Bank of Baroda vs Punjab National Bank is India’s top-performing PSU banks that serve as the benchmark for the rest. They are reputable for their performance, products and services, and customer satisfaction. With the cost of studying abroad hitting an all-time high, the demand for education loans has increased. So, which bank is best, Punjab National Bank or Bank of Baroda, for student loans?
| Particular | Bank Of Baroda | Punjab National Bank |
| Interest Rates | 8.5% – 13.7% | 10.25% – 12.75% |
| Maximum Loan Amount | Up to Rs. 150.00 lakh | Up to Rs. 50.00 lakh |
| Moratorium Period | Course period + 3 Months – 1 Year | Course period + 1 Year |
| Repayment Terms | 10 – 15 years | Up to 15 years |
| Margin Money Charged | Up to 15% | Up to 15% |
Eligibility Criteria
Bank of Baroda education loans are categorised in various sections, depending on the kind and amount of the loan. The bank offers multiple loan terms to meet the student’s needs. Some of the education loan options include:
| Education Loan | Eligibility |
| Baroda Scholar | -Must be an Indian national -Must secure admission to professional/technical courses abroad |
| Baroda Education Loan for Students of Premier Institutions | |
| Baroda Education Loans for EDP by Premier Institutions Abroad | -Must be an Indian national -Must have secured admission in The Executive Development Programmes offered by premier institutions abroad -Must be and should remain gainfully employed |
Punjab National Bank has several education loan options, but only one caters to students pursuing higher education abroad. This PNB Education Loan has been crucial to helping students achieve their academic goals.
| Education Loan | Eligibility |
| PNB Udaan | -Must be an Indian resident -Must have secured admission to a higher education course in a recognised institution abroad |
Interest Rates
Bank of Baroda and Punjab National Bank are the top banks offering education loans to Indian international students. The significant difference between Bank of Baroda and Punjab National Bank student loans is the interest rates. Bank of Baroda considers the following when determining the interest rates:
- Country of studies
- Higher education institution
- Type of student
- Loan amount
- Gender
On the other hand, Punjab National Bank considers the following:
- Loan amount
- Gender
- Security
Bank of Baroda interest rates on education loans
| Education Loan | Interest Rates |
| Baroda Scholar | 9.7% – 13.7% |
| Baroda Education Loan to Students of Premier Institutions | 8.5% – 12.2% |
| Baroda Education Loans for EDP being offered by Premier Institutions Abroad | 11.15% – 11.5% |
Punjab National Bank interest rates on education loans
| Education Loan | Interest Rates |
| PNB Udaan | 10.25% – 12.75% |
Processing Fee
Bank of Baroda vs Punjab National Bank education loan processing fees differ. These are fees charged to finalise the documentation and disbursing of your loan. The processing fees majorly depend on the source of funding and loan amount.
Bank of Baroda
| Education Loan | Processing Fees |
| Baroda Scholar | -Up to Rs.7.50 Lakh: NIL -Above Rs.7.50 Lakh: 1.00% of loan amount maximum Rs. 10,000 (refundable after first loan disbursement) |
| Baroda Education Loan to Students of Premier Institutions | -1.00% of Loan amount maximum Rs. 10,000 (refundable after first loan disbursement) |
| Baroda Education Loans for EDP being offered by Premier Institutions Abroad |
Punjab National Bank
| Education Loan | Processing Fees |
| PNB Udaan | -1.00% of Loan amount maximum Rs. 10,000 (refundable after first loan disbursement) |
Maximum Loan Amount
Knowing the maximum loan amount you might get from a financing institution is essential to determine if they meet your needs is important. The Bank of Baroda vs Punjab National Bank abroad education loan amounts significantly differ. This is among the issues considered by applicants.
Bank of Baroda
| Education Loan | Quantum of Finance |
| Baroda Scholar | -Rs. 150.00 lakh for Premier Institutions -Rs. 60.00 lakh for non-Premier Institutions |
| Baroda Education Loan to Students of Premier Institutions | Up to Rs. 80 lakhs |
| Baroda Education Loans for EDP being offered by Premier Institutions Abroad | Up to Rs. 80 lakhs |
Punjab National Bank
| Education Loan | Quantum of Finance |
| PNB Udaan | Maximum Rs. 50 lakhs |
Moratorium Period
Also known as the repayment holiday, this is a grace period where you are allowed not to make any payments as you prepare yourself financially. The period of moratorium in education loans for both banks is identical, with only a single adjustment.
Bank of Baroda
| Education Loan | Moratorium Period |
| Baroda Scholar | Course period + 1 year |
| Baroda Education Loan to Students of Premier Institutions | Course period + 1 year |
| Baroda Education Loans for EDP being offered by Premier Institutions Abroad | Course period + 3 Months |
Punjab National Bank
| Education Loan | Moratorium Period |
| PNB Udaan | Course period + 1 year |
Margin Money Charged
Banks can allow you to borrow education loans against securities. This increases your borrowing power as you made contributions before obtaining the education loan. An almost similar margin of money is charged in both banks, with a few adjustments.
Bank of Baroda
| Education Loan | Margin Money Charged |
| Baroda Scholar | Premier Institutions -Up to Rs 4.00 lakh: NIL -Above Rs.4.00 Lakh up to Rs 7.50 Lakh: 15% -Above Rs 7.50 lakh: NIL Non- Premier Institutions -Up to Rs 4.00 lakh: NIL -Above Rs.4.00 Lakh up to Rs 7.50 Lakh: 15% -Above Rs 7.50 lakh: 10% |
| Baroda Education Loan to Students of Premier Institutions | -Up to Rs 4.00 lakh: NIL -Above Rs.4.00 Lakh up to Rs 7.50 Lakh: 5% -Above Rs 7.50 lakh: NIL |
| Baroda Education Loans for EDP being offered by Premier Institutions Abroad | Premier Institutions -Up to Rs 4.00 lakh: NIL -Above Rs.4.00 Lakh up to Rs 7.50 Lakh: 15% -Above Rs 7.50 lakh: NIL |
Punjab National Bank
| Education Loan | Margin Money Charged |
| PNB Udaan | -Up to Rs 4.00 lakh: NIL -Above Rs.4.00 Lakh: 15% |
Repayment Terms
An education loan repayment plan will help you clear your loan quickly. There is a fair battle between the Bank of Baroda and Punjab National Bank in repayment terms as they have the same timeline for their education loans for studies abroad.
Bank of Baroda
| Education Loan | Repayment Terms |
| Baroda Scholar | Maximum 10-15 years |
| Baroda Education Loan to Students of Premier Institutions | |
| Baroda Education Loans for EDP being offered by Premier Institutions Abroad |
Punjab National Bank
| Education Loan | Repayment Terms |
| PNB Udaan | Maximum up to 15 years |
Types Of Collateral
Loan security is crucial in determining the amount of loan you’ll be offered. The collateral guarantees a loan since there’s something to recover from when the borrower is not in a position to pay. The type of collateral is subjective, but the terms are:
Bank of Baroda
| Education Loan | Moratorium Period |
| Baroda Scholar | -Up to Rs.7.50 Lakh: No collateral/third-party guarantee -Above Rs.7.50 Lakh to Rs.80.00 Lakh: Collateral security of 100% of the loan amount -Above Rs 80.00 lakh: Total security coverage should be 1.25 times the loan amount |
| Baroda Education Loan to Students of Premier Institutions | -Rs.10.00 Lakh to 40 Lakh: Depends on institution listing -Above Rs 80.00 lakh: Total security coverage should be 1.25 times the loan amount |
| Baroda Education Loans for EDP being offered by Premier Institutions Abroad | -Up to Rs.4 Lakh: No collateral/co-obligation of parent -Above Rs.4 Lakh up to Rs.7.5 Lakh: suitable third-party guarantee -Above Rs 7.5 lakh: Tangible collateral security equal to 100% of the loan amount |
Punjab National Bank
| Education Loan | Security |
| PNB Udaan | -Up to Rs.7.50 Lakh: No collateral/third-party guarantee/co-obligation of parent -Above Rs.7.50 Lakh up to Rs.80.00 Lakh: co-obligation of parent/tangible collateral security equal to a suitable value acceptable to the bank |
Countries Each Bank Caters To
Bank of Baroda is available in the following countries: India, 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.
Punjab National Bank is available in the following countries: India, UK, Kowloon (Hong Kong), Dubai (UAE), Kabul (Afghanistan), Almaty (Kazakhstan), Shanghai (China), Oslo (Norway), Sydney (Australia), Bhutan, Nepal, Bangladesh, Myanmar, and Hong Kong.
Which Of The Two Is UniCreds’ Partner?
UniCreds works with both banks, depending on the student’s needs and where they have been banking. We have all the necessities to help you process a student loan. We can also offer consultation to determine Punjab National Bank or BOB which is better.
FAQs
1. Which Bank Is Better, Bank Of Baroda Or Punjab National Bank?
It all depends on your education loan needs.
2. Which Bank Offers Better Interest Rates For Education Loans, Bank Of Baroda Or Punjab National Bank?
BoB offers better interest rates as per the latest updates on the websites of the two banks in question.
3. Can You Compare The Processing Fees For Education Loans At Bank Of Baroda And Punjab National Bank?
The processing fees are almost identical for the two banks.
4. What Is The Maximum Loan Amount Offered By Bank Of Baroda And Punjab National Banks for Education Purposes?
BoB has a higher maximum loan amount of up to Rs. 150.00 lakh, while Punjab National Bank offers up to Rs. 50.00 lakh.
5. Are There Any Specific Eligibility Criteria That Differ Between Bank Of Baroda And Punjab National Bank Education Loans?
There is no significant difference in the eligibility criteria.
6. How Do The Repayment Terms Vary Between Bank Of Baroda And Punjab National Bank Education Loans?
They both have up to 15 years.
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