is the cost. The high cost of education in countries like the US and the UK make it impossible for students to achieve their dreams to study abroad without taking education loans from financial institutions. It is here that institutions like Student Cover and Bank of Baroda come to the aid of such students.
BOB Education loans from Student Cover aims to provide maximum benefits to students going overseas for higher education. Other than being affordable, these loans also help students, especially those belonging to weaker sections of the society to avail government-sponsored welfare schemes.
Benefits of taking Education Loans form Baroda Scholar through Student Cover
- Tax Benefit – While loan may be a debt, a loan for studying overseas cannot be used to get exemption on income tax. However, under Section 80-E of the Income Tax Act, the co-borrowers of student loans (which in most cases are the parents) can avail tax benefits on the interest component of the loan. This tax benefit therefore brings down the effective rate of interest on the loan.
- Unsecured Loans for Premier Institutions – Based on the course, the institution and the country where the student has applied for a degree course, students can get unsecured loans of up to Rs. 40 lakhs at a competitive Rate of Interest (RoI) from 10.50% to 12.00%. This means that the creditworthiness of a borrower is sufficient to get the loan; one need not commit any collateral against the loan taken. The educational institutions are rated based on their quality of education, reputation and popularity which, in turn, determines the volume of unsecured education loan that can be sanctioned.
- Avail Benefits under government sponsored welfare schemes – Those students who belong to the Other Backward Classes, Minority or Economically Weaker Sections of the society can avail benefits in terms of interest subsidy under welfare schemes such as Padho Pardesh Scheme of Interest Subsidy for Education Loans and Dr. Ambedkar Central Sector Scheme of Interest Subsidy for Educational Loans
- Special Concession for Girl Students – Girl students applying for education loan to study abroad are given an additional 0.50% concession on the given/offered interest rate.
- Convenient Moratorium Period for technical courses – For students going for professional and technical courses, the moratorium period of the educational loan includes the course period plus one year. The total repayment period of the education loan ranges from 10 to 15 years after the moratorium period.
- Disbursement of Loan as per needs of the Student – Since the education loan consists of both tuition fees and living expenses; the money for living expenses is disbursed as per the demand or requirement of the student.
- No Margin on loans of up to Rs. 40 Lakhs – The loans also ensure up to 100% finance of education. No margin money is charged from the student for loans of up to Rs. 40 Lakhs. This means that the student does not have to have a balance in order to get education loans of up to Rs. 40 Lakhs.
Click here to know the process of availing Bank of Baroda education loans from Student Cover.
– The education loan amount and interest rates mentioned above are case specific and may vary from case to case.
– Student Cover does not charge any fee from the students for any service rendered during the course of or after loan application process.