filter your search allcollegesexamnews

Bank of Baroda Education Rate of Interest

Baroda Gyan promotes academic advancements in students by helping them to energize their studie

  • The maximum loan limit under this scheme is INR 80 Lacs for some specified institutes.
  • A margin of 10% is applied for loan above INR 4 Lacs.
  • A processing fee of 1% is charged.

Bank of Baroda has set the MCLR rate as per the guidelines of the RBI.

  • For applying in a list-specified premier institute, the rate of interest is 1-year MCLR+ Strategic Premium of 1.25% spread.
  • For applying in a non-premier institute, the rate of interest is 1-year MCLR+ Strategic Premium of 2.0% spread.
  • Girl students are given a concession of 0.5%.

CALCULATE YOUR EDUCATION LOAN EMI

Fill the Loan Amount
Fill the Interest Rate
Fill the Loan Tenure
EMI Payable

188 per month

Total Interest

1,280

Payable Amount

11,280

Total Interest
Principal Loan Amount

Looking for admission for India and Abroad?

Know Fees

Bank of Baroda Education Loan Eligibility

loan eligibility image
  • Indian National. The applicant should be a citizen of India.
  • 10+2 qualified. One must have cleared 10+2 from a recognized board of institutions.
  • Co-Signer. A co-signer is a must while applying for education loan as it improves your chances of getting an education loan.
  • Professional Course. The student should be applying for a professional/technical course from a recognized foreign university.

Compare Your Bank

Popular banks:SBIPNBHDFCAxisICICI

Select a bank to compare

SBI
PNB
HDFC
Axis
ICICI
Canara
Bank of Baroda
Allahabad Bank
Indian Bank
IDBI
Karnataka Bank
Kotak Mahindra Bank
Oriental Bank of Commerce
Syndicate bank
Saraswat Bank
UCO Bank
Union Bank of India
Vijaya Bank
Bank of Maharashtra
Central Bank of India
Dena Bank
Dhanlaxmi Bank
Bank of India
RBL Bank
Dombivli Nagari Sahakari Bank Ltd.
Federal Bank
Corporation Bank
Indian Overseas Bank
Abhyudaya Bank
South Indian Bank
GP Parsik Sahakari Bank
Pragathi Krishna Gramin Bank
Karur Vysya Bank
New India Co-Operative Bank
Andhra Bank
Punjab and Sind Bank
Tamilnad Mercantile Bank
Jammu and Kashmir Bank
United Bank of India
InCred
Auxilo
Avanse
Bajaj Finance Limited
Tata Capital Finance Limited
Fullerton India Credit Company Limited
Bank / FinancerBank of Baroda
Change Bank
SBI
Change Bank
PNB
Change Bank
Axis Bank
Change Bank

Applicable Rate of Interest For list-specified premier institute: 1-year MCLR+ 1.25% spread.
For non-premier institute: 1-year MCLR+ 2.0% spread
1.70% above the base rate
up to INR 7.5 Lacs: MCLR + 2.00%
above INR 7.5 Lacs: 2.60%
Upto 4 Lacs- 16.50%
Upto 7.5 Lacs- 17.50%
Above 7.5 Lacs- 15.50%
Max Loan with Collateral For list-specified premier institute: INR 80 Lacs
For non-premier institute: INR 60 Lacs
For Abroad: 30 Lacs
For Abroad: 20 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs and beyond based requirement
Max loan without collateral For list-specified premier institute: INR 80 Lacs
For non-premier institute: INR 60 Lacs
For Abroad: 30 Lacs
For Abroad: 20 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs and beyond based requirement
Processing fee Nil
INR 10,000
Nil
Nil
Repayment Period Up to INR 7.5 Lacs: 10 years
Above INR 7.5 Lacs: 15 years
15 years
15 years
7 years
Loan for top institutions Yes, Baroda Loan for Premier Institutes
Yes, SBI Scholar Loan Scheme
Yes, PNB Pratibha
No
Margin Up to INR 4 Lacs: No margin
Above INR 4 Lacs: 10%
15%
Up to INR 4 Lacs - NIL
Above INR 4 Lacs - 15%
Upto loan 4 Lacs: No margin
Above 4 Lacs: for India: 5%
for Abroad: 15%
Age Limit No age criteria
no age limit
No age limit
No
Loan Security Up to 4 Lacs: No security required
From 4 - 7.5 Lacs: Collateral security in form of third party guarantee.
Above 7.5 Lacs: Tangible collateral security equal to 100% of the loan amount.
Assignment of future salaries for repayment of the loan
Tangible collateral security is required
Collateral security by third party are also accepted
Upto INR 7.50 Lacs: Parent(s)/guardian be made joint borrower (s). No tangible Security and /or 3rd party guarantee is required.
Above INR 7.50 Lacs: Parent(s)/guardian be joint borrower(s). Tangible collateral security of suitable value acceptable to bank.
Third party guarantee
Collateral security
Additionally, assignment of LIC policy in favor of bank amounting 100% of education loan amount
Assignment of Future salaries in favor of Axis Bank
Eligibility concession for SC/ST No
No
50% for SC/ST, and;60% for General category.
No
Processing Time N.A.
20 days
15 days
14 Days
Prepayment charges Nil
Nil
Nil
Nil
Penal charges @ 2% p.a. on overdue amount, if the loan amount exceeds Rs.4.00 lacs.
Penal interest @ 2% to be charged for loans above Rs.4 lacs for the overdue amount and overdue period
Nil
@ 2% per month on the overdue installment/s
Mandatory insurance cover No
Yes
yes
yes
Travel expeneses Yes
yes
yes
yes
Bank transfter allowance No
available
available
No such clause mentioned
Top up loan availability No
yes
available
unavailable
Interest Subsidy Schemes CSIS
Skill Loan Scheme
Padho Pardesh
Padho Pardesh
CSIS
Skill Loan Scheme
Padho Pardesh
CSIS
Skill Loan Scheme
CSIS
Tax benifit yes
yes
yes
yes
Concession/benefits There is no extra charge for processing or documentation
0.5% concession in rate of interest to girl students
Concession to girl students
1% concession if interest is serviced during moratorium period including course period
0.5% concession to girl students
0.5% concession if interest is serviced during moratorium period including course period
Online application
There is no processing fee charged
No pre- payment charges are applied
No pre- closure charges are applied
Loan Disbursal period is 15 working days from the date of final submission of documents
SHOW MORE

How to apply for Bank of Baroda Education Loan ?

Bank of Baroda Education loan application form can be available online or offline at Bank branches.

Visit the official website of Bank of Baroda Education Loan

Select Baroda Gyan and click on Apply Now.

Fill out the form with essential details.

Upload the mandatory documents required.

Submit the form and take out a print out of the application.

Visit the bank's branch for further formalities

Applicants can directly visit the nearest branch and ask for an application form. The bank representative will then guide them with all the necessary information regarding eligibility, documents required and also which loan is best suitable.

Bank of Baroda Education Loan Details

Loan Limit
INR 80 Lacs for specified institutes.
INR 60 Lacs for non-specified institutes.
Margin
Up to INR 4 Lacs: No margin
Above INR 4 Lacs: 10%
Processing Fee
Nil
Loan Security
Up to 4 Lacs: No security required
From 4 - 7.5 Lacs: Collateral security in form of third party guarantee.
Above 7.5 Lacs: Tangible collateral security equal to 100% of the loan amount.
Assignment of future salaries for repayment of the loan.
Loan Repayment
Up to INR 7.5 Lacs: 10 years
Above INR 7.5 Lacs: 15 years

Don’t miss any update from us

Please enter a valid email.

Expenses covered under Bank of Baroda Student Loan Scheme

  • Tuition Fee
  • Examination Fee
  • Library/ Laboratory Fee
  • Hostel Fee
  • Cost of Books, equipment, instrument or uniforms
  • Miscellaneous expenses- study tours, project work, thesis, etc.
  • A reasonable cost of computer or laptop (if required)
  • Expenses for one way travel.

Education Loan Documents Required ?

Admission letter with all essential details

Attested copies of age proof, residence proof and birth date

Self-attested passport size photograph

Copies of qualifying courses

Income proof and/or copy of income tax return file

Salary Proof including latest salary slip, Form 16 and recent salary certificate.

schedule of expenses of the course.

Copy of passport and visa for abroad courses

Interest Subsidy Schemes

Central Scheme for Intrest Subsidy

Formulated by the Govt. of India, a scheme to assist the students belonging to the economically weaker section. 

Skill Loan Scheme

The bank offers 'Skill Loan Scheme' for students who aspire to gain knowledge and specialized training in one specific field.

Central Scheme for Intrest Subsidy
  • The gross annual parents’ income should be less than INR 4.50 Lacs
  • Repayment of the loan has to be done after 12 months of course completion or 6 months after getting the job (whichever is earlier).

This scheme is applicable for technical and professional courses from govt. recognized institutes for courses after class XII.

Under IBA education loan scheme, the maximum loan limit is INR 10 Lacs.

Eligibility:

The subsidy is provided for a moratorium period of 1 year after course completion or 6 months after getting a job (whichever is earlier). After this, the loan amount should be paid in accordance with the education loan scheme.

Scheme Applicable Year:

  • This scheme is implemented in the academic year 2009 – 2010 from April 1, 2009.
  • Loan disbursed after April 1, 2009, irrespective of the date of sanction shall only be covered under the scheme.
  • In case of loans sanctioned prior to April 1, 2009, for the courses beginning prior to the academic year 2009-10, the interest subsidy is available to the extent of disbursements made after April 1, 2009.

Canara Bank has been appointed as the nodal bank by the government to facilitate this scheme.

Skill Loan Scheme

The rate of interest is 1.50% above MCLR. Some additional benefits of 'Skill Loan Scheme' include concession of 1% for the full tenure of the loan, if the interest charged is serviced promptly as and when applied during the period of the moratorium and including during the period of the course.

SHOW MORE

Frequently Asked Questions

01

What schemes does Bank of Baroda considers for its education loans?

+ -

There is one other scheme offered by Bank of Baroda apart from the basic education loans. That is: National Skill Certification and Monetary Reward Scheme.

02

In whose name is the loan granted?

+ -

The loan is granted in the name of the student

03

Is the loan contract executed only in student's name?

+ -

No, the loan can be executed both in name of student and co-borrower as both are equally responsible for repayment of loan.

04

What is the age limit for availing loan in Bank of Baroda?

+ -

There is no age restriction for the applicant applying for education loan from Bank of Baroda. He/ she should only meet the other stated eligibility criteria?s.

05

Are minors eligible to apply for Bank of Baroda Education Loan?

+ -

Yes, Minors aspiring for further studies can apply for education loan with help of legal representation from parents/ guardians.

06

What does margin on any loan mean?

+ -

Margin amount is the amount that a borrower has to pay through his/ her own sources in form of a down payment as his/ her contribution towards the education.

07

Should the student's margin be paid upfront in the starting?

+ -

Margin can be paid on a year to year pro rata basis whenever bank disburses loan amount as per requirement.

08

Where can I avail Bank of Baroda Education Loan?

+ -

You can either contact your nearest branch for the application form or details regarding the loan or apply online from the official website.

09

Is there any provision to apply for loan online?

+ -

Yes, you can apply online through Vidyalakshmi portal to avail for this loan.

10

Can I view my loan statement online if I am an existing education loan borrower?

+ -

Yes, by creating a login on Bank of Baroda web portal, you can view all details related to education loan online.

11

Is there any minimum aggregate marks to meet the eligibility criteria to avail Bank of Baroda education loan?

+ -

Yes, a student must have secured a minimum aggregate marks in their last qualifying examination (10+2 or Graduation). Relaxation in the marks is given to SC/ ST students

12

What is the discount/ rebate offered by Bank of Baroda?

+ -
  • 0.50% concession is given to girl students only in Baroda Gyan.
  • Eligibility criteria and margin on education loan is relaxed for SC/ST students
13

What all is included in tangible collateral security?

+ -

Mostly Bank of Baroda asks tangible security in lieu of the loan amount sanctioned along with assignment of future salaries in favour of Bank of Baroda. Tangible security includes documents related to land/ building/ government security/ public sector bonds/ units of UTI, NSC, Life insurance policy/ bank deposits/ shares or debentures. The value of the security should be equal to the education loan amount.

14

Is scholarship or assistantship included in the margin?

+ -

Yes, any scholarship or assistantship will be a part of margin charged on education loan.

15

What is Moratorium Period?

+ -

Course Period plus one year, or six months after getting a job

16

What is tenure of an education loan?

+ -

Tenure of education loan provided by Bank of Baroda is maximum 15 years

17

What does MCLR stands for?

+ -

MCLR stands for Marginal Cost of funds based Lending Rate. It refers to the minimum interest rate of bank below which it cannot lend.

18

What all expenses are covered under this course?

+ -
  • Expenses covered by Bank of Baroda education loan are:
  • Tuition/ college/ hostel fee
  • Examination/ lab/ library fee
  • Books/ uniform/ instruments
  • Caution deposit
  • Passage money for studies abroad, etc.
19

Will my travel expense will be covered if I take loan from Bank of Baroda?

+ -

Yes, travel expenses are covered under this loan

20

I have taken admission through management quota. Am I eligible?

+ -

This depends totally on bank?s discretion as whether a student meets other eligibility criteria or not.

21

What do you mean by reputed or recognized institutes?

+ -

Institutes that are affiliated to state/ central universities and comes under UGC or AICTE are considered as recognized institutes. Reputed institutes are those which are well known and have standard course of repute. More often, banks provide the list of institutes they consider for loan. (You can contact nearest branch for the same)

22

Are there any special benefits if I have secured admission to one of the top premier institutes?

+ -

Bank of Baroda does not provides any additional concession to students who have secured admission in top rated institutes

23

What is the processing fee or prepayment charges?

+ -

The education loan offered by Bank of Baroda does not carry any prepayment charges. 1%processign fee is charged that is refundable upon the acquisition of loan.

24

Will cost of my computer be covered under the loan sanctioned?

+ -

Reasonable cost for the computer or laptop well be covered under the loan if it is required to complete the course.

25

Why is Pan Card necessary?

+ -

Pan Card is one of the mandatory document required by banks these days. It is mandatory because:

  • Easy to assess Income
  • Easy to trace borrowers
26

Are diploma or certificate courses considered under Bank of Baroda education Loan (both for India and Abroad)?

+ -

Diploma courses are eligible under Bank of Baroda Education Loan. Regular degree or diploma courses like, shipping, pilot training, and aeronautical that are approved by Director General of Civil Aviation or Shipping.

27

Is a co-borrower necessary for loan?

+ -

Yes, it is mandatory to have a co-borrower to avail loan from Bank of Baroda.

28

Who can be my co-borrower?

+ -

Your parent/ spouse/ guardian can be a co-borrower. A co-borrower should be your immediate family member, should have a steady source of income, and a good credit history.

29

What all documents are required from the co-borrower?

+ -

Documents required from the co-borrower are:

  • Attested copies of age proof, residence proof and birth date.
  • Self-attested passport size photograph
  • Income proof and/or copy of income tax return file
  • Details of collateral security along with government approved valuation certificate (if any).
30

How many guarantors do I need to borrow loan from Bank of Baroda?

+ -

You need at least 2 guarantors to avail loan from Bank of Baroda.

31

What is the KYC requirement in education loan?

+ -

KYC requirements are the documents as a proof of personal identification and residence proof of the applicant as well as the co-borrower.

32

What are maximum term for repayment?

+ -

Maximum Term for repayment for Loan amount upto INR 7.50 Lacs is 10 years (120 installments) and maximum term for repayment is 15 years (180 installments) for loan amount above INR 7.50 Lacs

33

How can I repay the loan?

+ -

You can repay the loan after the moratorium period by mode of EMI or through post- dated cheques.

34

What is EMI? How are they calculated?

+ -

EMI stands for Equated Monthly Installments. It can be calculated by using the formula given below

EMI = [P x R x (1+R) ^n] / [(1+R)^ n-1]

Here, P is Amount of Education Loan, R is Rate of Interest, n is Tenure of the Loan.

35

Is the loan disbursed in name of individual applicant or to the institute/ university directly?

+ -

The loan is disbursed directly to the institute/ university that you have taken admission to. Hence, an applicant is supposed to submit institute brochure with proper division of the fee

36

If I am unable to complete my course in given tenure, will my repayment term be extended?

+ -

It is completely on the banks discretion to extend the moratorium period or not. It can be extended for maximum 2 years based on student?s reason. You can contact your nearest branch for more details.

37

What is method of application of interest on education loan?

+ -

The interest will be charged at simple rate from the date of disbursement till commencement of repayment of loan. After that, compound interest is charged on reducing balance.

38

What is interest rate of education loan?

+ -

The interest rate is different for different loan offered. Refer the tables below:

For Bank of Baroda Education Loan

Baroda Scholar Education LoanInstitutes specified in List of Premier Institutes- 1 year MCLR + Strategic Premium 1.25% spread (irrespective of loan amount)
Institutes not specified in List of Premier Institutes-1 year MCLR + Strategic Premium 2% (irrespective of loan amount)
0.50% concession for girl student
39

What is interest subsidy on education loan?

+ -

Bank of Baroda offers

  • National Skill Certification and Monetary Reward Scheme for students who wish to pursue skill based courses to enhance their knowledge and skills for better career prospects.
  • Padho Pardesh Scheme for minority sector students who wish to pursue their studies abroad.
  • Interest Subsidy scheme for economically weaker sections and to promote education amongst them
40

What documents do I need to submit to avail interest subsidy scheme?

+ -
  1. The documents that need to be submitted are:
  2. Income certificate issued by authorised authorities
  3. Bonafide student certificate
  4. Letter of undertaking or declaration signed by borrower/ co-borrower
41

What is employment verification in an education loan?

+ -

The bank takes the responsibility to cross verify all the employment details of the applicant and co-borrower. If the banks fails to cross verify every detail provided, it might reject the loan application.

42

Are there any tax benefits in education loans?

+ -

Under Section 80E of Income Tax Act, loan borrowers can avail the tax benefits. This benefit is only available over and above INR 1,50,000. Tax benefits can be availed once the borrower starts paying interest on loan. The deduction is available until borrower pays off full interest amount on loan or for maximum of 8 years (whichever is earlier).

43

Is it necessary to have bank account with the bank while availing loan from that particular bank?

+ -

It is not necessary to have a bank account while availing the loan but it makes it easier for the borrower to get loan application approved.

44

Can I repay my loan in foreign currency even if my bank is in India?

+ -

Yes, you can pay the amount in foreign currency (Euro, Pound, Dollar, etc.) The bank might charge an additional currency conversion fee as per RBI regulations.

45

Why do banks require insurance policy as security?

+ -

The banks require insurance policy as security in lieu of education loan provided. The insurance policy should be equal or more to the amount of loan sanctioned. In case of untimely demise of the borrower, the bank recovers the amount from the insurance policy

46

Are there any additional benefits on availing loan from Bank of Baroda?

+ -

Borrower can opt for Group Credit Life Insurance Cover. The insurance premium of which will be financed by bank.

47

What is credit score? Is it important for education loan?

+ -

Credit Score is inclusive of various factors such as credit history (Loan history or credit card). If a student does not have a credit score, banks calculate it by considering factors such as University, College and the Course of admission. Banks consider the academic background of student and credit history of co-borrower.

48

Are NRIs eligible for the education loan?

+ -

NRIs are eligible for the loan if they have Indian citizenship and are Indian passport holder.

49

Is Visa a necessary document for studying abroad?

+ -

Visa is needed as a document proof but it is not a sole requirement.

50

What all procedures do one have to go through while applying for abroad?

+ -

A student who is applying for studying abroad have to give necessary documents required by the bank. One needs to have a thorough knowledge of the course they are applying for and in which institute as it can be asked on the airport by the foreign officials.

51

If a student have any query, where or whom to contact?

+ -

Student can reach out to the nearest branch in case of any query.

Customer Care Number: 0265 236 1852/ 0265-256-3932/ 022-6698 5000 04

Local rates apply on every call

SHOW MORE
faq image