Bank Of Baroda Education Loan

Planning to study abroad? The Bank of Baroda Education Loan helps students achieve their international education goals with ease. Bank of Baroda provides specially designed education loans with competitive interest rates starting from 7.10%, making overseas education more affordable. The loan covers a wide range of academic expenses with flexible repayment options and both secured and unsecured loan schemes.

Learn about eligibility, collateral requirements, processing fees, documents, EMI calculation, and repayment process — all in one place. Applying through WeMakeScholars ensures expert guidance, faster approval, and the best possible loan terms.

For abroad studies

• Baroda Scholar
• Baroda Education Loan for EDP is being offered by Premier Institutions abroad

*EDP means Executive Development Programmes (part-time/weekend/online/programmes) being offered by premier institutions*

The following table gives a comparison of loan details of two loan products of the Bank of Baroda, namely “Baroda Scholar” and “Baroda Education Loan for EDP”, for students who want to pursue education in premier institutions in foreign universities. Loan limit, interest rate, concession, loan margin, processing fee, moratorium period, repayment period, acceptable security, and co-applicant are some of the areas that it embraces.

(*In the case of premium institutions, a refund of processing charges will be granted upon the first disbursement of the loan. Additionally, a non-refundable fee of ₹8,500 per property, covering legal expenses for advocates and valuers, is required upfront for all education loan accounts where the property is mortgaged.

• For loans up to Rs. 7.5 Lakhs: Moratorium Period + Maximum 120 instalments (10 years)
  
• For loans above Rs. 7.5 Lakhs: Moratorium Period + Maximum 180 instalments (15 years)
  

Bank of Baroda's education loans may accept the following types of collateral for higher loan amounts:

Immovable property:

• Non-agricultural land
• Building
• Flat
• Liquid security:

Government bonds

• Life Insurance Corporation (LIC) policies
• Fixed deposits

Collateral Margin

Secured education loans involve the concept of collateral margin. When you provide collateral for an education loan, the bank may offer the full value of the collateral in some cases, but in others, it may deduct a margin. 

For instance, when you use immovable property as collateral, the bank may provide 100% of the loan amount. However, if you offer fixed deposits or government bonds, the bank may offer 90% and 80% of the loan amount, respectively. This margin is a percentage of the loan amount that the bank retains as a safety buffer in case the borrower defaults on the loan.

Collateral Security

When applying for an education loan from the Bank of Baroda to study abroad, the collateral required will depend on the loan amount.

• For loans up to Rs 7.50 lakh, no collateral or third-party guarantee is required, but a parent's co-obligation is necessary.
• For loans above Rs 7.50 lakh up to Rs 80.00 lakh, tangible collateral security equal to 100% of the loan amount is required, and future income must be assigned to secure the loan.
• For loans exceeding Rs 80.00 lakh, the total security coverage should be 1.25 times the loan amount, and future income should be assigned as part of the collateral

Acceptable Co-Applicant

• The Co-applicants must be Parents, Parents-in-law, Siblings, parents’ siblings, spouses, and first cousins (in the order mentioned).
• A guarantor or security is not mandatory for loan amounts less than INR 4 lakh, but a third-party guarantor is mandatory for loan amounts greater than INR 4 lakh.

Repayment Policy

In the schemes mentioned above, you will accrue simple interest during the moratorium period, but you have the option not to pay it. You can choose to opt out and start your EMI after the moratorium period ends.

Eligible Courses/College List under the Baroda Scholar Scheme

The Bank of Baroda has a special preference for certain colleges for education loans around the world, according to the course. Below is a specified list which is categorised according to the course and country for your ease

Courses:

• Technical and professional courses are offered for career advancement from reputed universities
• PG courses such as MS, MCA, and MBA
• Professional courses are conducted by CIMA in London and by CPA in the USA.
• Degree and diploma courses such as aviation, shipping, and aeronautical are recognised by regulatory bodies of the field for employment abroad.
• Certificate courses

Premier Universities list:

• For management courses: List of premier institutes
• For STEM courses: List of premier institutes
• For medical courses: List of premier institutes
• For other disciplines: List of premier institutes
  (Universities not on the list can also be considered without any preferential treatment.)

Eligible Courses Under the Baroda Education Loan for EDP being offered by the Premier Institutions Abroad Scheme

Premium educational institutions worldwide are offering part-time, online, and distance learning Executive Development Programs, which include those utilising technology platforms such as Times Pro or Hughes Global Education, as well as other partnerships. 

(For any queries about any of the mentioned schemes, or confusion about your university, you can talk to our financial officers by requesting a callback or just write your queries down.)

You can watch this video to gain a better understanding of all the schemes available to you through the Bank of Baroda. This video is a valuable resource for students who are considering abroad education and looking for ways to fund their education. It provides a comprehensive overview of the education loan schemes offered by the Bank of Baroda so that students are equipped with the knowledge they need to make informed decisions about their education funding.

To be eligible for a Bank of Baroda Education Loan, students must meet the following criteria:

• Resident Indian citizens with a minimum age of 18 years.
• Secured admission in a recognised institute or university for a professional, graduate, postgraduate, or doctoral course.
• For EDP studies, students must be employed during the course of study.
• For studies abroad, students must have secured admission in a premier institute or a recognised university.
• Collateral is necessary for loan amounts greater than INR 7.5 lakhs.

The expenses covered in BOB’s education loan are pretty much the same for all schemes. When figuring out how much you need for your studies, it's common for students to wonder what expenses they can include in their loan. To help you out, below is the complete list of expenses covered. It'll make it easier for you to decide on your total loan amount.

Payment to educational institutions:

• Tuition fees to colleges, institutions, and universities
• Charges for hostel and mess facilities

Academic expenses:

• Examination fees
• Library and laboratory charges
• Purchase of books, equipment, instruments, and uniforms

Technological requirements:

• Acquisition of personal computers or laptops if necessary for coursework

Deposits and funds:

• Caution deposits
• Building funds
• Refundable deposits supported by institution bills/receipts, not exceeding 10% of total tuition fees

Essential course-related expenses:

• Purchase of computers integral to completing the program
• Insurance premiums for student borrowers
• Additional course-related expenditures such as study tours, project works, theses, etc.

Travel expenses:

• Passage money for round trips

Management Quota Fees:

• Fees as per State Government or government-approved regulatory body for management quota seats

Exclusions:

• External coaching or tuition costs are not to be included.

Before you apply for the loan, make sure to have these documents mentioned below ready. These are some important ones needed for the loan. There are also other documents required for the education loan process. Check our complete list of documents for an education loan to make sure you don't miss any document with our helpful checklist.

The loan insurance offered by the Bank of Baroda ranges from 1-2%.

Loan insurance can turn out to be very helpful in unforeseen circumstances, such as the disability or death of the applicant. Without the loan insurance, the co-applicant ends up bearing the entire burden of loan repayment. To avoid that, loan insurance must be opted for. 

For example, if a loan margin of 10% is calculated on a loan amount of 45 Lakhs, then the amount payable by the student to the bank would be 4.5 Lakhs. 

We realize that loan margins can have a great impact on the cost of borrowing, and our aim is to assist students in securing the best possible loan terms and interest rates.

Offline education loan application process in Bank of Baroda
Step 1: Visit the branch nearest to you and fill in the Bank of Baroda education loan application form.

Step 2: Your profile will be evaluated and depending on that you will be asked to submit a list of documents.

Step 3: Submit all the documents you are asked for in the BOB branch closest to you

Step 4: After verification of documents the loan amount will be disbursed into your account.

Online education loan application process through WeMakeScholars

Step 1: Request a callback or Fill out the bank of baroda education loan form online.

Step 2: You will get a call from one of our financial officers to check your eligibility for the loan. Give them all the details you are asked for. 

Step 3: A comparison of all the loan lenders you are eligible for getting a loan from will be provided to you by your financial officer. 

Step 4: Collect those documents provided by your assigned financial officer and submit them directly to the bank or you can upload them to the WMS secure portal.

Step 5: After you’ve submitted all your documents your file will be logged in. You will get the sanction letter of your loan within a week in the case of private lenders and 15-20 days for public banks.

Step 6: You will sign the loan agreement after which you can collect your sanction letter.

If you are not satisfied with your current bank interest rates, repayment policies, or any other terms and conditions, it is time for you to transfer your education loan to BOB. Let’s understand why and how to transfer:

• On transferring your loan to Bank of Baroda you get an ROI that is lesser than what you are currently paying.
• Greater Reach and Accessibility
• Flexible Repayment Options
• Supportive Customer Service

But how to transfer your education loan to BOB?

It involves only three easy steps and it's done:

Step 1: Collect your outstanding loan amount proof from your current lender.

Step 2: Get in touch with your financial officer at WeMakeScholars, stating that you want to get your study loan transferred to Bank of Baroda.

Step 3: Submit your documents to the bank according to the documents checklist provided by your financial officer.

Negotiation on your behalf: When you process your loan with us, we make sure to get you the best possible rate of interest available in the market (0.5% to 2% lower than the bank’s average).

Best and Free customer service/support: You can contact us anytime from 9 AM to 9 PM about any queries you have during the loan process. You can contact the WeMakeScholars team for any of the doubts you have, even during the repayment period and we provide all our services totally free of cost.

The cashback offered: You will be rewarded with a cashback on the first disbursement to a maximum of INR 3000, as we are supported by the Digital India campaign by applying for your abroad education study loan via WeMakeScholars.

Transparency: One of the main reasons to go with WeMakeScholars is for the transparency we provide to the students regarding the whole loan process. Each step of this procedure is clearly explained by our Financial officers. We make sure the students are clearly aware of and understand the whole process before we start processing their loans. 

Tax benefits: We make sure that you save maximum tax by taking advantage of Section 80E, 80C, etc of the Income tax department, along with the tax collected at source (TCS).

The BOB Bank starts repayment process for education loans once the moratorium period ends. However, students can choose to pay simple interest on their loan during this period if they want. But the actual monthly payments, called EMIs, start only after the moratorium period.

While Bank of Baroda has its own EMI calculator, using the WeMakeScholars EMI calculator gives you a more detailed calculation. Let's see with an example:
If you take out a loan of 24 Lacs, with an interest rate of 8.5% and with a repayment tenure of 10 years, this would be your amortization schedule.

• Monthly EMI: 34,317
• Total payment: 41,18,067
• Total payable interest: 17,18,067

WeMakeScholars is committed to providing students with comprehensive and dependable services, and our post-sanction support is just one of the ways we strive to simplify the study loan application process.

A Bank of Baroda Education Loan is a trusted and affordable financing option for students pursuing higher education abroad. With competitive interest rates, flexible repayment options, and loan amounts covering all major academic expenses, it ensures financial ease throughout your study journey. The bank also offers collateral and non-collateral loan options, transparent processing, and loan transfer facilities for added convenience. Applying through WeMakeScholars helps you get expert guidance, faster approval, and the best possible terms. Choose Bank of Baroda Education Loan to make your dream of studying abroad a reality with confidence and convenience.