Complete Guide to Bank of Baroda Abroad Education Loan 2025

Thinking about studying abroad but worried about soaring tuition fees and living costs? You’re not alone. In 2024, nearly 1 in 3 Indian students relied on education loans to pursue studies overseas.

The Bank of Baroda Abroad Education Loan, with its popular Baroda Scholar scheme, offers up to ₹1.5 crore for tuition and living expenses, making it easier for students to enrol in top universities abroad.

If you want to study abroad, knowing the right loan options can make all the difference. This guide covers everything about the Bank of Baroda Abroad Education Loan 2025, from eligibility, rates, to documents and process.

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Bank of Baroda Abroad Education Loan Key Features

The table below highlights the key features, loan amounts, interest rates, and collateral requirements of the Bank of Baroda Abroad Education Loan 2025 at a glance, making it easier for students to understand and compare the options before applying.

For students looking for easier loan options, check out Banks That Give Education Loans without Collateral for Abroad to explore alternatives beyond traditional collateral requirements.

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Get an Education Loan with Higher Chances of Approval.

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Bank of Baroda Overseas Education Loan Interest Rate 2025

In 2025, interest rates for the Baroda Scholar loan for abroad studies range from 8.70% to 12.70% per year, depending on the course and collateral requirements. 

The interest rates are structured based on the institution's classification and whether the loan is secured or unsecured:

Note: Female students may receive a 0.20% concession on the interest rate for loans to non-premier institutions.

To explore more about loan options in India and compare rates, check out our detailed guide on Education Loan Interest Rate in India.

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Baroda Education Loans for Executive Development Programs (EDP) at Premier Institutions Abroad

Bank of Baroda provides education loans for Executive Development Programs (EDP) at premier institutions abroad, covering short-term courses that enhance career growth. Loans go up to ₹80 lakh with interest rates from 11.25% p.a., and loans up to ₹7.5 lakh need no collateral or processing fees.

Repayment is flexible, with a tenure up to 15 years and a moratorium period after course completion. This loan helps professionals pursue globally recognised programs to enhance skills and career opportunities.

BOB Education Loan Abroad Eligibility 2025

The Bank of Baroda Abroad Education Loan 2025 under the Baroda Scholar scheme has clear criteria for both courses and students, ensuring that only deserving candidates gain access to funding. 

Student Eligibility

To apply for the Bank of Baroda Abroad Education Loan 2025, students must meet the following criteria:

1. Must be an Indian citizen.

2. Must have secured admission to a recognised professional or technical course abroad through an entrance test, merit-based selection, or other valid admission process.

3. Should have the requisite qualifications for the selected course (10+2, graduation, or postgraduate as applicable).

4. Typically, applicants should not exceed the age limit defined by the loan scheme (varies depending on course type).

Course Eligibility

The loan supports a wide range of courses, ensuring flexibility for different academic and professional goals:

1. Undergraduate Programs: Job-oriented professional or technical courses offered by reputed universities worldwide.

2. Postgraduate Programs: Programs such as MBA, MCA, MS, and similar advanced degrees.

3. Professional Certification Courses Abroad: Courses like CIMA (London), CPA (USA), and other internationally recognised professional qualifications.

4. Specialised Degree/Diploma Courses: Examples include aeronautical training, pilot training, shipping courses, provided these are recognised by local regulatory authorities (DGCA in India or equivalent abroad).

5. Certificate Courses: Short-term courses that enhance skills for employment abroad or in India.

6. Premier Institutes: Loans are available for students attending premier institutes across different streams

7. Management Courses (MBA, PGDM)

8. STEM Courses (Science, Technology, Engineering, Mathematics)

9. Medical Courses

10. Other Education (Law, Economics, Econometrics, Arts, Performing Arts, Design)

11. Other Courses: Loans may also be considered for courses not listed above, but these will follow the standard education loan scheme without preferential treatment.

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Education Loan - Min Docs. Max Approval. Min Hassle. Max Tenure.

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Recognised Institutions for the Baroda Scholar Loan 2025

The Baroda Scholar Loan Scheme by Bank of Baroda is designed to support students pursuing higher education abroad. To avail of this loan, students must secure admission to institutions listed under the bank's approved categories.

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BoB Education Loan Documents For Study Abroad 2025

Proper documentation ensures smooth processing, faster approval, and minimal delays. Banks like Bank of Baroda have streamlined document requirements to simplify the process and ensure transparency:

1. Personal Identification

• PAN Card of the student and co-applicant.
• Aadhaar Card or Passport.
• Passport-size photographs of the student and co-applicant.
• Voter ID or Driving License (if applicable).

2. Proof of Admission

• An admission letter from a foreign university or institute.
• Offer letter specifying course duration, fees, and program details.

3. Academic Records

• Mark sheets and certificates of the last qualifying exam (10th, 12th, Graduation/Post-graduation).
• Degree certificates (if applicable).
• Entrance exam scorecards for courses requiring standardised tests (GRE, GMAT, IELTS, TOEFL, etc.).

4. Financial Documents

• Income proof of co-applicant(s) (salary slips, income tax returns for last 2–3 years, Form 16).
• Bank statements for the last 6–12 months.
• Property documents if collateral is provided.

5. Collateral Documents (for loans exceeding unsecured limits)

• Title deeds of property pledged.
• No-objection certificate (NOC) from co-owners, if applicable.
• Valuation report for the collateral.

6. Other Supporting Documents

• Course brochure or fee structure of the foreign institute.
• Sponsor letter (if applicable).
• Declaration forms as required by the bank.

Learn more about eligibility, documents, and tips for funding your overseas studies in Education Loans for Studying Abroad in 2025.

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Expenses Covered by the Baroda Scholar Loan 2025

The Bank of Baroda Abroad Education Loan 2025, under the Baroda Scholar scheme, covers most essential expenses to ensure students can focus on their studies without financial stress. 

Below are the key expenses covered:

1. Tuition and Institutional Fees

Fees payable to the college, university, or institution, including hostel and mess charges.

2. Academic Expenses

Examination fees, library fees, and laboratory charges. Purchase of books, instruments, equipment, and uniforms required for the course.

3. Technology Requirements

Personal computers or laptops if essential for completing the course.

4. Deposits

Caution deposit, building fund, or other refundable deposits supported by institution bills or receipts. These deposits should not exceed 10% of the total tuition fees for the entire course.

5. Insurance

Premiums for student borrower insurance.

6. Course-Related Activities

Expenses required to complete the course, such as study tours, project work, or thesis.

7. Travel Costs

Travel expenses or passage money for journeys to and from the study destination.

Students should obtain a detailed breakdown of expenses for the entire course period directly from the college or institution to ensure accurate loan coverage.

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How to Apply for Bank of Baroda Abroad Education Loan Online?

As per the latest figures from the Ministry of External Affairs (MEA), more than 1.8 million Indian students are pursuing education abroad in 2025. Understanding the application process is crucial to ensure timely financial support for your overseas education.

The following are the steps to apply online for the Baroda scholar loan for abroad studies:

1. Apply Online via Bank of Baroda or Vidya Lakshmi Portal

Visit the Bank of Baroda’s official education loan portal or the government-run Vidya Lakshmi portal to start your application. Choose the Baroda Scholar scheme, fill in the required details, and track your application online.

2. Application Submission

Complete the application form with accurate details. Submit the form along with the required documents through your chosen application method.

3. Processing and Verification

The bank will review your application and documents. This may involve a personal discussion and verification of the provided information.

4. Loan Sanctioning

Upon successful verification, the loan will be sanctioned, and a sanction letter will be issued detailing the loan amount, interest rate, and repayment terms.

5. Disbursement

The loan amount will be disbursed directly to the institution or to the student's account, as per the agreement.

By following the outlined steps and ensuring all documentation is in order, students can secure the necessary financial support for their studies abroad.

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Bank of Baroda Loan Repayment Options

The Bank of Baroda Abroad Education Loan 2025 offers flexible repayment options to help students manage finances comfortably while pursuing higher education:

1. Moratorium Period

The loan comes with a moratorium period that covers the entire course duration plus an additional 12 months (or as per the course requirements) to allow students to settle abroad and start earning before repayment begins.

2. Repayment Tenure

The total repayment period can extend up to 15 years, depending on the loan amount and the student’s repayment capacity. This long tenure helps in reducing the EMI burden.

3. EMI Options

Students can choose equated monthly instalments (EMIs) that best suit their post-study financial situation. EMIs include both principal and interest components.

4. Interest During Moratorium

Interest accrues during the moratorium period and can either be paid immediately or capitalised (added to the principal amount). This flexibility helps students manage cash flow after completing their studies.

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Benefits of Bank of Baroda Abroad Education Loan

This loan scheme offers a comprehensive financial solution, covering various expenses associated with studying overseas, and aims to ease the financial burden on students and their families.

Key benefits include:

1. High Loan Amount

Offers loans up to ₹1.5 crore for studies at premier institutions abroad, ensuring adequate funding for tuition and living expenses.

2. Competitive Interest Rates

Interest rates start from 8.70% per annum, making it an affordable option for students.

3. Collateral-Free Loans

Loans up to ₹7.5 lakh do not require any collateral, simplifying the application process.

4. Tax Benefits

Interest paid on the loan is eligible for tax deduction under Section 80E of the Income Tax Act, providing financial relief to borrowers.

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Best Options for Study Abroad Education Loans: Union Bank vs Bank of Baroda vs HDFC Credila

Choosing the right bank for your education loan can make a big difference in approval chances, processing time, and overall ease. Each lender has its own rules, interest rates, and eligibility criteria, which can impact your experience significantly.

Reddit User in r/StudentLoans shared:

"Which bank is best for a study abroad education loan? Union Bank/ Bank of Baroda/ HDFC Credila?"

Insight: Different banks cater to different profiles. Public sector banks like Bank of Baroda and Union Bank often offer lower interest rates but have stricter eligibility and collateral requirements. NBFCs like HDFC Credila are more flexible with co-applicants, faster processing, and may approve loans even if traditional banks hesitate.

What do we infer from the above case?

1. Compare interest rates vs. processing speed before deciding.

2. NBFCs like HDFC Credila are suitable if you need quick approvals or face strict eligibility requirements from banks.

3. Public sector banks can be cost-effective if you meet their eligibility criteria.

Tip: Make a checklist of your priorities, speed, interest rate, collateral, and co-applicant flexibility before choosing the lender. This ensures your study abroad plans stay on track without unnecessary delays.

The Bank of Baroda Abroad Education Loan 2025, especially under the Baroda Scholar scheme, provides structured financial support, flexible repayment, and coverage for most essential expenses. By understanding eligibility, application steps, and repayment terms, you can strategically plan your overseas education and focus on building a global career without financial uncertainty.

Step into your global education journey with Propelld! Access collateral-free loans for your studies abroad, enjoy quick digital approvals, and choose customised repayment plans tailored to your needs. With Propelld, funding your overseas education is simple, fast, and stress-free.

Apply with Propelld today and step confidently toward your international education journey!