Pursuing higher education, whether in India or abroad, comes with significant financial commitments. Saraswat Bank education loan provides students with the financial support they need to cover tuition fees, accommodation, and other academic expenses without burdening their families. With competitive interest rates and a repayment period of up to 15 years, this loan ensures that students can focus on their studies without financial stress.
Whether you’re aiming for a top-tier university or a specialized vocational course, Saraswat Bank education loan offers funding of up to INR 1.5 crores. The application process is hassle-free, and eligible students can benefit from interest rate concessions, making higher education more accessible. Read on to explore eligibility criteria, interest rates, required documents, and step-by-step guidance on how to apply.
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Overview of Saraswat Bank Education Loan
Saraswat Bank provides education loans to pursue higher studies in India as well as abroad. Aspiring students willing to pursue graduate, postgraduate and vocational courses can apply for the same. The maximum amount of loan offered to study abroad is up to INR 1.5 crores.
Saraswat education loan can be repaid for up to 15 years including the moratorium period. The moratorium period is the course duration + 1 year. Saraswat Bank education loan interest rates range from 9-10% p.a. A processing fee of 0.25% of the sanctioned loan amount or a maximum of INR 25,000 is charged, which is valid till 31st July 2024.
| Maximum Loan Amount | Up to INR 1.5 crores to study abroad |
| Interest Rates | 9 to 10% p.a. |
| Repayment Period | 15 years including the moratorium period |
| Moratorium Period | Course Duration + 1 year |
| Processing Fee | 0.25% of the sanctioned amount, a maximum of INR 25,000 |
| Collateral Requirement | Up to INR 5 lakhs- not required Above INR 5 lakhs- required |
| Margin Money | Up to INR 5 lakhs- 5% of the sanctioned loan amount (maximum INR 25,000)Above INR 5 lakhs- 2.5% of the loan amount (maximum INR 25,000) |
Saraswat Bank Education Loan Amount & Coverage
Saraswat Bank provides education loans based on the type of study program:
For Studies in India
- General Courses: Up to INR 75 lakh
- Medical Courses: Up to INR 1.5 crore
- Vocational Courses: Up to INR 10 lakh
For Studies Abroad
- Maximum Loan Amount: Up to INR 5 crore
Expenses Covered
The loan can cover:
- 100% of course fees and other expenses (travel, lodging, boarding, and other academic-related costs).
- 85-90% of the face value of NSCs/LIPs (whichever is lower).
- 100% of term deposits (whichever is lower).
Loans based on income
- Salaried Parents/Sponsors: Up to 60 times their average net salary.
- Business Owners: Up to 6 times their average gross cash accruals (latest audited financials required).
Loans backed by property as collateral
- Up to 90% of the property’s realizable value OR
- 75 times the average net salary of parents/sponsors OR
- 5 times the latest audited gross cash accruals
(Whichever is lower applies.)
Saraswat Bank Education Loans Interest Rates
Saraswat Bank education loans are offered at low and competitive floating interest rates. The effective interest rates range from 8.50% p.a. to 10% p.a. The Bank also offers a 0.50% concession to female students and Divyang. Check out the table given below for detailed interest rates-
| Particulars | Interest Rates |
| General | 10% (PLR- 5.70%) |
| For Female students and Divyang | 9.50% (PLR- 6.20%) |
| For Premier Institutes | 9.75% (PLR- 5.95%) |
PLR refers to the Prime Lending Rate. It is an interest rate at which leading commercial banks lend funds to the most creditworthy borrowers.
The current PLR is 15.90% p.a (effective from August 8, 2024.
Interest Rate Concessions
- 0.50% concession for female students and Divyang.
- 0.25% concession for students at IIM, IIT, XLRI, ISB, and Govt-recognized medical colleges.
- The total discount in ROI cannot exceed 0.50%.
Security and Collateral Requirements
When applying for a Saraswat Bank education loan, loans up to INR 5 lakhs don’t require any collateral. However, education loans above IRN 5 lakhs must be backed by collateral. Check out the details below-
Loans up to INR 5 lakh: No collateral required.
Loans above INR 5 lakh: Requires collateral. Accepted collaterals include:
- Pledge of tangible security acceptable to the bank, OR
- Equitable mortgage of property, OR
- NSC/LIP pledged in favour of the bank, OR
- Fixed deposits/bonds as security.
Saraswat Bank Education Loan Processing Fees
It is important to be aware of processing and legal fees when applying for Saraswat Bank education loans. Check out the processing fees, legal fees, and shareholding requirements below-
Processing Fees
Processing fees are one-time charges collected by Saraswat Bank for processing the education loan application. These fees are non-refundable, even if the loan is not sanctioned.
- Studies in India: 0.50% of the loan amount, up to INR 5,000.
- Studies Abroad: 0.50% of the loan amount, up to INR 10,000.
Legal Fees
Legal fees cover the cost of verifying property documents, title searches, and other legal formalities associated with secured education loans. These fees are typically paid upfront and may vary depending on the loan amount.
- For loans up to INR 1.5 crore: At actuals + 10% additional as a bank service charge.
- For loans above INR 1.5 crore: 0.20% of the loan amount OR at actuals + 10% additional, whichever is higher.
Shareholding Requirement
Saraswat Bank requires borrowers to purchase shares in the bank as part of their cooperative banking policy. This is a one-time payment that serves as a nominal investment in the bank.
- Loans up to INR 1 crore: INR 1,000
- Loans above INR 1 crore: INR 25,000
For example:
- If a student borrows INR 80 lakh, they must purchase Saraswat Bank shares worth INR 1,000.
- If a student borrows more than INR 1.5 crore, they must purchase Saraswat Bank shares worth INR 25,000.
Eligibility Criteria
An individual is eligible to apply for a Saraswat Bank education loan only if they fulfil the basic eligibility criteria for education loans laid by the bank. The basic criteria is that the individual must be an Indian citizen. They should have secured admission through fair means, either through merit-basis or entrance examinations.
- Must be an Indian citizen.
- Must have secured admission to a graduate or postgraduate course in an IBA-approved college, university, or institute.
- Vocational courses are also covered under this scheme, with a maximum loan amount of INR 10 lakh.
- The student is the primary applicant, while parents, sponsors, or relatives act as co-applicants.
- If the student is a minor, the parent will be the applicant, with an undertaking that the student will be added as a guarantor after attaining majority/before the parent’s retirement.
Documents Required
Applicants must keep the documents required for education loans ready. Always ensure submitting bonafide certificates and original documents to ensure quicker and hassle-free processing of student loans. Here’s the list of documents required for Saraswat Bank education loans-
- Duly filled education loan application form
- Latest Photographs
- Aadhaar Card/ Voter ID/ PAN Card as photo identity and residence proof of the Applicant and Guarantors
- Proof of confirmed admission & Estimate of course fees & other expenses (travelling/ lodging/ boarding)
- Fee receipts or proof of payments made.
- Copy of Passport & Visa and related documents, if the student is going abroad for higher education.
- Income proof of the co-applicant-
- Salaried: last 3 months’ salary slip/certificate or copy of the last three years IT returns or form 16 of last two years, 3-month bank statement.
- Businessman: last 3 years’ profit & loss and balance sheet, ITR copies of last three years, 3 month bank statement.
How to Apply for a Saraswat Education Loan?
Applicants can easily apply for Saraswat education loans online. Their minimal documentation and hassle-free application process make it very easy for borrowers to apply for loans. Follow these steps-
- Visit the official website of Saraswat Bank.
- Navigate to ‘Personal’ and click on ‘Retail Loans’.
- Click on ‘Education Loans’.
- Now, click on ‘Saraswat Education Loans’.
- Scroll down and click on ‘Apply Now’.
- Fill in the given details and ‘Submit’.
- Wait for the bank representative to connect with you.
To sum up, Saraswat Bank education loans provide a financially flexible and student-friendly way to fund higher education in India and abroad. With competitive interest rates, repayment options up to 15 years, and special concessions for girl students and Divyang, the loan ensures affordability for aspiring students. The simple online application process, along with minimal documentation, makes it easier to secure funding without unnecessary hassle.
If you’re planning to study at a reputed institution and need financial assistance, Saraswat Bank education loans can be a reliable solution. Before applying, ensure you meet the eligibility criteria and have all required documents ready for a smooth loan approval process.
FAQs
Saraswat Bank education loans are offered up to INR 1.5 crores to study abroad at competitive interest rates. The loan amount helps applicants to cover their tuition fees, accommodation expenses, and other miscellaneous expenses like purchasing gadgets to support higher studies.
Saraswat Bank education loan interest rates range from 8.50% to 10% p.a. based on the applicant’s CIBIL score. Female students and Divyang receive a 0.50% concession, while students in IIM, IIT, XLRI, ISB, and government-recognized medical colleges get a 0.25% concession.
Yes, Saraswat Bank offers a 0.50% interest rate concession for girl students to encourage higher education among women.
To be eligible for a Saraswat Bank education loan, the applicant must be:
– An Indian citizen.
– Admitted to a graduate/postgraduate course in an IBA-approved institute.
– Applying with parents/relatives as co-applicants.
Basic documents required for Saraswat Bank education loans are a duly filled education loan application form, the latest photographs, an Aadhaar Card/ Voter ID/ PAN Card, academic mark sheets, proof of confirmed admission, and an estimate of course fees & other expenses.
Applicants can apply for a Saraswat Bank education loan online by visiting the official website, navigating to the Education Loan section, and clicking ‘Apply Now’. After submitting the form, a bank representative will contact them for further processing.
Yes, Saraswat Bank offers education loans up to INR 5 lakh without collateral. For loans above this amount, tangible security like property, fixed deposits, or bonds is required.
Yes, Saraswat Bank provides an education loan EMI calculator on its official website. Applicants can use it to estimate their monthly EMI based on the loan amount, interest rate, and tenure.
For inquiries about Saraswat Bank education loans, applicants can contact the Saraswat Bank customer service at their official helpline or visit the nearest branch. The latest contact details can be found on their official website.
Key requirements include:
– Duly filled application form
– Identity proof (Aadhaar, PAN, Voter ID)
– Proof of admission and course fee details
– Income proof of co-applicant (salary slips/ITR)
– Collateral documents (if applicable)
This was all about Saraswat Bank education loan for abroad studies. To know more about education loans, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.
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