Saraswat Bank Education Loan

Saraswat Bank was established in 1918 in Mumbai, and it is the largest urban co-operative bank. The bank was originally formed as The Saraswat Co-operative Banking Society to provide financial support to distressed families. Over the decades, it expanded across key Indian cities and acquired scheduled bank status from the Reserve Bank of India (RBI) in 1988.

Presently, Saraswat Bank operates over 311 branches across eight states. Now, they even help students by providing an education loan to pursue higher education. Under Saraswat Udaan, they provide up to 5 crores of education loan for abroad education. The interest rates range between 8.5% to 9%, with concessions available for female students, differently-abled applicants, and those admitted to premier institutes.

The repayment period is up to 15 years, and a moratorium period covering the course duration plus up to one year. However, they offer loans based on collateral. They have seamless processing and easy disbursement, thus making studying abroad a convenient investment. 

Overview of Saraswat Udaan Education Loan

Saraswat Udaan is Saraswat Bank’s education loan product designed to support students in financing their higher education in India and abroad. This product covers tuition fees, examination charges, and even accommodation. The eligibility list includes various professional degrees, postgraduate programs, vocational training, and technical courses from recognized institutions.

The loan amount in the loan product can be around INR 75 Lakhs to INR 1.5 crores for overseas education. However, sometimes they even offer the maximum amount of INR 5 crore based on the student's profile. The interest rate ranges between 8.5% to 9% and for female applicants and differently-abled candidates, and 0.25% to 0.5% for those joining premier institutes.

During the moratorium period, one needs to pay the full EMI, and the repayment period is 15 years. But, they do require collateral to provide an education above INR 5 lakhs, and they have simplified documentation and efficient processing.

**Moratorium period is the time duration during which you are not required to make payments toward your education loan.

*Margin money refers to the amount of money that a borrower is required to contribute towards the loan, while the lender pays the remaining amount. 

Eligibility Criteria of Saraswat Udaan Education Loan

Saraswat Bank offers an education loan at the lowest interest rate; however, to qualify, you must fulfill certain eligibility criteria. Please refer to the details below to ensure you are eligible for the loan application.

• 
  You must be an Indian national with a Letter of Acceptance from a recognized institution in India or abroad.
• 
  Both minors and majors are eligible. If you are a minor, a parent or guardian acts as the primary applicant.
• 
  The eligible course list includes undergraduate, postgraduate, diploma, professional, vocational, and technical programs.
• 
  Admission must be secured through a merit-based process or entrance examination.
• 
  Preference is given to students admitted to reputed or premier institutions.
• 
  A co-applicant must have a stable income and a good credit profile.
• 
  Essential documentation includes admission proof, estimated course expenses, KYC, academic records, and income proof of the co-applicant.

Documents Required for Saraswat Udaan Education Loan

To apply for the loan, you need to provide the documents. Their are following documents that you should prepare before applying for the loan.

• 
  The signed acknowledgment of the education loan application form.
• 
  Letter of Acceptance from the educational institution.
• 
  Fee structure and cost of study estimate from the institution.
• 
  Mark sheets of 10th, 12th, and bachelor's (if applicable).
• 
  PAN Card and Aadhaar Card of the student and co-applicant
• 
  Address proof of student and co-applicant (e.g., utility bill, rent agreement, or passport).
• 
  Income proof of co-applicant (salary slips, IT returns, bank statements).
• 
  Passport and visa (if available).
• 
  Collateral documents with the property documents, ownership proof, etc.
• 
  Passport-size photographs of the applicant and co-applicant.

Other Requirements for Saraswat Udaan Education Loan

• 
  Coapplicant income: If withdrawing a loan amount of around INR 1 crore, then the co-applicant’s income should be around INR 1.5 Lakhs per month.

• 
  Share Purchase Requirement: As Saraswat Bank is a cooperative bank, borrowers are required to become shareholders, and this is mandated by RBI guidelines. So, banks pay an annual dividend of approximately 15% on the shares, credited directly to the loan account each year.

• 
  Share Pricing Based on Loan Amount:

  • 
    Loan up to INR 1 crore means INR 1,000 (₹10 per share × 100 shares).
  • 
    Loan above INR 1 crore means INR 25,000.

   
• 
  Share Certificate: A share certificate is issued as proof of ownership.

• 
  Property Insurance Charges: You need to pay up to INR 5,000, which may vary based on the property type and value. 

• 
  Stamp Duty Charges: You are also required to pay INR 4,000 approx. as per state regulations.

• 
  Savings Account Requirement: A minimum balance of INR 5,000 must be maintained in the borrower’s savings account linked to the loan.

Application Process to Apply for Saraswat Udaan Education Loan

If you fulfil the above eligibility criteria, then here is the application process. Knowing it will help you avoid mistakes later on.

• 
  Visit the nearest Saraswat Bank or reach out directly to the official through GyanDhan. 
• 
  Fill in the application form either online or offline through the nearest branch.
• 
  Upload or submit the required documents such as admission letter, academic records, cost estimate of education, KYC documents, and co-applicant’s income proof.
• 
  If applying online, you have to visit the branch personally to submit the documents; however, with GyanDhan, bank officials visit your house to collect your documents. 
• 
  Documents are verified, and other factors such as eligibility, credit history, and institutional credentials are used to evaluate your profile. 
• 
  On approval, the applicant receives a sanction letter detailing the sanctioned amount, interest rate, repayment terms, and collateral requirements.

Application Process With GyanDhan

Now, many students apply by themselves, but what is the difference when you apply through GyanDhan? Below is the process that gets followed when you apply through GyanDhan.

• 
  GyanDhan shares the lead and customer details via email with the respective SPOC at Saraswat Bank.
• 
  Based on your location, the nearest branch is assigned for your loan case. 
• 
  The assigned branch contacts the customer and collects the required documents in physical form.
• 
  The branch forwards the collected documents to the Loan Processing Center.
• 
  Loan Processing Center carries out underwriting, legal & technical verification, and co-applicant field investigation.
• 
  Once approved, the Loan Processing Center issues the sanction letter to the branch. You receive the sanction letter from the assigned branch.
• 
  If you agree with the loan amount and the terms, then the customer must visit the branch or the Loan Processing Center (whichever is closer) to sign the loan agreement.
• 
  The branch serves as the main communication point between the customer and the Loan Processing Center until the disbursement is completed.

Note: With GyanDhan, you need to visit the branch only once, and the rest you get assisted over the phone during the application process. And the bank representative visits the house themselves, saving you from the decade-long waiting queues. 

Disbursement Steps After Approval of Loan Application

Once you get the approval, this doesn’t mean you will get the money to your bank account. There are some formalities that are left on the applicant's part that need to be done before the money gets disbursed. 

• 
  Once the loan is sanctioned, the applicant and co-applicant are required to sign the loan agreement.
• 
  The disbursement will be disbursed directly to the educational institution in tranches, as per the fee schedule.
• 
  Funds for other expenses, such as travel, books, and living costs, are transferred to the student’s or co-applicant’s bank account.
• 
  The bank provides disbursement receipts and schedules for transparency and future reference.

Benefits of Taking an Education Loan from Saraswat Bank

• 
  They provide the maximum loan amount of INR 1.5 crores; however, for exceptional cases, this can go up to INR 5 crores. 
• 
  They offer an interest rate of around 8.5-9% which is the lowest interest rate. 
• 
  Flexible repayment with long tenure up to 15 years and a moratorium of the course duration + 1 year.
• 
  Simplified application and documentation process.
• 
  Option of no collateral for loans up to INR 5 lakh.
• 
  Strong branch network and recognised trust as India’s largest urban co-operative bank.

Disadvantages of Taking an Education Loan from Saraswat Bank

• 
  Collateral is mandatory for loans exceeding INR 5 lakh.
• 
  Interest concessions are capped at a maximum of 0.5%.
• 
  Slightly limited online processing options compared to digital-first lenders.
• 
  Loan availability may vary based on location or branch-level discretion.
• 
  Co-applicant’s strong financial profile is often essential for higher amounts.
• 
  Russia and Ukraine aren’t sponsored because of the current situation. 
• 
  Required to pay the full EMI during the moratorium period.
• 
  They are serviceable in Maharashtra, Goa, Gujarat, Delhi (including other NCR cities), Madhya Pradesh, and Karnataka.

Conclusion

The entire loan process is a bit overwhelming, but it becomes even more efficient when you have multiple options to choose from. If you are overwhelmed with the lenders and the bank loan terms, let GyanDhan simplify the decision-making. Our Loan Eligibility tool helps you know the eligible lenders based on the information entered by you. Our experts can help you and make the process more efficient. They can compare all the potential lenders in one go and compare them on a single platform. This enables you to select the option offering the lowest interest rate and most favorable terms for your financial needs and academic goals.