Quick Answer: Bank of Baroda (BOB) education loan for study abroad: Baroda Scholar scheme. Key 2026 data: Max loan – Rs 1.5 crore (secured, premier); Rs 60 lakh (secured, non-premier); Rs 7.5 lakh (unsecured). Interest rates – 9.5% p.a. (premier institutions: top-100 universities, top B-schools); 11% p.a. (non-premier institutions); 0.20% concession for girl students. Margin policy – 10% (0% for BOB premier institution list). Moratorium – course duration + 1 year. Repayment – up to 15 years. Processing fee – 1% max Rs 10,000 (refundable for premier). Covers GIC for Canada and Sperrkonto for Germany. Section 80E tax benefit applicable. Compare against SBI (0% processing fee, 0.50% girl concession, 15% margin) and Union Bank via GradRight FundRight.
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. 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 primary advantage of Baroda Scholar over SBI Global Ed-Vantage: lower margin requirement (10% vs 15% for non-premier institutions). The primary advantage of SBI: nil processing fee and higher girl student concession (0.50% vs 0.20%). Compare actual offers from both simultaneously on GradRight.
Bank of Baroda Baroda Scholar 2026: Quick Reference
Feature | Details |
Primary scheme for study abroad | Baroda Scholar – for MBA, MCA, MS, and other job-oriented courses |
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 (CGFSL-covered) |
Interest rate (premier abroad institutions) | ~9.5% p.a. (BRLLR + 1.75% approximately) |
Interest rate (non-premier abroad institutions) | ~11% p.a. |
Girl student concession | 0.20% on non-premier rate |
Margin policy | 10% of total cost (0% for BOB premier institution list) |
Processing fee | 1% of sanctioned amount, max Rs 10,000 (refundable on first disbursement for premier) |
Moratorium period | Course duration + 1 year (or 6 months after job – whichever earlier) |
Repayment tenure | Up to 15 years after moratorium |
GIC (Canada) covered? | Yes – Guaranteed Investment Certificate for Canada visa |
Sperrkonto (Germany) covered? | Yes – Blocked Account for German student visa |
Section 80E tax benefit | Yes – interest on education loan fully deductible, no upper limit |
Life insurance | Term life insurance included in sanctioned amount (deducted from first disbursement) |
Application mode | Online (Vidya Lakshmi Portal vidyalakshmi.co.in / bankofbaroda.bank.in) OR branch visit |
BRLLR (Baroda Repo Linked Lending Rate) changes when RBI revises the repo rate. The 9.5%/11% rates are approximate effective rates based on BRLLR + spread as of mid-2026. Always verify current rates at bankofbaroda.bank.in before applying.
Baroda Scholar Interest Rates 2026: Premier vs Non-Premier
Category | Interest Rate (Approx) | Annual Interest Difference on Rs 40L Loan |
Premier abroad universities (top-100, top B-schools) | ~9.5% p.a. | Baseline |
Non-premier abroad universities | ~11% p.a. | Approximately Rs 4.5-6 lakh extra over 10 years vs premier rate |
Girl students (non-premier) | ~10.8% p.a. | 0.20% concession applied |
Overall floating rate range (abroad) | 8.70%-12.70% p.a. (various sources) | Verify specific rate with BOB branch |
The 1.5% gap between premier (9.5%) and non-premier (11%) rates is significant. On Rs 40 lakh over 10 years, this amounts to approximately Rs 4.5-6 lakh in additional total interest. Always verify your university’s premier/non-premier classification with Bank of Baroda before applying. Source: bankofbaroda.bank.in
Also Read: UBI vs SBI Education Loan 2026: Which Is Better for Abroad?
Bank of Baroda 10% Margin Policy: Worked Example
Bank of Baroda has a 10% margin policy for study abroad. This means you (the student or co-borrower) must fund 10% of the total education cost – 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 |
If scholarship of Rs 2 lakh received… | Rs 3 lakh personal contribution needed (scholarship counts toward margin) |
For BOB premier institution list… | 0% margin – 100% financing available |
SBI comparison: SBI Global Ed-Vantage requires 15% margin for non-premier institutions = Rs 7.5 lakh personal contribution on Rs 50 lakh education cost. BOB advantage: Rs 2.5 lakh less personal cash required at margin stage.
What Does Baroda Scholar Cover?
Expense Type | Covered? |
Tuition fees | Yes – 100%, disbursed directly to university |
Living and accommodation expenses | Yes – disbursed to student |
Hostel/mess charges | Yes |
Books, equipment, computers (if essential) | Yes – with receipts |
Examination, library, laboratory fees | Yes |
Caution deposit and building fund | Yes – with institutional receipts, max 10% of total tuition |
Study tours, project work, thesis | Yes |
GIC (Guaranteed Investment Certificate – Canada) | Yes – for Canada student visa financial requirement |
Blocked Account/Sperrkonto (Germany) | Yes – for German student visa financial requirement |
Travel/passage money | Yes – one-way or return ticket |
Term life insurance premium | Yes – included in sanctioned amount, deducted from first disbursement |
Margin money requirement | No – but 10% margin must come from student/co-borrower or scholarships |
Bank of Baroda vs SBI vs Union Bank: Comparison
Feature | Bank of Baroda (Scholar) | SBI (Global Ed-Vantage) | Union Bank of India |
Rate (premier, secured) | ~9.5% p.a. | ~8.40-9% p.a. | ~9-9.5% p.a. |
Rate (non-premier, secured) | ~11% p.a. | ~9-10% p.a. | ~10-10.3% p.a. |
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) | 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 |
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/Sperrkonto covered | Yes | Yes | Yes |
Third-party collateral | Yes (legal charges ~Rs 8,500 apply) | Confirm with bank | Confirm with bank |
BOB primary advantage over SBI: lower margin (10% vs 15%) for non-premier institutions. SBI advantage: nil processing fee and higher girl concession. Compare actual competing offers from both banks simultaneously via GradRight FundRight.
Also Read: HDFC Credila Education Loan for Study Abroad 2026
Eligibility and Documents for Baroda Scholar
Eligibility
Criterion | Requirement |
Citizenship | Indian citizen |
Admission | Secured admission to recognized institution abroad for professional/technical course through merit or entrance selection |
Eligible courses | MBA, MCA, MS, and other job-oriented postgraduate/professional courses; aviation/pilot (DG Civil Aviation approved); UG, doctoral programs |
Age | 16-40 years general range; confirm specific Baroda Scholar limit with bank |
Co-applicant | Parent(s)/guardian normally required; married applicants: spouse or parents-in-law also accepted |
No education gap | Education gap of 2 years or less preferred |
Key Documents Required
Category | Documents |
Student – Identity | Aadhaar, Passport, PAN card, Voter ID |
Student – Academic | 10th, 12th, graduation mark sheets; GRE/GMAT/IELTS/TOEFL scores; admission/acceptance letter; university fee structure |
Co-applicant – Income (salaried) | Last 3 months salary slips; Form 16; last 2 years ITR |
Co-applicant – Income (self-employed) | Last 2-3 years ITR with computation; business proof |
Co-applicant – Bank | Last 6 months bank statements |
Collateral (if applicable) | Property title deed; property valuation report (government-approved valuer); encumbrance certificate; property tax receipts; municipality-approved building plan |
Application Process
Online: Visit bankofbaroda.bank.in > Education Loan > Baroda Scholar > Apply Now (redirects to Vidya Lakshmi Portal). Or apply at vidyalakshmi.co.in directly. Fill common application form, select Bank of Baroda, upload documents. Personal interview at BOB branch required even for online applicants.
Via GradRight FundRight: Create one profile (5 minutes) and receive competing loan offers from 18+ lenders including Bank of Baroda within 48 hours. Compare BOB Baroda Scholar against SBI, Union Bank, ICICI, and major NBFCs side-by-side. Apply at dev.gradright.com/financing/
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
Australia 
Canada 
France 
Germany 
India 
Ireland 
UAE 
United Kingdom 
United States 
