Baroda Vidya scheme: Educational loan from Bank of Baroda for studying in school

Bank of Baroda, a public sector bank, is offering education loan with upper limit of Rs. 4 lakh under Baroda Viya scheme to meritorious Indian students who have secured admission in recognised schools anywhere in India. 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 going abroad and also in India for professional/technical studies. However, under its unique Baroda Vidya scheme, the bank provides educational assistance even to students for school expenses. Loan under this scheme is available for studies from Nursery to Senior Secondary School students. The present article provides all necessary details in respect of Baroda Vidya scheme.

Who are eligible

  • Under this scheme, the student must be an Indian national residing in India.
  • The applicant student should secure admission to a recognized school / High school / Jr. College (including CBSE / ICSE / State Board) for any of the following courses:
    1. Stage I : Nursery to Vth Standard
    2. Stage II : VI th to VIII Standard
    3. Stage III : IX th to XII th Standard

Quantum of loan and applicable margin

The maximum amount of loan under Baroda Vidya scheme is Rs. 4 lakhs. There is no margin in case of educational loan under Baroda Vidya scheme.

Loan coverage

The following components of expenditure are eligible for loan under this scheme:
  • Fee payable to school
  • Examination / Library / Laboratory Fee
  • Fee and other charges payable to hostel
  • Purchase of books / equipments / instruments / uniforms
  • Personal Computers / Laptops wherever required
  • Caution deposit / building fund / refundable deposit supported by institution bills /receipts


In case of educational loan under Baroda Vidya scheme, no security is required. However, In case the loan is given for purchase of computer, the same is to be hypothecated to the bank.

Processing charge

There is no processing charge for education loan under Baroda Vidya scheme.

Repayment period

The repayment period in respect of education loan taken under this scheme would be as under:-
  • Loan for each yearly sub-limit is repayable in 12 equal monthly installments. First installment will be due 12 months after first disbursement of each year's loan component.
  • The parents of the student must be residing in the place (where the particular branch of the bank is located) for a minimum period of 3 years, except in case of transferable job.

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 + 2.50%
  • 0.50% concession in rate of interest to loan for girl students
  • Interest to be serviced as and when applied during moratorium period.
  • Penal Interest @ 2% on overdue amount if the loan amount exceeds Rs. 2/- lakhs

For further information about Baroda Vidya scheme, interested guardians of the students are advised to contact the nearest Bank of Baroda branch or check the bank website www,

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