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Bank Of Baroda Vs Canara Bank Abroad Education Loan

Human hand holding coin: Bank of Baroda vs Canara Bank education loan.

Choosing the right lender for a abroad education loan is an important decision that can impact your financial position for years after graduation. Two of the leading public sector banks in India that offer education loans are Bank of Baroda and Canara Bank. We had compared the difference between BOB and Union Bank of India education Loan before. In this blog, we will compare the key features, interest rates, eligibility criteria, application process and repayment options for education loans offered by the Bank of Baroda Vs Canara Bank. This will help provide prospective students and parents with a clear picture of the pros and cons of taking an education loan from either bank. 

Bank of Baroda Vs Canara Bank Education Loan Overview
ParameterBank of Baroda Student LoanCanara Bank
Loan Scheme NameBaroda Scholars Education LoanIBA Model Education Loan
Interest Rates10-11%9.25%-11.25%
Moratorium Period6-12 months post courseCourse period + 1 year
Processing FeesRs. 10,000 (Refundable for 400+ premier institutes)No processing fees
Margin MoneyWaived for premier institutes, else 10-15%15%
CollateralNeeded for loans above Rs. 7.5 lakhsNeeded for loans above Rs. 7.5 lakhs
Repayment TenureUp to 15 yearsUp to 15 years


Bank Of Baroda Vs Canara Bank Abroad Education Loan Key Comparison 


There is a vast difference between BOB Vs Canara Bank Education Loan. Both have different options for abroad and Indian education and differ in interest rates of education loan, moratorium period, etc. Bank of Baroda offers two distinct education loan schemes – the Baroda Scholars Education Loan for study abroad and the Baroda Gyan Education Loan for study in India. 

In the table below, we have highlighted some of the key features of the Baroda Scholars Education Loan, specifically for overseas higher education. Similarly, Canara Bank offers IBA Model education loan for study abroad along with many other loans schemes like IBA Model Skill Loan Scheme, Education loan for Masters abroad, Vidya Sahay education loan, etc. The following table compares the education loan offered by Bank of Baroda vs Canara Bank. 

ParametersBaroda Scholars Education LoanCanara Bank IBA Model Education Loan
Loan Limit1.5 Crores1.5 Crores 
Interest Rates10-11%9.25% – 11.25%
Moratorium Period 6-12 months after course completionCourse period + 1 year
Processing Fees10,000 INR (refundable for premier institutes)Low processing fee
Margin Money 10% 15%
Loan Approval Based on GRE/GMAT Scores?Not requiredNot Required
Collateral RequirementLoans above Rs.7.50 lakh necessitate collateral security equivalent to 100% of the loan amount, along with a demonstration of the student’s future income.Loans above 7.5 Lakh necessitate tangible collateral security to cover at least 100% of the loan amount. 


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Margin Money & Processing Fees Required For BoB Vs. Canara Bank Education Loan


 Canara Bank has nil processing fees but stipulates education loan margin money contribution. BOB offers processing fee refunds contingent on university selection and lower margin requirements for premier institutes. This showcases BOB’s greater flexibility and student-friendly structure aimed at wider overseas education financing access. Go through the breakdown given below: 

Processing Fees: 

  • BOB charges an upfront processing fee of Rs. 10,000 + GST, which is refundable if admitted to one of their 400+ listed Premier Institutes globally.
  • Canara Bank does not charge any processing fee for education loans.


Margin Money: 

  • For overseas education loans above Rs. 4 lakhs, Canara Bank requires a 15% margin of money to be brought in by the student.
  • BOB waives margin money for admissions at premier institutes. For non-featured colleges, they require 10-15% margin money for loan amounts exceeding Rs. 4 lakhs.


Eligibility Criteria For Bank Of Baroda Vs Canara Bank Education Loan


Knowing education loan eligibility criteria is like having a roadmap to your dream education. It helps you assess your chances early, gather the necessary documents effectively, and choose the ideal loan with clear expectations. 

This empowers you to plan realistically, avoid pitfalls, and increase your approval chances, ultimately making your financing journey smoother and more successful. Hence, we have compared the eligibility criteria for both banks. 

CriteriaBaroda Scholars LoanCanara Bank IBA Model Loan
Courses CoveredProfessional/technical courses abroadProfessional/technical courses in India & abroad
Programs CoveredGraduate, post-graduate, doctorateGraduation, post-graduation, professional, doctoral
Minimum Age18 years18 years
Maximum Age (at time of loan)35 yearsNo maximum age specified
Maximum Age (at repayment)Not specified65 years
NationalityIndian citizensIndian citizens



Documents Required For Bank Of Baroda & Canara Bank Education Loan 


The documents required for an education loan from the Bank Of Baroda and Canara Bank are more or less the same. Given below is a list of documents you would need for online as well as offline application process: 

Documents Required For the student:

  • Proof of identity: Passport, Aadhaar card, voter ID card, driving licence, etc.
  • Proof of address: Ration card, utility bills, bank statements, etc.
  • Academic documents: Mark sheets and certificates of all previous examinations (10th, 12th, graduation, etc.), and entrance exam scores (if applicable).
  • Admission documents: Offer letter or admission letter from the institution, fee schedule.
  • Proof of scholarship or grants (if applicable).
  • Gap certificate (if applicable).


Documents Required For the co-applicant/guarantor:

  • Proof of identity and address.
  • Income documents: Salary slips, income tax returns, bank statements, etc. (for salaried individuals).
  • Business documents (for self-employed individuals).
  • Asset documents (property papers, investment statements, etc.).


Application Process For BoB and Canara Bank Education Loan Through UniCreds


Struggling to decide between a Bank of Baroda or Canara Bank education loan? UniCreds offers personalised guidance to help identify the best loan option for your needs. Follow these simple steps to apply through UniCreds:

  • Step 1: Visit our website and fill out the inquiry form with your details.
  • Step 2: Our experts will contact you to understand your specific requirements and priorities.
  • Step 3: Send across documents as advised to evaluate your eligibility thoroughly.
  • Step 4: Based on the assessment, we will recommend the optimal education loan scheme from BOB or Canara Bank.
  • Step 5: Once you select the loan, we will forward your application for processing.
  • Step 6: Our counsellors will continuously follow up with the bank to facilitate quicker loan approval and disbursal.


UniCreds provides this assistance free of cost, without any hidden charges. We try to negotiate loans with lower processing fees for your benefit. 

When applying for education loans above ₹7.5 lakhs from Bank of Baroda or Canara Bank, carefully evaluate the collateral types you can provide. Both banks require security for loan amounts exceeding ₹7.5 lakhs. 

Before proceeding with the application, determine the assets you are willing and able to pledge. This ensures you are prepared with the necessary collateral documentation during the approval process.


Repayment Terms Of BOB Vs Canara Bank Education Loan


Both the Bank of Baroda (BoB) and Canara Bank offer IBA Model Education Loans, meaning they follow similar repayment terms outlined by the Indian Banks’ Association. However, there may be some slight variations with regard to repayment of education loans within their specific schemes. Here’s a breakdown:

FeatureBank of BarodaCanara Bank
Repayment Tenure (excluding moratorium)Up to 15 yearsUp to 15 years
Moratorium PeriodUp to 6 months after course completion or 1 year after course completion (whichever is longer)1 year after course completion
Repayment ModeEquated Monthly Installments (EMIs)Equated Monthly Installments (EMIs)
Prepayment PenaltyNoNo
Additional Flexible Repayment OptionsMay be available depending on the loan schemeMay be available depending on the loan scheme

As evident from the table above, both banks have a slight difference in education loan moratorium period. The rest of the factors are the same. 


Which Bank Is Best Canara Bank Or Bank Of Baroda?


Overall, the Bank of Baroda appears to have a slight edge for overseas education loans given its lower margins, processing fee waivers and added flexibility for premier universities. However, for non-featured institutions, Canara Bank’s lower base rates may be more attractive. 

Ultimately, the choice between the two banks depends on an applicant’s specific university, loan amount, repayment capacity and ability to provide collateral. I would suggest applicants evaluate all parameters in conjunction based on their unique case. Both banks have their relative merits and an expert can guide you towards the optimal pick. 

Ultimately, students should assess their shortlisted universities, planned loan amount, available collateral, and post-study repayment capacity before deciding on the ideal lender. UniCreds offers personalised guidance based on these parameters and past applicant data to recommend the right education loan product. 

By partnering with us early and leveraging our application assistance, you can secure fast approvals and optimised loans to achieve your global ambitions. Reach out today to kickstart your journey towards global education success! 




Q1. Which bank is better: Canara Bank or BOB?

Ans: Canara Bank offers lower interest rates starting from 9.25% but BOB provides better benefits like fee waivers and lower margins for top global institutes, the choice between the two depends on your financial requirements. 

Q2. Which bank offers better interest rates for education loans, Bank of Baroda or Canara Bank?

Ans: Canara Bank generally offers marginally better interest rates in the range of 9.25%-11.25% compared to 10%-11% fixed rates from Bank of Baroda.

Q3. Can you compare the processing fees for education loans at the Bank of Baroda and Canara Bank?

Ans: BOB offers processing fee refunds for its list of 400+ premier institutes while Canara Bank charges nil fees.

Q4. What is the maximum loan amount offered by the Bank of Baroda and Canara Bank for education purposes?

Ans: Both Bank of Baroda and Canara Bank provide loans up to Rs. 1.5 crores for overseas education purposes.

Q5. Are there any specific eligibility criteria that differ between Bank of Baroda and Canara Bank education loans?

Ans: BOB has an age limit of 35 years for education loan applicants whereas Canara Bank does not specify any maximum age.

Q6. How do the repayment terms vary between Bank of Baroda and Canara Bank education loans?

Ans: The moratorium period after course completion varies, with Canara Bank offering 1 year and BOB providing a 6-12 months grace period before repayment starts.

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Human hand holding coin: Bank of Baroda vs Canara Bank education loan.

Bank Of Baroda Vs Canara Bank Abroad Education Loan

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