Bank of Baroda and State Bank of India are two leading nationalised banks providing attractive education loans for international studies. But how do their loan products compare when it comes to education loan interest rates, loan amounts, eligibility criteria, and repayment options? Which lender offers students the best deal along with a smooth financing experience? In this blog, let’s analyse the Bank of Baroda vs SBI education loans across several key parameters to reveal everything you need to know to make the right choice. Get an insider’s overview of the pros and cons of BOB Vs. SBI lending is compared head-to-head before you sign any loan agreements.
| Bank Of Baroda Vs. State Bank Of India Education Loan Overview | ||||
| Parameter | Baroda Scholar (Abroad) | Baroda Gyan (India) | SBI Education Loan (India) | SBI Global Ed-Vantage (Abroad) |
| Loan Limit | Up to 1.5 Crores | Up to Rs. 125 Lakhs | Up to Rs. 50 Lakhs | Rs. 20 Lakhs – 1.5 Crores |
| Interest Rates | 10-11% | 11-12.50% | 8.15% – 11.75% | 11.15% |
| Moratorium Period | 6-12 months post course | 12 Months | 12 Months | Course duration + 6 months |
| Processing Fees | Rs. 10,000 (Refundable) | 1% of the loan amount | Nil (loans under 20 lakhs) / Rs. 10,000 + tax (loans above 20 lakhs) | Rs. 10000 + Valuation Charges |
| Collateral Requirement | Required above Rs. 7.5 Lakhs | Required above Rs. 20 Lakhs | Required above Rs. 7.5 Lakhs | Required for full loan amount |
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Bank Of Baroda Vs State Bank Of India Education Loan Options
Before we jump into the features directly, let’s get some concepts clear about the two banks. Both the banks offer education loans to both – students aspiring to study in India and abroad. For both study abroad and national education loans, BOB and SBI banks have two different schemes each. Refer to the table below to understand the bifurcation:
| Bank Name | Study In India | Study Abroad |
| Bank of Baroda Education Loan | Baroda Gyan Education Loan | Baroda Scholar Education Loan |
| State Bank of India Education Loans | SBI Education Loan | SBI Global Ed-Vantage Scheme |
Note: SBI Global Ed-Vantage Scheme is for study abroad students planning to take a loan above 20 lakhs.
BOB vs SBI Abroad Education Loan
As mentioned earlier, both banks charge comparable interest rates and vary in terms of moratorium, education loan repayment terms, and collateral requirements. It’s important to compare these key aspects to make sure you finance your abroad education dreams through a lender that fits your financial appetite. Refer to the table below for a clear understanding of the difference between the Bank of Baroda and SBI education loan:
| Basis Of Difference | SBI Global Ed-Vantage Scheme | Baroda Scholars Education Loan |
| Loan Limit | INR 20 Lakhs-1.5 Crores | 1.5 Crores |
| Interest Rates | 11.15% | 10-11% |
| Insurance | Optional loan protection insurance (Rinn Raksha) | Mandatory group credit life insurance |
| Moratorium Period | Course duration + 6 months | 6-12 months after course completion |
| Processing Fees | Rs. 10000 + Valuation Charges | 10,000 INR (refundable for premier institutes) |
| Margin Money | 10% | 10% |
| Loan Approval Based on GRE/GMAT Scores? | Required if taken | Not required |
| Collateral Requirement | Fully collateralised by security deposit equal to the loan amount. | Loans 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. |
Bank Of Baroda Vs State Bank Of India Education Loan For Studying In India
As previously noted, both BOB and SBI provide distinct education loan options. It’s crucial to grasp these variances to effectively manage your finances. The table below offers a comparison of SBI and Bank of Baroda education loans for studies within India.
| Basis of Difference | SBI Bank Education Loan | Baroda Gyan Education Loan |
| Loan Limit | Up to 50 Lakhs | Rs.125.00 Lacs |
| Interest Rates | 8.15% p.a. to 11.75% p.a. | 11-12.50% |
| Moratorium Period | 12 Months | 12 Months |
| Processing Fees | Loans up to Rs.20 lakh: NilLoans above Rs. 20 lakh: Rs.10,000 plus tax | 1% of the loan amount |
| Margin Money | 10% | 10-15% |
| Collateral Requirement | Up to Rs.7.5 lakh: Only parent or guardian as co-borrower. Above Rs.7.5 lakh: Guardian or parent as co-borrower and tangible collateral security | Amounts exceeding Rs. 20 lakh necessitate collateral equivalent to 100% of the loan amount. |
Bank of Baroda Vs SBI Eligibility Criteria
The loan eligibility criteria set by SBI and BOB have some subtle but critical differences that students should be aware of. SBI bases their education loan eligibility on both merit and financial need considerations. Students applying for an SBI overseas education loan should have:
- Secured admission to an approved university/college/institute
- Minimum 50% marks in Class 12 or graduation
- Annual family income eligibility criteria apply
Bank of Baroda education loan, on the other hand, has need-based eligibility criteria for education loans. There are no minimum marks criteria. As long as you have secured admission to an approved institute abroad, BOB evaluates applications based on financial need and repayment capacity.
This makes BOB loans accessible to a wider range of students, including those with an average academic record but demonstrating strong potential. The bank conducts in-depth evaluations of family income, assets, other loans, and liabilities to determine need and repayment capacity.
SBI vs BOB Processing Fees & Margin Money
When applying for an overseas education loan, key considerations include processing charges levied by the bank, as well as the margin money in education loan or down payment required.
- SBI charges a non-refundable processing fee of Rs. 10,000 plus applicable taxes. This fee cannot be waived under any circumstances.
- BOB’s processing fee structure is more student-friendly. While their upfront fee equals SBI at Rs. 10,000 + GST, BOB offers refunds if the university is featured on their Premier Institutes list covering over 400 global institutions.
In terms of margin money requirements, SBI uniformly requires 10% of the loan amount as a down payment by the student. BOB waives this requirement for students admitted to premier institutes, making financing access easier. For non-featured colleges, a 10-15% margin money applies.
Documents Required For SBI VS BOB Education Loans
Documents required for SBI and BOB education loans are more or less similar to abroad studies and studies in India. Given below is the list of documents you can gather for a smooth application process:
| Document | Description |
| Admission Letter | Confirmation of acceptance from the educational institution. |
| Passport | Proof of identity and nationality. |
| Visa | Proof of permission to study in the respective country. |
| Academic Records | Transcripts, mark sheets, and certificates |
| Standardised Test Scores | SAT, ACT, GRE, GMAT, TOEFL, or IELTS scores |
| Course Details | Information about the course, duration, and fees |
| Loan Application Form | Form provided by the lender for loan application |
| Income Proof | Proof of income of the borrower or co-borrower |
| Collateral Documents | Documents related to collateral (e.g. property papers) if required |
| Co-borrowers Documents (if applicable) | Documents of co-borrower, often a parent or guardian |
Application Process For BOB & SBI Education Loan Through UniCreds
If you’re unsure about choosing between BOB and SBI, UniCreds offers personalised assistance to help you determine the best abroad education loan option for you. Follow these steps:
Step 1: Go to the links mentioned above and fill out the provided form with your details.
Step 2: Our education loan experts will get in touch with you to understand your needs.
Step 3: Submit your documents as advised by our loan experts for a thorough assessment of your loan eligibility.
Step 4: Based on your evaluation, our loan counsellors will recommend the most suitable education loan option for you.
Step 5: Once you’ve made your decision, your application will be forwarded to your chosen bank for processing.
Step 6: Our counsellors will maintain regular communication with the bank’s staff to expedite loan approvals and sanctions.
UniCreds doesn’t charge any fees throughout the process! Instead, we offer loans with lower processing fees.
Before completing the application process, make a thorough decision about the type of collateral you are willing to keep as a security for the loan. As both banks demand collateral loans for amounts above 7.50 lakhs, you should be ready with all the collateral documents.
Repayment Terms Of BOB & SBI Education Loans
In terms of repayment terms, BOB and SBI education loans are similar. Understanding the repayment terms can further help you in better financial planning post-moratorium period. Below is an overview of the repayment terms:
- Maximum Repayment Period: Both the Bank of Baroda and the State Bank of India (SBI) offer a maximum repayment period of 15 years.
- Moratorium Period: Both banks offer a moratorium period in education loans which allows you to defer payments until after you complete your studies, typically up to 1 year.
- Prepayment Charges: Neither bank charges any prepayment penalties if you choose to pay off your loan early.
- Flexible Options: Both banks may consider flexible EMI options on a case-by-case basis.
SBI or BOB – Which is Better for Abroad Education Loan?
While deciding which bank is best SBI or Bank of Baroda, you need to understand that both Bank of Baroda (BOB) and State Bank of India (SBI) offer competitive education loan options, but each has its strengths and weaknesses. Here’s a breakdown to help you decide:
BOB might be a better choice if:
- You prioritise lower interest rates: BOB generally offers slightly lower fixed interest rates than SBI.
- You prefer simple interest calculation during the moratorium period: This can save you money compared to SBI’s compound interest approach.
- You don’t have a strong credit score: BOB may be more flexible with credit score requirements.
SBI might be a better choice if:
- You need a larger loan amount: SBI has higher loan limits than BOB for abroad studies.
- You don’t want to provide a margin: SBI typically doesn’t require a margin, while BOB might depend on the university and loan amount.
- You prefer lower processing fees: SBI charges lower processing fees than BOB.
If you wish to compare the Bank of Baroda with other bank options, we have an in-detail comparison between Bank of Baroda Vs Union Bank of India Education Loan which would be helpful to you.
FAQs
Q1. Which bank is better: SBI or BOI?
Ans: Determining which bank is better, SBI or BOI, depends on various factors such as your specific financial needs, location, services required, interest rates, customer service, and more.
Q2. Which bank offers better interest rates for education loans, the Bank of Baroda or the State Bank of India?
Ans: The Bank of Baroda offers slightly lower interest rates on education loans compared to the State Bank of India. As per the data, BOB interest rates start at 9.90% for girls and 10.40% for boys, while SBI has higher rates beginning from 10.15% for girls and 10.65% for boys.
Q3. Can you compare the processing fees for education loans at the Bank of Baroda and the State Bank of India?
Ans: Bank of Baroda offers a refundable processing fee of Rs. 10,000 for admissions to over 400 Premier Institutes globally, while State Bank of India charges a non-refundable processing fee of Rs. 10,000 in all cases.
Q4. What is the maximum loan amount offered by Bank the Bank of Baroda and State Bank of India for education purposes?
Ans: Both the banks offer a maximum loan amount of Rs. 1.5 Crores for education purposes.
Q5. Are there any specific eligibility criteria that differ between the Bank of Baroda and State Bank of India education loans?
Ans: Yes, the State Bank of India has merit-based eligibility requiring 50%+ grades in academics, while the Bank of Baroda follows need-based eligibility criteria focused on financial background rather than marks.
Q6. How do the repayment terms vary between the Bank of Baroda and State Bank of India education loans?
Ans: Both banks offer a moratorium period of 12 months post-course completion and give flexibility to pay loans without charges.
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