Looking for an Education Loan to Finance Your Technical Education?

Look no further. This page contains all the information you will need on Bank of Baroda’s Skill Loan Scheme for technical courses.

Baroda Skill Loan Scheme

This loan helps students who have gained admission into technical courses offered by training institutes, polytechnics, to pay for their course fees. The loan amount starts from Rs. 5,000 and can go up to Rs. 1.5 lakh depending on the duration of the course.

Features of Baroda Skill Loan Scheme for Technical Courses

Why this Loan?

  • The loan is meant for you if you have gained admission into a technical course offered by a polytechnic, training institute (ITI), etc. in India
  • The bank disburses the Baroda Skill Loan Scheme as a series of payments over the required number of terms or years to pay the course fees or other approved charges

Loan Amount

  • The minimum loan amount starts from Rs. 5,000 and the maximum amount can go up to Rs. 1.5 lakh depending on the duration of the course
  • Courses up to 3 Months: For these courses, the maximum loan amount available will be Rs. 50,000
  • Courses of 3 to 6 Months: For these courses, the maximum loan amount available will be Rs. 75,000
  • Courses from 6 months to 1 Year: For these courses, the maximum loan amount available will be Rs. 1 lakh
  • Courses of Duration More than 1 Year: For these courses, the maximum loan amount available will be Rs. 1.5 lakh


  • The interest rate charged by Bank of Baroda for this loan is the sum of Baroda Repo Linked Lending Rate (BRLLR) and 1.50%. Currently BRLLR is 7.00% bringing the effective interest rate at 8.50%
  • Girl students get a 0.5% concession in the interest rate
  • Simple interest is charged monthly during the repayment moratorium period
  • The loan offers the option to the borrower to pay the interest portion during the moratorium or study period. If the borrower choses to do so, the interest rate is reduced by 1% for the tenure of the loan. This point should be read in conjunction with the below point
  • The bank mentions on its website that the effective interest rate after deductions, if any, shall not go below the base rate which currently stands at 9% per annum


  • Loans of up to Rs. 50,000: Repayment period is up to 3 years after course completion
  • Loans between Rs. 50,000 and 1 lakh: Repayment period is up to 5 years after course completion
  • Loans above Rs. 1 lakh: Repayment period is up to 7 years after course completion
  • The repayment moratorium for courses of less than 1 year is for the course duration and an additional grace period of 6 months after course is completed
  • The repayment moratorium for courses of over 1 year duration is for the course duration and an additional grace period of 12 months after course is completed

Security Needed

  • Bank of Baroda does not ask for any security or third party guarantee
  • However, the parents have to sign the loan documents with the student as joint borrowers. If the child is a minor, then parents can take the loan under their own name


  • The borrower should be an Indian national
  • In case the student is a minor, the parents will have to sign the application and do the necessary paperwork. The bank will get the student to ratify the loan through a letter of acceptance of terms and conditions once she or he reaches the age of majority

Eligible Courses

  • Students of courses offered by Industrial Training Institutes (ITIs), polytechnics, schools recognised for the same by the central or state education board or college affiliated to a recognised university are eligible for the loan
  • Even students pursuing a certificate, diploma or degree course from training centres that are affiliated to professional skill augmentation bodies such as National Skill Development Corporation (NSDC), sector skill councils, state skill missions, state skill corporations and who operate under the National Skill Qualification Framework (NSQF) are eligible to apply for the loan
  • The bank allows its State Level Bankers committee (SLBC) or State level Co-ordination Committee (SLCC) to add state-specific skill development courses that offer good employability opportunities for course students
  • The duration of the courses can be anything from 2 months to 3 years

Borrower Contribution to Total Cost (Margin Money)

  • The bank does not charge any margin money on this loan

Note: Margin money refers to the amount the borrower contributes to the overall amount required

Processing and Other Charges

  • There are no processing charges for this loan

Uses of the Loan

  • The loan amount can be used to pay any fees or other charges that are a part of the standard tuition cost
  • The loan can also be met to cover examination, library and laboratory fees
  • It also covers any caution deposit fees
  • It can also be used to buy books or equipment or instrument needed for the course

Other Features to Know

  • The borrower can repay the loan from any time without having to pay any prepayment charges
  • Bank of Baroda offers Group Credit Life insurance cover to borrowers. The premium is recovered through EMIs. Currently, Bank of Baroda has tie-ups with IndiaFirst Life Insurance Kotak Life Insurance for Group Credit Life insurance cover
  • During application, the borrowers should provide an affidavit that they have not taken an education loan from another bank for the same child. In case they seek another education loan from a different lender, then they will have to take an NOC from Bank of Baroda for the new loan
  • The student’s progress report has to be submitted with the bank at regular intervals
  • The lending branch should be near the institute, study centre of the technology partner or the place of residence of the borrower
  • The loan is disbursed directly to the college, book seller or publisher, computer seller, and so on and not to the applicant(s)

Documents Needed

  • Application Form duly filled and signed by applicant and/or parents along with details of applicant and/or parents
  • Two Passport Size Photographs of applicant(s)
  • Photocopy of PAN Cards of the student or parents that need to be submitted at the time of application or during the course period
  • Personal Identification Proofs (Any One): Electoral I-Card, Passport, Driving License, PAN Card or Aadhaar Card
  • Residential Address Proof (Any One): Electricity Bill, Landline Telephone Bill, Electoral or Voter ID Card or Passport
  • Admission Letter, Course Details and Prospectus
  • Fee Details with Demand of Fee by the Institution
  • All Proofs of Past Academic Record including Mark Sheets and Certificates
  • An Income Certificate from a Competent Authority to avail the interest subsidy under Central Interest Subsidy Scheme of Education Loans, if eligible

Reference Facts

  • Bank of Baroda Website: www.bankofbaroda.com and www.bobibanking.com (net banking)
  • Headquarters: Baroda (Vadodara), Gujarat
  • Education Loan Number: 846 700 1122 (to give a missed call)
  • Call Centre Toll-Free Number: 1800 223 344, 1800 102 4455

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