Baroda Education Loan to students of Premier Institutions-

Frequently asked Questions (FAQs)

Q. What is the objective of Baroda Education Loan to students of Premier Institutions?

Ans: For students pursuing courses in premier educational institutions in India. Details of
premier institutions under the scheme as per List A and List B are available hereunder.
Q. What is the minimum age for getting Education Loan under the scheme?

Ans: There is no specific restriction with regard to the age of the student to be eligible
for education loan.

Q. What are the courses covered for Education Loan under the scheme?

Ans: Full time regular Courses conducted by the Premier Educational Institutions.

Q. What are the expenses considered for Education Loan under the scheme?

Ans: Fee payable to college/Institution/University/school/hostel, Examination / Library

/ Laboratory fee, Hostel fees / charges, Purchase of books / equipments / instruments /
uniforms, Caution deposit, Building fund / refundable deposit supported by institution
bills/ receipts, subject to condition that the amount does not exceed 10% of the total
tuition fees for the entire course, Purchase of Personal Computer / Laptop - essential for
completion of the course, Insurance premium for student borrower, Any other expenses
required to complete the course – like study tours, project works, thesis, etc.

Q. How much loan amount one is eligible under Education loan under the scheme?
Ans:
Category Maximum Loan Limit
No security With tangible 100% collteral
security of full value of the
Loan amount
Institutions– under List AA ₹ 40.00 Lakh ₹80.00 Lakh
Institutions under List – A ₹ 20.00 Lakh ₹80.00 Lakh
Institutions under List-B ₹ 7.50 Lakh ₹80.00 Lakh
Institutions under List-C ₹ 7.50 Lakh ₹80.00 Lakh

Q. What are the margin norms for Education Loan Schemes under the scheme?

Ans: NIL
Q. What are the security norms for Education Loan Schemes under the scheme?

Ans :

List AA:

Up to ₹ 40.00 Lakh: No Security

Co-obligation of parents / guardian along with assignment of future income of the
student for payment of instalments.
Above ₹ 40.00 Lakh : Tangible collateral security equal to 100% of the loan amount
along with assignment of future income of the student for payment of instalments.

For Institutions in List-A:

Up to ₹ 20.00 Lakh: No Security

Co-obligation of parents / guardian along with assignment of future income of the
student for payment of instalments.
Above ₹ 20.00 Lakh: Tangible collateral security equal to 100% of the loan amount
along with assignment of future income of the student for payment of instalments.

For Institutions in List-B:

Up to ₹ 7.50 Lacs: No Security

Co-obligation of parents / guardian along with assignment of future income of the
student for payment of instalments.
Above ₹ 7.50 Lacs: Tangible collateral security equal to 100% of the loan amount along
with assignment of future income of the student for payment of instalments.

For Institutions in List-C:

Up to ₹ 7.50 Lacs: No Security

Co-obligation of parents / guardian along with assignment of future income of the
student for payment of instalments.
Above ₹ 7.50 Lacs: Tangible collateral security equal to 100% of the loan amount along
with assignment of future income of the student for payment of instalments.

Q. Are there any processing charges one has to pay for availing Education loan under
the scheme?

NIL for all cases. A non-refundable Lump sum amount ₹ 7, 500/- per property (towards
Advocate and Valuer charges) to be taken upfront in case of all Education Loan
accounts, wherever property is mortgaged.

Q. Is there penalty for pre payment of loan?

Ans: No prepayment penalty is levied.

Q. What are the documents required for Education Loan under the scheme?

Ans:
 Application Form duly filled and signed by applicant/guarantor along with
details of applicant/guarantor, family,
  Two Passport Size Photograph of student/applicant/guarantor,
 Photocopy of Pan Card of the student (to be submitted at the time of
 application or during the course period),
 Personal Identification Proof (Any one): Electoral I-Card, Passport, Driving
 License, PAN Card, Aadhar Card)
 Residential address Proof (Any one): Electricity Bill, Telephone Bill (Land Line),
 Electoral/Voters ID Card, Passport)
  Admission Letter, Course Details/ Prospectus
  Fee Details- Demand of Fee by the Institution
  Proof of Past academic record - (Mark lists/ Certificates)
 Income certificate from competent Authority for availing interest subsidy
 under Central Interest Subsidy Scheme of Education Loans, if eligible.
 Property/other security documents wherever applicable/stipulated.