Bank of Baroda Education Loan

Bank of Baroda is one of the most reputed banks in India. The bank was established in the year 1908, in the city of Mumbai. At present, the bank has its operations in 23 countries. The bank has around 78 million customers all around the world. The bank has 13 zonal offices and 75 regional offices. The bank provides all major services such as deposits, credit and debit cards, loans and so on.

The bank offers various types of education loans depending on different age groups and the amount required as a loan. The following are the types of education loan provided by the bank listed as the table of contents below

Baroda Vidya Loan

Baroda Vidya is one of a kind school education loan option provided for students studying in the nursery to the senior secondary school which includes nursery class up onto Class 12. This loan is given out for students studying in any recognized school or board of education. The maximum loan granted is Rs. 4 lakhs and is payable in 12 instalments after disbursement.

Key benefits of Baroda Vidya Loan

  • There will be no sort of collateral asked for this loan.
  • There will be no processing or documentation charges.
  • No margin will be charged.

Eligibility criteria for Baroda Vidya Loan

  • The student seeking the loan should be a residing citizen of India.
  • The student should have secured the admission in a recognized educational institution affiliated with the CBSE Board, ICSE Board, or the State Board.
  • The category of loans is divided into three stages:
    • Stage 1: Nursery to Class 5
    • Stage 2: Class 6 to Class 8
    • Stage 3: Class 9 to Class 12
  • Students doing an evening course which is approved by the state or the central government, are also eligible for the loan.
  • The loan will be issued in the parent’s name of the student.

Interest rates for Baroda Vidya Loan

  • The interest rates for the loan will be available on the official website of the bank or in any of the branches of the bank.
  • There will a concession of 0.50% on the loans issued for the female students.
  • There will be a penal interest of 2% charged on the loans exceeding Rs. 200,000/-.

Important terms and conditions of Baroda Vidya Loan

 Expenses Covered

  • Tuition fee payable to the school or college
  • Fees such as the examination fee, library fee, and laboratory fee.
  • Hostel fee and charges.
  • Certain necessity purchases like books, equipment, instrument, and uniforms.
  • Personal Computers and laptops if required.
  • Certain payments such as refundable deposit, building fund, and caution deposit which should be instantiated with a bill or a receipt.
  • External coaching fee will not be considered.

Repayment Period

  • The repayment period for every loan is 12 months. The loan should be paid in equal monthly instalments.

Repayment Capacity

  • Even after all the deductions, the net income of the parents shouldn’t go below 60% of the total income.
  • The income certificates of the parents should be presented while applying for the exam

Baroda Gyan

This is a loan designed for students who want to pursue higher studies courses such as graduation, post-graduation, professional and other courses in India. To avail this loan, the student should have secured admission in the course. The maximum loan amount of Rs. 80 lakhs is handed for medical students and those pursuing an education in the aviation stream. Rs. 60 lakhs for all the other courses covered and recognized by the bank. Baroda Gyan happens to be the most popular loan scheme from the bank. There are millions of students who have benefitted from this scheme.

Key benefits of Baroda Gyan

  • There is no margin charged for loans below Rs. 400,000/-
  • There is no processing fee charged.
  • A free debit card will be issued.

Eligibility criteria for Baroda Gyan

  • The student should be a resident of India.
  • The admission should be taken in institutes recognized and approved by University Grants Commission, AICTE through Entrance Test, Merit-Based selection process after completion of HSC (10 plus 2 or equivalent).
  • A meritorious student (who qualifies for a seat under merit quota) will also be eligible for a loan under this scheme even if the student chooses to pursue a course under Management Quota.

Course Eligibility 

  • Graduation courses such as BBA, B.Com., B.Sc., etc.
  • Post-Graduation courses such as M.Sc., MBA, MA, etc.
  • Various management courses such as hotel management, hospital management, mass communication, event management, and others, that are offered by reputable institutions.
  • Computer certification courses.
  • Professional courses such as CA, CS, CFA, CMA, ICWA, etc.
  • Courses offered by reputable institutions such as NIFT, NID, IIM, IIT, NIT, etc.
  • Directorate General of Civil Aviation (DGCA) approved diploma or certification courses in aviation and aeronautical engineering.
  • The courses which are offered by well-reputed foreign universities.
  • Evening courses that are approved by recognized institutes.
  • Students applying for teaching courses and nursing courses can also avail a loan through Baroda Gyan.

Interest rates and payments for Baroda Gyan

  • Interest rates will be charged under the simple interest system per month.
  • 50% of relaxation will be given on interest rates for female students.
  • An additional 2% will be charged for the loans that are overdue and above Rs. 400,000/-.

Important terms and conditions of Baroda Gyan

Quantum of Finance

  • The maximum amount of Rs.80 lacs will be given to students pursuing aviation and medical courses.
  • Other courses will be provided with a loan of Rs.10 Lacs.
  • The amount will be decided on the basis of the need for the course.


  • Loans below Rs.4 lacs: Nil
  • Loans above Rs.4 lacs: 5%

Repayment Period

  • Course period + 1 year

Expenses Covered

  • Tuition Fee payable to the college, institution, university, school, and hostel.
  • Examination fee, library fee, and laboratory fee.
  • Hostel fees and charges.
  • Purchase of books, equipment, instruments, and uniforms.
  • Caution deposit, Building Fund, and a refundable deposit will also be covered if it supported by the institution bills/receipts, and the amount should not exceed 10% of the total tuition fees for the entire course.
  • The cost incurred while purchasing a personal computer or a laptop if it is essential for completion of the course.
  • Insurance premium for student borrower, if any opted by the student. Presently Bank has tied up an arrangement with M/s. India First Life Insurance Co & M/s. Kotak Life Insurance co for Group Credit Life insurance cover to Education Loan borrowers.
  • Any other expenses required to complete the course – like study tours, project works, thesis, etc.
  • Cost of external coaching or tuition will not be considered.
  • For admission taken under Management Quota Seats, fees, as approved by the State Government / Government, approved regulatory body for payment seats will be taken.

Repayment Period

  • 10 years to 15 years is the maximum repayable period allowed for an education loan.
  • Loans up to Rs.7.5 lacs: Moratorium period+ Maximum-120 instalments
  • Loans above Rs.7.5 lacs: Moratorium period+ Maximum-180 instalments


  • Up to Rs.4 lacs: No security required, only co-obligation of parents
  • Above Rs.4 lacs and below Rs.7.5 lacs: A collateral needs to be provided in the form of a suitable third-party along with a guarantee of future income.
  • Above Rs.7.5 lacs: A 100% collateral needs to be provided with a guarantee of future income.

Baroda Scholar

This is a loan designed for students who aspire to study a particular course at a foreign university. This education loan scheme is given for MBA, MCA, MS, and other notified courses that help with job creation. To avail this education loan in India, the student must have secured admission to the notified institute and course. The loan limit for specified institutes is Rs. 80 lakhs and for non-specified institutes is Rs. 60 lakhs

Key benefits of Baroda Scholar

  • No margin is charged for loans up to Rs.4 Lacs.
  • A free debit card will be issued to the students.
  • There are no processing charges.

Eligibility criteria for Baroda Scholar

Student Eligibility

  • The student should belong to Indian Nationality.
  • The loan will be provided to only those students who have secured admission in a foreign university in the merit basis or an entrance test.
  • The course should be a technical course or a professional course.

Course Eligibility

  • Graduation courses which include job-oriented professional and technical courses offered by reputed universities.
  • Post-Graduation such as MCA, MBA, MS. etc.
  • Courses conducted by CIMA-London, CPA in the USA, etc.
  • Courses like a regular degree or Diploma courses like Aeronautical, Pilot training, Shipping that are recognized by local Aviation or shipping authority and Director General of Civil Aviation are also considered eligible for the loan.
  • The students need to go through the List of Foreign Institutes which are approved for the provision of the loan.

Interest rates and charges of Baroda Scholar

  • The interest will be charged under the simple interest inclusive moratorium period.
  • A 0.50% concession will be given to a girl student.
  • An additional 2% interest will be charged for the forfeited loans.

Important terms and conditions for Baroda Scholar

Quantum of Finance

  • 80 lacs for the list of specified premier institutions.
  • 60 lacs for the institutes not specified in the list of premier institutions.


  • Institutions listed under premier institutions: Nil
  • Institutions not specified in the list of premier institutions have to pay 10% for loans above Rs.4 Lacs.

Expenses Covered

  • Fee payable to college, institution, university, hostel, and also mess charges
  • Examination fee, library fee,  and laboratory fee.
  • Purchase of books, equipment, instruments, and uniform charges will be covered.
  • Personal Computers and laptop purchases will be covered wherever required
  • Caution deposit, building fund, a refundable deposit will be covered only if supported by institution bills and receipts, subject to the condition that the amount does not exceed 10% of the total tuition fees for the entire course.
  • Purchase of computers, if essential for the completion of the course.
  • Insurance premium for the student borrower
  • Any other expenses required to complete the course – like study tours, project works, thesis, etc.
  • Travel expenses and passage expenses.
  • Cost of external coaching and tuition will not be covered.

Repayment Period

  • The loan is repayable in maximum 10 to 15 year after the completion of the moratorium period.
  • For loans up to RS. 7.50 Lakhs: Moratorium Period +Maximum -120- instalments
  • For Loans above RS. 7.50 Lakhs: Moratorium Period +Maximum -180- instalments


  • Up to Rs.4 lacs: Only co-obligation of parents with no security.
  • Above Rs.4 lacs and below Rs.7.5 lacs: A collateral in the form of third-party guarantee along with the assurance of future income.
  • Above Rs.7.5 lacs: A 100% collateral and an assurance of future income should be provided.

Other Education Loans provided by the Bank of Baroda

The Bank of Baroda is well renowned by being one of the top banks in India with respect to empowering the student community and boosting the education sector. They have from time immemorial provided different schemes, loans and benefits hence establishing themselves as the go-to bank of choice for students seeking help/aid in India. 

Below is a list of other education loans provided by the Bank of Baroda:

Baroda education loan to students of premier educations: This is for students who want to continue their higher study in the premier institutions of the country.

Skill Loan Scheme: This is for training the employees in the banking sector.

Government of India interest Subsidy Schemes for Education: These loans are provided for those who belong to the economically weaker section and want to pursue an education in a professional/technical course. This is designed by the government of India, Ministry of Human Resource Development, and the Department of Higher Education.

Baroda Educational Loan for EDP being offered by Premier Institutions in India: These are the loans provided to students who want to study an entrepreneurial development course in a premier institution in India.

Baroda Educational Loan for EDP being offered by Premier Institutions Abroad: These loans are provided for students who want to take entrepreneurial development courses in the premier institutions or universities abroad.

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Awadhesh Giri

My son will be studying in iit hyderabad! I want loan for him!



Hi Awadhesh Giri,

Kindly visit the article "Education Loan in India" for more details and choose an appropriate loan for your son.

Thank You.