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FundMyCampus: Education Loan Platform
Bank of Baroda logo
Public Sector Bank

Government-backed · Lowest rates

Bank of Baroda Vidya / Vidya Sarathi

Bank of Baroda is India's second-largest PSU bank with one of the most aggressive education loan products in the public sector space. BoB Vidya covers domestic and abroad studies with competitive rates (8.85%–10.50%), high secured loan limits up to ₹1.5 Crore, and strong network across India's Tier-2 and Tier-3 cities.

8.85% to 10.50%

Interest Rate

₹1.5 Crore (with collateral)

Max Loan

12–20

Approval

15 years post-moratorium

Tenure

At a Glance

Bank of Baroda logo
Lender Type
PSU
Max Unsecured
₹7.5 Lakhs (CGFSEL) / ₹40 L (premier institutes)
Max for India
₹40 Lakhs
Max for Abroad
₹1.5 Crore (with collateral)
Processing Time
12–20 working days
Processing Fee
Up to 1% (often waived for amounts < ₹20 L)
Moratorium
Course duration + 12 months
Est. 1908 · Vadodara

Why Bank of Baroda

Top reasons students choose Bank of Baroda

Vidya Sarathi scheme: collateral-free up to ₹40 L for premier institutes

Among lowest PSU rates: 8.85% starting at premier institutes

0.50% additional rate concession for women borrowers

Eligible for all government subsidy schemes (CSIS, PM Vidyalakshmi, Padho Pardesh)

About Bank of Baroda

The complete Bank of Baroda loan guide

Bank of Baroda is India's second-largest PSU bank, founded in 1908 in Vadodara, Gujarat.

RBI-regulated lender
Section 80E tax benefit
FundMyCampus partner

Quick Facts

Bank of Baroda at a glance

Bank of Baroda logo

Interest Rate

8.85% to 10.50%

Maximum Loan

₹1.5 Crore (with collateral)

Repayment Tenure

Up to 15 years post-moratorium

Lender Type

Public Sector Bank

Check Eligibility: Free
Established 1908 · Vadodara

Loan Amounts

How much Bank of Baroda lends

₹40 Lakhs

For India studies

₹1.5 Crore (with collateral)

For Abroad studies

₹7.5 Lakhs (CGFSEL) / ₹40 L (premier institutes)

Without Collateral

Free in 2 minutes

See your Bank of Baroda eligibility instantly

Get bank-wise approval predictions and rate estimates for your profile.

Step 1

Eligibility Criteria

Quick 2-min check
1
Indian citizen between 18–35 years
2
Confirmed admission to recognised institution in India or abroad
3
Co-applicant: parent, guardian, spouse, or sibling with stable income
4
Co-applicant CIBIL 700+ preferred
5
60% minimum in qualifying examination
6
Eligible for CGFSEL collateral-free up to ₹7.5 Lakhs
7
BoB has strong presence in Gujarat, Rajasthan, Maharashtra, MP, faster processing in these regions
8
Self-employed co-applicants: 3 years of ITRs

Step 2

Documents Required

4 categories · Keep ready

Identity & KYC

5 items
  • PAN Card (applicant + co-applicant)
  • Aadhaar Card
  • Passport (mandatory for abroad)
  • Address proof
  • Photographs

Academic

6 items
  • Class 10 and 12 marksheets
  • Graduation transcripts
  • Entrance exam scores
  • Admission letter
  • Detailed fee structure
  • Visa documents for abroad

Co-applicant Financials

5 items
  • 3 years' ITR with computation
  • 3 months' salary slips
  • Form 16 (2 years)
  • 6 months' bank statements
  • Audited financials for self-employed

Collateral (for amounts above ₹7.5 L)

4 items
  • Title deed
  • Property tax receipts
  • Encumbrance certificate
  • Sanctioned building plan

Honest Review

Bank of Baroda pros & cons

What works

Pros

  • Among the lowest interest rates: 8.85% starting for premier institutes
  • 0.50% rate concession for women borrowers
  • Eligible for all government subsidy schemes (CSIS, Padho Pardesh, PM Vidyalakshmi)
  • 12-month post-course moratorium
  • Zero prepayment penalty after disbursement
  • Strongest branch network in Gujarat, Rajasthan, Maharashtra
  • Vidya Sarathi scheme: special product for premier institute students
  • Government-backed credibility: embassies trust PSU bank letters

Watch out

Cons

  • Longer processing time (12–20 days) vs private banks
  • Conservative on Tier-2 universities globally
  • Property collateral required for amounts above ₹7.5 L (except premier institutes)
  • Branch-driven process: needs home branch visits
  • Less digital tracking infrastructure than private banks
  • Smaller approved university list than SBI for abroad

Security

Collateral Requirements

Bank of Baroda offers collateral-free education loans up to ₹7.5 Lakhs under the Credit Guarantee Fund Scheme (CGFSEL), automatic eligibility. Under the Vidya Sarathi scheme, BoB offers collateral-free loans up to ₹40 Lakhs for premier institutions (IIT, IIM, AIIMS, NIT, BITS, ISB, XLRI, MDI, SPJIMR) with only third-party guarantee from co-applicant. For all other amounts above ₹7.5 L and abroad loans above premium institute limits, BoB requires tangible collateral: residential property (LTV 80–90%), fixed deposits with BoB (LTV 95%), LIC endowment policies, government bonds, or NSCs. Property valuation by BoB-empanelled valuers takes 10–14 working days. BoB does not accept agricultural land, ancestral property without clear title, or properties in unauthorised colonies. The bank is particularly thorough on title verification. The panel lawyer takes 5–7 working days for title opinion.

Coverage

Approved Universities

Bank of Baroda's approved university list for abroad studies covers approximately 4,500 institutions globally, slightly smaller than SBI's 6,000+ but still comprehensive. Their tiering: Premier tier (about 200 universities) for the lowest rates and highest unsecured limits, includes all Ivy League, top US public R1, Group of Eight Australia, top UK universities, NUS/NTU Singapore. Approved tier covers most QS Top 500 universities. Case-by-case tier handles less-known institutions with valid accreditation. For Indian studies, BoB funds all IITs, IIMs (including baby IIMs), NITs, IIITs, BITS Pilani, AIIMS Delhi and new AIIMS, XLRI, ISB, FMS Delhi, MDI Gurgaon, SPJIMR, NLSIU, NMIMS, and most NIRF top 100 institutions. BoB's Vidya Sarathi scheme provides preferential rates and collateral-free terms for the premier institute list.

The Process

How Bank of Baroda loan works

From application to disbursement, what to expect.

1

Check eligibility

Use our 2-minute quiz to see if you qualify.

2

Submit application

Upload docs through our portal. We organise for Bank of Baroda.

3

Sanction

Bank of Baroda processes in 12–20 working days. We chase for you.

4

Disbursement

Bank wires fees directly to your institute.

Compare

Bank of Baroda vs Other Lenders

If Bank of Baroda doesn't suit your profile, here are the strongest alternatives.

SBI Global Ed-Vantage logo

Alternative

SBI Global Ed-Vantage

Larger PSU sibling with broader university acceptance list (6,000+ vs BoB's 4,500). Choose SBI for universities outside BoB's list. BoB has stronger network in Gujarat/Rajasthan/Maharashtra and slightly faster Vidya Sarathi processing for premier institutes.

Compare for my profile
Union Bank Education Loan logo

Alternative

Union Bank Education Loan

Another PSU at comparable rates (9.30%–11.40%) with unique collateral-free abroad scheme up to ₹40 Lakhs. Choose Union Bank if you need collateral-free abroad loan and university is on their list. BoB for comprehensive PSU offering across regions.

Compare for my profile
PNB Education Loan logo

Alternative

PNB Education Loan

Punjab National Bank at 8.80%–10.95%, slightly different premier institute scheme (Pratibha). Choose PNB for stronger North India network. BoB for Western India presence. Rates and product features are comparable.

Compare for my profile

Bank of Baroda Education Loan: FAQs

Common questions about taking an education loan from Bank of Baroda

BoB education loan rates range from 8.85% to 10.50% per annum. Vidya Sarathi (premier institutes) starts at 8.85%, BoB Vidya (general) starts at 9.15%. Women borrowers get an additional 0.50% concession. Rates are linked to BoB's RLLR (Repo-Linked Lending Rate) and revise quarterly with RBI repo movements.
Vidya Sarathi is Bank of Baroda's premium institute scheme offering preferential terms for students admitted to: all IITs, IIMs, AIIMS, NITs, BITS Pilani, ISB, XLRI, MDI, SPJIMR, FMS Delhi, NLSIU. Benefits: lowest rate (8.85% starting), no collateral required up to ₹40 Lakhs (only third-party guarantee), 12-month post-course moratorium, optional simple interest payment during moratorium, eligible for all government subsidy schemes. Vidya Sarathi processing typically faster than general BoB Vidya, 10–15 days vs 15–25 days.
Up to ₹7.5 Lakhs unconditionally under the CGFSEL government guarantee scheme. Up to ₹40 Lakhs unsecured for premier institutes (IIT/IIM/AIIMS/NIT/BITS/ISB) under Vidya Sarathi, only third-party guarantee from co-applicant required. For amounts above ₹40 Lakhs (typically abroad studies), tangible collateral required.
Typically 12–20 working days. Breakdown: 3–5 days for document verification, 5–7 days for credit assessment, 5–7 days for collateral valuation (if applicable), 2 days for sanction. Vidya Sarathi applications process faster, typically 10–15 days. Existing BoB customers with established relationships get expedited processing.
All major schemes apply: (1) CSIS, full interest subsidy during moratorium for families earning ≤ ₹4.5L. (2) Padho Pardesh, minority community PG students abroad (income ≤ ₹6L). (3) Dr. Ambedkar Central Sector Scheme, SC/ST PG students abroad (income ≤ ₹8L). (4) PM Vidyalakshmi (2024), 3% interest subsidy for families up to ₹8L on top 860 institutes. (5) State-level subsidies. BoB automatically processes all applicable subsidies.
Yes, zero prepayment penalty after disbursement starts. RBI mandates this for all banks on floating-rate retail loans. Partial prepayments and full closure can be done anytime via NetBanking or home branch. Strategic prepayment after starting your career typically reduces total interest by 25%–35%.
Yes. BoB offers up to ₹1.5 Crore for medical studies abroad with collateral, and up to ₹40 Lakhs unsecured under Vidya Sarathi for top medical institutions including AIIMS Delhi and select medical universities abroad. NMC-recognised foreign medical colleges (Russia, Philippines, Georgia, Kazakhstan) are covered. Special 12-month additional moratorium for FMGE preparation after course completion.
Comparable. Both are major PSU banks with similar rates and product features. Specific differences: (1) SBI has larger approved university list (6,000+ vs BoB's 4,500), better for non-top-tier universities. (2) BoB has stronger Western India network (Gujarat, Maharashtra, Rajasthan). (3) BoB Vidya Sarathi rate (8.85%) is slightly higher than SBI Scholar (7.15%). (4) Processing time similar (15–25 days). (5) Both eligible for same government subsidies. Pick whichever bank you or your co-applicant has existing relationship with for faster processing.
Common rejection reasons and alternatives: (1) University not on BoB's approved list. Try SBI Global Ed-Vantage (broader list). (2) Co-applicant CIBIL below 700. Try private banks (ICICI 720+) or NBFCs (Avanse accepts 650). (3) Loan amount needs above ₹40 L unsecured, try Credila (₹1.5 Cr unsecured) or Avanse (₹75 L). (4) Self-employed with informal income, try Avanse or Auxilo (more flexible). FundMyCampus reviews your specific rejection reason and recommends the best alternative.
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