Saraswat Bank, one of India’s leading urban co-operative banks, offers education loans tailored to support students pursuing higher studies in India and abroad. Saraswat Bank education loan covers tuition fees, living expenses, and other essentials, providing a hassle-free way to finance your academic dreams. With competitive interest rates and flexible repayment options, Saraswat Bank ensures that quality education is accessible to all.
By the end of this blog, you will know
- The loan amounts Saraswat Bank offers for studies in India and abroad, along with the expenses covered.
- How interest rates, concessions, and eligibility criteria are structured to make the loans more accessible.
- The step-by-step process to apply for Saraswat Bank education loans, ensuring a seamless experience.
Overview of Saraswat Bank Education Loan
Saraswat Bank, established in 1918, is a well-known cooperative bank in India offering various financial products, including education loans. Focused on financial inclusion, the bank provides innovative solutions and customer-focused services. With a wide branch network and emphasis on digitisation, Saraswat Bank continues to cater to the needs of its customers while maintaining its cooperative values.
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Key Features of Saraswat Bank Education Loan
Saraswat Bank education loans are designed to support students in achieving their academic aspirations, whether studying in India or abroad. The table below outlines the essential features of Saraswat Bank education loans to help you understand how they can support your academic journey.
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Feature
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Details
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Loan Amount
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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 ₹500 Lakhs.
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Loan Basis
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- Covers 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.
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Repayment Period
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Up to 15 years, including the moratorium period.
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Moratorium Period
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Course duration + 1 year (repayment starts after this). The total tenure cannot exceed 15 years.
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Security
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- 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.
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Interest Rates
|
- Starts at 8.50% p.a., depending on the CIBIL score.
- Current PLR: 15.90% p.a. (w.e.f. 8th Aug 2024).
- Concessions:
0.50% for female and differently-abled students.
0.25% for students at premier institutes (e.g., IIM, IIT). Total concession capped at 0.50%.
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Processing Fees
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- ₹5,000 for loans within India.
- ₹10,000 for loans abroad.
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Legal Fees
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- Loans up to ₹1 Crore: Actual cost (if required).
- Loans above ₹1 Crore: 0.20% of loan amount or actuals, whichever is higher.
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Shareholding Requirement
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- Loans up to ₹1 Crore: ₹1,000.
- Loans above ₹1 Crore: ₹25,000.
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Margin Money
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- 5% of loan amount for loans up to ₹5 Lakhs.
- 2.5% of loan amount for loans above ₹5 Lakhs.
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Tax Benefit
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Interest repayment is eligible for tax deduction under Section 80E of the Income Tax Act.
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Prepayment Penalty
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No charges for early repayment.
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Saraswat Bank Education Loan Interest Rate
Saraswat Bank offers competitive and floating interest rates to make education loans accessible and affordable for students. Below is a detailed breakdown of the interest rates offered.
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Category
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Interest Rate (Floating)
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General
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10% (PLR - 5.70%)
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Female Students & Divyang
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9.50% (PLR - 6.20%)
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Premier Institutes
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9.75% (PLR - 5.95%)
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Eligibility Requirements for Saraswat Bank Education Loan
Before applying for a Saraswat Bank education loan, it's essential to understand the eligibility criteria to ensure a smooth application process. The bank outlines specific requirements for students and co-applicants to ensure financial stability and repayment assurance. Here are the key eligibility requirements you need to know:
1. Eligible Courses and Institutions
Applicants must have secured admission into graduate, postgraduate, or vocational programs recognised by the Indian Banks' Association (IBA).
2. Loan Amount for Vocational Courses
The maximum loan amount for vocational courses is capped at ₹10 Lakhs.
3. Primary Applicant
The student must be the primary applicant for the loan. Parents, sponsors, or relatives can act as co-applicants to provide additional financial security.
4. For Minor Applicants
If the student is a minor, the parent or guardian assumes the role of the primary applicant until the student reaches legal age.
5. Parental Commitment
Parents must agree to add the student as a guarantor to the loan once they reach legal age or prior to the parent’s retirement.
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Saraswat Bank Education Loan Documents Required
Having all necessary documents in place is a crucial step to ensure a hassle-free loan approval process. Saraswat Bank requires specific documents to assess the eligibility and financial stability of the applicant and their co-applicants. The table below provides a clear breakdown of the required documents based on their category.
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Document Category
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Details Required
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Loan Application Form
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A completed application form, duly signed, along with a recent passport-size photograph.
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Identity and Address Proof
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Photo identity proof (Aadhaar, PAN, or Passport) and address proof for both the applicant and guarantors.
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Admission Proof
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Documents confirming admission to a recognised course, along with an estimate of course fees and additional expenses (e.g., travel, lodging, and boarding).
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Fee Payment Receipts
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Receipts or proof of any pre-paid tuition fees or related payments.
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For Overseas Studies
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A valid passport, student visa, and any other relevant documents are required for international education.
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Income Proof (Salaried)
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3 months' salary slips or certificates, IT returns/Form 16 for the last 2 years, and a 3-month bank statement.
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Income Proof (Self-Employed)
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Documents required include the Profit & Loss statement, audited balance sheets for the past three years, income tax returns for the same period, and the latest three months' bank account statement.
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No Collateral Required. Approval Based on Student Potential. Check Your Eligibility
Expenses Covered Under Saraswat Bank Education Loan
Here's a detailed breakdown of the expenses included under the Saraswat Bank education loan scheme:
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Expense Category
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Details
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Tuition Fees
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Covers the entire course fee payable to the institution for the duration of the program.
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Examination Fees
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Includes costs associated with semester or annual examinations and related charges.
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Library/Laboratory Fees
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Covers charges for using institutional libraries and laboratories essential for coursework.
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Hostel Fees
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Includes accommodation expenses for on-campus or institution-approved hostels.
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Books, Equipment, & Uniforms
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Expenses for course-related books required equipment, instruments, or uniforms.
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Miscellaneous Academic Expenses
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Costs related to study tours, project work, thesis preparation, and fieldwork.
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Computer/Laptop Purchase
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A reasonable cost for a computer or laptop, if mandated by the course requirements.
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Travel Expenses
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Covers travel costs, including airfare for studying abroad or commutation to the institution.
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Step-by-Step Guide to Applying for Saraswat Bank Education Loan
The process of applying for a Saraswat Bank education loan is designed to be straightforward, helping students and their families access financial assistance without hassle. This table outlines the steps involved in the application process, making it simple to follow and understand.
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Step
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Description
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Step 1: Research Loan Details
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Begin by understanding the terms, conditions, interest rates, and benefits of Saraswat Bank’s education loans.
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Step 2: Check Eligibility
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Verify your eligibility based on the bank’s criteria, including the courses covered and applicant qualifications.
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Step 3: Gather Documents
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Compile the necessary documents like the application form, identity proof, admission proof, and financial documents.
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Step 4: Submit Application
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Fill out the application form and submit it along with all required documents at the nearest branch or online if applicable.
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Step 5: Application Review
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The bank reviews your documents, assesses your application, and conducts a verification process to evaluate your creditworthiness.
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Step 6: Loan Approval Letter
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If approved, receive a letter outlining the loan amount, interest rate, repayment terms, and other conditions. Review carefully before accepting.
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Step 7: Loan Disbursement
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Once approved, the loan funds are transferred to the educational institution or as outlined in the agreed terms.
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Step 8: Loan Repayment
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Repayment begins after the course completion plus the moratorium period. Follow the agreed EMI structure and repayment terms.
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Minimal Documentation. Application to Disbursement- In Just 3 steps! Check Your Eligibility.
Interest Subsidy Schemes for Saraswat Bank Education Loans
Saraswat Bank, in collaboration with the Government of India, offers various interest subsidy schemes to make higher education more affordable. These initiatives aim to support economically weaker sections, minorities, and skill-seekers.
Central Scheme of Interest Subsidy (CSIS)
The CSIS scheme aims to assist students from economically weaker sections by subsidising the interest on education loans during the moratorium period.
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Criteria
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Details
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Eligibility
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- Annual family income ≤ ₹4.50 Lakhs.
- Applicable for technical and professional courses after Class XII.
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Benefits
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- The interest subsidy is applicable throughout the moratorium period, which includes the course duration and extends up to one year or six months after securing employment, whichever comes first.
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Loan Limit
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Up to ₹10 Lakhs.
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How to Apply
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- Visit Saraswat Bank’s website.
- Fill out the CSIS application form.
- Submit required documents (income proof, admission letter) at a nearby branch.
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Padho Pardesh Scheme
The Padho Pardesh scheme aims to assist students from minority communities in achieving their aspirations of pursuing postgraduate studies overseas. The scheme provides a 100% interest subsidy during the moratorium period to make studying overseas affordable.
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Criteria
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Details
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Eligibility
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- Annual family income ≤ ₹6 Lakhs.
- Students from minority communities.
- Applicable only for postgraduate courses abroad.
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Benefits
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- 100% interest subsidy during the moratorium period.
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Loan Limit
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Up to ₹20 Lakhs for postgraduate studies abroad.
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How to Apply
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- 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.
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Skill Loan Scheme
The Skill Loan Scheme helps students develop vocational and technical skills by subsidising the loan interest. It is ideal for those looking to pursue skill development courses recognised by government authorities.
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Criteria
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Details
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Eligibility
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- Students enrolled in government-recognised skill development programs.
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Benefits
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- 1% interest concession for the full tenure if interest is serviced during the moratorium period.
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Loan Limit
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Up to ₹1.5 Lakhs for short-term skill development programs and ₹2 Lakhs for longer courses.
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How to Apply
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- Visit Saraswat Bank’s Skill Loan webpage.
- Complete the application form and upload the required documents online.
- Alternatively, visit a Saraswat Bank branch to apply offline.
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Loan Amortisation Table for Saraswat Bank Education Loan
The amortisation table provides a detailed year-wise breakdown of the principal and interest payments for a Saraswat Bank education loan. It helps borrowers understand how their loan repayment progresses over the tenure, offering transparency and ease of financial planning.
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Year
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Principal Paid (₹)
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Interest Paid (₹)
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2023
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1,94,731
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4,32,686
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2024
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3,61,305
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7,14,263
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2025
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3,99,139
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6,76,432
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2026
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4,40,934
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6,34,637
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2027
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4,87,104
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5,88,465
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2028
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5,38,113
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5,37,459
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2029
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5,94,459
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4,81,112
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2030
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6,56,707
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4,18,863
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2031
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7,25,472
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3,50,098
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2032
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8,01,439
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2,74,130
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2033
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8,85,358
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1,90,208
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2034
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9,78,067
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97,501
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2035
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4,37,163
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10,989
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EMI Payment Methods for Saraswat Bank Education Loan
Saraswat Bank offers multiple EMI payment options to ensure convenience and flexibility for borrowers. These methods are designed to suit both Saraswat Bank account holders and non-account holders. Below are the details of the available EMI payment methods and how they work.
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Payment Method
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Details
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Standing Instruction (SI)
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- Ideal for Saraswat Bank account holders.
- EMI amount is automatically debited at the end of each monthly cycle from the specified Saraswat Bank account.
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Electronic Clearing Service (ECS)
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- 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.
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Post-Dated Cheques (PDCs)
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- 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.
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Courses Covered Under Saraswat Bank Education Loan
Below is a detailed table of the courses covered under this scheme.
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Category
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Courses Covered
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Study in India
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- Graduation and Post-graduation (technical and professional degree/diploma courses) approved by UGC/AICTE/IMC/Govt. authorities.
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- Degree/Diploma courses from autonomous institutions like IIT and IIM.
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- Teacher training and nursing programs approved by central or state government.
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- Specialised courses such as aeronautical, pilot training, and shipping approved by the respective regulatory authorities.
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Study Abroad
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- Job-oriented professional/technical graduation and post-graduation courses like MCA, MBA, MS, etc., offered by reputed universities.
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- Programs conducted by recognised bodies such as CIMA (Chartered Institute of Management Accountants) in London or CPA (Certified Public Accountant) in the USA.
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Expenses Covered
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- Up to 90% of the total cost, including tuition fees, lodging, travel, and other related expenses.
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Comparison of Saraswat Bank Education Loan with Other Banks
Choosing the right education loan provider is crucial for financial planning. Saraswat Bank offers competitive rates and benefits that distinguish it from other banks. Here’s a detailed comparison of Saraswat Bank's education loan features with other popular banks to help you make an informed decision.
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Feature
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Saraswat Bank
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Propelld
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State Bank of India (SBI)
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Punjab National Bank (PNB)
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Axis Bank
|
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Applicable Interest Rate
|
PLR - 5.70% to 6.20%
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12% onwards
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Up to 10.85%
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MCLR + 2.00%
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Up to 10.65% to 17.50%
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Loan Amount (With Collateral)
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Up to ₹50 Lakhs
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Up to ₹2 Crores
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Up to ₹20 Lakhs
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Up to ₹20 Lakhs
|
Based on requirements
|
|
Loan Amount (Without Collateral)
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Up to ₹50 Lakhs
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₹50 Lakhs
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Up to ₹10 Lakhs
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Up to ₹10 Lakhs
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Up to ₹20 Lakhs
|
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Processing Fee
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₹0 for India; ₹5,000 for Abroad
|
1-3% of the loan amount
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Nil
|
Nil
|
Nil
|
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Repayment Period
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Maximum 15 years
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15 Years
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Maximum 15 years
|
Maximum 15 years
|
7 years
|
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Margin Requirement
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5% for loans above ₹4 Lakhs
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1st year - 20%, Others - Nil
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5% for loans above ₹4 Lakhs
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5% for loans above ₹4 Lakhs
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5% for loans above ₹4 Lakhs
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Concessions
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0.50% for girls and Divyang, 0.25% for premier institutes
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Nil
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Concession for SC/ST and girl students
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Concession for SC/ST and girl students
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None
|
|
Prepayment Charges
|
Nil
|
Nil
|
Nil
|
Nil
|
Nil
|
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Loan Security
|
Tangible security above ₹4 Lakhs
|
Collateral not required
|
Tangible security for loans above ₹7.5 Lakhs
|
Tangible security for loans above ₹7.5 Lakhs
|
Tangible security required
|
Saraswat Bank education loans empower students to achieve their academic dreams with competitive rates, flexible repayment options, and government-backed subsidies. With seamless application processes and reliable support, Saraswat Bank ensures financial barriers never stand in the way of your success. Apply today and take the first step toward a brighter future!
Why Propelld?
Propelld provides education loans for students. With easy paperwork, flexible eligibility criteria, and convenient repayment schedules, Propelld helps students worldwide achieve their dreams quickly!
There are many more benefits to getting an education loan with Propelld. Take a look at them!
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Particulars
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Details
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|
Max Loan Amount
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50 Lakhs
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Collateral
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Not Required
|
|
Moratorium
|
Available
|
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Processing Time
|
10 Times Faster than Banks
|
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Disbursal Time
|
7 Days
|
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Approval Rate
|
Higher than Other Banks
|
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Special USP
|
Marks Based Approval
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|
% Financed
|
100% of Fees
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Get an education loan with Propelld today and achieve your dream by clearing the NMAT cutoff and enrolling in your dream college!
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