Pursuing higher education abroad opens doors to world-class academic programs and global career opportunities. However, the costs associated with international studies can be daunting. The Dena Bank Education Loan for Study Abroad, now offered through Bank of Baroda following their merger, provides a reliable financial solution to support your academic aspirations.
This guide explores all about Dena Bank education loan for study abroad, its features, eligibility, application process, and benefits of this loan, helping you make informed decisions to achieve your dreams. Let’s get started!
Table of contents
- What is Dena Bank Education Loan for Study Abroad?
- Eligibility Criteria for the Dena Bank Education Loan Abroad
- Documents Required for Dena Bank Education Loan Abroad
- Application Process for Dena Bank Education Loan
- Benefits of the Dena Bank Education Loan for Study Abroad
- Interest Rates and Repayment Terms With Dena Bank
- Tips to Maximize Your Dena Bank Loan Approval Chances
- FAQs on Dena Bank Education Loan Abroad
What is Dena Bank Education Loan for Study Abroad?
The Dena Bank education loans to study abroad has transitioned into the Bank of Baroda Scholar Scheme after Dena Bank’s merger with Bank of Baroda in April 2019. This scheme is designed to assist students in financing their overseas education, covering a wide range of expenses.
Let’s dive into the key aspects of Dena Bank education loan for study abroad to understand how it supports your journey.
Key Features of Dena Bank Education Loan for Study Abroad
The Dena Bank education loan for study abroad now become the Bank of Baroda Scholar Scheme that offers flexible and student-friendly features to ease the financial burden of studying abroad. Here are the highlights:
- Maximum Loan Amount: Up to INR 150 lakh for studies abroad, depending on the institution and course.
- Interest Rates: Competitive rates starting from BRLLR + 1.75% (Baroda Repo Linked Lending Rate), with concessions for premier institutes.
- Repayment Tenure: Up to 15 years, including a moratorium period in education loans (course duration + 1 year).
- Collateral Requirements: No collateral needed for loans up to INR 40 lakh for premier institutes; collateral required for higher amounts.
- Coverage: Includes tuition fees, living expenses, travel costs, books, and equipment.
Also Read: Cheapest Education Loan in India
Eligibility Criteria for the Dena Bank Education Loan Abroad
Before applying for the Dena Bank Education Loan for study abroad, understanding the eligibility criteria is crucial. The Bank of Baroda Scholar Scheme sets clear requirements to ensure the loan is accessible to deserving candidates.
Who Can Apply?
The Bank of Baroda scholar scheme or former Dena Bank education loan for study abroad is tailored for individuals with confirmed admission to recognized international institutions. Here’s what you need to qualify:
- Nationality: Must be a resident of India.
- Admission: Secured admission to a recognized university or institution abroad through a merit-based selection process or entrance test.
- Course Type: Technical, professional, or other job-oriented courses (e.g., engineering, medicine, management, STEM programs).
- Co-Applicant: A parent, guardian, or spouse is typically required as a co-applicant.
- Age: No strict upper age limit, but applicants under 18 need a parent or guardian to apply on their behalf.
Documents Required for Dena Bank Education Loan Abroad
Applying for the Dena Bank Education Loan for study abroad involves submitting specific documents to verify your eligibility and financial needs. Preparing these in advance streamlines the education loan process.
Ensure you have the following documents required for the education loan:
- Identity Proof: PAN card, passport, voter ID, or driver’s license.
- Address Proof: Recent utility bill (electricity, water, telephone), Aadhaar card, or passport copy.
- Academic Records: Mark sheets of 10th, 12th, and any entrance exam results (e.g., GRE, GMAT, TOEFL, IELTS).
- Admission Proof: Offer letter or admission letter from the foreign institution.
- Financial Documents: Co-applicant’s income proof (salary slips, IT returns), bank statements, or loan statements (if applicable).
- Visa and Passport: Valid passport and student visa (if obtained).
- Cost Statement: Detailed statement of expenses from the institution.
Application Process for Dena Bank Education Loan
Applying for the Dena Bank Education Loan for study abroad is straightforward, with options for both online and offline submissions. Following the correct steps ensures a smooth approval process.
How to Apply
You can initiate the loan application through the Bank of Baroda’s website or by visiting a branch. Here’s a step-by-step guide:
- Check Eligibility: Confirm you meet the eligibility criteria and gather required documents.
- Complete the Application Form: Fill out the education loan application form online at www.bankofbaroda.in or obtain it from a branch.
- Submit Documents: Upload or submit physical copies of all required documents.
- Profile Verification: The bank verifies your academic and financial details.
- Loan Sanction: Upon approval, the bank disburses the loan directly to the institution or your account, as applicable.
Tip: Use the fly.finance Education Loan EMI Calculator to estimate your monthly repayments before applying.
Benefits of the Dena Bank Education Loan for Study Abroad
The Dena Bank Education Loan for study abroad, now under the Bank of Baroda Scholar Scheme, offers several advantages that make it a preferred choice for financing international education.
Why Choose This Loan?
This loan provides financial flexibility and support, allowing you to focus on your studies without worrying about immediate repayment. Key benefits include:
- Comprehensive Coverage: Covers tuition, accommodation, travel, and other study-related expenses.
- Tax Benefits: Interest paid on the loan qualifies for deductions under Section 80E of the Income Tax Act, 1961.
- No Prepayment Charges: You can repay the loan early without penalties.
- Flexible Repayment: Extended tenure and moratorium period reduce financial stress during studies.
- Support for Premier Institutes: Lower interest rates and collateral-free options for top-ranked universities.
Interest Rates and Repayment Terms With Dena Bank
Understanding the interest rates and repayment terms of the Dena Bank Education Loan for study abroad helps you plan your finances effectively. The Bank of Baroda offers competitive rates tailored to different institutions.
Interest Rates Overview
Interest rates vary based on the institution’s ranking and loan amount. Here’s a breakdown:
- Premier Institutes: Rates as low as BRLLR + 1.75% (approximately 9.70%–11.70% p.a.).
- Other Institutes: Slightly higher rates, depending on the loan amount and collateral.
- Concessions: 0.5% concession for female applicants; additional discounts for timely interest payments during the moratorium.
Repayment Structure
The repayment process is designed to be flexible:
- Moratorium Period: No EMI payments during the course duration plus 1 year.
- Tenure: Up to 15 years, including the moratorium.
- Payment Options: Pay via net banking, mobile banking, or at a Bank of Baroda branch.
| Institute Type | Interest Rate (p.a.) | Collateral Requirement |
|---|---|---|
| Premier Institutes | 9.70%–11.70% | None up to INR 40 lakh |
| Other Institutes | 10.50%–12.50% | Required above INR 40 lakh |
Also Read: Unsecured Loans to Study Abroad
Tips to Maximize Your Dena Bank Loan Approval Chances
Securing the Dena Bank Education Loan for study abroad requires careful preparation. Implementing a few strategies can enhance your application’s success rate.
Strengthen your loan application with these practical tips:
- Choose a Recognized Institute: Admission to top-ranked universities increases approval chances and may reduce interest rates.
- Maintain a Strong Academic Record: High scores in academics and entrance exams demonstrate your potential.
- Ensure Co-Applicant Stability: A co-applicant with a stable income and good credit history boosts credibility.
- Submit Complete Documentation: Double-check that all required documents are accurate and up-to-date.
- Plan Finances Early: Apply for the loan before finalizing your admission to avoid delays.
The Dena Bank Education Loan for study abroad, now part of the Bank of Baroda Scholar Scheme, empowers you to pursue your academic goals at leading international institutions. With competitive interest rates, flexible repayment terms, and comprehensive coverage, this loan removes financial barriers, letting you focus on your studies. By understanding the eligibility criteria, preparing the necessary documents, and following the application process, you can secure the funding needed to turn your global education dreams into reality
FAQs on Dena Bank Education Loan Abroad
The maximum loan amount for Baroda Scholar Scheme (formerly Dena Bank Education Loan), is INR 150 lakh, with INR 80 lakh for premier institutes and INR 60 lakh for others.
Yes, under the Baroda Scholar Scheme (formerly Dena Bank Education Loan), loans up to ₹40 lakh for premier institutes require no collateral for education abroad. For non-premier institutes, collateral is required for loans above ₹7.5 lakh.
For Baroda Scholar Scheme (formerly Dena Bank Education Loan), interest rates range from 9.7% to 11.7% p.a., with concessions for female students (0.5%) and premier institutes (0.2%).
The repayment period for Baroda Scholar Scheme (formerly Dena Bank Education Loan), is up to 15 years, including a moratorium of the course duration plus 12 months.
Bank of Baroda’s Baroda Scholar Scheme is highly competitive, offering higher loan limits and flexible terms.
Documents are needed for Baroda Scholar Scheme (formerly Dena Bank Education Loan) to study abroad are identity proof, address proof, academic records, admission letter, and income proof for the co-applicant are required.
Yes, NRIs with a valid Indian passport and admission to a recognized institute can apply.
Yes, Dena Bank Education Loan or Bank of Baroda education loan covers tuition, accommodation, travel, books, and other study-related costs.
Interest paid on the Baroda Scholar Loan Scheme (formerly Dena Bank Education Loan) is deductible under Section 80E of the Income Tax Act.
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