The Bank of Baroda (BoB) is one of the nationalized banks that has been successfully providing an abroad education loan to aspirants. In our previous article, we discussed in detail about abroad education loan schemes by SBI. This article is your guide to understanding the terms and conditions of a full Bank of baroda student loan process.

The major focus of this article will be on the Bank of Baroda abroad education loan schemes. This article is inspired by the below video taken from episode #7 of the web series "Loanflix- Abroad Education Loan simplified". This episode by our experts at WeMakeScholars also provides detailed insights on various Bank of Baroda abroad education loan schemes, Bank of baroda education loan interest rate, BOB eligibility criteria, BOB application process, BOB education loan interest rate, BOB student loan process etc.

The Bank of Baroda student loan has six different education loan schemes as listed below:

1. Baroda Vidya education loan for school-going children (nursery to class 12)
2. Baroda Gyan for pursuing higher education in India.
3. Baroda Scholar for pursuing higher education abroad.
4. Baroda education loan for premier institutes in India (IITs, NITs, etc.).
5. Baroda skill development loan for small skill development courses
6. Baroda education loan for Executive Development Program

The major focus of this article will be on the Baroda Scholar loan, a loan scheme meant for students who want to opt for a BOB student loan. Additional information is provided on the Baroda education loan for executive development program too.

Read More: A guide to education loan without collateral for Indian students

Bank of Baroda abroad education loan scheme- Baroda Scholars

This Bank of Baroda abroad education loan scheme is mainly aimed at candidates who want to realize their dreams of pursuing higher education abroad. The Baroda Scholar scheme has a list of close to 300 premier universities/colleges located all over the world. The criteria for availing education loan for colleges mentioned in this list are different. This list of premier institutes can be found here. For candidates who are planning to go to institutions that are not on the premier list, the terms and conditions are different. 

• Maximum loan amount: The maximum amount approved by the Bank of Baroda for institutes belonging to the premier list is Rs. 80 Lakhs. For those institutes that are not on the premier list, the approved amount is up to Rs. 60 Lakhs. However, our team at WeMakeScholars can help candidates obtain a higher loan amount. But, it varies from individual to individual.

• Interest rate: As discussed in our previous article, the rate of interest is calculated on the basis of MCLR (Marginal Cost of Funds based Lending Rate), i.e, the minimum rate at which the bank can lend loans. The MCLR for Bank of Baroda education loan for abroad studies as of today is 8.65%. For the Baroda Scholar scheme, the interest rate depends on whether the university is mentioned in the premier institute list or not.

• The Bank of Baroda education loan interest rate for premier institutes: BOB education loan interest rates for premier institutes is MCLR+1.25%, which comes to a total rate of 9.9% for male candidates. For female candidates, there is a 0.5% waiver in interest rates. So, the total rate of interest for female candidates after the waiver is 9.4%.
• The Bank of Baroda education loan interest rate for non-premier institutes: The RoI fixed by Bank of Baroda for non-premier institutes is MCLR+2%, i.e, 8.65%+2%, which amounts to a total of 10.65% for male candidates and 10.15% for female candidates as of today.
• Moratorium Period: The moratorium period or a repayment holiday refers to the waiting period during which the applicant is not required to repay the loan amount. For the Baroda Scholar scheme, the moratorium period is from six months to one year after the course duration. The total education loan may be repaid in 15 years.
• Accepted collateral: The Baroda Scholar scheme requires collateral for any loan amount that exceeds Rs. 7.5 Lakhs. The Bank of Baroda abroad education loan schemes follow a collateral policy similar to that of other nationalized banks. There are two types of collateral accepted by the Bank of Baroda- Immovable property (house, flat, land) and liquid security (FD, insurance policy, Govt. Bonds, gold, etc.), To know more about collateral and related terms, please refer to our previous articles on the same.
• Accepted Co-applicants: For most Bank of Baroda abroad education loan schemes, the primarily accepted co-applicants are- parents, siblings, spouse, and parents-in-law. It is mandatory for the co-applicant to have a fixed source of income. Proof of income is also an important document when it comes to co-applicants. If none of the above-mentioned people has a fixed source of income or proof of it, candidates may name close relatives as co-applicants; however, this is not advised.
• Expense coverage: The Baroda Scholar scheme offers to cover up to 100% of the candidate’s expenses for the chosen master’s program. However, this advantage is for candidates who plan to go to the premier institutes. For institutes that are not on the premier list, only 90% of the total expenses are covered. Expenses may include the candidate’s tuition fee, living expenses, health insurance, travel, educational aids like books, laptops, etc.
• Processing fees: The Bank of Baroda education loan for abroad studies charges Rs. 10,000 as processing fees, which is fully refundable.
  For those candidates who have pledged immovable property (flat, house, non-agricultural land) as collateral, an extra fee of Rs. 7500 to Rs. 8000 may be charged for property valuation and legal verification.
  If the pledged collateral is liquid security (FDs, govt. Bonds, gold, life insurance), the above extra charges are not applicable.

Read More on Bank of Baroda education loan – Procedure, Prime University List and details

The Baroda Education Loan for EDP (Executive Development Program) 

This Bank of Baroda abroad education loan scheme is for working professionals who are looking for part-time courses, distance, and online programs at premier institutes in India and abroad.

The highlight of this scheme is that since it is meant for working professionals, the aspiring candidate does not need a co-applicant as the loan amount is directly dependent on the candidate’s monthly income.

Bank of Baroda education loan interest rate: The BOB education loan interest rate for this scheme is MCLR+1.75%, i.e, 8.65%+1.75% which comes to a total rate of 10.4% as of today.

We hope this article has been helpful to those of you looking for The Bank of Baroda abroad education loan option. The education loan process in India comes with its own set of hurdles. This is where knowledge of a hack comes in handy to unlock the best out of any loan scheme. The hack for this episode will give you an idea of how you can reduce the processing time for Bank of Baroda abroad education loan. Watch the above video till the end to know the hack to have a successful education loan process with the Bank of Baroda.

Don’t forget to check out our web-series, Loanflix on YouTube. It is being created by our team to spread knowledge and awareness around the abroad education loans, to aspirants and their guardians.

If you have any other questions regarding abroad education loan or any other related topic, feel free to request a callback from WeMakeScholars for clarifications. We are very active online and would love to answer your comments. So, feel free to leave your comment at the end of this article or on our YouTube channel.

Note: WeMakeScholars is an organization funded and supported by the Government of India that focuses on International Education finance. We are associated with 10+ public/Pvt banks/ NBFCs in India and help you get the best abroad education loan matching your profile. As this initiative is under the Digital India campaign, it is free of cost. The organization has vast experience dealing with students going to various abroad education destinations like the US, Canada, UK, Australia, Germany, Sweden, Italy, China, France among others