What Is Bank of Baroda Education Loan?

Bank of Baroda offers education loans to Indian students through various schemes — such as the Baroda Scholar (for abroad studies), Baroda Gyan (for premier institutes), and general education loans. These loans help cover costs like tuition, living expenses, books, travel, equipment and other study-related needs.

Bank of Baroda Education Loan Schemes

1. Baroda Gyan Scheme
   Purpose: Higher education in India — undergraduate, postgraduate and professional courses.
   Who it’s for: Students enrolled in recognised Indian degree, diploma, professional and technical courses (engineering, medical, law, management).
   • No processing charge for loans up to ₹7.50 lakh
   • No collateral/security up to ₹7.50 lakh (parent co-obligation required)
   • Collateral required for loans above ₹7.50 lakh
   • Flexible coverage for tuition fees, living expenses, books, etc.
2. Baroda Scholar Scheme
   Purpose: Study abroad for professional and technical courses.
   Who it’s for: Indian students admitted to recognised foreign institutions (management, STEM, medical, arts, etc.).
   • Loan up to ₹150 lakh for premier global institutions
   • No processing/documentation charges for loans up to ₹7.50 lakh
   • No collateral up to ₹4 lakh; higher amounts require guarantor or security
   • Moratorium covers course period plus grace period
3. Baroda Vidya Scheme
   Purpose: Education loans for school education (up to Class 12).
   Who it’s for: Parents of students admitted to recognised schools.
   • Loan amount up to ₹4 lakh
   • No collateral required
   • Covers school fees, books and education-related expenses
4. Digital Education Loan
   Purpose: Tech-enabled education loan for studies in India or abroad.
   • Digital onboarding with faster processing
   • Competitive interest rates
   • Online application facility
   • Terms may vary by region or branch
5. Skill Loan Scheme
   Purpose: Loans for skill and technical training under recognised frameworks (e.g., NSQF).
   Who it’s for: Students in vocational, ITI and skill-development programs.
   • Loan amount from ₹5,000 to ₹1,50,000
   • Shorter repayment period
   • Moratorium linked to course duration
6. Education Loan to Students of Premier Institutions (India)
   Purpose: Loans for students admitted to premier Indian institutions (IITs, IIMs, AIIMS, etc.).
   • Competitive interest rates
   • Loan amount based on institution category
   • Relaxed collateral norms up to specified limits
7. Executive Development Program (EDP) Loan
   Purpose: Financing for executive and continuing education (India & Abroad).
   • Designed for working professionals
   • Applicable for executive and part-time programs
   • Loan terms depend on program type and location
8. Special / Guarantee Schemes
   Purpose: Government-backed or regional education loan schemes.
   • Supported by state or central government initiatives
   • Lower interest rates or subsidised terms for eligible students

Features of Bank of Baroda Education Loan for Abroad Studies

• High Loan Amounts
  • Up to ₹1.50 crore for students admitted to premier institutions abroad.
  • Up to around ₹60 lakhs for other recognised universities abroad.
  • Suitable for expensive programmes like MBA, MS, Medicine, Law, STEM, and more.
• Competitive Interest Rates
  • Interest is linked to Bank of Baroda’s Repo Linked Lending Rate (BRLLR) + applicable spread.
  • Floating interest rates generally range from ~7.15% to ~10.7%+ per annum, depending on loan amount and institution type.
  • Female students may receive a 0.20% interest rate concession for non-premier institutions.
• Low Processing & Documentation Charges
  • No processing fee for loans up to ₹7.50 lakh.
  • For loans above ₹7.50 lakh, processing fee is 1% of the loan amount (maximum ₹10,000) + GST.
  • Processing fee is often refundable after the first disbursement.
  • No separate documentation charges.
• Collateral Options
  • No collateral required for loans up to ₹4 lakh.
  • For loans above ₹4 lakh and up to ₹7.50 lakh, a third-party guarantee and future income assignment may be required.
  • For higher loan amounts, tangible collateral (property) equal to 100% or more of the loan amount plus future income assignment is usually required.
• Flexible Moratorium & Repayment
  • Moratorium period includes the course duration plus 1 year.
  • EMI repayment starts after the moratorium period.
  • Repayment tenure can extend up to 10–15 years, helping keep EMIs affordable.

Expenses Covered

The BOB education loan can cover a wide range of study-abroad costs, such as:

• Tuition fees and institutional charges
• Hostel or accommodation costs
• Books, equipment, laptops, and study materials
• Travel/passage money and insurance premiums
• Other essential expenses required to complete the course (e.g., project work)

Eligibility & Courses

• For Indian students with secured admission abroad in recognised full-time programmes (India/abroad).
• Typically for graduate & postgraduate programmes like MBA, MCA, MS, STEM, medicine, law, economics, design, etc.
• Some executive education programmes abroad may also qualify under specific terms.

Other Notable Features

• Margin money requirements are low or nil for smaller loan amounts (e.g., nil for ≤ ₹4 lakh).
• Group credit life insurance may be mandatory for larger loans to secure repayment risk (this can be added to the loan cost).
• Loans are often accepted by embassies and foreign consulates as proof of funds for visa processing.

Bank of Baroda Education Loan Eligibility – Key Points

• Nationality
  • You must be an Indian citizen to apply for a Bank of Baroda education loan.
• Admission to a Recognised Course
  • You must have secured admission (through merit or an entrance test) to a professional or technical course at a recognised university, institute, or college in India or abroad.
  • For abroad studies, eligible courses include MBA, MS, MCA, STEM, medical, law, and other job-oriented programmes offered by approved foreign institutions.
• Course and Institution Requirements
  • Undergraduate programmes
  • Postgraduate programmes (MBA, MS, etc.)
  • Technical / professional courses and recognised diploma or certificate programmes
  • Courses must be offered by recognised or reputable institutions (UGC/AICTE in India or properly accredited foreign universities).
• Academic Record
  • Applicants should have a good academic track record with valid marks and certificates from previous studies (10th, 12th, graduation, etc.).
  • For foreign studies, competitive exam scores such as GRE, GMAT, TOEFL, or IELTS (if required) strengthen eligibility.
• Co-Applicant Requirement
  • A co-applicant/co-borrower (parent, guardian, or spouse with stable income) is usually mandatory.
  • The co-applicant must provide income proof such as salary slips, Form 16, IT returns, and bank statements.
• Age Criteria
  • Age limits may apply for certain schemes (generally below 40 years).
  • For standard Baroda Scholar loans, admission status is more important than strict age limits.
• Collateral / Security Conditions
  • Up to ₹4 lakh: No collateral required
  • ₹4 lakh to ₹7.5 lakh: Third-party guarantee or future income assignment required
  • Above ₹7.5 lakh: Tangible collateral (property) plus co-applicant income assignment required
• Specific Program Eligibility (Study Abroad – Baroda Scholar)
  • Must have secured full-time admission to a foreign university.
  • Eligible courses include professional, technical, vocational, and recognised diploma programmes abroad.

Step-by-Step: Applying for a Bank of Baroda Education Loan via PayStudy

1. Start Your Loan Application on PayStudy
   • Visit the PayStudy website and fill in your basic details — name, contact, course, university, study destination, estimated expenses and intended loan amount.
   • This creates your profile and helps PayStudy identify the best possible lenders (including Bank of Baroda).
2. Get Matched with Loan Offers
   • PayStudy will quickly show you pre-approved loan options based on your profile — including potentially Bank of Baroda’s Baroda Scholar (for abroad study) or other suitable schemes.
   • You’ll see details like interest rate range, repayment tenure, collateral requirements and financing coverage.
3. Prepare Your Required Documents

   PayStudy provides a personalised checklist matching Bank of Baroda’s requirements — this typically includes:

   • Identity & address proof (PAN, Aadhaar, Passport)
   • Admission / offer letter from your university
   • Cost of study / fee schedule
   • Academic transcripts & entrance scores
   • Co-applicant financials (proof of income, bank statements)
   • Collateral documents (if applicable)
4. Document Collection & Verification
   • PayStudy helps you gather, organize and verify all documents before submission, reducing errors and delays.
   • They also explain specific Bank of Baroda requirements for study-abroad loans like Baroda Scholar.
5. Submit Your Loan Application
   • Once documents are ready, PayStudy submits your loan application to Bank of Baroda on your behalf.
   • This includes form filling, follow-ups and handling bank queries.
6. Tracking & Support
   • PayStudy provides real-time status updates from document review to sanction and disbursement.
   • Their team explains loan terms like interest rate, moratorium and repayment tenure before acceptance.
7. Loan Sanction & Signing
   • If approved, you’ll receive a sanction letter detailing loan amount, interest rate and repayment schedule.
   • PayStudy assists with reviewing terms and completing signing (digital or in-person as required).
8. Disbursement
   • Bank of Baroda disburses funds directly to the university and/or to your account for living expenses.
   • PayStudy ensures timely disbursement and confirms receipt.

Benefits of Using PayStudy for Your BoB Loan

• End-to-End Assistance
  From eligibility to final disbursement — PayStudy manages every step with bank coordination.
• Digital & Faster
  Entire process is mostly online and more streamlined than doing it yourself through a bank branch.
• Multiple Loan Options
  You’ll see alternatives if Bank of Baroda terms are not ideal, helping you choose the best lender for your profile.
• Expert Document Guidance
  Avoid common errors (one of the biggest causes of delays) with accurate document preparation.
• Clear Tracking & Updates
  You get status updates at each stage — sanction, processing, and disbursement.