Saraswat Bank Education Loan 2026: Interest Rates, Eligibility, and Benefits

Feature

Details

Loan Amount

For Studies in India:

- Up to ₹75 Lakhs for non-medical courses.

- Up to ₹150 Lakhs for medical courses.

- Up to ₹10 Lakhs for vocational courses.

For Studies Abroad: Up to ₹1.5 Crore (typical sanctioned ceiling); higher amounts considered case-by-case based on collateral and profile.

Loan Basis

- Covers up to 100% of course fees and related expenses (travel, lodging, etc.) or

- 85–90% of the face value of NSC/LIP or

- 100% of term deposits.

- Maximum eligibility is based on factors like property value, sponsor's income, or gross cash accruals, whichever is lower.

Repayment Period

Up to 15 years, including the moratorium period.

Moratorium Period

Course duration + 1 year (repayment starts after this), or 6 months after securing employment — whichever is earlier. Total tenure cannot exceed 15 years.

Security

- Up to ₹5 Lakhs: No security or third-party guarantee required.

- Above ₹5 Lakhs: Requires tangible security like property, NSC, LIP, fixed deposits, or bonds pledged to the bank.

Interest Rates (2026)

- Starts at 10.25% p.a. for select profiles; floating, linked to the bank's PLR.

- Typical sanctioned range: 10.25% – 14.25% p.a. depending on CIBIL score, course, and security.

- Concessions:

0.50% for female and differently-abled students.

0.25% for students at premier institutes (IIM, IIT, etc.). Total concession capped at 0.50%.

Processing Fees

- ₹5,000 for loans within India.

- ₹10,000 for loans abroad.

Legal Fees

- Loans up to ₹1 Crore: Actual cost (if required).

- Loans above ₹1 Crore: 0.20% of loan amount or actuals, whichever is higher.

Shareholding Requirement

- Loans up to ₹1 Crore: ₹1,000.

- Loans above ₹1 Crore: ₹25,000.

Margin Money

- 5% of loan amount for loans up to ₹5 Lakhs.

- 2.5% of loan amount for loans above ₹5 Lakhs.

Tax Benefit

Interest repayment is eligible for tax deduction under Section 80E of the Income Tax Act.

Prepayment Penalty

No charges for early repayment.

Category

Interest Rate (Floating, 2026)

General

10.25% – 10.50% (PLR-linked)

Female Students & Differently-Abled

9.75% – 10.00% (0.50% concession)

Premier Institutes (IIT, IIM, etc.)

10.00% – 10.25% (0.25% concession)

Document Category

Details Required

Loan Application Form

A completed application form, duly signed, along with a recent passport-size photograph.

Identity and Address Proof

Photo identity proof (Aadhaar, PAN, or Passport) and address proof for both the applicant and guarantors.

Admission Proof

Documents confirming admission to a recognised course, along with an estimate of course fees and additional expenses (travel, lodging, boarding).

Fee Payment Receipts

Receipts or proof of any pre-paid tuition fees or related payments.

For Overseas Studies

A valid passport, student visa, and any other relevant documents for international education.

Income Proof (Salaried)

3 months' salary slips or certificates, IT returns/Form 16 for the last 2 years, and a 3-month bank statement.

Income Proof (Self-Employed)

Profit & Loss statement, audited balance sheets for the past three years, ITRs for the same period, and the latest 3 months' bank account statement.

Expense Category

Details

Tuition Fees

Covers the entire course fee payable to the institution for the duration of the programme.

Examination Fees

Includes costs associated with semester or annual examinations and related charges.

Library/Laboratory Fees

Covers charges for using institutional libraries and laboratories essential for coursework.

Hostel Fees

Includes accommodation expenses for on-campus or institution-approved hostels.

Books, Equipment, & Uniforms

Expenses for course-related books, equipment, instruments, or uniforms.

Miscellaneous Academic Expenses

Costs related to study tours, project work, thesis preparation, and fieldwork.

Computer/Laptop Purchase

A reasonable cost for a computer or laptop if mandated by course requirements.

Travel Expenses

Travel costs including airfare for studying abroad or local commute to the institution.

Step

Description

Step 1: Research Loan Details

Begin by understanding the terms, conditions, interest rates, and benefits of Saraswat Bank's education loans.

Step 2: Check Eligibility

Verify your eligibility based on the bank's criteria, including the courses covered and applicant qualifications.

Step 3: Gather Documents

Compile the necessary documents: application form, identity proof, admission proof, and financial documents.

Step 4: Submit Application

Fill out the application form and submit it with all required documents at the nearest branch (or online via the Vidya Lakshmi portal where applicable).

Step 5: Application Review

The bank reviews your documents, assesses the application, and conducts verification to evaluate creditworthiness.

Step 6: Loan Approval Letter

If approved, you receive a letter outlining the loan amount, interest rate, repayment terms, and conditions. Review carefully before accepting.

Step 7: Loan Disbursement

Once accepted, funds are transferred to the educational institution or as outlined in the agreed terms.

Step 8: Loan Repayment

Repayment begins after the course completion plus the moratorium period, following the agreed EMI structure.

Criteria

Details

Eligibility

- Annual family income ≤ ₹4.50 Lakhs.

- Applicable for technical and professional courses after Class XII.

Benefits

- Interest subsidy is applicable throughout the moratorium period (course duration + 1 year, or 6 months after securing employment, whichever is earlier).

Loan Limit

Up to ₹10 Lakhs.

How to Apply

- Visit Saraswat Bank's website.

- Fill out the CSIS application form.

- Submit required documents (income proof, admission letter) at a nearby branch.

Criteria

Details

Eligibility

- Annual family income ≤ ₹6 Lakhs.

- Students from notified minority communities.

- Applicable only for postgraduate courses abroad.

Benefits

- 100% interest subsidy during the moratorium period.

Loan Limit

Up to ₹20 Lakhs for postgraduate studies abroad.

How to Apply

- Visit Saraswat Bank or its website.

- Provide required documents including minority certificate, income proof, and admission letter.

- Submit the application form at a branch or online.

Criteria

Details

Eligibility

- Students enrolled in government-recognised skill development programmes.

Benefits

- 1% interest concession for the full tenure if interest is serviced during the moratorium period.

Loan Limit

Up to ₹1.5 Lakhs for short-term skill development programmes and ₹2 Lakhs for longer courses.

How to Apply

- Visit Saraswat Bank's Skill Loan webpage.

- Complete the application form and upload required documents online.

- Alternatively, visit a Saraswat Bank branch to apply offline.

Year

Principal Paid (₹)

Interest Paid (₹)

2026 (Year 1)

1,94,731

4,32,686

2027 (Year 2)

3,61,305

7,14,263

2028 (Year 3)

3,99,139

6,76,432

2029 (Year 4)

4,40,934

6,34,637

2030 (Year 5)

4,87,104

5,88,465

2031 (Year 6)

5,38,113

5,37,459

2032 (Year 7)

5,94,459

4,81,112

2033 (Year 8)

6,56,707

4,18,863

2034 (Year 9)

7,25,472

3,50,098

2035 (Year 10)

8,01,439

2,74,130

2036 (Year 11)

8,85,358

1,90,208

2037 (Year 12)

9,78,067

97,501

2038 (Year 13)

4,37,163

10,989

Payment Method

Details

Standing Instruction (SI)

- Ideal for Saraswat Bank account holders.

- EMI amount is automatically debited at the end of each monthly cycle from the specified Saraswat Bank account.

Electronic Clearing Service (ECS / NACH)

- Suitable for non-Saraswat Bank account holders.

- EMI amount is debited automatically from the linked non-Saraswat Bank account at the end of the monthly cycle.

Post-Dated Cheques (PDCs)

- For non-ECS locations.

- Borrowers can submit post-dated EMI cheques at the nearest Saraswat Bank Loan Centre.

- Fresh PDCs must be provided periodically to ensure continuity of payments.

Category

Courses Covered

Study in India

- Graduation and Post-graduation (technical and professional degree/diploma courses) approved by UGC/AICTE/IMC/Govt. authorities.

- Degree/Diploma courses from autonomous institutions like IIT and IIM.

- Teacher training and nursing programmes approved by central or state government.

- Specialised courses such as aeronautical, pilot training, and shipping approved by respective regulatory authorities.

Study Abroad

- Job-oriented professional/technical graduation and post-graduation courses like MCA, MBA, MS, etc., offered by reputed universities.

- Programmes conducted by recognised bodies such as CIMA (Chartered Institute of Management Accountants) in London or CPA (Certified Public Accountant) in the USA.

Expenses Covered

- Up to 90% of the total cost, including tuition fees, lodging, travel, and other related expenses.

Feature

Saraswat Bank

Propelld

State Bank of India (SBI)

Punjab National Bank (PNB)

Axis Bank

Applicable Interest Rate

10.25% – 14.25%

12% onwards

Up to 10.85%

MCLR + 2.00%

10.65% – 17.50%

Loan Amount (With Collateral)

Up to ₹1.5 Crore (Abroad); ₹75 Lakhs (India)

Up to ₹2 Crore

Up to ₹20 Lakhs

Up to ₹20 Lakhs

Based on requirements

Loan Amount (Without Collateral)

Up to ₹5 Lakhs

Up to ₹50 Lakhs

Up to ₹10 Lakhs

Up to ₹10 Lakhs

Up to ₹20 Lakhs

Processing Fee

₹5,000 for India; ₹10,000 for Abroad

1-3% of the loan amount

Nil

Nil

Nil

Repayment Period

Up to 15 years

15 years

Up to 15 years

Up to 15 years

7 years

Margin Requirement

5% for loans above ₹4 Lakhs

1st year - 20%, Others - Nil

5% for loans above ₹4 Lakhs

5% for loans above ₹4 Lakhs

5% for loans above ₹4 Lakhs

Concessions

0.50% for girls and differently-abled, 0.25% for premier institutes

Nil

Concession for SC/ST and girl students

Concession for SC/ST and girl students

None

Prepayment Charges

Nil

Nil

Nil

Nil

Nil

Loan Security

Tangible security above ₹5 Lakhs

Collateral not required

Tangible security for loans above ₹7.5 Lakhs

Tangible security for loans above ₹7.5 Lakhs

Tangible security required