BOB

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BOB Education Loan

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Interest Rate

Starting from 9.7%
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Processing Fees

₹10,000 + GST (Refundable)
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Margin Money

0-10%
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How it Works

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Simple FIVE step digital process to get a education loan

Check Your Loan Eligibility

Use our free tool to verify your eligibility and receive conditional loan offers.

1

Talk To Our Loan Experts

Connect with our dedicated loan counselor for a better understanding of the process.

2

Upload Documents and Fill Out the Form

Submit your documents or complete the necessary forms for bank verification and evaluation.

3

Negotiate For Your Best Loan Offer

GyanDhan expert's negotiate to secure the most competitive interest rates and the highest possible loan amount for you.

4

Get Loan Approval and Disbursement

Recieve your final approval and sanction letter, ensuring prompt fund disbursement from the lender

5
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BOB Bank Education Loan for Abroad Studies

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All you need to know about BOB bank education loan for studying abroad

Rohit Gidwani
Rohit Gidwani

Study Abroad Expert

Fact checked
Updated on:  05 Nov 2024 | 
Reviewed By:  Aman  
| 410 | 12  min read
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Overview

Bank of Baroda (BOB) established on July 20, 1908, is an Indian state-owned banking and financial services organization, headquartered in Vadodara (earlier known as Baroda), in Gujarat, India. Under the ‘Alternative Mechanism’ scheme, the Government announced the amalgamation of Vijaya Bank and Dena Bank with Bank of Baroda which came into effect on April 1, 2019. Several education loan schemes are offered by the Bank of Baroda which includes Baroda Vidya, Baroda Gyan, Baroda Digital Education Loan, Baroda Scholar, and many more. The main focus here on this page is given to Baroda Scholar as this is the scheme that enables Indian students to financially back their abroad education and turn their dream into reality.

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Bank of Baroda Education Loan Schemes

Bank of Baroda (BOB) offers a variety of education loan schemes tailored to meet the diverse needs of students pursuing higher education, both in India and abroad. Below are the key education loan schemes provided by BOB:

Baroda Gyan Scheme:

Interest Rate: 11.05% to 11.15% p.a.

Features:

  • list items Collateral: No security required for loans up to ₹4 lakhs. For loans above ₹4 lakhs, collateral is required.
  • list items Processing Fee: Nil.
  • list items Loan Tenure: 10 to 15 years.
  • list items Eligibility: Applicable for graduation, post-graduation, professional courses, management courses, and more.

 

Baroda Vidya Scheme:

Interest Rate: 12.50% p.a.

Features:

  • list items Collateral: No collateral or security required.
  • list items Processing Fee: Nil.
  • list items Loan Tenure: 12 instalments per year, starting 12 months after the first disbursement.
  • list items Eligibility: Available for Indian citizens with admission to a recognized school. The loan is granted in the name of the student's parent.

 

Baroda Scholar Scheme (For Abroad):

Interest Rate: 9.70% to 11.15% p.a.

Features:

  • list items Collateral: No security required for loans up to ₹4 lakhs. Third-party guarantee and future income assignment are needed for loans above ₹4 lakhs and up to ₹7.5 lakhs. For loans above ₹7.5 lakhs, 100% collateral security and future income proof are required.
  • list items Processing Fee: 1% of the loan amount, maximum ₹10,000 (refundable after first disbursement). ₹7,500 per property upfront (non-refundable).
  • list items Loan Tenure: Up to 15 years.
  • list items Eligibility: For Indian students admitted to specified courses like graduation, post-graduation, CPA, diploma/degree, management, STEM, medical, etc.

 

Baroda Education Loan for Premier Institutions (India):

Interest Rate: 9.15% to 10.20% p.a.

Features:

  • list items Collateral: No collateral required for loans up to ₹20 lakhs. Collateral worth 100% of the loan amount is needed for loans above ₹20 lakhs.
  • list items Processing Fee: Nil.
  • list items Loan Tenure: Up to 15 years.
  • list items Eligibility: Admission to technical/professional courses abroad through merit-based selection or entrance test.

 

Baroda Executive Development Scheme (India):

Interest Rate: 8.55% to 10.20% p.a.

Features:

  • list items Collateral: Varies depending on the loan amount and course.
  • list items Processing Fee: Nil.
  • list items Loan Tenure: Up to 15 years.
  • list items Eligibility: Available for students seeking admission to premier institutions in India.

 

Baroda Skill Loan Scheme:

Interest Rate: 10.65% p.a.

Features:

  • list items Collateral: No collateral or third-party guarantee required.
  • list items Processing Fee: Nil.
  • list items Loan Tenure: Up to 3 years for loans up to ₹50,000, up to 5 years for loans between ₹50,000 and ₹1 lakh, and up to 7 years for loans above ₹1 lakh.
  • list items Eligibility: For students pursuing skill development courses.
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Features of Bank Of Baroda Education Loan for Abroad Studies

This table provides essential details about BOB education loan, covering loan amounts, interest rates, fees, and other loan terms.

Feature Description

Loan amount

7.5 Lakh INR - 1.5 Cr INR

Rate of interest

9.70% - 11.15% (Floating)

(0.20% concession for female applicants of non-premier institutes)

Processing fee

INR 10,000 + GST (Refundable)

Margin money

0 - 15%

Property evaluation charges

8,500 INR

Moratorium period

Course duration + 12 months

Repayment tenure

10 - 15 years

*Education Loan Interest Rate Bank of Baroda as of May 2024

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Bank of Baroda Education Loan Interest Rate

BOB Education Loan is intended to meet the diverse needs of students with an interest rate that is competitive and flexible, especially under the Baroda Scholar study abroad program. This loan's interest rates are as follows:

  • list items 9.70% - 11.15% (Floating): The precise rate is determined by variables including the loan amount and if the school is on the bank's list of distinguished institutions.
  • list items Special Concession: Female applicants enrolling in non-premier institutes are eligible for a 0.20% interest rate concession.
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Bank of Baroda Education Loan Eligibility Criteria

  • list items The student should be an Indian citizen with a minimum age of 18 years. 
  • list items The student should have secured admission to a recognized university for a professional or technical course through a merit/entrance-based selection process. 
  • list items To get better loan terms your institution should be on the list developed by Bank of Baroda. You can find the list of these premier institutes here.
  • list items The applicant should have a consistently good academic record and must meet the minimum academic criteria set by the lending institution. Also, the student must fulfill any prerequisite tests such as GRE, IELTS, or TOEFL.
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Required Documents for Bank of Baroda Education Loan

The documentation needed for a BOB education loan for overseas studies varies based on several factors, primarily your academic and professional background, your co-applicant's financial and credit history, and the location of the property or asset that you use as collateral.

Applicants' documents:

1. Identity proof: PAN/ Passport/ Driver’s License/ Voter ID card or government-issued identification document.

2. Address proof: recent copy of telephone bill/ electricity bill/water bill/ piped gas bill/ driving license/ Aadhaar card.

3. Passport Mandatory (in case of study abroad).

4, Past academic record.

10th standard mark sheet

12th standard mark sheet

Undergraduate result (semester-wise)

5. Entrance Exam Result (e.g. GMAT, GRE, TOEFL, etc. for abroad study)

6. Entrance Exam Result (e.g. CAT, CMAT, JEE, NEET, CET, GMAT, GRE, etc. for domestic institutes)

7. Proof of admission: admission letter (A conditional admission letter is also applicable).

8. Statement of cost/expenses.

9. 2 passport-size photographs.

10. Loan A/C statement of one year, if there is any previous loan from other Banks/ Lenders.

Co-applicant’s documents:

1. Identity proof: PAN/ Passport/ Driver’s license/ Voter ID card or government-issued identification document.

2. Address: recent copy of telephone bill/ electricity bill/water bill/ piped gas bill or copy of passport/ driving license/ Aadhaar card.

3. 2 passport-size photographs.

4. If any previous loan is from other banks/ lenders, then the loan A/C statement of 1 year.

5. Legal documents of the collateral/ property documents.

6. Bank account statement of the co-borrower/guarantor, for the last 6 months (in case of takeover of education loan).

Income proof for salaried co-applicant/guarantor:

1. Salary slips for the last 3 months

2. Copy of Form 16 of the last 2 years or copy

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

4. Brief statement of assets & liabilities of parent/ guardian/ other co-borrower

Income proof for self-employed co-applicant/ guarantor:

1. Business address proof

2. Last 2 years IT returns (If IT Payee)

3. TDS certificate (Form 16A, if applicable)

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

5. Brief statement of assets & liabilities of parent/ guardian/ other co-borrower

6. Bank account statement for the last 6 months

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How to Apply for Bank of Baroda Education Loan Online

If you are seeking to obtain an abroad education loan from BOB, you have the option to apply on their website. However, for a seamless application process, you can opt to apply for your education loan through GyanDhan.

GyanDhan is an online platform created to aid Indian students in funding their overseas education. To initiate the process with us, all you need to do is assess your loan eligibility, and we will take care of the rest!

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Getting your Bank of Baroda Education Loan Through GyanDhan

Guaranteed best loan:

GyanDhan is committed to providing you with the most competitive education loan available in the market. We strive to bring you the best possible deal. If you happen to come across a better offer, we will cover the difference in interest rates for the entire duration of your education loan.

100% Free of cost services:

GyanDhan provides completely free services to applicants. You won't incur any charges from us throughout the application process for a BOB international education loan.

Low turnaround time:

When you submit an education loan application to BOB through GyanDhan, our team collaborates with different departments within BOB to expedite the loan approval process, typically completing it within 15-20 days. This is the reason why thousands of students rely on us for their loan applications annually. If a student applies directly to the bank, the typical loan processing time at BOB is approximately 30-45 days.

Higher chances of approval:

If there are any documents that are missing, property-related concerns, or other issues, we promptly liaise with BOB officials to seek solutions. This guarantees swift issue resolution and considerably enhances your chances of securing approval for a BOB education loan. If you encounter any obstacles, GyanDhan will consistently provide support and assistance.

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Bottlenecks in Bank of Baroda Education Loan

Below, we describe typical bottlenecks that you should watch out for while getting answer to your question how to apply education loan in Bank of Baroda, along with ways in which we work around such bottlenecks to fast-track your education loan application.

Procedural delay:

Generally, you apply to a particular branch of Bank of Baroda. Interestingly, most branches do not take a decision on your education loan application. The branch merely collates all documents and a few days later, transfers your applications to a specialized back-end office, called Specialized Mortgage Store (SMS), which actually evaluates the loan application. Those who apply via GyanDhan get to skip the branch stage, thus saving them several days. We directly transfer your application to the relevant SMS electronically.

For the loan to be sanctioned, the property of the applicant and its supporting legal papers are verified by Bank of Baroda empanelled advocates. However, The Turnaround Time (TAT) of the bank and the advocates is high, that is, the officials involved tend to delay the verification process when they come across discrepancies in the property or related documents. Here is where GyanDhan comes to your rescue as we along with the bank look for alternative solutions when such a problem arises. With a proven record of helping thousands of students out of such situations, GyanDhan prevents property/document related issues from coming in your way to availing an education loan.

Technical Issues With The Property:

The evaluation process of the applicant’s property, undertaken by Civil Engineers, empanelled by BoB, is an extremely lengthy and time-consuming process. Civil engineers first visit the property, and then measure it, check its location and age, calculate its Distress Sale Price, Fair Price, Market Price. The Turnaround Time (TAT) of the Civil Engineer therefore can be quite high and unpredictable. But with our systematic follow-up, we get this step completed in three working days.

Issues in pre-visa disbursal:

In addition to the aforementioned solutions, GyanDhan also ensures pre-visa disbursal of loan, that is, we see to it that the bank disburses the loan to the applicant even before he/she is issued his/her visa.

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GyanDhan's Impact Stories

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Empowering students to overcome education loan obstacles

When the co-applicant didn’t file the ITR (Income tax Return)

When the student first visited the bank, the branch manager clearly told the applicant that he was not eligible to avail an education loan, since his father, who is a farmer, had never filed an ITR. But when contacted GyanDhan, he got a loan of Rs.40 Lakhs sanctioned from the same branch for MS in the US. Later, when he took a transfer to another university, his loan was cancelled. The bank manager informed that he had to come back to India and submit a fresh application.But again GyanDhan helped him by contacting the senior level officers of the bank with regards to this issue, and his loan was approved without any further hassle. Not only did GyanDhan help him before the sanction of the loan, but also took charge of the problems he faced post-disbursal of the loan, thus, focusing on the post-sales services as well.

When there were multiple ownerships and two of them were of minors

A student had an offer for Masters from Dublin Business School, Ireland, and required an education loan with a collateral of Rs. 20 Lakhs. Her case was rejected on the ground that the property was in the name of her mother and five other siblings. And two of her siblings were minors at the time when the education loan was applied for. After facing rejections from various banks and other financial institutions, the student approached GyanDhan for a solution. Our on-ground team took the case forward to the concerned officers of Bank of Baroda and liaised with the legal experts. We arranged for an NOC (No Objection Certificate) from her siblings, and in addition to that, arranged various other documents and necessary affidavits for minors. We made a loan application see the light of its day which was outrightly rejected elsewhere. The time taken to get the loan sanctioned was nearly just one and a half months. By the time you read this story, around Rs.13 Lakhs of the total loan amount will have been disbursed.

When the property to be pledged as collateral was in a different place than the permanent address

The student received an admit from Purdue University, United States, to pursue a Masters course. However, there was an issue with the property pledged as collateral. The property was situated in Kerala, and the owner (father of the applicant) resided in Hosur, the satellite town of Bangalore. The student’s application was rejected on the ground that the collateral property was in a different place than the permanent address. After trying out a few other places but all in vain, the student got in touch with GyanDhan. The on-ground team from GyanDhan approached the local Bank of Baroda branch in Hosur, however, no remedy was found. After that, the corporate office stepped in and requested the Specialised Mortgage Store of Bangalore to intervene. SMS Bangalore then contacted the Hosur BOB branch and subsequently the SMS Kerala for the valuation details of the property. Within no time, the problem was resolved and the bank obliged to grant the education loan to the applicant.

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Frequently Asked Questions

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What is the maximum loan amount one can get for overseas studies?

The maximum loan amount depends on whether your university is on the premier list or not. If your institution is on the premier list then you can get a maximum loan of up to 1.5 Cr and if your institution is not on the list then the maximum amount that you can get is 60 Lakh.

What is the interest rate for education loan in Bank of Baroda?

The interest rate depends on whether your institution is on the list of premier institutions and the loan amount you wish to borrow. If your institution is on the premier list, you can obtain a loan at a rate of 9.7%. However, if your institution is not on the premier list, loans up to 7.5 lakh can be provided at an interest rate of 11.15%, while loans above 7.5 lakh can be offered at a rate of 10.20%.

What is the tenure of a BOB education loan?

The maximum duration for a BOB education loan extends for a period of up to 15 years.

What is the margin money on a BOB education loan?

The margin requirements for BOB education loans vary based on the category of institutions. For premier institutions, there is no margin required for loans up to Rs 4.00 lakh, while a 15% margin is applicable for loans ranging from above Rs 4.00 lakh up to Rs 7.50 lakh. However, for loans above Rs 7.50 lakh in premier institutions, no margin is necessary. In the case of non-premier institutions, there is no margin for loans up to Rs 4.00 lakh, a 15% margin is applicable for loans above Rs 4.00 lakh up to Rs 7.50 lakh, and a 10% margin is required for loans above Rs 7.50 lakh.

Does BOB education loan get tax benefits?

Yes, the BOB education loan is eligible for tax benefits under section 80e.

Is there a prepayment penalty on a BOB education loan?

No, There is no prepayment penalty on BOB education loans. Therefore you can get your education loan foreclosed if you have the resources for the same.

Can I get 60 lakh education loan from BOB?

Yes, you can get an education loan worth 60 Lakhs with the Bank of Baroda by pledging collateral as required by the bank.

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