Bank of Baroda Education Loan - Student Loan in India

Bank of Baroda Education Loan

Education is the most important investment one makes in life. Higher studies and specialization in certain fields call for additional financial support from time to time.

Whether you are planning school education (nursery to standard XII) of your child, pursuing a graduate or post-graduate degree, the Bank of Baroda Education Loans, can help finance your ambitions and goals.

Following are the loan options available:

Baroda Vidya

Baroda Gyan

Baroda Scholar

Baroda Education Loan for Vocational Education & Training

Central Scheme of Interest Subsidy for Education Loans

Baroda Vidya

Bank of Baroda presents a one of its kind finance option for parents of students pursuing school education. These loans are available for studies from Nursery to Senior Secondary School.

No processing & documentation charges.

No Margin.

No security required.

Terms & Conditions

Eligibility :

Should be an Indian national residing in India.

Student should have secured admission to a recognized school / Highschool / Jr. College (including CBSE / ICSE / State Board) for any of the following courses

Stage I : Nursery to V th STD.

Stage II : VI th to VIII STD.

Stage III : IX th to XII th STD. 

Coverage of expenses for :

Fee payable to college / school.

Examination / Library / Laboratory Fee.

Fee and other charges payable to hostel.

Purchase of books / equipments / instruments / uniforms.

Personal Computers / Laptops wherever required.

Caution deposit / building fund / refundable deposit supported by instituion bills / receipts. 

Maximum Loan Amount : Rs.4.00 Lacs

Repayment Period :

Loan for each yearly sub limit is repayable in 12 equal monthly instalments. First instalment to be due 12 months after first disbursement of each year's loan component. 

The parents must be residing in the place for a minimum period of -3- years, except in the case of transferable job.

Security :
In case the loan is given for purchase of computer the same is to be hypothecated to the bank. 

Rate of Interest :

Up to Rs 7.50 Lacs : One year MCLR + Strategic Premium + 2.50%

Above Rs 7.50 Lacs : One year MCLR + Strategic Premium + 1.75%

1% concession in rate of interest to loans for girl students

Interest to be serviced as and when applied during moratorium period

Penal Interest @ 2% on overdue amount if the loan amount exceeds Rs. 2/- lacs

Baroda Gyan

A loan product specially designed for students pursuing Graduation, Post - Graduation, Professional & Other courses in India. Bank of Baroda extends a helping hand to energize your studies and promote education of the youth.

No processing charges.

No Margin on loans upto 4 lacs.

Free Debit Card.

Bank of Baroda Education Loan

Terms & Conditions

Courses Eligible:
All Graduation courses

All Post Graduation courses & Doctorate courses

Professional Courses viz. Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer, Ayurved, Homeopathy, Physiotherapy, Hotel Management, Hospital Management, Interior Designing, Architecture, Event Management, Mass Communication, Fashion Technology, etc.

Computer certificate courses of reputed institutes accredited to Dept. of Electronics or institutes affiliated to Universities.

Courses like C.A, ICWA, CFA, CS, etc.

Courses conducted by IIM, IIT, IISc, XLRI. NIFT etc.

Regular Degree/ Diploma courses like Aeronautical, pilot training, shipping etc., approved by Director General of Civil Aviation/shipping.

Other courses leading to diploma / degree etc. conducted by colleges/universities approved by UGC/Govt./ AICTE/ AIBMS/ ICMR etc

Courses offered in India by reputed foreign Universities.

Evening courses of institutes approved by State/Central/Govt./UGC/AICTE/AIBMS/ICMR/ICAR.

Courses offered by National Institutes and other reputed private institutions. The College/Institute must have been approved by the State/Central Govt./UGC/AICTE etc. 

Student Eligibility:

Should be Resident Indian

Secured admission to either of above courses

A meritorious student (who qualifies for a seat under merit quota) will also be eligible for loan under this scheme even if the student chooses to pursue a course under Management Quota.
or courses under Management Quota Seats considered under the scheme, fees as approved by the State Government/ Government approved regulatory body for payment seats will be taken, subject to viability of repayment.

Additional concession of 1.00% to the students who have sought admission in premier institutions viz. IIMs, IITs and AIIMS / AFMC for loans of more than Rs 7.50 lac secured by tangible securities

Coverage of expenses:

Fee payable to college / Institution / University

Examination / Library / Laboratory Fee

Fee and other charges payable to hostel

Purchase of books / equipments / instruments.

Personal Computers / Laptops wherever required.

Caution deposit / building fund / refundable deposit supported by institution bills / receipts.

Any other expenses required to complete the course - like study tours, project works, thesis, etc. 

Maximum Loan Amount : Rs.10.00 Lacs.

Loan Amount:

Maximum Loan Amount: Rs.10.00 Lacs for all courses except medical education

Maximum Loan Amount : Rs.25.00 Lacs for Medical Education.

Margin :

Upto Rs. 4.00 lacs :- NIL

Above Rs. 4.00 lacs :- 5%

Margin is to be contributed on pro rata basis on year to year basis as and when disbursements are availed. 

Repayment Holiday / Moratorium Period :

Course period + 1 year or 6 months after getting job, whichever is earlier. 

Repayment Period :

Repayable in 120 maximum Installments for loan amount upto Rs 7.50 lacs

Repayable in 180 maximum Installments for loan amount above Rs 7.50 lacs .

Security :

Upto Rs.4 lacs : No security

Above Rs. 4.00 Lacs and up to Rs. 7.5 lacs: Collateral in the form of a suitable third party guarantee alognwith assignment of future income.

Above Rs.7.5 lacs: Tangible collateral security equal to 100% of the loan amount along with assignment of future income

Rate of Interest :

Simple interest to be charged at monthly rests during the repayment holiday / moratorium period.

1% interest concession is provided if interest debited during repayment holiday is serviced.
1% Concession in rate of interest to loans for girl student
Penal interest @ 2% p.a. on overdue amount, if the loan amount exceeds Rs.4.00

Baroda Scholar

Bank of Baroda presents financial assistance to students going abroad for Professional / Technical studies. The loan offering is designed to empower you with the financial capability to realise your dreams... Achieve your goals... Reach out to the maximum limits...

Terms & Conditions

Eligiblity of Courses :

Graduate/Post Graduate / Doctorate / Job Oriented Professional / Technical Courses offered by reputed Universities overseas.
Regular Degree/ Diploma courses like Aeronautical, pilot training, shipping etc. The Institute should be recognized by the competent local aviation / shipping authority and Director General of Civil Aviation/shipping in India.

Student Eligiblity :

  • Should be an Indian National.
  • Secured admission to Professional/Technical Courses at foriegn Universities/Institutions.

Coverage of expenses (for overseas studies) :

  • Admission/Tuition fees to College/University.
  • Hostel/Mess charges.
  • Examination/Library/Laboratory fee.
  • Purchase of books/equipments/instruments.
  • Caution deposit/building fund/refundable deposit supported by institution bills/reciepts.
  • One way travel expenses/Passage money.
  • Purchase of computers if essential for completion of the course.
  • Any other expense required to complete the course e.g. study tour, project work, thesis etc.


Maximum amount of loan : Rs. 20.00 Lacs. 

Margin : 15%

Repayment Holiday / Moratorium Period :

  • Course period + 1 year or 6 months after getting job, whichever is earlier.


Repayment Period :

  • Repayable in 120 maximum Installments for loan amount upto Rs 7.50 lacs
  • Repayable in 180 maximum Installments for loan amount above Rs 7.50 lacs .

Security :

  • Upto Rs.4.00/- lacs : No security
  • Above Rs. 4.00 Lacs and up to Rs. 7.5 lacs: Collateral in the form of a suitable third
    party guarantee alognwith assignment of future income.
  • Above Rs.7.5 lacs: Tangible collateral security equal to 100% of the loan
    amount along with assignment of future income

Rate of Interest :

  • Simple interest during repayment holiday/moratorium period.
  • 0.50% Concession in rate of interest to loans for girl student.
  • Penal interest @ 2% p.a. on overdue amount if loan exceeds Rs.4/- lacs.

Insurance: 

Group credit Life Insurance Cover will be available at the option and cost of the borrower. Cost of Insurance Premium may be financed by Bank by adding the same in the project cost and shall be recovered alongwith EMIs of the loan.

The Borrower can repay the loan any time after commencement of repayment WITHOUT having to pay any prepayment charges.

Central Scheme of Interest Subsidy for Education Loans

Government of India, Ministry of Human Resources Development, Department of Higher Education has formulated an Interest Subsidy for Education Loans for the students of economically weaker section (EWS) for pursuing technical / professional courses in India. Salient features of scheme are as under:

Scheme will be named as “Education Loan Interest Subsidy Scheme” specially designed to provide Interest Subsidy for the period of moratorium on educational loans taken by students from Economically Weaker Sections from our Bank under the educational loan scheme of the Indian Banks’ Association to pursue Technical / Professional Education studies in India.

Course fee (all inclusive) may exceed Rs. 10 lacs but subsidy amount will be calculated only upto loan amount of Rs. 10 lacs.

Government of India will provide full interest subsidy during the moratorium period on loans taken by students from the Bank. For loans sanctioned prior to 01.04.2009, only interst on the amount disbursed after 01.04.2009 are eligible.

After the moratorium period interest will be borne by student.

Student should belong to Economically Weaker Section (not on social background) having parental family income from all sources not more than    Rs. 4.5 lac per annum.

State Government will designate appropriate authority or authorities who are competent to issue Income certificate, based on economic index and not social background, for the purpose of this scheme.

Subsidy will be available only to students enrolled in recognized Technical / Professional courses (after XII) in India in Educational Institutions established by Acts of Parliament, other institutions recognized by the concerned Statutory Bodies, Indian Institutes of Management (IIMs) and other Institutions set up by the Central / State Government.

Interest rates charged on the loan shall be as per interest rates applicable under our Education Loan Scheme.

Interest subsidy shall be available to the eligible students only once, either for first undergraduate degree course or the post graduate degrees / diplomas in India. Interest subsidy shall, however, be admissible for integrated courses (graduates + post graduates).
Subsidy shall not be available if a student discontinues the course in midstream, expelled from Institutions on disciplinary or academic grounds.

There would be tag / marker on the degree and marksheet of the student indicating his repayment liabilities. Electronic tag will enable employers to identify loanees. Nodal Bank for the scheme shall be Canara Bank and monitoring shall be finalized in consultation with the Canara Bank.

List of Technical / Professional courses for which the scheme would be applicable, shall be publicized from time to time by UGC and AICTE and the same would be immediately displayed at their websites, which may be accessed for verification purposes. 
Agreement is also to be signed by the student and Bank.