Education Loan Interest Rates 2024

Bank of Baroda Education Loan

Bank of Baroda Education Loan

Last Updated : Nov. 3, 2020, 11:40 a.m.

Education has no boundaries whether you are privileged or not, it is the same for all. And to be equally active in society and make changes, you need to have the right source of education. For the less privileged or rather underprivileged students, Bank of Baroda offers a wide range of education loan schemes so that they can pay their school, college or institution fees.

To get a loan from the Bank of Baroda for the education purpose, you can borrow a minimum INR 4 lakh with no margin. For a higher loan amount, the bank focuses on the parent or guardian’s payment capacity. The loan can be repaid in equated monthly installments (EMIs) a year after you finish your study course. And the loan interest rate is based on the Repo Linked Lending Rate of Bank of Baroda, which is 7.25% at present.Bank of Baroda Education Loans can be used to get funds for nursery & primary classes to higher studies abroad. Have a look at the features and benefits of Bank of Baroda Education Loan.

List of Bank of Baroda Education Loan

Baroda Vidya (Education from Nursery to XII)

For the school education after the kindergarten of our child, you can borrow up to INR 4 lakh from Bank of Baroda. There is no margin and no processing fee charged on your loan. To get the loan, the student must have secured admission in any of the Nursery to XII classes. One can borrow the loan in the name of mother, father or student. And the reason why it is the best loan is that it doesn’t require any collateral to procure the same. So, you don’t have to worry about your child’s dream when Bank of Baroda supports you. There are some of the few important terms and conditions of the scheme that you must know before applying for Bank of Baroda Education Loan.

  • The borrower needs to be educated
  • The loan is disbursed every year to the school or institute by covering all-inclusive expenses of books, hostel fees, etc.
  • Pay the loan in 12 EMIs after 1st disbursement of the loan amount
  • The interest rate is calculated on the moratorium period
  • You can claim tax benefits under the Income Tax Act of 80(E) on the interest repayments

Look at the table below to know the list of charges, including the rate of interest, on this loan.

Interest rate 6.85% - 9.95%
Penalty interest 2% above INR 2 lakh due
Processing fee zero

Baroda Gyan (Higher Study in India)

This scheme is applicable to students pursuing graduation, post-graduation or any other professional courses. For aviation and medical courses, you can borrow up to INR 80 lakh from the bank. For other courses, the loan quantum can go upto INR 60 lakh. There is no margin on loan up to INR 4 lakh. Loans above the same will attract a 5% margin. You can get the best repayment duration of 10 to 15 years from the bank. And you will get a moratorium period of 1 year based on your borrowed amount. The interest rate on your loan amount starts from 9.25% per annum.

Security: The loan is secured as you’ll need to submit tangible collateral to the bank or with an assurance of future placement. If you’ve secured your admission in the reputed university or Institution then there is no need for a third-party guarantor. Otherwise, the guarantor is required to pay the necessary amount. In case your income is what Bank of Baroda wants, you don’t need to add a third-party guarantor to the Baroda Gyan Loan.

The moratorium period runs till 1 year after the completion of the course. Look at the below table to know how the repayment tenure is set

Loan Amount (In INR) Maximum Repayment Tenure Post the Moratorium Period (In Years)
Up to 7 lakh 10 Years
Above 7 lakh 15 Years

Note: You will get a debit card for free on your Bank of Baroda Education Loan, to manage the expenses of personal computers or Laptops for education purposes.

Baroda Scholar

For the foreign studies of the student, you can borrow up to INR 80 lakh or above from Bank of Baroda. The education loan is based on your repayment capacity or collateral. There is no margin on your loan up to INR 4 lakh from the bank. And it covers all the expenses of the studies from travel to studies. You don’t need to bother anymore when you lend money from Bank of Baroda for education purposes. Keeping in mind the needs of the user, the bank charges a lower interest rate starting from 8.50% per annum. The interest rate could be high if the Institution or University doesn’t come under the list of specified institutions. Also, your loan eligibility decreases as you can borrow only up to INR 60 lakh from the bank.

The payment can be made via EMIs for 10 to 15 years after the completion of the 1-year moratorium period. You can make the payment via cheque or auto-debit services. The borrower requires to pay a processing fee for the Scholar Loan that is 1% of your borrowed amount.

Baroda Education Loan to students of premier Institutions

You require funds to get admission in reputed educational institutions, and Bank Of Baroda Education Loan helps customers borrow the amount. The range of loan is up to INR 80 lakh and there is no processing fee applicable on your loan if you don’t mortgage a property against your education loan. Otherwise, you need to pay INR 7,500 non-refundable processing fee to the bank. Once the payment is made, the loan would be disbursed. Look in the below table to know how to borrow the loan based on the list of Institutions.

Category Loan (INR) Interest rate Collateral Requirement
AA 40-80 lakh 7.25% No collateral<=40 lakh
A 20-80 lakh 7.25% No collateral <=20 lakh
B 7.5-80 lakh 7.75%-8.00% No collateral<=7.5 lakh
C 7.5-80 lakh 8.50%-8.75% No collateral<=7.5 lakh

Bank of Baroda Skill Loan

The skill loan can be given to students pursuing technical courses offered by polytechnics, training institutes, etc. It comes at an effective rate of interest of 8.75% per annum. You can get the tenure up to 7 years for the payment of the loan amount in equated monthly installments. No collateral or a third-party guarantor is required for the loan. All it requires is the parent to execute the loan document with the student as the co-borrower. The bank doesn’t charge any processing fee and offers a flexible repayment period. Look at the table below to find out how the loan tenure is set for the Baroda Skill scheme.

Course Duration Loan (INR) Tenure (in years)
3 months 5,000-50,000 3
>3 months or <= 6 months 75,000 5
>6 months or <= 12 months Up to 1 lakh 5
> 1 year 1-1.5 lakh 7

The borrower can pay the loan anytime after the loan commencement without any prepayment charges.

Bank of Baroda EMI Calculator

You can compute your EMIs using the online tool of Bank of Baroda. Just enter the approved loan amount and the interest rate along with the duration of payment. Using the formula [P x R x (1+R)^N]/[(1+R)^N-1], you can calculate the EMI. But, if you want quick results, use the Bank Of Baroda EMI Calculator. To know how the calculator works, take a look at the below mentioned example and know how it improves your payment experience.

Suppose, a person borrows up to INR 10 lakh for admissions in IIT and Bank of Baroda offers Education Loan at an interest rate of 10.00% per annum. So, the EMI will be INR 12,520 for 11 years including the moratorium period. You can do the EMI payment after the 1st year of the course period. To make the payment, you can use cheque, ECS or Standing Instruction banking service of Bank Of Baroda.

Documents for Bank of Baroda Education Loan

Kyc proof: Below are the KYC documents that students and their parent/guardian will have to submit.

  • Aadhaar Card
  • PAN card
  • Driving Licence
  • Passport
  • Voter ID card
  • Student date of birth certificate

Income proof: The income proof is eligible for the parent or third party guarantor only. As the student is a learner, he/she won’t have income details. Below are the income documents that a parent or a third party guarantor has to submit.


  • Salary slip
  • Form 16
  • Bank statement
  • Salary Certificate


  • Income Tax return
  • TDS certificate
  • Bank statement
  • Form 16 or 60
  • Financial statement of the previous year

Qualification details:

  • 10+2 certificate of both parent and student
  • Graduation result semester wise
  • University or Institution approval letter
  • List of finances required for the admission from tuition to books fee

How to apply for a Bank of Baroda Education Loan?

You can get the best loan amount from Bank of Baroda via its education loan schemes and to apply for it you don’t need to go anywhere else. Just visit the official website of Bank of Baroda and follow the mentioned steps.

  1. Select the desired scheme and click on ‘Apply Now’.
  2. Then you will be directed to Vidya Lakshmi website.
  3. If you are a registered user then enter your name and other details to log in, and apply afterward.
  4. Otherwise, you need to register for the education loan by filling an online application form.
  5. After that, you can log in and select Bank of Baroda as your Education Loan provider.
  6. Once the loan gets approved, you will be notified via email or message

The user can also get assistance from Bank of Baroda during the loan procedure by giving a missed call to 846 700 1122.

So, get the loan from Bank of Baroda for your studies and fly high to achieve our dreams.

Related Post