Saraswat Bank Education Loan

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Table of content

  1. Education Loan products of Saraswat Bank
  2. Saraswat Bank Education Loan Scheme for Abroad Studies
  3. Saraswat Bank Education Loan Scheme for Studies in India
  4. Saraswat Bank Education Loan Processing fee
  5. Documents Required for Saraswat Bank Education Loan
  6. Saraswat Bank Education Loan Insurance
  7. Saraswat Bank Loan Margin Calculation
  8. How to Apply for an Education Loan from Saraswat Bank?
  9. Why and How to Transfer your Education Loan to Saraswat Bank?
  10. Saraswat Bank Education Loan EMI Calculation as per Interest Rate
  11. Saraswat Bank Education Loan Repayment process
  12. Interest Subsidy Schemes
  13. FAQ's
  14. Need Help? Ask Here!

The Saraswat bank is an urban co-operative banking institution that was ranked second-best bank in India by “The World's Best Banks 2020 survey” conducted by Forbes. It offers student loans at interest rates starting from 8.50%. Keep reading further to know more about the Saraswat bank education loan details.

Education Loan products of Saraswat Bank

Considering study opportunities in India as well as abroad, Saraswat bank has following student loan products: 

  • Saraswat bank education loan scheme for abroad studies
  • Saraswat bank education loan scheme for studies in India

Let’s understand each of the schemes separately

 

Saraswat Bank Education Loan Scheme for Abroad Studies

Saraswat Education Loan:

Loan Parameters 

Details

Loan Limit

Upto 1.5 Cr

Upto Rs 10 lacs (for vocational courses)

Expenses covered

    • 100% of Tuition fees 
    • Traveling expenses
    • Accommodation and living expenses
    • Lodging and boarding expenses
    • Books and stationary charges
    • Laptop cost

Accepted co-applicant

Parents, Parents-in-law, Siblings, Spouse

Saraswat Bank Education loan interest rate for Saraswati Education loan scheme for abroad

Starts from 9.0% (floating)

Interest rate discount is available for girl student 

Moratorium Period

3 years or course duration + 1 year (whichever is earlier)

Repayment Duration

Upto 12 years excluding the moratorium period

Repayment policy

EMI will be calculated and to be paid after the moratorium period ends, until the loan is repaid.

Loan Margin

    • Upto 4 lacs loan amount - 0% margin
    • Above 4 lacs loan amount - 15% margin

Acceptable collaterals

    • Property
    • NSC
    • LIP pledged or assigned in favor of Bank Fixed Deposit

Value of collateral

    • If it is NSC’s or LIP, its value should be 1.1-1.5 times the asked loan amount
    • If it is property, the value should be 1.1 times the required loan amount

Eligibility Criteria

    • Only Indian students are eligible 
    • The student should have secured admission to a college or university abroad
    • If in case the student is a minor, parents will be the applicant
Don't let financial constraints limit your potential - check your eligibility for a loan now.

Saraswat Bank Education Loan Scheme for Studies in India

Saraswati Education Loan

Loan Parameters 

Details

Loan Limit

Upto 75 lacs

Upto Rs 10 lacs (for vocational courses)

Expenses covered

    • 100% Course fees 
    • Traveling expenses
    • Accommodation and living expenses
    • Books and stationary charges
    • Hostel & mess charges
    • Computer or Laptop cost

Accepted co-applicant

Parents, Parents-in-law, Siblings, Spouse

Saraswat Bank Education loan interest rate for Saraswat for abroad education loan product

Starts from 9.0% (floating)

    • Discount in the rate of interest is offered for girl students
    • Discount in Interest rate is offered to students taking admitted to IIMs, IIT, and government medical colleges.

Moratorium Period

3 years or course duration + 1 year

(whichever is earlier)

Repayment Duration

Monthly EMI will start after the moratorium period ends.

Repayment policy

EMI will be calculated and to be paid after the moratorium period ends, until the loan is repaid.

Loan Margin

    • Upto 4 lacs loan amount - 0% margin
    • Above 4 lacs loan amount - 15% margin

Acceptable collaterals

    • LIP pledged in favor of Bank Fixed Deposit
    • NSC
    • Property

Value of collateral

    • If the collateral is LIP or NSC, its value should be 110% - 150% of the required loan amount
    • If the collateral is property, the value should be 110% of the asked loan amount

 

Eligibility Criteria

    • Only Indian students are eligible 
    • The student should have secured admission to a college or university in India
    • Parents will be the applicants if the student is minor

Saraswat Bank Education Loan Processing fee

Saraswat bank charges the processing fee, as per the below-mentioned conditions:

Parameter

Loan Amount

For education loans to study abroad 

0.5% of the loan amount, up to Rs 25,000

For education loans to study in India

Upto Rs 20 lakh: Rs 5,000       

Above Rs 20 lakh:   Rs 8,000           

 

Apart from the above-mentioned charges, Saraswat bank also charges an amount between Rs 7,500 - Rs 10,000 for the legal and valuation reports, if students apply for a collateralized education loan. 

But, WeMakeScholars does not charge any fees from students to process their education loans. All our premium services are totally free of cost, request a callback or fill out the common application form to start your loan process with WeMakeScholars.

Documents Required for Saraswat Bank Education Loan

Saraswat Bank requires an applicant to mandatorily submit the below listed necessary documents:

Application form 

Education loan form with 2 attested photographs of passport size(An online application form filled out on the WeMakeScholars website is acceptable). 

Basic documents for Applicant (student) and co-applicant and/or Guarantor

  • Address proof of applicant and guarantor – Passport/ Voter ID Card/ Telephone Bill/ Electricity Bill/ Ration card/ Aadhar card/ Statement of bank account (if current and permanent address are same, then 2 different proofs will be required)
  • Identity proof – PAN Card (and Passport of the student if going abroad)
  • Last 6 month’s bank account statement (Personal/ Salary). It should show the salary credits if salaried or 1 yr business transactions if the co-applicant is self-employed.
  • Statement of personal asset & liability  (verified by the branch professional)

Documents must be self-attested.

Applicant's academic documents

  • Fee structure as given by the college or university
  • Certificates and mark sheets of class - 10th, 12th, Degree
  • Entrance exam scorecard
  • Admission proof for the course (mentioning estimate of course fees and other expenses)
  • Fee receipts or proof of payments made

Income documents of co-applicant 

If Salaried

  • Employers ID card
  • Form 16 of last 2 years
  • Last 3 month’s bank statements
  • Recent salary slips (for the last 3 months)
  • Income Tax Return of last 2 years

If Self-employed

  • ITR of last 3 years
  • The balance sheet of the last 3 years with all profit and loss statements of business
  • Address proof of business
  • Bank statement for the last 3 months

Other Documents

  • Statement of the co-applicant mentioning that all other expenses apart from those covered in the education loan will be covered by them, in the format provided by your WeMakeScholars financial officer.
  • An affidavit from applicants and co-applicants side in the standard format of bank

Additional docs (if applicable)

  • All loan account statements (1 year) if any pending loans.
  • Receipts of payments made previously if any.
  • Certificate of gap on Rs. 100 stamp paper. (Format to be provided by WeMakeScholars Financial officer)

Collateral documents (Optional)

  • These documents will be required when the applicant is applying for a collateralized education loan, the collateral document requirement is different for different states

The above-mentioned document checklist contains only mandatory documents, the specific documents required may be different. You can skip the hustle and bustle, by applying for an education loan through WeMakeScholars. We are the leading education loan partner, with experience in processing more than 2000 education loan profiles in a short span of time. 

Request a callback or fill a common application form to get in touch with our team of expert financial officers to get your education loan profile analyzed and they will help you get the best deal at the cheapest rate of interest, for your education loan. 

Don't let a disorganized document list slow you down - let us create a custom solution for you.

Saraswat Bank Education Loan Insurance

The loan insurance amount can range upto 1-2% of the loan amount when taking loan from Saraswat bank. Loan insurance is a safety feature of an education loan which protects the co-applicant in case of any mishap with the loan applicant, resulting in their inability to repay the loan. This is a voluntary risk mitigation feature. 

However, Saraswat bank has not made it mandatory for loan applicants to opt for loan insurance, but, we suggest students to take the loan insurance. For more information about education loan insurance, you can ask your financial officer, while processing your education loan with WeMakeScholars. Request a callback or fill the common application form to get in touch with your financial officer.

Saraswat Bank Loan Margin Calculation

The loan margin amount kept by Saraswat bank will be calculated as per the below-given table:

Place of study

Loan margin

To study in India

5%

To study abroad

15%

 

Sometimes this loan margin amount is beyond the paying capacity of the student, which is why we suggest students get in touch with their financial officers at WeMakeScholars to know the tips and tricks to reduce their loan margin. 

Moreover, being the largest education loan partner of most of the leading banks, we can connect directly with the banks on your behalf, if required, and negotiate with them to process your education loan request smoothly.

How to Apply for an Education Loan from Saraswat Bank?

The application process to take an education loan from Saraswat bank is:

Step 1 : Reach out to WeMakeScholars by Requesting a callback or filling a common application form

Step 2 : Give all your education loan details to your assigned  financial officer over a call

After analysis of your loan profile, your financial officer will suggest to you the best lenders to process your education loan. 

Step 3 : Tell your financial officer about the lender with whom you want to start your loan process.

Step 4 : Submit all the documents in the bank, as mentioned in the document checklist provided by your financial officer, to start your education loan process.

Step 5 : Your financial officer will take care of the process, if required take follow ups from them.

Step 6:  Take your loan sanction letter from your lender bank within 1 week from a private bank and within 15-20 days from a government bank.

What will happen if you directly go to the banks to process your education loan?

The process of sanctioning an education loan directly from the banks is not as simple as it is if you process your education loan with WeMake Scholars. If  you directly go to the banks you face the following issues:

  • Unavailability of correct information
  • Issues in legal and valuation reports
  • Lack of proper customer services
  • No particular list of required documents
  • Multiple visits to the banks
  • Delay in the process
  • No clear idea about the eligibility for education loan

You can easily avoid the struggle by processing your education loan with us. With  WeMakeScholars you will get the following benefits:

  • Less Processing time - Education loans processed with WeMakeScholars will get sanctioned within 1 week from private banks & NBFCs and within 15-20 days from public banks, which is like 50% less than the usual time that banks take.
  • Negotiation support - Our financial officers, wherever possible will try to negotiate on your behalf, in terms of rate of interest and bank policies to make the education loan deal more profitable for you.
  • Expert guidance - After loan profile analysis, a financial officer guides you throughout the loan process, starting with choosing the right lender to taking other monetary decisions like tax benefits, reducing loan margin, etc.
  • End-to-end support : Even after getting your loan sanctioned, we will still be available at your service, till the last repayment of your EMI, even after 15 years.
  • Better Interest rates : We are the largest education loan partner of the banks, therefore they offer special interest rate discounts of 0.5% to 2% on the usual rate for the students who process their education loan with WeMakeScholars
  • Online application process : Empowering your with the digital loan application process, we make sure your loan application process becomes more convenient and hassle free.
  • Tax benefits : Students can save more than 5% of their loan amount by taking advantage of tax benefits under Section 80C, 80E, etc of the Income tax department, along with the tax collected at source (TCS).
  • Cashback offer : A cashback of upto Rs 3,000 can be won by you from us, at the time of your loan disbursement 
  • Free of cost services : Our student-friendly loan sanctioning services are free of cost for all applicants, as we are funded by the government of India under the Digital India Campaign from the IT Ministry.
Save yourself time and stress by letting us handle your loan disbursement process.

Why and How to Transfer your Education Loan to Saraswat Bank?

Student can apply for their education loan transfer, from their present lender to Saraswat Bank, if they wish for:

  • Better education loan repayment conditions
  • Student-friendly loan parameters
  • Easy bank policies
  • Lower rate of interest
  • Wider coverage of education loan scheme

After the loan gets transferred, the new loan conditions will be applicable according to the Saraswat bank’s education loan policies.

But how to transfer an existing education loan to Saraswat bank?

To transfer your existing loan from another bank to Saraswat Bank, you need to follow the steps listed below in order:

  • Collect proof of the amount outstanding  from your current lender. 
  • Contact WeMakeScholars by requesting a callback, stating that you wish to transfer your loan.
  • Submit your documents to Saraswat Bank as instructed by your Financial Officer. 
  • Once your loan transfer is approved, Saraswat Bank will pay the outstanding balance of your  loan to your previous lender. And the same amount will be sanctioned by Saraswat bank as your new education loan.

Saraswat Bank Education Loan EMI Calculation as per Interest Rate

Saraswat bank has an EMI calculator available on its website, but we suggest students to use WeMakeScholars education loan EMI calculator, because of the following advantages:

  • Detailed report - You will get detailed information about the calculation report in results
  • High accuracy - The calculator is programmed such that it considers all the parameters that directly or indirectly affects the calculation, therefore the results are 100% accurate.
  • Free of cost - WeMakeScholars education loan EMI calculator is a free of cost tool available on our website
  • Strategic advantage - It helps students and their parents to decide the strategies for their education loan repayment, by showing the calculation results in detail.
Say goodbye to high ROI rates on your education loan - choose WMS for a better deal and negotiation.

Saraswat Bank Education Loan Repayment process

The education loan repayment process of Saraswat bank is simple and can last a maximum of upto 12 years, excluding the moratorium period.

Suppose a student has applied for an education loan of Rs 50 lacs, at a 10% rate of interest for their higher education abroad and taken up a repayment plan for 12 years, then their amortization table will look like the following:

Repayment Cycle

EMI

Interest portion

Principal portion

Loan Outstanding

Start of loan EMI

67223

46875

20348

5604652

End of year 1

67223

44930

22293

5369314

End of year 2

67223

42596

24627

5086854

End of year 3

67223

40017

27206

4774817

End of year 4

67223

37168

30055

4430106

End of year 5

67223

34021

33202

4049299

End of year 6

67223

30544

36679

3628616

End of year 7

67223

26703

40520

3163882

End of year 8

67223

22460

44763

2650485

End of year 9

67223

17773

49450

2083329

End of year 10

67223

12595

54628

1456783

End of year 11

67223

6875

60348

764630

End of year 12

67223

556

66668

0

 

Usually, a monthly EMI is all that must be paid till the repayment duration to repay the education loan. But, students, if they want, can repay their education loan from Saraswat bank even before the repayment duration if they want, by the following methods:

  • Prepayment or Part Payment
  • Opting for shorter repayment periods
  • Considering transferring your education loan
  • While processing your education loan with WeMakeScholars, your financial officer is available throughout your education loan repayment process to consistently provide you with the necessary support in terms of negotiation and disbursement, that is why we recommend you process your education loan through WeMakeScholars. 

Request a callback or fill out the common application form, to get in touch with your financial officer and get ready to experience a smooth and hassle-free education loan sanctioning process.

Access our post-sanction help to ensure a smooth and timely disbursement of your education loan.

Interest Subsidy Schemes

Padho Pardesh Scheme

The Ministry of Minority Affairs provides loans for international education to students from minority groups including Sikhs, Muslims, Buddhists, Jains, Christians and Parsis (according to the 2011 census).

As per the scheme, eligible students do not have to pay any interest to the bank for their education loan, in the moratorium period. 

Eligibility criteria for students for Padho Pardesh Scheme

  • Students should pursue courses at M.Phil, Phd levels and Masters.
  • The total family income of the student should not be more than Rs 6 lacs per annum.
  • Government approved income certificate is mandatory.
  • Students should have taken the loan from a scheduled bank as per the Indian Banks Association guidelines.

Central Scheme of Interest Subsidy for Education Loans

The Central Sector Interest Subsidy Scheme is sponsored by the Central Government of India to help students from the Economically Weaker Section, with their student loan interest payments. According to the scheme, eligible students who wish to pursue higher education in India are granted an education loan upto Rs 7.5 lacs, with the assurance that they won't be required to pay interest within the moratorium period.

Eligibility criteria for students for Central Sector Interest Subsidy Scheme

Students should have proof of belonging from the EWS section of society.
Annual family income of the student should not exceed Rs 4.5 lacs per annum.
Students must secure admission in approved courses of study in India only

Dr. Ambedkar Interest Subsidy Scheme for OBC and EBC students

The Ministry of Social Justice and Empowerment launched the scheme for students of EBC and OBC sections of the society, to exempt them from their interest payable within the moratorium period of their education loan. This scheme is only for eligible abroad study aspirants.

Eligibility criteria for Dr. Ambedkar Interest subsidy scheme for OBC and EBC students

  • Caste certificate is mandatory for students belonging to OBC category.
  • Students should have secured admission in the approved courses at M.Phil, Masters or Phd levels abroad
  • Family income of the student should not be more than Rs 8 lacs per annum for EBC category and OBC category
  • Loan taken from scheduled banks as per the Indian Banking Association guidelines are only acceptable.

Education Loan FAQs

  • What is the education loan interest rate in Saraswat Bank?

    The saraswat bank education loan interest rate starts from 9.0% for education loans for India and abroad, but the final rate of interest applicable, depends on the students loan profile

  • Does Saraswat bank provide education loans for abroad studies?

    Yes, Saraswat Bank provides education loans for abroad studies too, at an interest rate starting from 9.0%, it also offers interest rate discounts to girl students and others depending on their loan profile.

  • How does the Saraswat bank education loan EMI calculator work?

    Saraswat bank education loan EMI calculator provides the insights to students about their EMI repayment statistics, about interest amount, EMI amount, principal amount in total. However we recommend students to use WeMakeScholars education loan EMI calculator to get a deeper analysis with 100% accurate results.

  • Is Saraswat Bank government or Private?

    Saraswat bank is a multi-state co-operative bank, it is neither government nor private bank. Yet it is regulated by the Reserve Bank of India

Our Education Loan team will help you with any questions

Ajay Kumar
WeMakeScholars- supported by IT Ministry, Govt. of India.
Published: | Updated: