Bank of Baroda offers various schemes under its education loan vertical, namely Baroda Gyan education loan, Baroda Digital education loan, Baroda Scholar education loan, and many more! Whereas, Central Bank of India has been an established bank since 1911, offering end-to-end education loans covering tuition fees, books, travel expenses, for studying abroad. These loans offer competitive interest rates and have attractive features. To help you decide better, in this blog, we have compared the Bank of Baroda Vs Central Bank of India Education Loans.
Difference Between Bank Of Baroda Vs Central Bank Of India
As mentioned earlier, the Bank of Baroda offers several loan schemes. Among which Baroda Scholar education loan is meant for financing your education abroad. Likewise, the Central Bank of India offers a Cent Vidyarthi education loan for studying abroad. Let’s compare the two in the table below:
| Key Features | Bank of Baroda Education Loan | Central Bank of India Education Loan |
| Loan Upper Limit | INR 1.5 Cr. | INR 20 Lakhs. (Loans up to 200 Lakhs can be considered on a case-by-case basis) |
| Interest Rates | 9.7-10.2% | 9-10.3% |
| Processing Fees | 1% of the loan amount | INR 15000 of the loan amount |
| Margin Money | 0-15% | 15% |
| Collateral | Property, agricultural land, bonds, etc. | Property, agricultural land, bonds, etc. |
| Co-applicant | Parents | Parents |
| Moratorium Period | Course duration+1 year | Course duration + 1 year |
| Repayment Period | 10-15 years | 15 years |
Eligibility Criteria For Bank Of Baroda And Central Bank Of India Abroad Education Loan
The eligibility criteria for the Bank of Baroda Vs. Central Bank of India education loans are the same. Understanding these will help you know which bank suits you best. Go through the points below:
- You should be an Indian citizen above 18 years of age.
- You should have secured admission in a reputed university through entrance exams like GRE, IELTS, TOEFL, etc.
- You should have an excellent academic record.
Additionally, to get the better loan terms, you should have secured admission in Bank of Baroda eligible universities.
Documents Required
The documents can vary based on your bank or your case/eligibility. However, you need to have some of the mandatory documents to apply for an education loan. Given below is a detailed list:
| Document | Description |
| Proof of Identity | ID card, passport, or driver’s licence. |
| Proof of Residence | Utility bill or rental agreement. |
| Proof of Admission | Admission letter from the educational institution. |
| Academic Records | Transcripts or mark sheets. |
| Income Proof | Payslips or income tax returns. |
| Co-borrower Information | ID and income proof of co-borrower (if applicable). |
| Collateral Documents | Property documents (if loan is secured). |
| Loan Application Form | Official form provided by the lender. |
Application Process For Bank Of Baroda & Central Bank Of India Through UniCreds
As is evident from the above information, both banks offer competitive loan terms. It can be confusing for you to decide and you might also miss out on some amazing benefits on the loan terms. This is why UniCreds has partnered with several top financial institutions like the Bank of Baroda, Axis Bank, Union Bank, and many more! We compare the loan terms and offer you the best customised loan options. Given below are the steps you need to offer:
Step 1: Fill up your basic contact details in the form on the UniCreds website.
Step 2: Soon our expert loan counsellors will get in touch with you to understand your loan eligibility, loan requirement, collateral type you would pledge.
Step 3: Understanding your loan requirement, we will negotiate the loan terms with the financial institutions and get you the best customised loan plan.
Step 4: Once you finalise the lender, submit your documents, and wait worry free for the loan to get approved!
Loan Repayment Terms
Here’s a comparison of key loan repayment terms for education loans offered by Bank of Baroda and Central Bank of India:
Moratorium Period:
Bank of Baroda: Course duration + 1 year. You can opt to pay interest only during this moratorium period in education loan (simple interest on disbursed amount).
Central Bank of India: Course duration + 6 months. Similar to Bank of Baroda, interest accrues during this period (simple interest).
Repayment Period:
Bank of Baroda: Bank of Baroda education loan offer up to 15 years.
Central Bank of India: Central Bank of India education loan up to 15 years.
Prepayment: Both banks allow prepayment of the loan without any penalty.
Central Bank Of India Or Bob Which Is Better
Considering both banks’ offerings, the choice between the Bank of Baroda and Central Bank of India for an education loan depends on individual preferences and financial circumstances.
- Bank of Baroda offers a higher upper limit of INR 1.5 Cr. with interest rates ranging from 9.7% to 10.2%, while Central Bank of India has a lower upper limit of INR 20 Lakhs with interest rates ranging from 9% to 10.3%.
- Bank of Baroda charges a processing fee of 1% of the loan amount, while Central Bank of India charges a fixed amount of INR 15,000.
- Bank of Baroda’s margin money requirement ranges from 0% to 15%, whereas the Central Bank of India requires a fixed margin of 15%. Both banks offer similar moratorium and repayment periods.
Therefore, individuals should carefully consider factors such as loan amounts, interest rates, processing fees, and margin money requirements before making a decision.
FAQs
Q1. Which bank is better: the Central Bank of India or Central Bank of India?
Bank of Baroda offers a higher upper limit of INR 1.5 Cr., while Central Bank of India offers up to INR 20 Lakhs, with exceptions considered on a case-by-case basis.
Q2. Which bank offers better interest rates for education loans, Bank of Baroda or Central Bank of India?
Bank of Baroda offers a slightly lower range of interest rates, ranging from 9.7% to 10.2%, compared to Central Bank of India’s range of 9% to 10.3%.
Q3. Can you compare the processing fees for education loans at Bank of Baroda and Central Bank of India?
Central Bank of India charges a fixed processing fee of INR 15,000, whereas Bank of Baroda charges 1% of the loan amount as processing fees.
Q4. What is the maximum loan amount offered by Bank of Baroda and Central Bank of India for education purposes?
Bank of Baroda offers a maximum loan amount of INR 1.5 Crore, while Central Bank of India offers a maximum loan amount of INR 20 Lakhs, with the possibility of considering loans up to INR 200 Lakhs on a case-by-case basis.
Q5. Are there any specific eligibility criteria that differ between Bank of Baroda and Central Bank of India education loans?
Both banks have the same eligibility criteria, which include being an Indian citizen above 18 years of age, securing admission in a reputed university, and having an excellent academic record.
Q6. How do the repayment terms vary between Bank of Baroda and Central Bank of India education loans?
Central Bank of India offers a longer repayment period of up to 15 years, compared to Bank of Baroda’s repayment period of 10 to 15 years.
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