Bank of Baroda Education Loan

Baroda Scholar is Bank of Baroda's dedicated education loan product for Indian students heading abroad for professional or technical studies. It covers a wide sweep of programs -undergraduate degrees, postgraduate courses like MBA, MCA and MS, doctoral studies, and specialized certifications such as CIMA (London) and CPA (USA), along with recognized aviation and shipping courses. The bank sorts destination institutions into "premier" and "non-premier" categories based on global rankings, and this classification directly affects the interest rate, margin money required, and collateral norms that apply to the loan.

• Applicant must be an Indian citizen
• Must have secured admission to a recognized foreign university or institute through an entrance test or a merit-based selection process, in a professional or technical course
• No fixed age limit is prescribed for the student borrower
• A parent, guardian, or eligible relative typically needs to be a co-applicant, since the loan is sanctioned jointly
• Course must fall under BOB's approved list - job-oriented degree or diploma programs, postgraduate management or technical courses, or other courses recognized by the relevant regulatory authority in India or abroad

• KYC documents (proof of identity and address) for both the applicant and co-applicant
• Academic transcripts and mark sheets
• Proof of admission from the overseas institution
• Entrance exam scorecard, where applicable
• A detailed cost sheet or schedule of expenses for the course
• Income proof of the co-applicant or guarantor (salary slips, IT returns, etc.)
• Bank statements of the last six months
• Property documents, if collateral is being offered

Bank of Baroda allows a moratorium period covering the full course duration plus one additional year, during which the student isn't required to make regular EMI payments (though simple interest continues to accrue and gets added to the principal). Once this holiday period ends, repayment can be spread over 10 to 15 years - up to 120 instalments for loans up to ₹7.5 lakh, and up to 180 instalments for higher amounts. A penal interest of 2% per annum applies on overdue amounts for loans exceeding ₹4 lakh. Borrowers repaying from their own funds face no prepayment penalty, though a 0.5% charge applies if the loan is taken over by another lender.

• Check eligibility against the course, institution category (premier or non-premier), and loan amount required
• Gather the necessary documents, including admission proof, academic records, KYC, and cost estimates
• Apply either at a nearby Bank of Baroda branch or online through the bank's official education loan portal / the government's PM-Vidyalaxmi portal
• Submit the application along with supporting documents for verification
• Complete any collateral valuation or guarantor formalities, if the loan amount requires it
• Once sanctioned, the loan is disbursed directly to the institution (tuition, hostel fees) or to vendors (for books, equipment) in stages as per the course requirement