Education Loan

Saraswat Bank Education Loan

Saraswat Bank Education Loan

On this Page:

Discover how Saraswat Bank Education loan makes higher studies affordable, covering eligibility, features, documents and application process.

Rohit Gidwani
Updated on:  22 Mar 2024  | Reviewed By: 
| 109 | 7  min read

Facing the challenge of funding higher education can be daunting, leaving many students wondering how they can afford their studies. However, the solution might be simpler than it seems. This blog sheds light on how Saraswat Bank's Education Loan can help bridge the gap between students and their academic dreams. With straightforward information on loan features, eligibility, and the application process, we aim to make your journey to securing financial support as smooth as possible. Let's unlock the door to your future education together, without the stress of financial hurdles.


Overview of Saraswat Bank

Saraswat Bank, established on 14th September 1918, stands as India's largest urban cooperative bank with a rich history spanning over a century. Founded to support less affluent community members, it has significantly expanded its offerings to include a comprehensive range of financial products and services like savings accounts, fixed deposits, and loans. With a robust network of branches across multiple Indian states, Saraswat Bank serves millions of customers, integrating advanced digital banking solutions to meet the needs of modern consumers. Its continued commitment to community support and financial inclusion marks its prominent role in India's cooperative banking sector.

Check Your Education Loan Eligibility


Saraswat Bank Education Loan Feature

Saraswat Bank offers the Saraswat Education loan, designed to support students pursuing higher education in India or abroad. This loan covers course fees and related expenses, enabling students to fulfill their educational dreams without financial constraints. With this initiative, Saraswat Bank aims to empower young minds on their academic journeys. Let’s have a look at the different features of Saraswat Bank education loan.

Feature  Description

Loan Amount

For India:

Non-medical Courses - up to ₹75 Lakh

Medical Courses - up to ₹1.5 Crore

For Abroad: up to ₹ 1.5 Crore

Loan Tenure

Up to 15 years

Moratorium Period

Course + 1 year

Rate of Interest*

Starting at 9.75%

Interest Rate Concession

0.50% - Girl students and Divyang.

0.25% - For IIM, IIT, XLRI & ISB, Govt recognized medical college

Processing Fee

For India: 0.50% (Maximum ₹5,000)

For Abroad: 0.50% (Maximum ₹25,000)

Tax Benefit


Prepayment Penalty 


*The Saraswat Bank education loan interest rate is floating in nature

Looking for an abroad education loan?
By entering my phone number, I give consent to override NCPR and recieve WhatsApp messages.


Eligibility Criteria for Saraswat Bank Education Loan

Understanding the eligibility criteria for an education loan is crucial as it outlines the requirements students and their families must meet to secure financial support for higher education. This ensures that applicants are well-informed about the qualifications necessary for loan approval, aiding in a smoother application process.

  • list items Eligibility extends to individuals who have gained admission to graduate or post-graduate programs recognized by the Indian Banks' Association (IBA), including vocational courses.
  • list items The maximum loan amount for vocational courses is capped at Rs. 10 lakh.
  • list items The student must be the primary applicant for the loan, with parents, sponsors, or relatives acting as co-applicants to provide additional security.
  • list items In situations involving minor students, the parent must assume the role of the primary applicant.
  • list items A commitment is required from the parent that upon the student reaching legal age or before the parent's retirement, the student will be added as a guarantor to the loan.

Documents Required for Saraswat Bank Education Loan

Gathering the necessary documents for an education loan application is an essential step in the process, as it enables the bank to assess the applicant's eligibility and financial background. The documentation required varies depending on the applicant's employment status and the nature of the educational program, especially for studies abroad. Proper documentation ensures a transparent and efficient approval process, allowing students to focus on their educational pursuits without financial worries.

  • list items Completed loan application form accompanied by a recent photograph.
  • list items Photo Identity Proof and Residence Proof for both the applicant and guarantors.
  • list items Documents proving confirmed admission, along with an estimate of course fees and additional expenses like travel, lodging, and boarding.
  • list items Receipts or other proof of fee payments already made.
  • list items For students studying abroad, a copy of the Passport & Visa, along with other related documents, is mandatory.
  • list items Income proof, which varies by employment type: For salaried individuals: the last 3 months' salary slips or certificates, copies of IT returns or Form 16 for the last two years, and a 3-month bank statement. For businessmen: Profit & Loss and Balance Sheet for the last 3 years, ITR copies for the last three years, and a 3-month bank statement.
  • list items For salaried individuals: the last 3 months' salary slips or certificates, copies of IT returns or Form 16 for the last two years, and a 3-month bank statement.
  • list items For businessmen: Profit & Loss and Balance Sheet for the last 3 years, ITR copies for the last three years, and a 3-month bank statement.

How to Apply for Saraswat Bank Education Loan?

Applying for an education loan at Saraswat Bank involves a systematic process designed to ensure that prospective students can secure financial support for their higher education endeavors efficiently. Here’s a general overview of the steps involved in the application process:

  • list items Research and information gathering: Start by researching Saraswat Bank’s education loan offerings to understand the terms, conditions, interest rates, and benefits. This step is crucial for aligning the loan features with your educational and financial needs.
  • list items Eligibility check: Verify your eligibility for the education loan as per the bank's criteria. This involves checking the courses and institutions covered, the applicant's qualifications, and other prerequisites mentioned by the bank.
  • list items Document preparation: Compile all the required documents, including the loan application form, identification and residence proofs, academic records, admission proof, course fee details, and financial documents. The exact list of documents can vary based on specific requirements.
  • list items Loan application submission: Fill out the education loan application form provided by Saraswat Bank and submit it along with all the necessary documentation. This can typically be done at a branch office, though some banks may offer online applications as well.
  • list items Loan evaluation and approval: Upon receiving your application, the bank will review your documents, assess your loan request, and may conduct a verification process. This step includes evaluating the applicant's and co-applicant's financial stability and credit history.
  • list items Offer letter: If the loan is approved, Saraswat Bank will issue an offer letter detailing the loan amount, interest rate, repayment terms, and other conditions. Review this offer carefully before acceptance.
  • list items Loan disbursement: Once you accept the loan terms and complete any additional formalities required by the bank, the loan amount will be disbursed directly to the educational institution or as specified in the loan agreement.
  • list items Repayment: Repayment typically begins after the course completion plus the grace period, known as the moratorium period, as specified in the loan agreement. It's important to understand the repayment structure, including EMI amounts and tenure, before accepting the loan.

It's advisable to contact Saraswat Bank directly or visit their official website for the most current and detailed information on the application process, as procedures and requirements can vary and may be updated over time.

Securing your future through higher education is now more accessible with Saraswat Bank's Education Loan, designed to lift financial barriers. Whether you're aiming for domestic or international studies, the bank provides a robust support system for your academic ambitions. Dreaming of studying abroad? Simplify your loan process by checking your eligibility with GyanDhan for hassle-free education loans. Let's make your educational aspirations a reality, together.

Also Read:


Frequently Asked Questions

Can I apply for Saraswat Bank Education Loan online?

Yes, you can apply for an education loan from Saraswat Bank both online and offline. For online applications, visit Saraswat Bank's official website, fill out the application form with necessary details, upload required documents, and submit the form. Offline applications can be submitted at any Saraswat Bank branch.

What is the loan limit for Saraswat Bank education loans for vocational courses?

The loan limit for vocational courses is up to INR 10 Lakhs, providing financial support for a variety of vocational training and courses.

Is there any processing fee for Saraswat Bank education loans for studying in India?

For education loans intended for studies within India, Saraswat Bank charges a processing fee of up to Rs 5,000 for loans up to Rs 20 lakh, and Rs 8,000 for loans above Rs 20 lakh. Additional charges for legal and valuation reports may apply if the loan is collateralized.

What are the acceptable collaterals for Saraswat Bank education loans?

Saraswat Bank accepts various collaterals for education loans, including Life Insurance Policies (LIP) pledged in favor of the bank, National Savings Certificates (NSC), and property. The value of collateral should be between 110% to 150% of the required loan amount for LIP or NSC, and 110% for property.

What expenses are covered under Saraswat Bank Education Loan?

Saraswat Bank Education Loan covers a wide array of expenses including tuition fees, library/laboratory fees, examination fees, cost of books, instruments, uniforms, hostel fees, miscellaneous expenses like project work, study tours, thesis, etc., and a reasonable cost for a laptop or computer if required for the course.

Check Your Education Loan Eligibility


Have More Questions on This Topic?

Ask from a community of 10K+ peers, alumni and experts