Bank Of Baroda Education Loan

The Bank of Baroda education loan under the Baroda Scholar scheme offers loans of up to ₹1.5 crore for students admitted to premier institutions and up to ₹60 lakh for students admitted to other institutions. For premier institutions, the loan margin is capped at ₹7.5 lakh. Bank of Baroda education loan interest rates are floating, based on BRLLR (Baroda Repo Linked Lending Rate) plus a spread. For Premier institutions abroad, interest rates start at 8.70% p.a., which is BRLLR + 0.55%. Loans up to ₹7.5 lakh need no property collateral and have no processing fee.

Bank of Baroda is a public sector bank and offers education loans in India and abroad for schools, universities, skill courses, and professional or technical courses. The overview of studies abroad 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.

Baroda Scholar is the Bank of Baroda education loan for studies abroad. It is for students going abroad to study professional or technical courses. It covers courses such as MBA, MCA, and MS. The student must be an Indian national and must have secured admission through an entrance test or a merit-based selection process.

Loan Amount for Overseas Studies

The maximum amount you can get from Bank of Baroda depends on your institution.

Note: A higher loan cap than the amount mentioned above is possible but requires strong collateral.

Countries and Courses Covered 

Bank of Baroda does not publish any country list for education loans, but it does have a separate interest rate for Canada. It is advised that students confirm their country and university with the branch before applying.

Eligible courses include:

• Certificate courses

• Regular degree or diploma courses such as aeronautical, pilot training, and shipping, if they are recognised by the relevant authority

• Postgraduate courses like MCA, MBA, MS, and other similar courses

• Courses such as CIMA-London and CPA-USA

• Job-oriented professional or technical courses at reputed universities

• All STEM (Science, Technology, Engineering and Mathematics) courses that are pursued after 10+2 

• Medical courses

• Law, economics, econometrics, art, performing arts, and design courses

Note: Courses at institutions outside the premier list can also be considered.

The Bank of Baroda education loan has different terms for premier and non-premier institutions. Premier institutions get a higher loan cap, a lower spread, and a refund of the processing fee.

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

Nil Margin for Premier Institutions

For premier institutions, the BOB education loan margin is nil up to ₹4 lakh and above ₹7.5 lakh. The ₹4 lakh to ₹7.5 lakh slab carries a 15% margin.

Where to Find the Premier Institutions List

The bank publishes separate premier lists for each course type. For the full list of colleges, see the Bank of Baroda education loan list below:

• Management courses

• STEM courses

• Medical courses

• Other courses (law, economics, art, performing arts, design)

The Bank of Baroda education loan college list determines the terms (interest rate and loan amount) you get. The bank maintains a premier list by course type, and every institution on these lists is treated equally. If your university is on a list, you can borrow up to ₹1.50 crore at the lowest spread. If it is not, the cap is ₹60 lakh.

Bank of Baroda education loan offers various schemes for both studying in India and abroad. For studying abroad, Baroda Scholar is the main one. Other Bank of Baroda education loan schemes for studies in India and abroad are given below:

Baroda Gyan for Higher Studies

It is a BOB education loan option for graduation, post-graduation, and professional courses in India. The maximum loan for medical courses is ₹1.25 crore and ₹25 lakh for other courses. The rate of interest is BRLLR + 2.00% up to ₹7.5 lakh and BRLLR + 1.90% above. Female students get a 0.50% concession. No security or processing fee is charged up to a ₹7.5 lakh loan amount.

Baroda Education Loan for Premier Institutions in India

This loan is available for students who have been admitted to premier institutions in India (lists AA, A, B, and C). They offer a collateral-free loan with a limit of ₹40 lakh for AA category, ₹30 lakh for A, ₹15 lakh for B, and ₹10 lakh for C. They charge no processing charges. The floating rate of interest is 7.10% for the top 10 IIMs and IITs, 7.45% for AA category, 7.65% for A category, 8.15% for B category, and 8.65% for C category. 

Baroda Executive Development Scheme

This loan is for executive development programmes (EDP) at premier institutions in India and abroad. The students should be employed during the course of study.

Baroda Vidya for School Education

This is an education loan for students from nursery to Class 12. They charge no processing fee, documentation fee, or loan margin.

Baroda Skill Loan

This loan is designed for skill development at ITIs, polytechnics, and other institutions. Any courses run by ITIs or the National Skill Qualification Framework are eligible. The loan amount ranges from ₹5,000 to ₹7.5 lakh. The repayment period depends on the loan amount and is a maximum of 7 years.

Baroda Yoddha for Children of Defence Personnel

A special Baroda education loan rate applies to children of defence personnel: BRLLR + 1.10% on Baroda Gyan and BRLLR + 1.05% on Baroda Scholar. For premier institutions in India, the rate is the same as the premier scheme.

Bank of Baroda offers a collateral-free loan up to ₹7.5 lakh. Above ₹7.5 lakh, tangible collateral is needed.

Accepted Collateral for Secured Loans

A BOB education loan needs tangible collateral above ₹7.5 lakh. If you offer property, you need to provide property documents. The bank charges a non-refundable ₹8,500 per property for legal and valuation charges, which is taken upfront. There are no mortgage creation charges.

Co-applicant Requirements

A co-applicant, who is usually a parent or legal guardian, is required for the Bank of Baroda education loan process. The bank asks for the KYC of the applicant and co-applicants, plus income proof for a salaried co-applicant or guarantor.

The Bank of Baroda education loan interest rate is available as both fixed and floating. 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 range for the floating interest rate is 8.70%-10.70%. The fixed interest rate ranges from 10.70% to 12.70%.

 For complete details on fixed and floating interest rates and how they are calculated, refer to the Bank of Baroda education loan interest rate.

The Bank of Baroda education loan finances these expenses:

• Tuition fees, accommodation, and living expenses

• Books, equipment, instruments, and uniforms

• Examination, library, and laboratory fees

• Computers or laptops

• Caution deposit, building fund, or refundable deposit, supported by bills. The amount should be up to 10% of the tuition fees

• Travel expenses and passage money

• Insurance premium for the student borrower

• Study tours, project work, thesis, and similar course expenses

Note: External coaching or tuition is not covered.

Loan Margin

Loan margin is the part of the cost you pay from your resources for disbursement of the loan amount from the bank. The loan margin for BOB education loan is given below

Note: The bank disburses the loan directly to the institution, term-wise or year-wise, in stages

Here are the main charges on a Bank of Baroda education loan for studying abroad:

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

Group credit life insurance is mandatory if the loan is above ₹7.5 lakh. You can also provide your own term insurance from an IRDAI-approved insurer.

Student Eligibility:

For the Bank of Baroda education loan eligibility criteria for studying abroad, you must:

• Be an Indian national

• Have secured admission to a professional or technical course abroad through an entrance test or merit-based selection

The bank states there is no specific age limit.

Co-applicant Requirements

A parent usually applies as a co-applicant. The bank may ask for a guarantor depending on your loan amount.

Eligible Courses and Institutions

The Bank of Baroda education loan covers professional and technical courses abroad. The list of courses is given above in this guide. Students who are studying at premier institutions get preferential terms.

Bank of Baroda education loan documents checklist is given below:

You can apply for a BOB education loan both online and offline as well. Follow the steps given below. Students can refer to our education loan process for a complete step-by-step guide from the education loan application to the sanction process.

BOB Education Loan Apply Online

For online application, you can visit the BOB education loan online portal, which the bank links to from its education loan pages. You can also visit your nearest branch.

Steps:

1. Check whether your institution is on the premier list.

2. Keep your admission, academic, KYC, and co-applicant documents ready.

3. Fill the Bank of Baroda education loan application form.

4. Submit the cost statement from your institution.

5. Complete the bank’s verification and collateral formalities, if any.

6. Review the sanction letter for rate, amount, margin, and tenure.

7. Complete disbursement formalities.

Processing Time and Sanction

The Baroda Scholar scheme does not have a fixed sanction time. Submission of complete documents helps avoid delays. Students can use the documents checklist table given above to prevent any such delays in the Bank of Baroda education loan processing time. Loans with property collateral can take longer because of legal and valuation checks.

Loan Disbursement Process

The Bank of Baroda education loan disbursement is paid directly to the admitted institution term-wise or year-wise. It pays directly to the book sellers for required books and equipment. If you do not get hostel accommodation from the institution, lodging and boarding can be paid directly to the establishment after the bank verifies it.

Step 1: Connect with our financial officer by requesting a callback or filling out the education loan common application form. 

Step 2: Provide your loan profile details, as requested over the call.

Step 3: Upload your documents on the WeMakeScholars documents portal using the document upload link.

Step 4: Your financial officer will assist you with the loan process and get your loan sanctioned within 1 week.

Step 5: Collect your loan sanction letter from the bank.

If you visit the bank directly to get your loan sanctioned, your loan processing may face delays and can face the following issues during the process:

• Multiple visits to the bank

• Longer processing time

• Lack of centralised information on loan schemes

• No published list of required documents

• Minimal post-sanction support

For the Bank of Baroda education loan status, check the portal you applied on or ask your financing branch. You can also contact the bank:

The BOB education loan moratorium is the period after the loan starts when you do not pay EMIs, but interest keeps building up. For this loan, it is the course period + 1 year. During this time, the bank charges simple interest monthly. When the moratorium ends, the interest that has built up is added to your loan amount. The bank then sets your EMI on this higher amount. 

Repayment Tenure

BOB Education Loan EMI Calculator

Students can calculate their Bank of Baroda education loan EMI by entering the loan amount, interest rate (BRLLR + spread), and tenure. Let us take an example and estimate the total interest payable on the principal amount.

The above example is indicative and is calculated from the WeMakeScholars EMI calculator. You can use the calculator for the exact estimate of the EMI after getting a quote on the interest rate and the total amount sanctioned by the bank.

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

If you are looking for an education loan of up to ₹1.5 crore, the Bank of Baroda education loan is a good choice for your study abroad journey. They have a competitive interest rate with a lower spread (BRLLR + 0.55%). They charge no processing fee up to ₹7.5 lakh, and it is 1% (maximum ₹10,000), which is refunded after the first disbursement for loans above ₹7.5 lakh (premier institutions). Before you apply for a BOB education loan, check whether your university is on the premier list, confirm the current BRLLR, and plan for the security required for loans above ₹7.5 lakh. Borrow what your full course fee and living costs need, not the maximum the bank allows.