Head to head · verified 23 Aug 2026
SBI vs Bank of Baroda Education Loan: Rates, EMI & Fees
SBI's education loan starts at 9.40% and Bank of Baroda's at 8.15% p.a. (verified 23 Aug 2026). On ₹20 lakh over 10 years, Bank of Baroda's starting rate saves ₹1,346 a month and ₹1,61,497 in interest over the loan.
The two PSU banks most families shortlist for study loans. Both follow the IBA model scheme; they differ on starting rate and how long sanction takes.
SBI EMI · ₹20 lakh
₹25,770
At 9.40%, 10 years
Bank of Baroda EMI · ₹20 lakh
₹24,424
At 8.15%, 10 years
RBI raised the repo rate to 5.50% on 7 Oct 2026
Side by Side
All 9 terms we track, from each bank's own rate pages. ✓ marks the better term.
| SBI | Bank of Baroda | |
|---|---|---|
| Interest Rate Range | 9.40% – 9.90% p.a. (Scholar from 6.90%) | 8.15% – 9.80% p.a. (better) |
| Rate Type & Benchmark | Floating / EBR-linked | Floating / MCLR-linked |
| Processing Fee | NIL (India) · Up to ₹10,000 (Abroad) | NIL (India) · Up to ₹10,000 (Abroad) |
| Prepayment / Foreclosure Charges | NIL | NIL |
| Typical Processing Time | 15 – 30 days (better) | 20 – 30 days |
| Maximum Tenure | 15 years | 15 years |
| Maximum Loan Amount | ₹1.5 Cr (abroad) | ₹1.5 Cr (abroad) · ₹80 L (India) |
| Insurance Bundling | Optional | Optional |
| Govt. Scheme Compatible | Yes (PM-Vidyalaxmi, CSIS) | Yes (PM-Vidyalaxmi, CSIS) |
Sources: sbi.bank.in, bankofbaroda.bank.in. Last verified 23 Aug 2026. We take no commission from either bank.
SBI vs Bank of Baroda: EMI Difference
Monthly EMI at each bank's starting rate over 10 years.
| Loan amount | SBI 9.40% | Bank of Baroda 8.15% | Difference / month | Over the loan |
|---|---|---|---|---|
| ₹10 lakh | ₹12,885 | ₹12,212 | ₹673 | ₹80,749 |
| ₹20 lakh | ₹25,770 | ₹24,424 | ₹1,346 | ₹1,61,497 |
| ₹40 lakh | ₹51,540 | ₹48,849 | ₹2,691 | ₹3,22,993 |
Starting rates go to the strongest credit profiles. Compare the rates you are actually offered: the gap can be wider or reverse.
At the top of each bank's published range (SBI 9.90%, Bank of Baroda 9.80%), the ₹20 lakh EMI is ₹26,320 vs ₹26,209. If your credit score is below 750, these are closer to what to expect.
Which Should You Choose?
Choose SBI if…
Best for students going abroad or to premier Indian institutes — NIL processing fee, government subsidies, and loan caps up to ₹1.5 Cr.
- you need the money sooner (15 – 30 days)
Choose Bank of Baroda if…
Best for students seeking PSU-bank rates with NIL processing fee and government scheme compatibility.
- you qualify for the lower starting rate (8.15% – 9.80% p.a.)
Frequently Asked Questions
Which is better, SBI or Bank of Baroda for a education loan?
Bank of Baroda has the lower starting rate (8.15% vs 9.40%). Across the 9 terms we compare, SBI is better on 1 and Bank of Baroda on 1. SBI suits students going abroad or to premier Indian institutes — NIL processing fee, government subsidies, and loan caps up to ₹1.5 Cr. Bank of Baroda suits students seeking PSU-bank rates with NIL processing fee and government scheme compatibility.
What is the EMI difference between SBI and Bank of Baroda on ₹20 lakh?
Over 10 years, the EMI on ₹20 lakh is ₹25,770 at SBI's 9.40% and ₹24,424 at Bank of Baroda's 8.15%: a difference of ₹1,346 a month, or ₹1,61,497 in total interest.
Which charges less to prepay, SBI or Bank of Baroda?
SBI: NIL. Bank of Baroda: NIL. RBI bars prepayment charges on floating-rate loans to individuals for non-business use.
Which processes a education loan faster?
SBI typically takes 15 – 30 days and Bank of Baroda 20 – 30 days, from complete documents to sanction.
Go Further
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Educational information, not financial advice or a loan offer. Rates are as published by each bank on the verification date; your sanctioned rate depends on your credit profile. Confirm the final terms in the Key Facts Statement before you sign.