Bank of Baroda Higher Education & Skill Development Guarantee Scheme for Delhi Students

Bank of Baroda offers loans up to Rs. 10 lakh under this scheme for students who wish to pursue diploma or degree studies in Delhi and who have completed their Class 10 and 12 studies from the state. Children of Government of Delhi National Capital Territory (NCT) employees or officials and government servants who are posted in the NCT region also qualify for this loan.

Features of Higher Education & Skill Development Guarantee Scheme for Delhi Students

Why this Scheme?

• This scheme helps meritorious students pursue higher education in Delhi with loans up to Rs. 10 lakh
• The Bank of Baroda Higher Education & Skill Development Guarantee Scheme for Delhi Students is an initiative of the Delhi Government and banks are given guarantees for the loans they advance through a Higher Education and Skill Development Credit Guarantee Fund that protects them in case of defaults from the borrower.

Loan Amount

• The maximum loan that can be given under Higher Education & Skill Development Guarantee Scheme for Delhi Students by Bank of Baroda is Rs. 10 lakh
• BoB can give loans of up to Rs. 7.5 lakh under the Credit Guarantee Fund Scheme for Education Loans (CGSEL) of Govt. of India if the conditions prescribed under that scheme are satisfied

Interest

• Up to Rs. 7.5 lakh: The interest rate charged will be the Baroda Repo Linked Lending Rate (BRLLR) which is currently 7.00% and 2%. This makes the effective rate 9.00%
• Loans above Rs. 7.5 lakh: The interest rate charged will be the Baroda Repo Linked Lending Rate (BRLLR) which is currently 7.00% and 1.75%. This makes the effective rate 8.75%
• Girl students do not get any concession in the interest rate
• Simple interest is charged monthly during the repayment moratorium period
• The loan offers the option to the borrower to pay the interest portion during the moratorium or study period. If the borrower choses to do so, the interest rate is reduced by 1% for the tenure of the loan. This point should be read in conjunction with the below point
• The effective interest rate after deductions, if any, shall not go below the base rate which currently stands at 9% per annum

Repayment

• There is a repayment moratorium for the course period and 1 year after the course is completed
• Repayment will be done through EMIs and over a period of up to 15 years after course completion
• There is no prepayment penalty if the applicant decides to prepay the loan in full or parts any time during the repayment period

Security Needed

• Bank of Baroda asks the parents to sign the loan documents with the student as joint borrowers for loans of up to Rs. 10 lakh
• However, no security is needed from the borrower(s)
• In case the student is a minor then the parents can sign the loan documents on her behalf and the bank will obtain a letter of ratification of the loan when the student reaches majority
• In case the student is a married person, the spouse or in-laws can be joint borrowers along with the student

Eligibility

• The Bank of Baroda Higher Education & Skill Development Guarantee Scheme for Delhi Students is available for students who want to pursue diploma, degree or any specified skill development courses in Delhi and have completed their Class 10 and 12 from the state
• In case a course for which they need the loan requires only Class 10 qualification, then they should have completed the same from a Delhi school
• Children of people working in Delhi Government or government officials who are posted with the Delhi NCT Government are also eligible under this scheme
• The student should have secured admission in a recognised institution in Delhi through an entrance test or merit based selection
• A recognised institution refers to Government institutions or universities and constituent colleges of Delhi University
• The scheme would also be available to students enrolling in private or self-financed institutions that are located in Delhi and that have NAAC or NBA grading of A or B and if the same is not available, then SFRC grading of A+ or A. Even students in recognised institutions that offer technical or training skill development will be eligible for this scheme
• A member of a family can get the loan even if another member has already got a loan to study in Delhi under this scheme

Eligible Courses

• The subsidy scheme will apply to courses that offer graduate or postgraduate degrees and PG diplomas from recognised colleges, universities and institutions, and professional courses recognised by UGC, AICTE, AIBMS, ICMR, etc.
• Courses conducted by IIT, NIFT, NLU, IIFT, etc. are eligible
• Courses that lead to CA, CWA, CS or CFA credentials are also eligible
• Any regular degree or diploma courses like aviation, pilot training and shipping including those run by polytechnics, etc. and approved by Director General of Civil Aviation or Shipping will be eligible if the course is pursued in Delhi
• Degree or diploma courses in nursing, physiotherapy or any other discipline approved by Indian Nursing Council or any other regulatory body as the case may be, are eligible if the course is pursued in Delhi
• Any specified skill development courses as notified by the Delhi Government will also be eligible

Borrower Contribution to Total Cost (Margin Money)

• The bank does not charge any margin money on this loan

Note: Margin money refers to the amount the borrower contributes to the overall amount required

Processing and Other Charges

• There are no processing charges for this loan

Other Features to Know

• Applications can be made at the branch or even online
• The lending branch should be near the institute, study centre of the technology partner or the place of residence of the borrower
• The loan is disbursed directly to the college, book seller or publisher, computer seller, and so on and not to the applicant(s)
• Bank of Baroda offers Group Credit Life insurance cover to borrowers. The premium is recovered through EMIs. Currently, Bank of Baroda has tie-ups with IndiaFirst Life Insurance Kotak Life Insurance for Group Credit Life insurance cover
• Bank of Baroda has to provide 0.5% of the loan they advance under this scheme to the Higher Education and Skill Development Credit Guarantee Fund if they want to avail the guarantee benefit. If they do so and there is a default the fund pays the bank 75% of the default amount after the bank withdraws the loan facility to the borrower. The remaining amount 25%, if any, is paid after any recovery proceedings

Documents Needed

• Application Form duly filled and signed by applicant and/or parents along with details of applicant and/or parents
• Two Passport Size Photographs of applicant(s)
• Photocopy of PAN Cards of the student or parents that need to be submitted at the time of application or during the course period
• Personal Identification Proofs (Any One): Electoral I-Card, Passport, Driving License, PAN Card or Aadhaar Card
• Residential Address Proof (Any One): Electricity Bill, Landline Telephone Bill, Electoral or Voter ID Card or Passport
• Admission Letter, Course Details and Prospectus
• Fee Details with Demand of Fee by the Institution
• All Proofs of Past Academic Record including Mark Sheets and Certificates
• An Income Certificate from a Competent Authority to avail the interest subsidy under Central Interest Subsidy Scheme of Education Loans, if eligible

Reference Facts

• Bank of Baroda Website: www.bankofbaroda.com and www.bobibanking.com (net banking)
• Headquarters: Baroda (Vadodara), Gujarat
• Education Loan Number: 846 700 1122 (to give a missed call)
• Call Centre Toll-Free Number: 1800 223 344, 1800 102 4455