BOB Education Loan & Other Offers: Study Abroad with Ease
March 10, 2025
Shatavisha
educational loan in bank of baroda , educational loan bank of baroda , education loan from bank of baroda , BOB education loan , study loan bank of baroda
Students often give up on their dreams of studying abroad because of inadequate funding. However, it doesn't have to be like that. With a BOB education loan and other bank offers, one can easily dream of going abroad.
Education loans ensure that you can go abroad fully covered and finish your studies without any hassle. So we will discuss the challenges students face without an education loan, what it is, and where they can go to find one.
What is an Abroad Education Loan?
An abroad study loan is beneficial for students who want to finance their foreign education. You can apply for an education loan through the Bank of Baroda, HDFC Credila, IDFC First Bank, and more.
Loans for foreign students can help students cover their tuition fees, stationery supplies, books, and living expenses abroad.
Here are the features of an education loan:
- Moratorium Period: A moratorium period is the time during which the borrowers don’t need to make repayments. This usually covers the duration, plus a few months for the students to settle into a job.
- Repayment: Once the moratorium period is over, the students need to start making payments.
- Interest: Interest is the amount that students need to pay along with the student education loan. Usually, students only pay simple interest during the moratorium period.
- Types: There are two types of education loans available— one offered by the federal government, and one offered by Non-Banking Financial Company (NBFC).
Challenges Students Face Without an Education Loan
If you don’t have an education loan from Bank of Baroda, or any other bank or financial company, you might face several challenges. These challenges include financial constraints, limited course options, part-time work pressure, and more.
Let’s take a deeper look and find out the challenges you can go through if you don’t opt for an education loan.
Financial Constraints
One of the most immediate challenges you will face if you don't opt for a loan is financial constraints. You will have problems paying for your tuition fees, books, supplies, rent, and food. This will force you to settle for less popular universities. Hence, to avoid such circumstances, you can apply for an educational loan in Bank of Baroda or any other source of your choice.
Limited Course Options
Your choice of course could be expensive, and hence without foreign student loans, your dream to study abroad might remain a mere dream. This is one of the most solid reasons why one should apply for an education loan from a trusted source.
Pressure to Work Part-time
Unless you have proper financial backing, you would have to work part-time to cover your tuition, food, and other living expenses. Working part-time will impact your study time and overall grade significantly. Hence, getting a loan is the most feasible solution in this case.
Social Limitations
Without sufficient funds, taking part in various extracurricular activities, social events and field trips will be challenging. It could hamper your overall experience abroad, and refrain you from networking and making friends there.
Mental Health Challenges
All of the above challenges will take a toll on your mental health, which will lead to severe anxiety depression, or both. It will impact your overall well-being and academics; and as your findings will be insufficient, you might not be able to afford therapy. Hence, it is better to apply for a study loan from Bank of Baroda or any other financial company of your choice.
Best Banks & NBFCs for Student Loan Application
Best Banks & NBFCs for Student Loan Application
To ensure that you do not face the above challenges and study without any hassle, you must have a steady flow of cash. You will get it only through a good education loan.
You can apply for an educational loan in Bank of Baroda. It offers one of the lowest ROIs and loan amounts up to INR 80 Lakhs. Apart from that there are several other banks and NBFCs that will help you secure a good education loan.
Here is a complete breakdown of it, take a look:
| Bank / NBFCs | Processing Fees | Interest Rate | Loan Amount |
|---|---|---|---|
| BOB Education Loan | 1% + GST | 9.70%-11.15% p.a. | Up to INR 80 Lakhs |
| Axis Bank Education Loan | 0.75% + GST | 9.99%- 12.5% p.a. | Up to INR 50 Lakhs |
| IDFC First Education Loan | 0.75%-1% + GST | 10.50% p.a. | Up to INR 75 Lakh |
| Yes Bank Education Loan | 1%-2% + GST | 11.25%-13% p.a. | Up to INR 1.5 Crores |
| ICICI Bank Education Loan | 0.5%- 2% + GST | 10.25% p.a. | Up to INR 2 Crores |
| Union Bank Education Loan | INR 1,000/-+ GST | 9.75%- 9.80% p.a. | Up to INR 1.5 Crores |
| Avanse Education Loan | 0.5%-2% + GST | 12.5%- 13.5% p.a. | 12.5%- 13.5% p.a.Up to INR 60 Lakhs |
| HDFC Credila Education Loan | 0.5%-2% + GST | 0.5%-2% + GST11.5% to 13.5% p.a. | Up to INR 80 Lakhs |
| InCred Education Loan | 0.5%-2% + GST | 12.5%- 13.5% p.a. | Up to INR 65 Lakhs |
| TATA Capital Education Loan | 0.75%-1.5% + GST | 11.75%- 12.75% p.a. | Up to INR 85 Lakhs |
| Prodigy Finance Education Loan | 5%+ GST | 12%- 14% p.a. | Up to 100% of Tuition Fees |
| Auxilo Education Loan | 0.5%-2% + GST | 12.5%- 13.5% p.a. | Up to INR 50 Lakhs |
FAQs
- What are the Criteria for getting an international educational loan from the Bank of Baroda?
To get a BOB Education loan, here are the following criteria that you need to follow:
- You must have admission proof of getting admission to a foreign university
- You should be able to prove that you are an Indian citizen
- You should have proof of passing all the entrance exams like CAT, GRE, IELTS, DET, etc.
- You need to provide a collateral of up to INR 4 Lakhs
- Your co-borrower must prove that they have a stable income.
- What is the interest rate of a BOB foreign education loan?
The interest rate of BOB foreign education loans is between 9.70%-11.15% p.a. If you want a detailed breakdown, get in touch with Student Cover and your student buddy will further assist you.
- Can I pay back my loan amount during the moratorium period?
Yes, you can pay back your entire loan amount during your moratorium period. It will help you to reduce the overall interest amount. However, paying back during this period is not necessary.
- Is Bank of Baroda good for foreign education loans?
Yes, Bank of Baroda is one of the safest banks to lend money for your foreign education. It has been in the business for more than 100 years. Therefore, it is one of the most trustworthy places to go to in case of an education loan.
- Is Bank of Baroda the only place to get an education loan?
No!! Even though Bank of Baroda is a trustworthy place to acquire a loan, it is not the only place. Apart from the Bank of Baroda, there are various other banks like Axis Bank, Union Bank, and IDFC First, which can offer you good deals on education loans. Moreover, there are NBFCs like HDFC Credila, Auxilo, Avanse, and Prodigy Finance to offer you good education loans.
BOB education loan key features to study abroad.
| Feature | Baroda Scholar | Baroda Education Loan for EDP (Executive Development Programs) Abroad |
|---|---|---|
| Loan Amount | ₹150 lakh (Premier Institutions) ₹60 lakh (Non-Premier Institutions) | Up to ₹80 lakh for short-term professional programs |
| Interest Rate | - Premier Institutions: 9.70% - Non-Premier Institutions: - Up to ₹7.5 lakh: 11.15% - Above ₹7.5 lakh: 10.20% - Canada: - Up to ₹7.5 lakh: 11.15% - Above ₹7.5 lakh: 11.70% - Defense Personnel's Children: 10.20% | Standard rate up to 11.50% - Slightly higher than regular education loans due to short course duration |
| Interest Rate Concession | 0.20% discount for female students | No special concessions available for this category |
| Loan Margin | - Premier Institutions: - NIL (Up to ₹4 lakh & Above ₹7.5 lakh) - 15% (₹4-7.5 lakh) - Non-Premier Institutions: - NIL (Up to ₹4 lakh) - 15% (₹4-7.5 lakh) - 10% (Above ₹7.5 lakh) | - Up to ₹4 lakh: No margin - ₹4-7.5 lakh: 15% - Above ₹7.5 lakh: Full financing available based on borrower profile |
| Processing Fees | - NIL (Up to ₹7.5 lakh) - Above ₹7.5 lakh: 1% of the loan amount (Max ₹10,000) + GST - Refund: If loan is for a premier institution, processing fees are refunded upon the first loan disbursement. | 1% processing fee (Max ₹10,000) applicable in all cases - No refund of processing fee |
| Additional Charges | ₹8,500 per property (Non-refundable legal fees for advocate & valuer) for loans requiring property mortgage. | Property valuation & legal charges apply for secured loans - Shorter courses may require higher upfront documentation fees |
| Moratorium Period | Course Duration + 12 months | Course Duration + 3 months due to shorter program length |
| Repayment Period | For loans up to ₹7.5 lakh: 10 years (120 EMIs) For loans above ₹7.5 lakh: 15 years (180 EMIs) | Repayment period ranges from 10 to 15 years - Flexible EMI options based on program duration |
| Acceptable Collateral | - No collateral for loans up to ₹7.5 lakh - Tangible collateral equal to 100% of loan amount (for ₹7.5 lakh – ₹80 lakh) - For loans above ₹80 lakh: Total security coverage of 1.25x the loan amount required. - Acceptable Collateral Types: - Immovable Property: Non-agricultural land, buildings, flats - Liquid Security: Fixed deposits, LIC policies, government bonds | Immovable property, fixed deposits, LIC policies accepted as collateral - Collateral requirements are flexible depending on course fee & tenure |
| Collateral Margin | - 100% loan value for immovable property - 90% of loan value for fixed deposits - 80% of loan value for government bonds | Varies based on the risk profile of the applicant - Higher margins may be required for high-risk applicants |
| Co-Applicant Eligibility | Co-Applicant Eligibility- Parents, Parents-in-law, Siblings, Parents’ siblings, Spouse, First cousins - Loans up to ₹4 lakh: No third-party guarantor required - Loans above ₹4 lakh: Third-party guarantor required- Only close family members accepted as co-applicants - Co-applicant's financial background impacts loan approval | Only close family members accepted as co-applicants - Co-applicant's financial background impacts loan approval |
| Repayment Policy | - Simple interest is charged during moratorium period - EMI starts after moratorium period ends - Students have the option to defer interest payments until after the moratorium | Interest accrual starts immediately after course completion - Moratorium period is shorter due to professional nature of courses |
| Eligible Courses | - Master’s, MBA, MCA - Technical & Professional Courses from reputed universities - CIMA (London), CPA (USA) - Aviation, Shipping, Aeronautical courses recognized by regulatory bodies - Certificate & Diploma Courses in career-oriented fields | Short-term executive education programs - Professional certification courses in finance, management, technology |
| Preferred Universities | - Institutions in the Premier List receive better loan terms - Non-listed institutions are eligible but without preferential treatment | No specific university preference - Loan depends on program accreditation & reputation |
| How to Apply? | - Students can apply online or at Bank of Baroda branches - Property & financial documents required for secured loans - Loan disbursal in phases as per course requirement | Application process remains online & branch-based - Loan approval depends on program tenure & applicant’s financial background |
| Additional Support | - Bank provides financial consultation on loan eligibility - Assistance in document verification & approval | Dedicated loan advisors available for high-value applicants - Loan counseling for working professionals seeking executive education |
| Contact & Queries | Students can request a callback for detailed consultation - Comment section available for student inquiries | Fast-track approval for professionals with strong financial backing - Contact through email, phone, or in-branch visits |
Conclusion
The BOB education loan and the other banks' offers mentioned in this blog are all highly beneficial. Apart from that, the NBFCs are also trustworthy and disburse a good amount of money. Hence, choose from the list, which offer fits your bill and start applying for loans ASAP. If you have thought of getting a foreign education, make the best use of the place for your growth. Don't let a cash crunch come between you and your bright future.
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