Bank Of Baroda Vs. Union Bank Of India Education Loan 

Starting on a journey towards higher education is thrilling yet challenging, especially for Indian students aspiring to study both abroad and within the country. The choice of a reliable financial partner is crucial in fulfilling these dreams. In this blog, we’ll compare two prominent players, Bank of Baroda and Union Bank of India, shedding light on their education loan offerings. Let’s explore the nuances that can make a significant difference in shaping your academic path. 

Key Takeaways – 

• The Bank of Baroda provides student education loans under the Baroda Gyan Scheme for higher studies in India and Baroda Scholars for higher education abroad. 

• Union Bank of India provides education loans for higher studies in India under the Union Bank Education Loan and higher studies abroad under the Union Bank Special Education Loan.

• Both banks charge zero processing fees for higher studies in India, but for study abroad, Bank of Baroda and Union Bank charge 1% of the total loan and Rs. 5000 on education loans, respectively. 

• Maximum loan amounts range from Rs. 120 lacs to 150 lacs for both study abroad and Indian education in both banks. 

• Interest rates range from 10-12% for an education loan in the Bank of Baroda and 9-11% in the Union Bank of India. 

Bank Of Baroda Vs. Union Bank Of India Education Loan – Key Features

Bank of Baroda offers education loan schemes to help students fund higher education. The two main schemes are the Baroda Scholar Loan and the Baroda Gyan Education Loan.

Baroda Scholar loan is for students pursuing higher education abroad. Baroda Gyan Education loan is for students pursuing higher education in India. 

Union Bank of India also funds student education in India and abroad. It has a ‘Special Education Loan Scheme’ for study abroad students. 

In the following table, let’s compare each of their loan schemes. 

Key Features	Baroda Gyan Education Loan	Baroda Scholar Loan(Study Abroad Loan)	Union Bank of India Education Loan	Union Bank of India Special Education Loan (Study Abroad Loan)
Maximum Loan Amount	Rs.125.00 Lacs	Rs. 150 Lacs	Rs. 125 Lacs	Rs. 150 Lacs
Interest Rates	12.50%	10-11%	10-11%	9-11%
Processing Fees	1% of the loan	1% of the total loan amount	NIL	Rs. 5000 +GST
Tax Benefits	Section 80E	NA	Section 80E	NA
Co-borrower Option	Parents/Guardians	Parents/Guardians	Parents	Parents
Repayment Tenure	Upto 15 years	10-15 years	15 years	15 years
Moratorium Period	6-12 months after course completion	6-12 months after course completion	Upto 12 months	Upto 12 months

As mentioned in the table above, it is clear that both Bank of Baroda Education Loan Vs. Union Bank of India Education Loan offers various features and has a separate segment for higher studies in India and abroad. 

Let’s examine the eligibility criteria of the Bank of Baroda Vs—Union Bank of India Education Loan. 

Bank of Baroda Vs. Union Bank of India Education Loan Eligibility Criteria

To get a better understanding of each bank’s education loan segment, let’s look at both Indian education and study abroad education loan eligibility criteria separately. 

Bank Of Baroda Education Loan Eligibility Criteria

1. Baroda Gyan Education Loan Eligibility (For Higher Studies In India)

• Students should be of Indian National.
• Non-resident Indian (NRl), Person of India Origin (PlO) / Overseas citizen of India (OCl), and students who were born to Indian parents during their stay abroad (overseas citizenship by birth, when parents were on deputation with Foreign Government/Government agencies or international /regional agencies etc. and now studying in India after the repatriation of their parents) can apply for Baroda Gyan Education Loan. 

• Should have secured confirmed admission for a higher education course in India only.

    2. Baroda Scholar Education Loan (For Study Abroad)

• The student should be an Indian citizen.

• They should have secured admission to professional/technical courses abroad through an entrance test/merit-based selection process.

Now, let’s dive into the education loan eligibility criteria of Union Bank of India. 

Union Bank Of India Education Loan Eligibility Criteria 

1. Union Bank Of India Education Loan (For Higher Studies In India) 

• The student must be a resident of India.

• They must have confirmed admission to recognised educational institutes in India. 

• The candidate’s age must fall within the age bracket of 18 to 35.

• They must be undergoing a graduate/postgraduate degree or a PG diploma.

• The applicant should have secured admission to a college or university affiliated with the University Grants Commission (UGC)/All India Council for Technical Education (AICTE)/Govt. Etc. 

      2. Union Bank Of India Special Education Loan (For Study Abroad) 

• The student must be a resident of India. 
• They must have confirmed admission to recognised educational institutes abroad.
• The candidate’s age must fall within the age bracket of 18 to 35. 
• They must be undergoing a graduate/postgraduate degree or a PG diploma.
• The applicant should have secured admission to a college or university affiliated with the University Grants Commission (UGC)/All India Council for Technical Education (AICTE)/Govt. Etc.
• To apply for full-time courses, students must have a co-applicant who can either be a parent/guardian or a spouse/parent-in-law (for married candidates).
• Co-applicants must have a regular income.
• Getting a loan approved quickly is easier if you have a strong academic record.  

In the loan eligibility criteria for Bank of Baroda Vs. Union Bank of India Education Loans: both banks have basic and pretty much the same eligibility criteria. However, the Union Bank of India requires students admitted to government-affiliated universities to sanction their education loan, and the Bank of Baroda does not have such a condition.

I hope you got the gist of the loan eligibility criteria of both banks. Now, let’s look at the documentation and loan application process. 

Bank Of Baroda Vs. Union Bank Education Loan Application Process 

Just as the eligibility criteria for both banks differ, Bank of Baroda and Union Bank of India also have different loan application processes. Here, we will go through the detailed information on applying for an education loan through the Bank of Baroda Vs—Union Bank of India and the documentation required. Let’s go! 

Bank Of Baroda Loan Application And Documentation Process

To apply for an education loan follow the steps below- 

 Visit the nearby branch or apply digitally by visiting their website. Bank of Baroda lets loan applicants apply through the Vidya Lakshmi Education Loan Application Portal. 

Suppose you are applying through their online portal- 

Step 1: You’ll have to register by entering a few basic personal details 

Step 2: Fill in the loan application form along with all the documents 

Step 3: Based on your documents, academic profile, credit score, etc. Your loan will get approved and get sanctioned within days

If you are visiting the branch-  

Step 1: They’ll provide you with the loan application form and the list of required documents. 

Step 2: You can fill in the form and attach all your documents. 

Step 3:  Once your documents and loan application are approved, the loan will soon be disbursed. 

Documents Required For Baroda Gyan Education Loan

 

• KYC of applicant and co-applicants
• Academic Records
• Proof of admission
• Entrance Exam Result(if applicable)
• Statement of cost of study/ Schedule of expenses
• Income Proof for Salaried Co-applicant/ Guarantor (if applicable)
• Bank account statement for the last 6 months 
• Property Documents (if applicable on your loan amount) 

Documents Required For Baroda Scholar Education Loan 

• KYC of applicant and co-applicants
• Academic Records
• Proof of admission
• Entrance Exam Result(if applicable)
• Statement of cost of study/ Schedule of expenses
• Income Proof for Salaried Co-applicant/ Guarantor (if applicable)
• Bank account statement for last 6 months, etc
• Property Documents (if applicable on your loan amount)

Union Bank Of India Loan Application And Documentation Process

You can apply for a Union Bank education loan in the following ways:

Offline: Visit the bank’s nearest branch or Union Loan Point (ULP), a branch that lends retail loans exclusively.

Online: The bank’s official website allows you to request a call from a representative by providing your contact information. 

Documents Required For Union Bank Of India Education Loan & Special Education Loan Scheme

• Proof of identity – Passport, PAN Card, Employee Identity card or any other valid proof
• Proof of address – Electricity bill, Telephone bill, Ration card or any other valid proof
• Bank statement for the last 12 months
• Admission documents, Admission Letter, Admit Card & fee structure
• Schedule of expenses including the fee structure and living expenses
• Mark sheets for Class X or equivalent onwards.
• 3 photographs
• Proof of any out-goes
• Loan repayment statement (If any)
• LIC Policies (If any)
• Any other document asked for in the application form
• Proof of Income
• Property documents (If applicable on your loan amount) 

That’s it! This was all about the education loan application process of both banks. You might wonder how the collateral documents depend on your loan amount.  

Here’s how- 

Baroda Scholar Loan Collateral Requirement-  

For loan amounts up to Rs.4 lakh, no collateral is required. For amounts exceeding Rs.4 lakh up to Rs.7.50 lakh, a third-party guarantee and assignment of future income are mandatory. Loans above Rs.7.50 lakh necessitate collateral security equivalent to 100% of the loan amount, along with a demonstration of the student’s future income to ensure future repayments. 

Baroda Gyan Loan Collateral Requirement –

 

Depending on the institution category, the required collateral varies. For institutions falling under List A, loans up to Rs.20 lakh do not necessitate collateral. However, the co-obligation of parents or guardians and the student’s future income are mandatory. For amounts exceeding Rs.20 lakh, collateral equivalent to 100% of the loan, along with the assignment of future income, is required. 

Union Bank Of India Education Loan Collateral Requirement – 

For loans up to Rs.4 lakh, no collateral is required. In the case of loans up to Rs.7.5 lakh, a third-party guarantee is necessary. Beyond the Rs.7.5 lakh threshold, tangible collateral must be provided to secure the loan. The collateral requirements vary based on the loan amount, ensuring a tailored approach to financial assistance. 

Union Bank Of India Special Education Loan Collateral Requirement – 

Loans up to Rs.40 lakh do not require collateral security or a third-party guarantee, regardless of the guarantor’s income or means. However, opting to provide collateral for loans below Rs.40 lakh qualifies for an interest concession. For amounts exceeding Rs.40 lakh, tangible collateral security, valued at a minimum of 50% of the total loan amount, is necessary. Further interest concessions are available if the collateral offered is 100% and above, making the borrowing experience flexible and accommodating. 

Well, now it’s time to get to the conclusion. Let’s check which is better for you between- Bank of Baroda Vs. Union Bank of India Education Loan 

Bank Of Baroda Vs. Union Bank Of India Education Loan What’s Better? 

Well, choosing between Bank of Baroda Vs. Union Bank of India Education Loan, we would say both options are great. But it depends on your financial, educational and career requirements. Before selecting any financial institution, especially for an educational loan, it’s important to compare and scrutinise every option in the market out there. 

Hope this blog has answered all your questions regarding education loans through these two prominent players in the market. Well, if you are looking for education loans but are confused about the process, and can’t come to a decision, check out UniCreds! We have partnered with multiple prominent financial institutions in the market and aim to make your education loan journey easy! 

FAQs- 

1) How much time does it take for Union Bank and Bank of Baroda to approve the education loan? 

Union Bank takes 7 days and Bank of Baroda takes 15 days to approve the education loan. 

2) How is the loan amount disbursed by Union Bank and Bank of Baroda? 

The loan is disbursed directly to the educational institution on a semester or annual basis, whichever way the institution prefers. 

3) Do any of the above banks offer any concessions to female students? 

Yes, Union Bank of India and Bank of Baroda offer a 0.50% concession on the total rate of interest on education loans. 

4) Can I get a 20 lakh collateral fee loan from the Bank of Baroda?

In select institutes, collateral-free loans are available up to Rs. 20 lakh for undergraduate courses and up to Rs. 40 lakh for postgraduate courses in Bank of Baroda. 

5) Can these banks hold my loan disbursement for semesters if I have a backlog in any subject? 

Yes, both the banks have the right to hold your loan disbursement until you clear your backlogs.