Baroda Vidya

About Baroda Vidya Loan Scheme

The Baroda Vidya loan has been specially designed to cover school education expenses from nursery to class XII in any accredited institution. The maximum loan under this scheme is ₹4 lakh, which is an easy option for parents to finance their children's school education financially. This scheme is designed for school students, not for higher education like most other education loans.

Baroda Vidya – Rate of Interest

• The calculated interest rate consists of BRLLR + 3.10%, resulting in an annual effective rate of 12.25%.

• A 0.50% concession exists for female students seeking enrollment.

• The interest payments must be serviced when they become due during the moratorium period.

• The penalty interest at 2% applies to any unsettled balance beyond ₹2 lakh.

Features of the Baroda Vidya Scheme

• No processing charge: The loan does not charge a processing fee.

• No margin: 100% of the costs are covered.

• No security required: No collateral is required.

• Flexible payment options: Repayment begins 12 months from the date of the first disbursement.

• Pays for various education-related expenses like tuition, books, uniforms, and hostel fees.

Eligibility Criteria for Baroda Vidya Loan

The applicant must meet the following criteria to be considered for Baroda Vidya:

• The parent/guardian applicant has to be an Indian national residing in India.

• The student has to be admitted to a recognised school (CBSE, ICSE, or State Board).

• The loan can be availed by students from Class Nursery to Class XII.

• Both the state or central government-approved state evening classes are included.

Investment

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Secure your child’s future with or without you

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₹10,000/Month

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₹1 Crore^*

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*Standard T & C Apply

Documents Required

Applicants must submit the documents mentioned to be considered for the Baroda Vidya loan.

1. KYC documents

   (Aadhaar, PAN, etc.) of the applicant along with the co-applicant

2. Enrollment proof

   to the school.

3. Academic records

   of the student.

4. Schedule of expenses

   from the school.

5. Proof of income

   of the parent/guardian (co-applicant)

6. Bank account records

   for the last six months.

Most Important Terms and Conditions

Knowing five key points is essential for parents applying for the Baroda Vidya loan.

• Maximum loan amount: ₹4 lakh.

• Repayment period: 12 monthly installments for each year's loan amount.

• Interest payment: The borrower needs to pay interest during the payment moratorium.

• Disbursement: The loan disbursement happens through the receiving bank's direct transactions to the educational institution.

• No dual education loans: The requirement for a declaration about non-availability of additional Child education allowance or loan exists to show other funding is not in place.

Tax Benefits on Baroda Vidya Loan

The Income Tax Act, through Section 80E allows parents to obtain tax deductions for interest payments. Users can deduct the interest charge from the loan, but this deduction applies exclusively to the interest part of the loan. Users can use an income tax calculator, which will help them to determine potential tax savings.