Vijaya Bank Education Loan: Now Bank of Baroda — Schemes, Interest Rates & How to Apply

Important Notice: Vijaya Bank no longer exists as a separate bank. It was amalgamated into Bank of Baroda on 1 April 2019, along with Dena Bank. Education loans previously offered by Vijaya Bank are now provided by Bank of Baroda. If you are looking for a Vijaya Bank education loan, please apply directly through Bank of Baroda at bankofbaroda.in. The key schemes are Baroda Gyan (domestic studies) and Baroda Scholar (studies abroad).

Bank of Baroda education loans (formerly Vijaya Bank) open the door to academic dreams with funding up to INR 1.5 crore for abroad studies, flexible EMI options, and competitive interest rates. According to RBI data, education loans outstanding across banks touched INR 1.31 lakh crore by November 2024, highlighting the growing reliance on financial aid for higher education.

Overview of Bank of Baroda Education Loan Features (Formerly Vijaya Bank)

The table below highlights the key features of the Bank of Baroda education loan (which replaced Vijaya Bank's education loan after the merger on 1 April 2019). All figures are indicative as of 2025-26 — verify current terms with Bank of Baroda before applying.

What Are the Bank of Baroda Education Loan Interest Rates?

Since Vijaya Bank merged into Bank of Baroda on 1 April 2019, all education loans are now issued under Bank of Baroda's schemes. Interest rates vary by scheme, institution type, and loan amount. The figures below are indicative as of 2025-26 — always verify current rates directly at bankofbaroda.in before applying.

Concessions for Female Students

Bank of Baroda offers additional concessions to encourage female students to pursue higher education:

1. Baroda Scholar (Non-Premier Institutes): A 0.20% concession in interest rate for female students. No concession is available for premier institutions under this scheme.

2. Baroda Gyan: A 0.50% concession in interest rate for female students, making this scheme especially beneficial.

Maximum Loan Amount for Studying Abroad (Baroda Scholar)

Tuition fees, travel costs, and living expenses abroad can add up quickly. Under the Baroda Scholar scheme — which replaced Vijaya Bank's education loan for abroad studies after the 1 April 2019 merger — students admitted to premier foreign universities can get up to INR 150 lakh, while those joining other recognised institutions can access up to INR 60 lakh.

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What Is the Moratorium Period?

When you take an education loan, you do not want the stress of repayments while studying. The moratorium period gives students time to complete their studies and settle into a job before EMIs begin. Under Bank of Baroda's education loan schemes, the moratorium lasts for the course duration plus an additional 1 year (or 6 months after getting a job, whichever is earlier).

Margin Money Requirements

The table below highlights the margin money structure for Bank of Baroda education loans (formerly Vijaya Bank):

Types of Bank of Baroda Education Loan Schemes (Formerly Vijaya Bank)

Students can access a wide range of Bank of Baroda education loan schemes tailored for various needs — from school education to overseas studies and skill development. Each scheme has different loan amounts, interest rates, and eligibility requirements. All figures are indicative as of 2025-26; verify with Bank of Baroda before applying.

Note: Padho Pardesh interest subsidy scheme has been discontinued by the Government of India. PM Vidyalaxmi remains active as of 2025-26.

Eligibility Criteria

If you are an Indian student with admission in a recognised institute in India or abroad, you are likely eligible for a Bank of Baroda education loan (the successor to Vijaya Bank education loans), provided you can show academic merit and a co-applicant's financial backing.

• The applicant must be an Indian citizen.
• Typically, students should be between 18 to 35 years old at the time of application.
• Admission must be secured in a recognised institution in India or abroad through a merit-based selection process or entrance test.
• Professional, technical, and job-oriented graduate or postgraduate courses, including medical, engineering, management, aviation, and other recognised programmes.
• A parent, guardian, or spouse is generally required as a co-applicant.
• Income proof of the co-applicant or guarantor may be required, especially for higher loan amounts.
• Loan limits may vary depending on whether the student is admitted to a premier institution or not.

For a detailed list of colleges covered under Bank of Baroda's education loan schemes, check out our Complete Bank of Baroda Education Loan College List.

Documents You'll Need to Apply

Having all documents ready upfront reduces delays. Below is a checklist of what Bank of Baroda typically requires:

From the Student (Applicant)

• Identity Proof (any one): Aadhaar Card, PAN Card, Passport, Voter ID, or government-issued ID
• Address Proof (any one): Aadhaar Card, Utility Bill, Rental Agreement
• Mark sheets for Class 10 and 12, plus semester-wise graduation results if applicable
• Offer letter or admission letter from the institute
• Entrance Exam Scores (if applicable): GRE, GMAT, JEE, NEET, etc.
• Fee Schedule or Statement of Costs: Detailed breakdown of tuition, hostel, travel, and other expenses

From the Co-Applicant or Guarantor

• Identity and Address Proof (same as above)
• Recent passport-size photographs of both applicant and co-applicant
• Income Proof: Latest salary slips, Form 16, IT returns, and bank statements for the last 6 months

Collateral Documents (if applicable)

• If the loan amount requires collateral: property documents such as title deed, sale deed, or non-encumbrance certificate

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What Expenses Are Covered?

Bank of Baroda education loans provide comprehensive financial support. Here is a breakdown of major expenses covered:

• Tuition and Admission Fees
• Examination, Library, and Laboratory Fees
• Purchase of books, equipment, and uniforms
• Travel expenses or passage money for students pursuing higher studies abroad
• Accommodation and Living Costs
• Insurance premium for student borrowers, if applicable
• Caution deposit, building fund, or refundable deposits within reasonable limits
• Expenses on projects, study tours, and thesis costs incurred as part of the curriculum
• Laptop or computer purchase if required for the course

Where and How to Apply

Since the merger of Vijaya Bank with Bank of Baroda on 1 April 2019, students can access one of the largest banking networks in the country — with 8,200+ branches across India. Applying online is straightforward:

1. Visit the Official Portal
Go to the Bank of Baroda education loan section at bankofbaroda.in or log in through the Vidya Lakshmi Portal.

2. Choose the Right Scheme
Select the scheme that best matches your plans — Baroda Gyan for India, Baroda Scholar for abroad, or the Skill Loan for short-term courses.

3. Fill in the Application Form
Provide personal information, academic background, course details, and co-applicant information.

4. Upload Required Documents
Upload KYC, admission proof, academic records, income details, and fee structure.

5. Submit and Track Your Application
Once submitted, you will receive an acknowledgement and can track the application online.

6. Loan Sanction and Disbursal
After verification, the bank will sanction the loan, and funds will be disbursed directly to the institution.

For more detail, see our guide on Bank of Baroda Education Loan.

Government Interest Subsidies

Many students ask whether Bank of Baroda education loans (formerly Vijaya Bank) qualify for government interest subsidies. Since the merger on 1 April 2019, education loans under Bank of Baroda are covered under the Central Sector Interest Subsidy (CSIS) Scheme, subject to eligibility conditions:

• Loans qualify for CSIS if family income conditions are met.
• Subsidy applies only to students pursuing professional or technical courses in India — not abroad.
• The benefit is available only during the moratorium period (course period + 1 year).
• An income certificate issued by a competent authority is mandatory to avail the subsidy.

The PM Vidyalaxmi scheme is active as of 2025-26. Note: The Padho Pardesh interest subsidy scheme has been discontinued by the Government of India.

Repayment Process

Under Bank of Baroda education loan schemes, you get a moratorium period covering your course duration plus 12 months. Once repayment begins, the loan can be repaid over up to 15 years, depending on the amount borrowed. Repayment can be made through EMIs via ECS, standing instructions, or automatic debit. Students also have the option to prepay or part-pay, reducing the overall interest burden.

To understand the latest repayment rules, check out Education Loan Repayment Rules in India.

Bank of Baroda education loans — offered in place of the erstwhile Vijaya Bank education loan since 1 April 2019 — are a structured solution that adapts to different courses, institutes, and student needs. With multiple schemes (Baroda Gyan, Baroda Scholar, and premier institution loans), flexible repayment, and concessions for women students, the bank ensures financial planning is not a barrier to quality education.

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