Bank of Baroda Education Loan Interest Rate 2026: Scheme-Wise Rates

If you are planning to study abroad with a Bank of Baroda education loan, the interest rate starts at 8.70% p.a. (floating) for premier institutions and 10.15% p.a. (floating) for non-premier institutions. The final rate depends on the applicable spread, which is added to the Baroda Repo-Linked Lending Rate (BRLLR). That is, your interest rate = BRLLR + spread, where the current BRLLR is 8.15% (as of 8 October 2026). Since BRLLR is linked to the RBI repo rate, your Bank of Baroda education loan interest rate may change whenever the benchmark is revised.  

The Bank of Baroda education loan interest rate is offered in both fixed and floating rates. The floating rate is based on the bank’s BRLLR plus a fixed spread for your scheme and institution type. Fixed-rate options carry higher spreads. The complete interest rate is given below.

Note: The BOB education loan interest rates mentioned are indicative and may change based on the BRLLR, the student's profile, and the bank’s discretion.

The education loan interest rate Bank of Baroda charges for studies abroad is offered under Baroda Scholar. The scheme covers MBA, MCA, MS, and other job-oriented courses abroad.

Premier Institutions Abroad

Premier institutions get the lowest Bank of Baroda education loan interest rate: BRLLR + 0.55%, which is 8.70%. The bank keeps separate premier lists for management, STEM, medical, and other courses (law, economics, art and design). Canada is priced at the same interest rate as other premier institutions. 

Non-Premier Institutions: Up to ₹7.5 lakh vs Above ₹7.5 lakh

For non-premier institutions, the BOB education loan interest rate is lower on higher loans. Up to ₹7.5 lakh, the spread is BRLLR + 2.00%, which is  10.15%. Above ₹7.5 lakh, it is BRLLR + 1.05%, and the effective interest rate comes to 9.20%.

Canada-Specific Rates

For Canada, the education loan BOB interest rate is higher for non-premier institutions. The Bank of Baroda education interest rate for Canada is 10.15% for up to ₹7.5 lakh and 10.70% above it (floating). For premier institutions, the Canada interest rate stands the same as in other countries at 8.70% (floating)

Baroda Yoddha Rates for Children of Defence Personnel

Children of defence personnel get a special BOB education loan interest rate under Baroda Yoddha: BRLLR + 1.05%, which is 9.20% for a floating interest rate for non-premier institutions. For a fixed interest rate, the spread is Base rate* + 2.00% = 11.45% (loan up to ₹7.5 lakh ) and BRLLR + 3.05% = 11.20% (loan above ₹7.5 lakh ).

Note: The BOB education loan interest rates mentioned are indicative and may change based on the BRLLR, the student's profile, and the bank’s discretion.

The interest rate you get from Bank of Baroda is calculated through a spread formula. That is:

BRLLR + spread = your interest rate. 

What is BRLLR?

BRLLR is the Baroda Repo Linked Lending Rate. As instructed by the RBI, every bank has its own external benchmark, which is tied to the RBI’s repo rate. Whenever the repo rate is changed, the benchmark is adjusted. Hence, BRLLR changes when the RBI changes the repo rate, so your rate and EMI can change over the loan’s life. The spread stays fixed for the particular scheme.

*Base Rate vs BRLLR: For a BOB education loan, BRLLR is linked to the RBI repo rate, so it changes soon after the repo rate changes. Base rate is an older benchmark set by the bank from its own cost of funds, so it changes slowly. The spread is added on top of whichever benchmark applies.

Let us consider an example: 

The current BRLLR is 8.15% (as of 8.10.2026); then, for a premier institute, the interest rate would be:

BRLLR + 0.55% 

8.15% + 0.55% = 8.70%

Students can use the live BRLLR from the table given above or the sanction letter from the bank to know the exact interest rate.

Spread by Scheme, Institution, and Loan Amount

The BOB education loan interest rate formula is simple: BRLLR + spread = Interest Rate

Note: The BOB education loan interest rates mentioned are indicative and may change based on the BRLLR, the student's profile, and the bank’s discretion.

How Repo Rate Change Affects Your Rate and EMI

When the RBI changes the repo rate, BRLLR changes along with it. A floating Bank of Baroda education loan interest rate moves up or down by the same amount. Your EMI also changes accordingly when the rate of interest varies. If you have opted for the fixed rate of interest, the rate remains fixed, and so does your EMI. You can use our education loan EMI calculator to calculate the floating interest rate from the current spread and the effective interest rate from the above table.

Bank of Baroda offers both fixed and floating interest rates. The Bank of Baroda education loan interest rate is lower for premier and large non-premier loans. Both have different spreads, which will affect your monthly EMI.

• Floating Rate: The education loan BOB interest rate moves when the bank's BRLLR changes, so your EMI rises or falls accordingly.

• Fixed Rate: Here, the interest rate does not move. The bank sets one fixed rate, and it remains the same for the overall repayment tenure.

What Should You Choose?

The floating rate has lower and more competitive starting rates; however, it changes when the repo rate changes. You can choose a fixed rate if you want a predictable EMI throughout the loan tenure.

Note: The BOB education loan interest rates mentioned are indicative and may change based on the BRLLR, the student's profile, and the bank’s discretion.

Girl students get a 0.20% interest concession at non-premier institutions. There is no concession for girl students at premier institutions.

Note: The BOB education loan interest rates mentioned are indicative and may change based on the BRLLR, the student's profile, and the bank’s discretion.

The moratorium period is the course period + 1 year. In this period, students are exempted from paying EMIs. During the moratorium period, the Bank of Baroda education loan interest rate is charged as simple interest. Unpaid interest is added to the principal, so your EMI is calculated on a higher amount.

Paying interest during the moratorium period on an education loan keeps your principal from growing, so your EMI stays lower.

A small gap in the BOB education loan interest rate during the moratorium period adds up on the principal amount. Let us take an example of a ₹40 lakh loan, which is paid over 180 instalments (the maximum for loans above ₹7.5 lakh), using the current floating rates.

A student who opts for non-premier will pay ₹1,939 more every month in EMI and around ₹3.49 lakh more in overall interest. These figures exclude the moratorium period.

The factors that can help you choose a lower interest rate are:  your institution, your loan structure, and the support you get while applying.

2. Check if your institution is on the premier list: This is a major factor in determining your interest rate and spread. Premier status gives BOB education loan interest rates lower by 0.50% to 1.45%. Check your university in Bank of Baroda’s premier list of management, STEM, Medical, and other courses from our Bank of Baroda education loan guide.

3. Offer Collateral: Pledging collateral in BOB will let you borrow a higher amount. Loans above ₹7.5 lakh need collateral worth 100% of the loan (1.25 times the loan amount above ₹80 lakh). The spread above ₹7.5 lakh for non-premier institutions (BRLLR + 1.05%) is also lower than the spread for loan amounts up to ₹7.5 lakh.

4. Apply Through WeMakeScholars: Apply through the WeMakeScholars common application form and get support comparing your Bank of Baroda education loan interest rate with other lenders and get a personalised rate.

Note: The interest rates given are indicative and are subject to lenders' terms, student profile, and the linked repo rate.

If you are interested in a Bank of Baroda education loan, its interest rates are the main thing you need to be aware of. The interest rate is lower for premier institutions, starting at 8.70% through the Baroda Scholar Scheme. Check the premier list first, as it is one of the ways to get a lower interest rate. Go for the non-premier interest rate bracket if the institution you are admitted to is not on the premier list. The bank also offers a concession for girl students (0.20%) for non-premier institutions. Compare the fixed vs. floating interest rate; request a callback from WeMakeScholars for complete assistance.