State Bank of India is one of the popular public-sector banks in India offering various products. The SBI education loan schemes to study abroad and in India are popular among aspiring students to secure funds for their higher education. A maximum loan amount of up to INR 1.5 crores is provided for studies abroad.
On the other hand, the Bank of Baroda also offers financial assistance at competitive interest rates and flexible repayment options. They offer education loans up to INR 1.5 crores at interest rates starting from 11.40% p.a.But which one deserves to be your companion in your academic journey? Let’s help you compare the SBI education loan and BoB education and discover which one is the right fit for you.
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SBI Education Loan: Major Highlights
SBI Bank of India offers flexible education loan products for pursuing higher studies in India as well as abroad. Students can choose the loan scheme as per their requirements. The maximum loan amount offered for abroad studies is INR 1.5 crores at interest rates starting from 11.15% p.a. at floating rates. The popular education loan schemes offered by State Bank of India are-
- SBI Shaurya education loan for the wards of DSP/ICGSP Officers (Defense & Indian Coast Guard Personnel) to study in India and abroad.
- Global Ed-vantage education loan to study abroad.
- Maximum loan of up to INR 1.5 crores to study abroad.
- Regular graduate/ post-graduate/ diploma/ certificate/ and doctorate courses in any discipline are covered in the USA, UK, Canada, Australia, Singapore, Japan, Hong Kong, New Zealand and Europe
- Loans are offered at attractive interest rates starting from 11.15% p.a.
- Applicants can choose easy repayment tenure of up to 15 years through EMI.
- The best part is that you get a loan sanction letter before i20/ visa.
- SBI RinN Raksha education loan insurance can help you save from unforeseen circumstances.
- A processing Fee of INR 10,000/- per application is charged to process the SBI education loan to study abroad.
Also Read: Check out our blog on SBI education loan disbursement process and understand the stages involved from loan application and approval to loan sanction and disbursal.
Bank of Baroda Education Loan: Major Highlights
Bank of Baroda education loans support the dreams of students who wish to pursue higher education in India and abroad. They offer education loans of up to INR 1.5 crores to study abroad under the ‘Baroda Scholar Loan’ scheme. Interest rates to study in Canada start from 9.70% p.a and 11.15% p.a onwards to study in other countries. Students can easily apply through the Vidya Lakshmi Portal to apply for BoB education loans to study abroad. Check out the key features of the Bank of Baroda education loan-
- Maximum loan amount of up to INR 1.5 crores to study abroad.
- Interest rates start from 11.15% p.a onwards. However, the effective ROI to study in Canada starts from 9.70% p.a. (for premier institutes).
- There’s no processing fee for loans up to INR 7.5 lakhs. However, processing fees of 1% of the loan amount (or a maximum of INR 10,000) are charged for loans above INR 7.5 lakhs. This fee is refundable on the availment of loans for premier institutes.
- There are no documentation charges and no security deposit for loans up to INR 7.5 lakhs.
- Students can avail of Bank of Baroda Forex cards and avail a lot of benefits like an easy cash withdrawal facility, multiple currencies in one card etc. to manage money when studying abroad.
Also Read: Check out the detailed guide on how to apply for BoB education loans through Vidya Lakshmi Portal. Understand all the details on Vidya Lakshmi Portal Bank of Baroda.
SBI Education Loan vs BoB Education Loan: Key Differences
State Bank of India and Bank of Baroda, both offer flexible education loan products at attractive interest rates. State Bank of India is known for offering flexible repayment options. The bank offers a dedicated online portal for convenient tracking of SBI education loan status.
On the other hand, the Bank of Baroda is known for quicker loan processing and hassle-free application process. The moratorium period also enables students to begin repayment after course completion. Both banks offer customer-centric services to provide maximum ease and timely disbursement of loan amounts. Check the table given below to understand the differences between the SBI education loan and the BoB education loan.
| Particulars | SBI Education Loan | BoB Education Loan |
| Maximum Loan Amount | Up to INR 1.5 crores to study abroad | Up to INR 1.5 crores to study abroad |
| Interest Rates | Floating Interest Rates starting from 11.15% p.a | Offers fixed as well as floating interest rates Fixed- 11.40% p.a onwards Floating- 9.70% p.a to 13.70% p.a. |
| Interest Concession | 0.50% concession for female students | No concession in ROI for girl children for Premier Institutes. However, for Non-Premier institutes concession of 0.20% will be available to girl children. |
| Repayment Period | Up to 15 years | Upto INR 7.5 lakhs- 10 years Above INR 7.5 lakhs- 15 years |
| Collateral Requirement | For Premier Institutes-Up to INR 4 lakhs- NILINR 4 lakhs to INR 7.5 lakhs- 15%Above INR 7.5 lakhs- NIL For Non-Premier Institutes- Up to INR 4 lakhs- NILINR 4 lakhs to INR 7.5 lakhs- 15%Above INR 7.5 lakhs- 10% | Up to INR 7.5 lakhs- Not required Above INR 7.5 lakhs- Required as per bank’s T&C |
| Processing Fee | INR 10,000 per application | 1% of the loan amount or INR 10,000, refundable on first disbursement |
| Courses Covered | Regular graduate/ post-graduate/ diploma/ certificate/ and doctorate courses in any discipline | Graduate/ Post-graduate/ courses by CIMA London, CPA USA, and other STEM courses in certification |
| Margin Money | Margin to be brought in on a year-on-year basis as and when disbursements are made on a pro-rata basis. | Margin is to be brought in on a year-on-year basis as and when disbursements are made on a pro-rata basis. |
This was all about the SBI education loan vs the BoB education loan. Both banks seem to offer exceptional services to students and pursue higher education in India and abroad without any hassles. However, pros and cons are present. It is ideal to consider your requirements and then decide which bank is the best for an education loan. You can also compare the following banks if you have other banks on your list-
- UBI Education Loan vs YES Bank Education Loan
- HDFC Bank Education Loan vs Saraswat Bank Education Loan
FAQs
State Bank of India and Bank of Baroda education loans to study abroad offer loans of up to INR 1.5 crores. You can also avail of collateral-free loans of up to INR 7.5 lakhs from both banks.
SBI offers education loans at floating interest rates starting from 11.15% p.a. On the other hand, the Bank of Baroda offers fixed as well as floating interest rates. The fixed ROI is 11.40% p.a onwards and floating rates range from 9.70% p.a to 13.70% p.a.
Yes, both banks charge a processing fee of INR 10,000. However, the Bank of Baroda processing fee on education loans to study abroad is refundable on availment of loans for premier institutes.
SBI education loans offer easy repayment tenure of up to 15 years through EMI. On the other hand, BoB education loans up to INR 7.5 lakhs can be repaid up to 10 years and loans above INR 7.5 lakhs can be repaid up to 15 years.
For loans up to INR 7.5 lakhs, applicants can avail collateral-free education loans to study abroad from SBI and BoB. For loans above INR 7.5 lakhs, tangible collateral security is required in SBI and in BoB it is required as per the bank’s T&C.
To know more about education loans, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.
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