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Bank of Baroda Education Loan

Bank of Baroda offers a range of low-interest education loans with up to 15 years to repay the debt. Collateral is not required by the bank for loans up to Rs. 4 lakh.

The Bank of Baroda Education Loan helps students finance their higher education in India and abroad, offering flexible repayment options and competitive interest rates.

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Benefits of a Bank of Baroda Student Loan

The benefits of applying for a student loan with Bank of Baroda include the following:

  1. Minimal interest rate
  2. Reduced paperwork
  3. Zero processing charges
  4. Faster Payment
  5. There are no upfront fees
  6. No fees for early closure
  7. 0.5% of the discount is for female students

Eligibility

The applicant's nationality should be Indian.

The applicant should secure admission in one of the below-mentioned courses in order to avail the loan:

  1. Graduation (technical courses offered by reputed universities)
  2. Post-Graduation courses (MCA, MBA, etc)
  3. Courses offered by CPA in USA, CIMA-London, etc.
  4. Premier institutes for management course.
  5. Premier institutes for Science, Technology, Engineering and Mathematics(STEM) courses.
  6. Premier institutes for medical and other education like law, economics, design courses, etc.
  7. Educations loans for courses abroad other than the mentioned above will also be considered.
  8. Regular degree or diploma courses such as pilot training, aeronautical, shipping, etc. if they are recognized by local Shipping/ Authority and Director General of Civil Aviation/ Shipping in India or the competent regulatory authorities in India or abroad for the employment purposes in India or abroad.
  9. Certificate courses  

Bank of Baroda Processing Fee

For loans up to Rs.7.50 lakhs, Bank of Baroda does not charge any processing fees. Above a loan amount of Rs.7.50 lakhs, the processing fee is refundable. The fees for the attorney and evaluator are charged in the amount of Rs.8500.

Bank of Baroda Education Loan Documents Required

Depending on the loan, the documents that must be submitted will vary. The main documents that must be submitted when you apply for an education loan are mentioned below:

  1. Application form
  2. Passport-size photographs
  3. Proof of admission
  4. Income proof of the co-borrower or guarantor
  5. Collateral documents
  6. Bank statements
  7. Academic Documents:
    The below-mentioned academic documents must be submitted:
    1. 10th and 12th exam marks cards
    2. Marks cards of any further education
    3. Entrance Exam mark sheet
    4. Mark sheets of GRE/IELTS/TOFEL/GMAT
    5. Any scholarship documents if applicable
  8. Address Proof:
    Any of the below-mentioned documents may be provided as proof of address:
    1. Voter's ID
    2. Driving License
    3. Aadhaar Card
    4. Passport
  9. Identity Proof:
    Any of the below-mentioned documents can be submitted as proof of identity:
    1. PAN Card
    2. Aadhaar Card
    3. Passport
    4. Voter's ID
    5. Driving License

Any other document that has been requested by the bank must also be submitted.

Documents Required by a co-applicant

  1. Identity Proof:

PAN/ Passport/ Driver’s License/ Voter ID card

  1. Address Proof:

Phone bill, electric bill, water bill, gas bill, passport, voter ID, driving license or aadhaar card

  1. 2 Recent passport-size photographs
  2. Legal documents of the collateral Property documents
  1. Income Proof for Salaried Co-Applicant/Guarantor

Salary slips (last 3 months)

Copy of Form 16 (last 2 years)

Bank account statement for the last 6 months (of Salary Account).

  1. Income Proof for Self-employed Co-Applicant/ Guarantor

Business address proof (If applicable)

Last 2 years IT returns

TDS Certificate (Form 16A, if applicable)

Certificate of qualification (for C.A./ Doctor and other professionals)

Bank Account statement for the last six months

Bank of Baroda Education Loan Interest Rates

Scheme

Interest Rates

Baroda Vidya

12.50% p.a.

Baroda Gyan

11.40% to 13.05% p.a.

Baroda Education Loan to Students of Premier Institutions (For Studies in India)

8.15% to 9.95% p.a.

Baroda Scholar

9.70% to 11.70% p.a.

Baroda Executive Development Premier Institutions (For Studies in India)

8.15% to 9.95% p.a.

Baroda Executive Development Premier Institutions (For Studies overseas)

11.15% to 11.50% p.a.

Baroda Skill Loan Scheme

10.90% to 12.65% p.a.

Digital Education Loan 

8.15% to 9.95% p.a.

Payment Options for EMI (Equated Monthly Installment)

You can repay your Bank of Baroda education loan in one of the following three ways:

  1. If you already have an account with the Bank of Baroda, a Standing Instruction (SI) is the best method of repayment. The Bank of Baroda account you designate will automatically be debited of your EMI amount at the conclusion of the monthly cycle.
  2. If you would like your EMIs to be automatically deducted from your non-Bank of Baroda account at the conclusion of each month, you can opt for the Electronic Clearing Service (ECS) mode.
  3. Postdated EMI checks can be delivered to the Bank of Baroda Loan Centre that is most convenient for you, from a bank account other than a Bank of Baroda. A fresh set of PDCs needs to be submitted on time. Please be advised that postdated checks can only be picked up at non-ECS locations.   

How to Apply for Bank of Baroda Education Loan?

The step-by-step procedure to apply for an education loan is mentioned below:

Step 1: Visit Bank of Baroda's official website.

Step 2: Click on 'Education Loan'. The option can be found under the 'Loans' tab.

Step 3: On the next page, click on 'Apply Now'.

Step 4: You will be redirected to https://www.vidyalakshmi.co.in/Students.

Step 5: Click on 'Apply Now'.

Step 6: Next, complete the registration process and click on submit.

Step 7: A Bank of Baroda representative will contact you to process the request.

How to Apply for Bank of Baroda Education Loan Offline?

Step 1: Fill out the loan application at the Bank of Baroda location that is closest to you.

Step 2: After your profile is reviewed, you may be asked to submit several documents.

Step 3: Submit all required documentation to the BOB branch that is most convenient for you.

Step 4: The next step is the disbursement of the loan proceeds into your account following documentation verification.

Details on Bank of Baroda's Education Loan Subsidy

  1. Central Scheme of Interest Subsidy for Education Loans is for Students from the section with the lowest income I.e., Economically Weaker Section (EWS). They get a subsidy on interest for the moratorium period.
  2. Dr. Ambedkar Central Sector Scheme is for Students belonging to Economically Backward Classes (EBC) and Other Backward Classes (OBC). They get a full waiver on the interest during the moratorium period.

Details on Bank of Baroda's Education Loan Subsidy

  1. Central Scheme of Interest Subsidy for Education Loans is for Students from the section with the lowest income I.e., Economically Weaker Section (EWS). They get a subsidy on interest for the moratorium period.
  2. Dr. Ambedkar Central Sector Scheme is for Students belonging to Economically Backward Classes (EBC) and Other Backward Classes (OBC). They get a full waiver on the interest during the moratorium period.

FAQs

Will there be any charges for late payment?

Yes, there will be charges for late payment of EMIs. Depending on the bank, the penalty charges will vary.
Is it possible to move from RLLR to MCLR?

No, you do not have the option to change from RLLR to MCLR.
Due to the presence of a moratorium period, how are repayments determined?

The pending interest for the moratorium period is added to the loan amount that has been availed once the repayment schedule starts. The EMI will be based on this amount.
Will there be any processing fee?

Depending on the type of loan that has been availed, the processing charges will vary.
Can I apply for a Bank of Baroda education loan online?

Yes, you can apply for a Bank of Baroda education loan online.
What are the advantages of obtaining a Bank of Baroda education loan?

Bank of Baroda provides various education loans with affordable interest rates and repayment terms of up to 15 years. There is no requirement to submit security for education loans of up to Rs.40 lakh for the recognised elite institutes. You can avail a maximum loan of Rs.125 lakh for studying in India and Rs.150 lakh for studying abroad.
Who is eligible to apply for an education loan with Bank of Baroda?

You must be a resident of India to apply for an education loan with Bank of Baroda. You should have received confirmation of admission to a recognised educational institute in India or overseas.
Can I take an education loan without a co-borrower?

No, you require a co-borrower to obtain an education loan. The loan will be taken out jointly with your parent(s), legal guardian(s), or spouse.
Is there a processing fee for a Bank of Baroda student loan?

The Bank of Baroda education loan does not have any processing costs. However, a processing fee of 1% of the loan amount will be applied to the scholar programme.
Is there a way for me to pay less interest on education loans?

Special support is provided in accordance with the Central Government's student loan repayment subsidy program. In addition, a limited number of prestigious institutions are eligible for special interest rates from Bank of Baroda. An alternative option is to pay back the loan during the moratorium period through your spouse, parent, or guardian, which will lower the total amount you must repay.
How do I contact customer service for the Bank of Baroda Education Loan?

The following toll-free number is available to customers of Bank of Baroda: 1800 258 44 55. You can go to the official Bank of Baroda website for a direct link to their customer service page.
How long is the term of a Bank of Baroda education loan?

A Bank of Baroda education loan has a maximum 15-year term.
Does the Bank of Baroda education loan margin exist?

For loans to colleges on its list of covered colleges, the Bank of Baroda levies no margin. There is a 10% margin for universities/colleges that aren't mentioned in the list.