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Baroda Scholar scheme: Educational loan from Bank of Baroda for studying abroad

Bank of Baroda is offering education loan with upper limit of Rs. 20 lakh under Baroda Scholar scheme to meritorious Indian students who have secured admission in professional/technical courses abroad. The article provides the details of the scheme.

Bank of Baroda is a public sector bank headquartered at Vadodara. The bank provides financial assistance to meritorious students intending to pursue higher studies abroad. The present article provides all necessary details in respect of Baroda Scholar scheme.

List of eligible courses

Students taking admission in the following courses would be eligible for this loan:
  • Graduate/ Post Graduate/ Doctorate/ Job Oriented Professional/ Technical Courses offered by reputed Universities overseas.
  • Regular Degree/Diploma courses like aeronautical, pilot training, shipping etc. The Institute should be recognized by the competent local aviation/ shipping authority and Director General of Civil Aviation/ Shipping in India.

Who are eligible

  • The student must be an Indian national.
  • The applicant student should secure admission to professional/ technical courses at foreign universities/ Institutions.

Quantum of loan

The maximum amount of loan under this scheme is Rs. 20 lakhs.

Applicable margin

The applicable margin under this scheme is 15% of the loan amount.

Loan coverage

The following components of expenditure are eligible for loan under this scheme:
  • Admission/ tuition fees to college/university
  • Hostel/mess charges
  • Examination/library/laboratory fee
  • Purchase of books/equipments/instruments
  • Caution deposit/ building fund/refundable deposit supported by institution bills/ receipts
  • One way travel expenses/ passage money
  • Purchase of computers, if essential for completion of the course.
  • Any other expense required to complete the course, e.g., study tour, project work, thesis, etc.


The details of security required under the Baroda Scholar schme are as under:-
  • Upto Rs. 4.00/- lakhs: No security required
  • Above Rs. 4.00 lakhs and up to Rs. 7.5 lakhs: Collateral in the form of a suitable third party guarantee along with assignment of future income.
  • Above Rs. 7.5 lakhs: Tangible collateral security equal to 100% of the loan amount along with assignment of future income.

Processing fee

The applicable processing fee under the scheme is 1.00% of loan amount (maximum Rs.10,000/-) which is recovered upfront. This amount is refundable on first disbursement of loan.

Repayment holiday/Moratorium period

The moratorium period under the Scholar scheme is course period + 1 year or 6 months after getting a job, whichever is earlier.

Repayment period

The repayment period in respect of education loan taken under this scheme would be as under:-
  • Repayable in 120 maximum installments for loan amount upto Rs. 7.50 lakhs.
  • Repayable in 180 maximum installments for loan amount above Rs. 7.50 lakhs.

Rate of interest

The rate of interest of loan taken under this scheme is directly related to MCLR, the details of which are given below:
  • One year MCLR + Strategic premium + 1%
  • Simple Interest during repayment holiday/moratorium period
  • 0.50% concession in rate of interest to loans for girl student.
  • Penal interest @ 2% p.a. on overdue amount, if loan exceeds Rs. 4/- lakhs.

Concluding comments

For further information, interested students and their guardians are advised to contact local branch of Bank of Baroda or check the bank website www.bankofbaroda.com

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