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Bank of Baroda Education Loan Interest Rates: Pursuing higher education often requires significant financial planning, and education loans can bridge the gap between aspiration and reality. Bank of Baroda, one of India’s leading public sector banks, offers a range of education loan schemes with competitive interest rates to support academic goals.
This blog explores the Bank of Baroda education loan interest rate structure, eligibility, benefits, and application process as of 2025, enabling you to make well-informed choices for your educational journey to study abroad.
This Blog Includes:
- What Are Bank of Baroda Education Loan Interest Rates?
- BOB Education Loan Schemes with Interest Rates
- Key Notes on BOB Education Loan Interest Rates
- Factors Influencing Bank of Baroda Education Loan Interest Rates
- Benefits of Choosing Bank of Baroda Education Loans
- Tips to Manage BoB Education Loan Repayment
- FAQs on BOB Education Loan Interest Rates
What Are Bank of Baroda Education Loan Interest Rates?
Bank of Baroda education loan interest rates to study aboard or in India determines the cost of borrowing and impacts your repayment plan. Bank of Baroda offers tailored education loan schemes with interest rates linked to the Baroda Repo Linked Lending Rate (BRLLR), ensuring transparency and competitiveness.
Bank of Baroda’s education loan interest rates depend on the type of education loan scheme, the loan amount, and the institution you are applying to. Understanding Bank of Baroda education loan interest rates is crucial for calculating your Equated Monthly Installments (EMIs) and planning your finances. Here’s an overview:
- Current BRLLR: 8.90% per annum.
- Interest Rate Range: 7.90% to 13.05% per annum, depending on the loan scheme, institute type, and applicant profile.
- Concessions: Female applicants receive a 0.20% to 0.50% concession on interest rates for non-premier institutes.
- Floating Rates: Rates are linked to BRLLR, meaning they may fluctuate with changes in the Reserve Bank of India’s repo rate.
These rates apply to various schemes like Baroda Scholar, Baroda Gyan, and Baroda Digital Education Loan, each catering to specific academic needs.
Moreover, the maximum education loan for abroad studies depends on the course, university, and the student’s academic performance.
BOB Education Loan Schemes with Interest Rates
Bank of Baroda offers multiple education loan schemes to cover studies in India and abroad. Each scheme has distinct interest rates based on the loan amount, course, and institution. Below is a detailed look at the most popular schemes and their respective Bank of Baroda education loan interest rates.
| Bank of Baroda Education Loan Scheme | Loan Conditions | Rate Formula(Repo Rate + Spread) | Effective Rate of Interest (p.a.) | Service Charges (Excluding GST) |
| Baroda Executive Development Premier Institutions (Abroad) | Up to INR 7.5 Lakh | BRLLR + 2.00% | 10.65% | Study Abroad: 1.00% of loan amount (max INR 10,000, refundable on first disbursement) |
| Above INR 7.5 Lakh | BRLLR + 2.35% | 11.00% | ||
| Baroda Scholar (Floating Rate) | Premier Institution Abroad | BRLLR + 0.55% | 9.20% | Up to INR 7.5 Lakh: Nil<br>Above INR 7.5 Lakh: 1.00% of loan amount (max INR 10,000, refunded for premier institutions on first disbursement)<br>VLP Charge: INR 100 for all cases |
| Premier Institution Abroad (Canada) | BRLLR + 0.55% | 9.20% | ||
| Non-Premier Institution Abroad (Up to INR 7.5 Lakh) | BRLLR + 2.00% | 10.65% | ||
| Non-Premier Institution Abroad (Above INR 7.5 Lakh) | BRLLR + 1.05% | 9.70% | ||
| Non-Premier Institution Abroad (Canada, Up to INR 7.5 Lakh) | BRLLR + 2.00% | 10.65% | ||
| Non-Premier Institution Abroad (Canada, Above INR 7.5 Lakh) | BRLLR + 2.55% | 11.20% | ||
| Baroda Yodha (Defense Personnel Children, Abroad) | BRLLR + 1.05% | 9.70% | ||
| Baroda Yodha (Defense Personnel Children, Canada, Up to INR 7.5 Lakh) | BRLLR + 2.00% | 10.65% | ||
| Baroda Yodha (Defense Personnel Children, Canada, Above INR 7.5 Lakh) | BRLLR + 2.55% | 11.20% | ||
| Baroda Scholar (Fixed Rate) | Premier Institution Abroad (Up to INR 7.5 Lakh) | Base Rate + 2.00% | 11.40% | Same as Floating Rate |
| Premier Institution Abroad (Above INR 7.5 Lakh) | BRLLR + 2.55% | 11.20% | ||
| Premier Institution Abroad (Canada, Up to INR 7.5 Lakh) | Base Rate + 2.00% | 11.40% | ||
| Premier Institution Abroad (Canada, Above INR 7.5 Lakh) | BRLLR + 2.55% | 11.20% | ||
| Non-Premier Institution Abroad (Up to INR 7.5 Lakh) | Base Rate + 2.00% | 11.40% | ||
| Non-Premier Institution Abroad (Above INR 7.5 Lakh) | BRLLR + 3.05% | 11.70% | ||
| Non-Premier Institution Abroad (Canada, Up to INR 7.5 Lakh) | Base Rate + 2.00% | 11.40% | ||
| Non-Premier Institution Abroad (Canada, Above INR 7.5 Lakh) | BRLLR + 4.55% | 13.20% | ||
| Baroda Yodha (Defense Personnel Children, Up to INR 7.5 Lakh) | Base Rate + 2.00% | 11.40% | ||
| Baroda Yodha (Defense Personnel Children, Above INR 7.5 Lakh) | BRLLR + 2.55% (Premier) / 3.05% (Non-Premier) | 11.20% (Premier) / 11.70% (Non-Premier) | ||
| Baroda Yodha (Defense Personnel Children, Canada, Up to INR 7.5 Lakh) | Base Rate + 2.00% | 11.40% | ||
| Baroda Yodha (Defense Personnel Children, Canada, Above INR 7.5 Lakh) | BRLLR + 4.55% | 13.20% | ||
| EDP Education Loans for Abroad | Up to INR 80 lakhs for Premier Institutes Abroad | BRLLR + 2.35% | 11.15% p.a onwards | Up to INR 7.5 lakhs- NIL–Above INR 7.5 lakhs- 1% of the loan amount, or INR 10,000 |
Also Read: Bank of Baroda Personal Loan Interest Rate: Based on Profile
Key Notes on BOB Education Loan Interest Rates
Now you have understood the Bank of Baroda education loan interest rates and charges to study abroad. Understanding the finer details of Bank of Baroda’s education loan interest rates is essential for effective financial planning.
The following notes highlight critical aspects such as concessions, penalties, moratorium interest, and additional fees for schemes like Baroda Scholar, Baroda Vidya, and Baroda Executive Development. Please have a look:
- Interest Rate Concessions:
- Baroda Scholar: Female students receive a 0.20% discount on interest rates for non-premier institutes (applies to both floating and fixed rates). No discounts for premier institutes.
- Baroda Vidya: Female students are eligible for a 0.50% reduction in interest rates.
- Bank of Baroda EDP Education Loan interest rates are calculated as the sum of the RLLR (Repo Linked Lending Rate) and an applicable spread, starting from 11.15% p.a. onwards.”
- Penalties for Overdue Payments:
- Baroda Scholar: 2% per annum on overdue amounts for loans exceeding INR 4 lakh.
- Baroda Vidya: 2% per annum on overdue amounts for loans exceeding INR 2 lakh.
- Moratorium Period Interest:
- Baroda Scholar: Simple interest is charged monthly during the repayment holiday/moratorium period, added to the principal for EMI calculation.
- Baroda Vidya: Interest must be paid as applied during the moratorium period.
- Additional Fees:
- A one-time, non-refundable fee of INR 8,500 per property is charged for advocate and valuer services when property is mortgaged.
- No charges for mortgage creation across all education loan schemes.
- Pre-Payment Penalties (Fixed Rate Loans):
- No charges if repaid from the borrower’s own funds.
- 0.50% of the outstanding loan amount per account if taken over by another lender.
Factors Influencing Bank of Baroda Education Loan Interest Rates
Several factors determine the final interest rate you receive on a Bank of Baroda education loans for studying abroad. Knowing these can help you secure better terms.
- Institution Type: Premier institutes (e.g., top global universities IITs, or IIMs,) often qualify for lower rates due to lower risk.
- Loan Amount: Higher loans (above INR 7.5 lakh) may have slightly lower rates but require collateral.
- Applicant Profile: A strong academic record and a co-applicant with good creditworthiness can lead to better rates.
- Gender: Female applicants benefit from interest rate concessions, promoting gender inclusivity.
- CIBIL Score: A higher credit score of the co-applicant (parent or guardian) can reduce the interest rate.
By aligning your application with these factors, you can optimize the Bank of Baroda education loan interest rate offered.
Benefits of Choosing Bank of Baroda Education Loans
Beyond competitive interest rates, Bank of Baroda education loans come with several advantages that make them a preferred choice for financing higher education.
- No Processing Fees: Loans up to INR 7.5 lakh incur no processing charges.
- Flexible Repayment: Repayment tenure extends up to 15 years, including a moratorium period (course duration + 6 months to 1 year).
- Collateral-Free Options: Loans up to INR 40 lakh for premier institutes and INR 7.5 lakh for others require no collateral.
- Tax Benefits: Interest paid on education loans is eligible for tax deductions under Section 80E of the Income Tax Act, 1961.
- Comprehensive Coverage: Loans cover tuition, accommodation, books, travel (for abroad studies), and other course-related expenses.
These benefits reduce the financial burden, allowing you to focus on your studies.
Tips to Manage BoB Education Loan Repayment
Repaying Bank of Baroda’s education loan requires careful planning to avoid financial stress. Here are practical tips to manage your Bank of Baroda education loan to study abroad effectively.
- Understand the Moratorium Period: No principal repayment is required during the course duration plus 6 months to 1 year, but interest accrues. Consider paying simple interest during this period to reduce the overall loan burden.
- Use the EMI Calculator: Bank of Baroda’s online EMI calculator helps you estimate monthly installments based on the loan amount, interest rate, and tenure.
- Opt for Auto-Debit: Set up a Standing Instruction (SI) for automatic EMI deductions to avoid late payments and penalties.
- Prepay When Possible: Bank of Baroda charges no prepayment penalties, so consider clearing the loan early if you have surplus funds.
- Monitor Rate Changes: Since rates are floating, keep track of BRLLR updates to anticipate changes in your EMI.
By following these strategies, you can repay your loan efficiently and maintain financial stability.
Also Read: Education Loan for Abroad Studies by Indian Government
Bank of Baroda stands out as a reliable choice for education loans due to its competitive Bank of Baroda education loan interest rates, flexible terms, and student-centric approach. Whether you’re pursuing a degree abroad or in India, the bank’s schemes cater to diverse needs with benefits like no processing fees, collateral-free options, and tax deductions.
By understanding the interest rate structure, eligibility criteria, and application process, you can make an informed decision to finance your education seamlessly.
FAQs on BOB Education Loan Interest Rates
The current BRLLR for Bank of Baroda education loans in 2025 is 8.90% per annum.
The range of Bank of Baroda education loan interest rates is 7.90% to 13.05% per annum, depending on the loan scheme, loan amount, institute type, course, and other factors.
Yes, female applicants receive a 0.20% to 0.50% concession on Bank of Baroda education loan interest rates for non-premier institutes.
Bank of Baroda education loan interest rates are mostly floating, linked to BRLLR, with fixed-rate options for some schemes.
The Bank of Baroda interest rate for the scholar scheme for premier institutions abroad is 9.20% per annum.
The service charges for the Baroda Executive Development scheme are 1.00% of the loan amount, up to INR 10,000, refundable on first disbursement.
The interest rate for non-premier institutions abroad for loans above INR 7.5 lakh is 9.70% (floating) or 11.70% (fixed) per annum.
The interest rate for the Baroda Yodha scheme for defense personnel children in Canada (above INR 7.5 lakh) is 11.20% (floating) or 13.20% (fixed) per annum.
The penalty for overdue payments in the Baroda Scholar scheme is 2% per annum on amounts exceeding INR 4 lakh.
A one-time, non-refundable fee of INR 8,500 per property is charged for advocate and valuer services when property is mortgaged.
There are no prepayment penalties for fixed-rate loans if repaid from the borrower’s funds, but a 0.50% charge applies if taken over by another lender.
Factors influencing the interest rate include institution type, loan amount, applicant profile, gender, and co-applicant’s CIBIL score.
The maximum repayment tenure for a Bank of Baroda education loan is up to 15 years, including the moratorium period.
Interest paid on Bank of Baroda education loans is eligible for tax deductions under Section 80E of the Income Tax Act, 1961.
Bank of Baroda education loans cover tuition, accommodation, books, travel (for abroad studies), and other course-related expenses.
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