Bank of Baroda Education Loan for Study Abroad: Complete Guide

Bank of Baroda offers Baroda Scholar Loan¹ to help Indian students pay for higher education abroad. This loan is for those who have secured admission to a qualifying university overseas. Read on to learn more about the Bank of Baroda Scholar Loan, how much it costs to borrow, and how to apply.

📝 Your Complete Guide to Bank of Baroda Study Abroad Loan

Eligible Courses and Colleges for Baroda Scholar Loan Requirements for Baroda Scholar Loan Student Eligibility Collateral Security Upfront Payments Interest Rates for Baroda Scholar Loan Repayment Terms for Baroda Scholar Loan How to Apply for Baroda Scholar Loan Documents Required Apply Online Apply In Person Loan Disbursal Process for Baroda Scholar Loan Save with international remittance when you choose Wise

Eligible Courses and Colleges for Baroda Scholar Loan

The Baroda Scholar Loan is an international education loan for pursuing post-secondary studies outside India. The loan amount offered by the Bank of Baroda depends on the type of university you have applied to. The bank offers loans of up to INR 150 lakhs for premier universities abroad and up to INR 60 lakhs for non-premier universities.

Courses Covered for BOB Study Abroad Loan

The Baroda Scholar Loan is available to students planning for their higher education in management, STEM subjects, medicine, law, economics, performing arts, econometrics, and design courses in premier universities abroad. Here are some examples of courses that are covered:

• MCA, MBA, MS, or other post-graduate degrees.
• Courses like CIMA-London or CPA-USA.
• Job-oriented professional or technical courses offered by qualifying universities.

Other studies abroad may also be considered on a case-by-case basis.

List of Premier Institutions for the Baroda Scholar Loan

You must be accepted at a qualifying university to be eligible for a Baroda Scholar Loan. Here are the lists of the premier institutions organized by type of course:

• Institutes for Management Courses
• Institutes for STEM courses
• Institutes for Medical courses
• Institutes for other courses, like arts, law, economics, econometrics, performing arts, and design.

The bank may consider other universities outside India as well on a case-by-case basis.

Expenses covered

The Baroda Scholar Loan will cover the following costs for studying overseas:

• Tuition fees.
• Hostel or accommodation fees.
• Examination, library, and laboratory fees.
• The cost of books, equipment, instruments, uniforms, or other necessary items for your course.
• Personal computers if required by the course.
• Any refundable deposits as required by the institution, with a cap of 10% of the total tuition fees for the entire course.
• Insurance premium for student borrowers (if applicable).
• Any other expenses required to complete the course, like study tours or project expenses.
• Roundtrip travel to the university.

Application Requirements for BOB Study Abroad Loan

Here are the application requirements to qualify for the Baroda Scholar Loan:

Student Eligibility

Bank of Baroda Study Abroad loan is available to Indian nationals and passport holders, who have already secured admission to an eligible program at the qualifying university abroad.

Collateral Security

The Baroda Scholar Loan Scheme requires collateral security depending on your loan amount:

Loan amount	Collateral required
Up to INR 4 lakhs	No collateral, but a parent must be a co-applicant.
From INR 4 lakhs to INR 7.5 lakhs	Collateral required from a third party guarantee and future income earned.
From INR 7.5 lakhs to INR 80 lakhs	100% of the loan amount required and future income earned.
Above INR 80 lakhs	125% of the loan amount required and future income earned.

Upfront Payments

Bank of Baroda requires upfront payments to process the study abroad loan. Here are the application fees and charges to expect:

Fee	Amount
Vidya Lakshmi Portal charge	INR 100
Processing fees for loans below INR 7.50 lakhs	No fees.
Processing fees for loans above INR 7.50 lakhs (refundable)	1% of the loan amount with a maximum of INR 10,000.
Mortgage collateral fee (non-refundable)	INR 8,500.

Bank of Baroda requires 15% as a margin for loans above INR 7.50 lakhs.

Interest Rates for Bank of Baroda Study Abroad Loan

The interest rates for the Baroda Scholar Loan are linked to the Bank of Baroda's Repo Linked Lending Rate. The bank adds a spread on top to provide you with the effective rate of interest on the education loan.

Interest Rate for Universities listed as a premier institution

Loan Amount	Effective Rate*
All Loans	10.40%

Interest Rate for Universities not specified in the premier institution list

Loan Amount	Effective Rate*
Loans up to INR 7.50 lakhs	11.15%
Loans above INR 7.50 lakhs	10.75%

*Rates retrieved on 5 June 2023.
Please verify the latest rates from the Bank of Baroda website.

• If you do not opt for life insurance coverage during the loan term, an additional risk premium of 0.10% will be added to the interest rate for all education loans above INR 7.50 lakhs.

• If you are late on any payments during the repayment period, a 2% penalty interest amount will be charged if the loan exceeds INR 4 lakhs.

• Female students get a concession of 0.50% in the interest rates for all education loans.

💸 Income Tax Benefit
Section 80E of the Income Tax Act⁴ allows borrowers to claim tax exemptions on interest repayments toward education loans during the financial year. Bank of Baroda provides an interest certificate for the total interest repayment at the end of every year.

Repayment Terms for Bank of Baroda Study Abroad Loan

Bank of Baroda offers a moratorium, or a grace period during which you don't need to make payments towards the loan, for the entire course duration plus an extension for another year. The moratorium extends for only six months if you get a job after completing the course. Once the moratorium ends, you will be expected to begin making loan repayments on a monthly basis. Bank of Baroda offers has a maximum repayment period of 15 years after the moratorium for repaying the education loan.

How to apply for a Bank of Baroda Study Abroad Loan

Before you begin your application, gather the supporting documents for the Bank of Baroda Scholar Education Loan.

Documents Required

Here are the documents you will need for the loan applications, but the bank can also request additional ones.

• KYC documents of the applicant and co-applicants, like ID and address proof.
• Copies of academic records.
• Proof of admission to the course in the university.
• Entrance Exam result, if any.
• Schedule of expenses and the detailed statement of cost from the university.
• Income proof documents of the co-applicant and guarantor (if applicable).
• Bank account statements of all applicants for the last six months.
• Property-related records if providing a mortgage as collateral.

Online Application Process

To apply online, register at the Vidya Lakshmi Portal with your personal details, mobile number, and email ID. Follow the prompts to complete the application process, and select Bank of Baroda as the preferred financial institution. After submitting the application, the Bank of Baroda officials will contact you to complete the requirements.

Offline Application - at Bank of Baroda branch

Students can complete the education loan application at the Bank of Baroda branch.² in person with bank officials. Make sure to bring hard copies of your documents with you.

📞 Bank of Baroda Contact Information
You can contact Personal Banking at Bank of Baroda at the toll-free number 1800 5700. NRIs from abroad can contact the bank at +91 79 6629 6629.³

Loan Disbursal Process for Bank of Baroda Study Abroad Loan

The Bank of Baroda Scholar Loan is disbursed directly to the university on an annual basis. The bank can reimburse you if you have paid any fees or expenses directly to the university. To be eligible for reimbursement, you must provide original receipts and evidence of the payments.

Living expenses can be credited to the student's account overseas or the co-applicants account in India.

Save with international remittance when you choose Wise

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Wise can help you save⁵ when sending money to bank accounts abroad. You can save money on international transfers with Wise's low transfer fee and the mid-market exchange rate, which is the same as the one you see on Google. So make university payments or living expenses a breeze when you use Wise to send money abroad from India.

And once you arrive abroad for your studies, check out the Wise multi-currency account available for residents living in supported countries. Enjoy an account as worldly as you are and spend just like a local when you travel abroad with a linked debit card, while also paying less in fees.

Please see the Terms and Conditions for your region and visit our pricing page for the most up-to-date pricing and fee information on Wise products.

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Sources used for this article:

1. Bank of Baroda Education Loan For Abroad Studies
2. Bank of Baroda Branch Locator
3. Bank of Baroda Contact Center
4. Income Tax deduction under Section 80E of the IT Act 1961
5. Price Comparison for sending money abroad from India

Sources verified on 5 June 2023.
Cover photo by Shoeb Khan.