Syndicate Bank, once one of India's oldest commercial banks, was nationalised in 1969 and served as a trusted financial partner for many years. On April 1, 2020, Syndicate Bank was merged with Canara Bank, and its education loan offerings, including the standalone products, were closed.
However, students who were previously eligible for Syndicate Bank's education loan can still access similar offerings under Canara Bank's new schemes.
This guide covers everything about Syndicate Bank education loan for studies abroad. Learn about interest rates, eligibility criteria, margin requirements, repayment terms, and more.
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Syndicate Bank Education Loan Overview
Syndicate Bank education loan was designed to make higher education accessible to students who needed financial assistance. The loan covered a wide range of academic programs, including undergraduate, postgraduate, and professional courses, both in India and abroad.
Students can choose from the following options:
BA Model Education Loan Schemes: Available for higher education both in India and abroad.
Vidya Turant Scheme: Specifically designed for professional courses at top-tier institutions in India.
Vidya Turant Scheme
The Vidya Turant Scheme was a need-based education loan designed to support students admitted to recognised institutions in India and abroad. The loan amount depended on the category of the institution:
Category A Institutions (Top-tier institutions): Loan up to ₹40 Lakhs
Category B Institutions (Reputed but not top-tier): Loan up to ₹25 Lakhs
Other Institutions: Loan up to ₹20 Lakhs
This model helped students access adequate funds based on the institution they were enrolled in, ensuring a smoother application process and more reasonable loan terms.
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Syndicate Bank Education Loan Interest Rates & Key Details
Students can avail an education loan from Syndicate Bank at an interest rate of 8.90% p.a. for amounts up to ₹7.5 Lakhs, and 8.50% p.a. for loans above ₹7.5 Lakhs.
Under the Vidya Turant scheme, students with a co-borrower enjoy a reduced interest rate of 6.90% p.a., while those without a co-borrower are charged an interest rate of 7.50% p.a.
Explore different Types of Education loans with Eligibility, Interest Rates, & Benefits to understand which option best suits your needs and repayment capacity.
Margin Money Breakdown
Syndicate Bank's margin money requirements were designed to ease the financial burden on students, especially for loans up to ₹4 Lakhs, which required no margin. However, for larger loans:
For domestic education: Loans above ₹4 Lakhs require a 5% margin.
For studying abroad: A 15% margin was required for loans above ₹4 Lakhs.
These conditions made the bank's education loans more accessible, ensuring that students could manage the costs of higher education with minimal upfront financial contribution.
Syndicate Bank Education Loan Eligibility Requirements
To qualify, you must be an Indian citizen with confirmed admission to a professional or technical course, either in India or abroad, based on merit. Additionally, you'll need a co-borrower (typically a parent or guardian) with a stable income to support the loan application.
Here are some necessary qualifications:
- The applicant must be an Indian citizen or a Non-Resident Indian (NRI) with an Indian passport.
- The student must have completed 10+2 from a recognised board or institution with a minimum of 50% marks.
- You must have secured admission to a recognised educational institution in India, which includes institutions accredited by government bodies.
- The loan covers various programs, including Post-Graduation, Doctoral, and postgraduate diploma courses.
- Admission should be secured through an entrance exam or based on merit from the respective institution.
- The student must have cleared any essential exams or qualifying tests related to the course with satisfactory grades.
Be sure to review all documents and prerequisites before applying to avoid delays in the loan sanctioning process.
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Syndicate Bank Education Loan Documents Required
Syndicate Bank required specific documents from both the student and the co-applicant for loan approval. The documentation included:
For the Student:
- Proof of admission (admission letter from the institute)
- Academic qualifications (marksheets, certificates)
- Identity proof (Aadhar card, PAN card, etc.)
- Address proof (passport, utility bills, etc.)
For the Co-Applicant:
- Income proof (salary slips, bank statements, IT returns)
- Collateral documents (for loans above ₹7.5 Lakhs), as no collateral is needed upto 7.5 lakhs
Thinking of applying for a different education loan? Check out our guide on Who Can Be a Co-Applicant for Education Loan to learn about eligibility criteria and required documents.
Syndicate Bank Education Loan Moratorium Period
The Syndicate Bank education loan offers a moratorium period during which no repayments are required. This moratorium lasts until one year after the completion of the course. The maximum loan tenure for these education loans can extend up to 15 years, providing ample time for repayment.
SyndVidya Education Loan for Abroad Studies
The SyndVidya Education Loan is designed to support meritorious Indian students who wish to pursue higher education at foreign universities. Its flexible security requirements ensure that collateral and third-party guarantees are adjusted based on the loan amount, making it easier to manage smaller loans.
SyndVidya Skill Loan Scheme
This scheme provides financial support to individuals enrolled in skill development courses. This initiative aligns with the national Skill Loan Scheme, which was launched in 2015 to promote skill-based education nationwide.
SyndVidya Education Loan for Vocational Courses
This initiative aims to support students pursuing vocational courses and enhance their employability. It has no collateral or processing fees and focuses on enhancing students' skills to improve their employability.
Explore Myths and Facts about Education Loans. Get the real insights before making your loan decisions.
Struggling with High Education Loan Amounts? Here's What Students Are Asking!
When considering an education loan of ₹35 Lakhs, it's crucial to choose the right bank or NBFC. Many students are concerned about interest rates, processing fees, and the loan's long-term impact on their finances.
Reddit User in r/IndiaInvestments shared:
"I'm looking to take a ₹35 Lakh education loan for studying abroad. Which bank offers the best deal, and what should I keep in mind before finalising?"
Insight: Opting for a loan of ₹35 Lakhs requires careful consideration. The ideal bank or NBFC will depend on factors such as competitive interest rates, flexible repayment terms, margin requirements, and your ability to provide collateral if necessary.
What do we infer from the above case?
Interest Rate: Compare rates across banks - some institutions may offer lower rates for large loan amounts.
Repayment Terms: Check if the bank offers a flexible repayment structure with a long moratorium period to ease financial pressure during your studies.
Collateral Requirements: For loans above ₹7.5 Lakhs, collateral is usually mandatory. Make sure you have suitable assets or a co-applicant who can provide the guarantee.
Processing Fees: Some banks may waive processing fees, which can save you significant costs upfront.
Tip: Focus on the overall loan structure. Ensure the interest rates, repayment flexibility, and collateral requirements align with your financial capacity. Research banks with strong international loan offerings if you're studying abroad. Always ask for a realistic EMI schedule and ensure the loan terms suit your post-graduation financial situation.
In conclusion, choosing the right education loan can make a significant difference. By clearly analysing your situation, providing supporting documents, and maintaining transparency with the bank, you increase the chances of approval and avoid unnecessary delays. Taking a proactive and professional approach ensures your financial planning stays on track, letting you focus on your education without added stress.
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