Axis Bank is a renowned private bank that serves clients in India and other countries. The Bank of Baroda is among the top public banks in India, if not the top. Among the products that these two banks offer are education loans that help students pursue their academic goals abroad. So, between Axis Bank vs Bank of Baroda, which bank should you source funds from and which provides value for money?
| Particular | Bank Of Baroda | Axis Bank |
| Interest Rates | 8.5% – 13.7% | From 8% – 16% |
| Maximum Loan Amount | Up to Rs. 150 lakh | Up to Rs. 50 lakh |
| Moratorium Period | Course period + 3 – 12 Months | Course period + 6 – 12 Months |
| Repayment Terms | 10 – 15 years | Up to 15 years |
| Margin Money Charged | Up to 15% | Up to 15% |
| Processing Fees | Up to 1% of the loan amount | Up to 2% of the loan amount |
Eligibility Criteria
There are specific qualifications that you must meet to get education loans. These requirements ensure you meet the minimum cut and differentiate yourself from other applicants. While there might be specific eligibility criteria for the Bank of Baroda vs Axis Bank abroad education loan, general ones apply.
| Bank | Eligibility Criteria |
| Bank Of Baroda | -Must be an Indian citizen -Must have secured admission to professional/technical courses or in The Executive Development Programmes offered by premier institutions abroad -Must be and should remain gainfully employed (not mandatory for all loans) |
| Axis Bank | -Must be residing in India -Must have attained and graduated with a min. of 50% in H.S.C. -Must have a co-applicant, e.g., parent/guardian -Must be pursuing a graduate or postgraduate course level -Must have acquired admission in a career-focused course |
Interest Rates
Interest rates determine the earnings the lender will get from your loan. This can be calculated using an education loan E.M.I. calculator. The final interest rate you’ll get for the amount you’ve inquired about will also determine which bank is best, Axis Bank or Bank of Baroda.
| Bank | Interest Rates |
| Axis Bank | 8% – 16% |
| Bank of Baroda | 8.5% – 12.2% |
Interest rates can also be the determining factor of whether a student can facilitate their student loan repayment. Negotiating and landing the best deal is essential, and that’s where uniCreds comes in.
Processing Fee
To get your education loan processed, you must pay a facilitation fee to cater for various loan elements. The costs involved help cover all loopholes and document the loan according to what the two parties have agreed on. Processing fees are different between Bank of Baroda and Axis Bank.
| Bank | Processing Fees |
| Axis Bank | Up to 2% of the Loan Amount plus G.S.T. W.E.F. |
| Bank of Baroda | -Up to Rs.7.50 Lakh: NIL-Up to 1% of the Loan Amount (refundable upon the first loan disbursement) |
Maximum Loan Amount
The maximum loan amount between Bank of Baroda and Axis Bank can significantly differ. Public banks are known to have more resources and often offer more amounts, although that depends on the financial institution. However, Bank of Baroda education loans for students are known to have the highest maximum loan amounts.
| Bank | Maximum Loan Amount |
| Axis Bank | Up to Rs. 50 lakh |
| Bank of Baroda | Up to Rs. 150 lakh |
Moratorium Period
An education loan moratorium period is the grace period a bank allows before they start expecting payments from the borrower. This period allows for preparing and gathering funds through employment or savings to start making payments. Some banks have longer, others shorter, and this can be crucial in choosing Axis Bank or B.O.B., which is better.
| Bank | Moratorium Period |
| Axis Bank | Course period + 6 to12 Months |
| Bank of Baroda | Course period + 3 to 12 Months |
However, you can start paying earlier if you can in particular cases.
Margin Money Charged
Margin money is cash you must pay upfront to facilitate your education loan. This downpayment for the Bank of Baroda vs Axis Bank abroad education loan certifies your ability to pay up and acts as your first principal. It is crucial for unsecured loans.
| Bank | Margin Money Charged |
| Axis Bank | Up to 15% |
| Bank of Baroda | Up to 15% |
Repayment Terms
Repayment terms are defined timelines that borrowers have to clear their education loans. The amount of the loan and interest rates often determine this. Some loans take less time to pay, and others require more time to clear.
| Bank | Repayment Terms |
| Axis Bank | Up to 15 years |
| Bank of Baroda | Maximum 10-15 years |
The longer the repayment term, the fewer instalments you’ll pay monthly.
Types Of Collateral
Axis Bank education loans are known to give both secured and unsecured loans. Bank of Baroda offers fast loans. All secured loans require collateral to back up the loan amount given, and often, there are terms to that depending on the loan amount. Collateral can either be in the form of tangible or intangible assets.
| Bank | Types of Collateral |
| Axis Bank | Not specified |
| Bank of Baroda | -Non-collateral/co-obligation of a parent for lower amounts -Collateral security of 100% of the loan for average loan amounts -Total security coverage should be 1.25 times the loan for higher loan amounts |
Countries Each Bank Caters To
Axis Bank vs Bank of Baroda is a battle of internationally recognised banks. These banks have several branches globally, and students can get access to the services required. However, some benefits might be biased toward Indian citizens due to the nature of their requirements.
| Bank | Countries/States Covered |
| Axis Bank | Singapore, Hong Kong, Dubai, Shanghai, and Colombo |
| Bank of Baroda | Australia, Malaysia, Thailand, United States, United Kingdom, United Arab Emirates, Zambia, Uganda, Kenya, Tanzania, New Zealand, Botswana, Oman, Singapore, Seychelles, South Africa, Mauritius, Fiji Islands, and Belgium. |
Which Of The Two Is UniCreds’ Partner?
UniCreds works with the Bank of Baroda, but upon inquiry, we can still help you get an education loan with Axis Bank.
FAQs
Which Bank Is Better, Bank Of Baroda Or Axis Bank?
Bank of Baroda is better in various aspects.
Which Bank Offers Better Interest Rates For Education Loans, Bank Of Baroda Or Axis Bank?
Both offer similar interest rates, but Axis Bank is on the higher end.
Can You Compare The Processing Fees For Education Loans At Bank Of Baroda And Axis Bank?
BoB have lower processing fees compared to Axis Bank.
What Is The Maximum Loan Amount Offered By Bank Of Baroda And Axis Banks For Education Purposes?
Bank of Baroda has a maximum loan amount of Rs. 150 lakh, while Axis Bank offers up to Rs. 50 lakh.
Are There Any Specific Eligibility Criteria That Differ Between Bank Of Baroda And Axis Bank Education Loans?
Eligibility criteria are almost the same for both banks.
How Do The Repayment Terms Vary Between Bank Of Baroda And Axis Bank Education Loans?
All repayment terms are up to 15 years.
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