Bank of Baroda Education Loan for Studying Abroad 2026: Baroda Scholar Scheme Explained

Shivani Mani

10 min read • Jul 4, 2026

Bank of Baroda (BOB) is one of India’s oldest and largest public sector banks, established on July 20, 1908, and headquartered in Vadodara, Gujarat. As of 2019, it includes the merged entities of Vijaya Bank and Dena Bank under the Government’s Alternative Mechanism scheme. For Indian students planning to study abroad, BOB offers the dedicated Baroda Scholar scheme – one of the most comprehensive abroad education loan products among public sector banks, with loan amounts up to Rs 1.5 crore for premier institutions.

The Baroda Scholar scheme is most relevant for students pursuing MBA, MCA, MS, and other job-oriented postgraduate courses abroad. This guide covers the complete scheme in detail: interest rates (premier vs non-premier), the 10% margin policy with a worked example, what expenses are covered, eligibility, documents, and how to apply.

Bank of Baroda Baroda Scholar 2026 – Quick Reference

Feature	Details
Bank	Bank of Baroda (BOB). Public sector bank. Est. 1908. Headquartered: Vadodara, Gujarat.
Primary scheme for study abroad	Baroda Scholar – for MBA, MCA, MS, and other job-oriented courses
Other schemes (abroad-relevant)	International EDP: for employed professionals pursuing executive programs abroad (up to Rs 80 lakh)
Maximum loan (premier institutions, secured)	Up to Rs 1.5 crore (Rs 150 lakh)
Maximum loan (non-premier institutions, secured)	Up to Rs 60 lakh
Maximum loan (unsecured, no collateral)	Up to Rs 7.5 lakh
Interest rate (premier abroad institutions)	9.5% p.a. (for top-100 universities and top B-schools)
Interest rate (non-premier abroad institutions)	11% p.a.
Interest rate formula	BRLLR (Baroda Repo Linked Lending Rate) + 1.75% for study abroad. Visit bankofbaroda.bank.in for current BRLLR.
Girl student concession	0.20% concession for non-premier institutes
Margin policy	10% of total cost (student or co-borrower funds 10%). Scholarships count toward margin.
Margin (premier institution list)	0% – no margin required for BOB-listed premier institutions
Processing fee	1% of sanctioned amount, max Rs 10,000. Fully refundable on first disbursement (for premier institutions).
Moratorium period	Course duration + 1 year (or 6 months after getting job – whichever is earlier)
Repayment tenure	Up to 15 years after moratorium
Life insurance	Yes – term life insurance premium included in sanctioned amount and deducted from first disbursement
Penal interest on overdue (above Rs 4L)	2% p.a. on overdue amount
Government subsidy eligible	Yes – CSIS, Padho Pardesh, Dr Ambedkar Scheme
Application mode	Online (Vidya Lakshmi Portal / BOB website) OR branch visit + personal interview

Note: BRLLR (Baroda Repo Linked Lending Rate) changes when RBI revises the repo rate. The 9.5%/11% rates above are approximate effective rates based on BRLLR + spread. Always verify current ROI at bankofbaroda.bank.in before applying.

Bank of Baroda Education Loan Schemes – Complete List

Scheme	Purpose	Max Loan	Key Feature
Baroda Scholar	Study abroad for MBA, MCA, MS, and other job-oriented courses	Rs 1.5 crore (premier secured); Rs 60L (non-premier); Rs 7.5L (unsecured)	Primary abroad scheme. 9.5% (premier) vs 11% (non-premier). 10% margin.
International EDP (Executive Development Programme)	Employed professionals pursuing executive programs abroad	Up to Rs 80 lakh	Must be gainfully employed during study. Work-while-study format.
Baroda Gyan	Domestic higher education in India	Up to Rs 80 lakh	Primarily India-focused; some abroad coverage for specific programs
Baroda Education Loan for Premier Institutions (India)	Indian premier institutions (IITs, IIMs etc.)	Up to Rs 80 lakh	For India-based premier institutes; not the abroad scheme
Baroda Vidya	School education for children	Up to Rs 4 lakh	Taken in parent name; for school fees
Baroda Skill Loan	Vocational and skill development	Up to Rs 1.5 lakh	Short-term skill courses

This guide focuses on Baroda Scholar – the scheme that enables Indian students to financially back their abroad education. Students planning to study abroad should verify they are applying under the correct scheme before proceeding.

Also Read: Compare Education Loan Interest Rates – All Lenders 2026

Baroda Scholar Interest Rates 2026 – Premier vs Non-Premier

Category	Interest Rate	BRLLR Formula
Premier abroad universities (top-100, top B-schools)	~9.5% p.a.	BRLLR + 1.75% (approximately, check current)
Non-premier abroad universities	~11% p.a.	BRLLR + higher spread
Girl students (non-premier)	~10.8% p.a.	0.20% concession applied to non-premier rate
Overall floating rate range (abroad)	8.70% – 12.70% p.a. (various sources; verify with bank)	BRLLR-linked, changes with RBI repo rate

The 1.5 percentage point gap between premier (9.5%) and non-premier (11%) rates is meaningful. On a Rs 30 lakh loan over 10 years, this difference amounts to approximately Rs 5-6 lakh in additional total interest. Verify your specific university’s premier/non-premier classification directly with Bank of Baroda before applying – the bank publishes its premier institution list separately for STEM, management, and medical courses.

Compare BOB Baroda Scholar rates against 18+ lenders on GradRight. Get competing offers in 48 hours. Compare Education Loans on GradRight

Bank of Baroda 10% Margin Policy – Worked Example

Bank of Baroda has a margin policy of 10% for study abroad under the Baroda Scholar scheme. This means you (the student or co-borrower) must fund 10% of the total education cost from personal resources – the bank covers the remaining 90%.

Item	Amount
Total cost of education (tuition + living + travel)	Rs 50 lakh
Bank coverage (90%)	Rs 45 lakh
Your contribution required (10% margin)	Rs 5 lakh
Maximum sanctioned loan	Rs 45 lakh

Important: if a scholarship is awarded by the university or any organisation, it counts toward the margin from the student’s side – reducing your personal cash contribution. The margin can also be brought in on a year-on-year basis or at the time of each disbursement on a pro-rata basis, rather than upfront as a lump sum. For BOB-listed premier institutions, no margin is required – 100% financing.

What Does the Baroda Scholar Loan Cover?

Bank of Baroda covers nearly all expenses expected while studying abroad under the Baroda Scholar scheme:

Tuition fees paid to college/institution/university
Living expenses: accommodation, food, transport
Hostel/mess charges
Examination, library, and laboratory fees
Caution deposit and building fund (supported by institution receipts; max 10% of total tuition)
Books, equipment, instruments required for the course
Computer/laptop if essential for course completion
Study tours, project work, thesis expenses
GIC (Guaranteed Investment Certificate) for Canada
Blocked Account (Sperrkonto) for Germany
Term life insurance premium for student and co-borrower (included in sanctioned amount, deducted from first disbursement)
Travel/passage money for studying abroad

The inclusion of GIC for Canada and Blocked Account for Germany as covered expenses is a useful BOB feature – many lenders cover these separately or not at all. Life insurance is built into the sanctioned amount (deducted from first disbursement) rather than charged upfront out of pocket.

Baroda Scholar Eligibility Criteria

Criterion	Requirement
Citizenship	Indian citizen
Admission	Secured admission to a recognized institution abroad for a professional/technical course through merit or entrance-based selection
Academic record	Consistent academic record with passing grades. No education gap exceeding 2 years.
Age	16-40 years (general range across BOB schemes; confirm specific limit for Baroda Scholar with bank)
Eligible courses	MBA, MCA, MS, and other job-oriented postgraduate and professional courses. Aviation, pilot training, shipping (DG Civil Aviation/Shipping approved). UG, doctoral programs also covered.
Co-applicant	Parent(s)/guardian normally required. Married applicants: spouse or parents-in-law also accepted as joint co-applicant.
Family income	Must be sufficient to support loan repayment – assessed by bank during review
Institution list	For 100% financing (no margin) and premier rates: institution must be on BOB premier list. Non-premier institutions still funded at 11% with 10% margin.

Collateral Requirements for Baroda Scholar

Loan Amount	Collateral Required
Up to Rs 7.5 lakh	No collateral (CGFSL-covered unsecured loan)
Above Rs 7.5 lakh (standard)	Tangible collateral required: immovable property (house/flat/land) OR liquid security (FD, LIC policy, bonds)
Premier institutions (on BOB list)	Up to Rs 40 lakh collateral-free; above that secured
Maximum secured (premier)	Up to Rs 1.5 crore
Maximum secured (non-premier)	Up to Rs 60 lakh

Third-party collateral (property not belonging to student’s immediate family) is also acceptable at Bank of Baroda – a useful option if the student’s own family does not own eligible property. Legal opinion and valuation charges of approximately Rs 8,500 per mortgaged property apply.

Documents Required for Baroda Scholar Education Loan

Student Documents

Identity proof: Aadhaar, Passport, PAN card, Voter ID
Address proof
Academic records: 10th, 12th, graduation mark sheets (all semesters)
Entrance exam scores: GRE, GMAT, TOEFL, IELTS as applicable
Proof of admission: acceptance/offer letter from abroad university
Detailed fee structure and cost of attendance from university

Co-applicant Documents

Identity and address proof
Income proof: salary slips + Form 16 (salaried) or ITR (self-employed)
Bank statements (last 6 months)

Collateral Documents (for secured loans)

Property title deed, link documents, allotment letter
Sale agreement and property tax receipts
Municipality-approved building plan
Encumbrance certificate
Property valuation report (government-approved valuer)

The above is a standard document checklist. Bank of Baroda may ask for additional documents based on your individual application. Consult with your branch or FundRight expert for a personalized document list.

How to Apply for Bank of Baroda Baroda Scholar Loan

Online Application

Visit bankofbaroda.bank.in and navigate to the Education Loan section. Select Baroda Scholar. Click Apply Now – you will be redirected to the Vidya Lakshmi Portal (vidyalakshmi.co.in).
Register on Vidya Lakshmi Portal. Fill the common application form. Select Bank of Baroda as your preferred lender.
Upload all required documents.
Submit application. A personal interview at a BOB branch is required even for online applicants – be ready to discuss your academic background, chosen degree, university, and career prospects.

Via GradRight FundRight

It is much better to compare offers from India’s top lenders before committing to one. FundRight makes this comparison easy. With just one login that takes less than 5 minutes, you can create a profile and within two days get offers from over 18 top Indian and international lenders, including Bank of Baroda. Compare BOB’s Baroda Scholar offer against SBI, Union Bank, ICICI, and major NBFCs side-by-side on one dashboard.

Also Read: Education Loan Processing Time in India

Compare Bank of Baroda against 18+ lenders including other public banks and NBFCs. Free, 5 minutes, offers in 2 days. Compare Education Loans on GradRight

Bank of Baroda vs SBI vs Union Bank for Study Abroad

Feature	Bank of Baroda (Scholar)	SBI (Global Ed-Vantage)	Union Bank of India
Rate (premier, secured)	~9.5% p.a.	8.40-9%	~9-9.5%
Rate (non-premier, secured)	~11% p.a.	9-10%	~10-10.3%
Max secured loan	Rs 1.5 crore	Rs 1.5 crore	Rs 1.5 crore
Collateral-free limit	Rs 7.5L standard; Rs 40L (premier on list)	Rs 7.5L standard; Rs 50L (premier)	Rs 7.5L standard; Rs 40L (premier)
Margin policy	10% (0% for BOB premier list)	15% abroad (0% for SBI premier list)	15% abroad (varies for premier)
Processing fee	1%, max Rs 10K (refundable premier)	Nil	Nil
Life insurance	Included in loan (deducted disbursement)	Not mandatory	Not mandatory
Girl concession	0.20%	0.50%	0.50%
GIC/Blocked Account covered	Yes	Yes	Yes
Third-party collateral accepted	Yes	Confirm	Confirm

Bank of Baroda’s primary advantage over SBI: lower margin requirement (10% vs 15%) for non-premier institutions. SBI’s advantage: nil processing fee and higher girl student concession (0.50% vs 0.20%). Both offer comparable maximum amounts and government subsidy eligibility. Compare actual offers from both simultaneously on GradRight.

Related Education Loan Guides

Compare Education Loan Interest Rates – All Lenders 2026
SBI Education Loan for Study Abroad
Union Bank Education Loan for Study Abroad
IBA Model Education Loan Scheme Guide
Government Education Loans for Studying Abroad
Education Loan Processing Time in India
Education Loan Moratorium Period Guide

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Frequently Asked Questions

What is the effect of the repo rate on Bank of Baroda education loans to study abroad?

The repo rate is the interest rate at which commercial banks borrow from the Reserve Bank of India. If the repo rate goes up, the loan interest rate goes up and banks will charge you more interest on your education loan.

How long does the approval decision take for a Bank of Baroda education loan for studying abroad?

It takes between 1-2 weeks for a loan to be accepted or rejected. The major step is the appraisal of collateral and verification of the documents you have submitted. In principle, the loan will be approved within a week but in practice, it might take a few more days. After the final verification of collateral, the disbursal happens within fifteen days.

Can I convert my Bank of Baroda education loan from a floating rate to a fixed rate?

You can switch between a floating interest rate and a fixed interest rate education loan. Bank of Baroda may apply necessary charges for this conversion. It’s advisable to check with the bank for specific details.

Is a Bank of Baroda education loan available without collateral?

Yes, such a loan option is available but the amount is limited to ₹ 7.5 lakhs.

There is a moratorium period. How will my repayments be determined?

During the moratorium, you do not have to pay any EMI. However, the interest will build up on your loan. This extra interest will be added to your original loan amount. Your monthly payment (EMI) will then be based on this higher total. For example, say your loan amount is ₹50 lakhs. There is a two-year moratorium and the principal and interest together amount to ₹56 lakhs. Your EMIs will be based on ₹56 lakhs.