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Bank of Baroda Education Loan for Abroad

Last Modified : June 29, 2018

Bank of Baroda provides education loan amount upto INR 60 Lacs with the affordable rate of interest and concession of 0.75% to students studying in top premier institutes. 

It provides Bank of Baroda Education Loan with maximum benefits to lessen the monetary burden. 

There are various schemes offered by Government of India with Education Loans for India and Abroad. Interested students can avail these schemes such as National Skill Certification and Monetary Reward Scheme, Central Scheme of Interest Subsidy for Education Loan, and Skill Loan Scheme to ease their loan liability.

Planning to Study Abroad? Why choose Bank of Baroda?

  • High-value loans available
  • Special loan facility for EDP offered by premier institutes abroad
  • Free Debit Card facility

Are you Eligible for Bank of Baroda Education Loan?

  • Indian National. A student must be a citizen of India or a holder of Indian passport.
  • 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.

Mentioned below are various aspects of variants of education loans offered by Bank of Baroda.

Variants of Bank of Baroda Education Loan

1. Baroda Scholar – Education loan for pursuing higher education from foreign universities

Baroda Scholar is one kind of finance option that have been launched by Bank of Baroda under Bank of Baroda Education Loan Schemes. The Baroda Scholar Education Loan scheme is initiated to provide a helping hand to students who wish to pursue their studies abroad. The scheme covers higher education in technical and professional courses offered by foreign universities.

Eligibility to avail Baroda Scholar Education Loan

  • Indian National
  • Professional/ Technical courses at foreign Universities or Institutes 

Present Rate of Interest

For regular courses and Executive Development Programmes



Baroda Scholar Education Loan

Institutes specified in List of Premier Institutes

- 1-year MCLR + Strategic Premium 1.25% spread (irrespective of the 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

Quick Facts about Baroda Scholar Education Laon



Maximum Loan Limit

INR 60 Lacs


Upto 4 lacs- No security required

From INR 4 Lacs to 7.50 Lacs: collateral security in form of third party guarantee

Assignment of future salaries for repayment of loan

Above INR 7.50 Lacs: Tangible collateral security equal to 100% of loan amount

Assignment of future salaries for repayment of loan


Moratorium Period

Course Period + 1 year or 6 months after getting the job

Repayment (Maximum)

Upto INR 7.5 Lacs: repayment in maximum 120 installments

Above INR 7.5 Lacs: repayment in maximum 180 installments

Prepayment Charges


Additional Facts about Baroda Scholar Education Loan

  • 1% processing charges (refunded upon acquisition of the loan)
  • 15% margin applied
  • 0.5% concession on interest rate to a girl student

Courses Approved under Baroda Scholar Education Loan

  • Courses offered by reputed foreign universities
  • Graduation, Post-Graduation, Doctorate courses 
  • Technical, Professional or any other Job Oriented courses 
  • Degree/ Diploma courses like Aeronautical, Pilot Training, Shipping, etc. (approved by Director General of Civil Aviation/ Shipping in India) 

Expenses Covered under Baroda Education Loan for Students of Premier Institutions

  • Tuition Fee
  • Examination Fee
  • Library/ Laboratory Fee
  • Hostel Fee
  • Cost of Books, equipment, instrument or uniforms
  • Miscellaneous expenses- study tours, project work, thesis, etc.
  • Additional expenses like building fund, caution deposit, refundable deposit, etc.
  • Proper bills and receipts have to be submitted for these expenses as proof.
  • Reasonable cost of computer or laptop (if required)
  • Expenses for one way travel

NOTE: Cost of external coaching or tuition is not to be considered

For the list of Premier foreign universities that fall under List A, B, C and D- Click Here


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

Answer: 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.

  1. In whose name is the loan granted?

Answer: The loan is granted in the name of the student

  1. Is the loan contract executed only in student’s name?

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

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

Answer: 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.

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

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

  1. What does margin on any loan mean?

Answer: 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.

  1. Should the student’s margin be paid upfront in the starting?

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

  1. Where can I avail Bank of Baroda Education Loan?

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

  1. Is there any provision to apply for loan online?

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

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

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

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

Answer: 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

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


  • 0.50% concession is given to girl students
  • Eligibility criteria and margin on education loan is relaxed for SC/ST students
  1. What all is included in tangible collateral security?

Answer: 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.

  1. Is scholarship or assistantship included in the margin?

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

  1. What is Moratorium Period?

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

  1. What is tenure of an education loan?

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

  1. What does MCLR stands for?

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

  1. What all expenses are covered under this course?

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

Answer: Yes, travel expenses are covered under this loan

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

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

  1. What do you mean by reputed or recognized institutes?

Answer: 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)

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

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

  1. What is the processing fee or prepayment charges?

Answer: 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.

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

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

  1. Why is Pan Card necessary?

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

Answer: 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.

  1. Is a co-borrower necessary for loan?

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

  1. Who can be my co-borrower?

Answer: 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.

  1. What all documents are required from the co-borrower?

Answer: 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).
  1. How many guarantors do I need to borrow loan from Bank of Baroda?

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

  1. What is the KYC requirement in education loan?

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

  1. What are maximum term for repayment?

Answer: 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

  1. How can I repay the loan?

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

  1. What is EMI? How are they calculated?

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

Answer: 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

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

Answer: 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.  

  1. What is method of application of interest on education loan?

Answer: 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. 

  1. What is interest rate of education loan?

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

For Bank of Baroda Education Loan



Baroda Scholar Education Loan

Institutes 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

  1. What is interest subsidy on education loan?

Answer: 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
  1. What documents do I need to submit to avail interest subsidy scheme?

Answer: The documents that need to be submitted are:

  • Income certificate issued by authorised authorities
  • Bonafide student certificate
  • Letter of undertaking or declaration signed by borrower/ co-borrower
  1. If I am availing loan for overseas studies, can I also avail interest subsidy scheme?

Answer: No, the interest subsidy scheme is available only for studies applying for studies in India.

  1. What is employment verification in an education loan?

Answer: 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.

  1. Are there any tax benefits in education loans?

Answer: 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).

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

Answer: 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.

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

Answer: 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.

  1. Why do banks require insurance policy as security?

Answer: 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

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

Answer: Borrowers can opt for Group Credit Life Insurance cover, the insurance premium of which will be financed by bank. 

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

Answer: 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.

  1. Are NRIs eligible for the education loan?

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

  1. Is Visa a necessary document for studying abroad?

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

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

Answer: 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.

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

Answer: 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