Bank of Baroda Education Loan
Bank of Baroda Education Loan 2024 Disbursement Process: Securing an education loan can feel overwhelming due to the intricate and lengthy procedures involved. Bank of Baroda (BOB) offers education loans to students pursuing studies both in India and abroad, with a well-defined disbursement process that might help ease some of the common concerns. Here’s a comprehensive guide to BOB’s loan disbursement process and tips for simplifying it. In this blog, we’ll walk you through Bank of Baroda’s (BOB) education loan disbursement process and cover other key details about the BOB education loan.
Loan Sanction vs Loan Disbursement
Before diving into the loan process, it’s helpful to understand the difference between loan sanction and loan disbursement. A loan sanction letter confirms that the applicant qualifies for the loan, outlining the approved loan amount, repayment tenure, applicable interest rates, and terms and conditions. Loan disbursement, however, is the actual transfer of funds from the bank to the designated account, such as the university’s account, a Forex card, or the applicant’s own account.
Details of Bank of Baroda Education Loan Disbursement Process
| Feature | Details |
|---|---|
| Loan Purpose | Designed for students pursuing technical and professional courses at foreign universities. |
| Processing Fee | No processing fee; INR 10,000 is refunded after the first disbursement. |
| Loan Amount | Offers high-value loans up to INR 80 lakhs with long repayment tenures. |
| Categorization of Institutions | – Specified List of Premium Institutes: Full funding, no margin money required. |
| – Unspecified List of Institutes: 10% margin money required. | |
| Evaluation Charge | One-time fee of INR 7,500 for property evaluation in case of secured loans. |
| Coverage for Premium Institutions | Full funding of all education costs for specified premium institutions, irrespective of loan amount. |
Pre-Disbursement Process for Bank of Baroda Loan
- Application Submission
Begin by applying online for the education loan, which can be done directly on Bank of Baroda website or through a partner service. Using a partner platform may provide additional support throughout the loan process. - Document Collection and Submission
Gather the required documents based on a customized checklist provided by Pmloanscheme.com or the bank. Many platforms offer convenient features like doorstep document pickup and submission to Bank of Baroda Special Mortgage Stores (SMS) for expedited service. Choosing a nearby SMS can help speed up the application process significantly. - Document Verification and Fees
After submitting your documents, Bank of Baroda will verify them and require a refundable processing fee of INR 10,000 plus GST. This ensures all documents are complete and accurate. - Collateral Evaluation
If your loan involves collateral, the bank will evaluate the pledged property. A lawyer will review these documents for a fee of INR 7,500, and an applicant’s address verification will also be conducted to validate the information provided. - Loan Sanctioning
Once all verifications are complete, the loan amount is calculated, and a formal sanction letter is issued, listing the loan terms and any additional documents required for the next steps. - Pre-Visa Disbursement Option
If you need funds released before obtaining your visa, inform the bank early. Bank of Baroda offers pre-visa disbursement to students studying in eligible countries upon receiving a written request.
Required Documents for BOB Loan Disbursement
After receiving a sanction letter, the applicant must sign a loan agreement and provide additional documents for the disbursement phase, including:
- Post-dated security cheques (typically seven).
- NACH (National Automated Clearing House) form for EMI setup.
- Fee remittance account details.
- Stamp papers to establish a mortgage for property-collateralized loans.
If all documents are in order, the loan officer will prepare the loan agreement on stamp paper. This document will outline the loan terms, repayment schedule, collateral, and any penalties associated with late payments.
Disbursement Options for Tuition Fees and Living Expenses
The disbursement of funds may differ based on specific cases:
- Fees Paid After Disbursement: If no margin money is required, Bank of Baroda will directly transfer the tuition fees per the university’s fee schedule. When margin money is required, the total fee is transferred after deducting the margin money from the applicant’s account.
- Fees Already Paid by the Applicant: If the applicant has already paid the tuition fees, they can request a reimbursement. If margin money applies, the reimbursement will reflect the deduction of the margin amount from the savings account linked to the loan account.
For living expenses, funds are loaded onto a Forex-cum-debit card upon providing proof of expenses, such as a lease agreement. If living expenses have already been covered, the applicant can request reimbursement, transferred to their savings account.
Special Considerations for Pre-Visa Disbursement
Bank of Baroda offers pre-visa disbursement for students, allowing loan funds to be accessed before visa approval, provided that a formal request is submitted to the Special Mortgage Store handling the loan. This option can be particularly useful for students who need proof of funds early in the application process.
BOB Education Loan Disbursement Process
Once the loan agreement is signed, Bank of Baroda (BOB) can disburse the education loan in different ways, depending on what the customer prefers.
Ways to Disburse Funds:
- Case 1: Fees Paid After Disbursement
- If there is no margin money required, the bank will transfer the tuition fee directly based on the fee demand letter provided by the university.
- If margin money is required, the bank will transfer the full tuition fee along with the margin money. The margin amount will be deducted from the customer’s account at the same time.
- Case 2: Fees Paid by the Customer Before Disbursement
- If there is no margin money, the full tuition fee will be sent to the savings account linked to the loan after the fee receipt is submitted.
- If there is margin money, the bank will reimburse the tuition fee to the savings account linked to the loan after deducting the margin amount.
Living Expenses
For living expenses, the bank will load the funds onto a Forex-cum-debit card. To receive this amount, customers must provide proof of their living expenses, such as a lease agreement. If the customer has already covered these expenses, they can request reimbursement. This reimbursement will also be transferred to the savings account linked to the loan.
Benefits of BOB Baroda Scholar Loan for International Studies
Bank of Baroda ‘Baroda Scholar for Study Abroad’ loan caters to students pursuing advanced degrees or diplomas overseas. With high loan limits, waived processing fees (refunded upon first disbursement), and long repayment terms, this loan is particularly advantageous. The bank has specific lists of approved institutions and covers full tuition fees for programs at top institutions. For select premium institutions, BOB offers full funding, while other institutions may require a margin contribution from the student.
Advantages of Bank of Baroda Education Loan for Abroad Studies
- Loan for Studying Abroad: The “Baroda Scholar for Study Abroad” loan is designed for students aiming to study technical and professional courses at international universities.
- No Processing Fee: The loan offers a waived processing fee. While there is an initial charge of INR 10,000, this amount is refunded once the first part of the loan is disbursed.
- Large Loan Amounts with Long Repayment Periods: Bank of Baroda provides high-value loans with extended repayment options, making it easier to manage expenses over time.
- Categorized Institutions: Universities are organized into two lists:
- Specified List of Premium Institutes: Covers all education expenses for students at select institutions, up to INR 80 lakhs, with no margin money required.
- Unspecified List of Institutes: For these institutions, margin money is 10% of the loan amount.
- One-Time Evaluation Charge: Borrowers pay a one-time fee of INR 7,500 for property evaluation in case of secured loans.
- Full Coverage for Premium Institutions: For students attending institutes in the Specified List, the bank funds the entire education cost, regardless of the loan amount.
These features make the BOB Education Loan a strong option for students looking to fund their international education.
Coverage of Expenses
BOB education loan can cover a range of educational expenses, including:
- Tuition and hostel fees.
- Exam and library fees.
- Textbooks, uniforms, and essential equipment.
- Computers and other study-related devices.
- Travel expenses for international studies.
- Additional costs like study tours, project work, and thesis expenses.
Conclusion
If you’re looking to fund your studies abroad, Bank of Baroda education loan process offers multiple benefits, especially when used with a supportive platform like PMloanscheme.com. By following the steps and preparing documents in advance, students can ensure a seamless loan experience. For those interested in beginning their journey, check your loan eligibility and get expert guidance today!
