Being a bank, we understand the importance of inventing in education. The Saraswat Education Loan is here to give wings to your child’s dream of studying ahead in India or in a foreign country -  course fees & other expenses   (Living/traveling/lodging/boarding).


  1. Individual who has secured admission in any of the graduate/post-graduate courses offered by college/institute/university approved by IBA.
  2. Students applying for vocational courses will also be covered under this scheme with a maximum loan amount of Rs.10 lakh.
  3. Student should be applicant and parent/sponsors or relative should be co-applicant
  4. In case of minor student, parent will be applicant.
    Undertaking required from parent that minor (on attaining majority /before retirement of parent) will be added as guarantor.

Loan Amount:

  1. Studies in India – Maximum upto Rs. 75.00 lakhs and for Medical courses upto Rs.150.00 lakhs
  2. Studies in Abroad - Maximum upto Rs. 150.00 lakhs
  3. Vocational courses – Maximum upto Rs. 10 lakhs

Basis of Advance:

a) 100% course fee and other expenses (traveling/lodging/boarding and other course related expenses)
b)  85-90% of face Value of NSC’s/LIP  OR  90% of accrued value, in case of cumulative deposits or face value in case of other deposits                        

c) 50 times of the Average net salary of parents/sponsors Or 4 times of the Average Gross cash accruals in case of businessman or
    Existing Borrower with good track record for 1 year -latest audited gross cash accrual
b) or c) whichever is lower

If property given as Security:
 a) 90% of realizable value of the property                     OR
 b)75 times of the Avg net salary of parents/ sponsors or 5 times of the Average gross cash accruals or latest audited gross cash accrual with justification.
a) or b) whichever is lower

Repayment Period:

  1.  Maximum 15 years including moratorium period.
  2.  Moratorium: Duration of Course plus one year (Total should not exceed 15 Years)


  1. Upto Rs. 5.00 lakhs - without security and without third party guarantee
  2. Above Rs. 5.00 lacs: Pledge of any other tangible security acceptable to the bank or Equitable mortgage of Property.
  3. Equitable mortgage of Property, NSC/LIP pledged/assigned in favour of Bank  Fixed Deposit, Bonds.

Rate of Interest (Floating):




(PLR-5.50) = 10.00%

     Girl Child and Divyang                    (0.5%discount)           (PLR-6.00) = 9.50%
         Premier Institutes
            (0.25% discount)
           (PLR-5.75) = 9.75%

Present PLR @15.50% p.a

  1. *0.50% concession for all girl students and Divyang.
  2. *0.25% concession in rate for IIM, IIT, XLRI & ISB, Govt Recognized Medical College.
  3. Total discount in ROI should not exceed 0.50%.

Processing Fees:

  1. For Studies in India – 0.50% of Loan amount - maximum Rs. 5000/-
  2.  For Studies Abroad – 0.50% of Loan amount - maximum Rs. 25000/-

(No other charges such as CIBIL/ other credit agency, FI & CERSAI.)

Legal Fees:

  1. For loans upto Rs. 1.00 Cr. - At actuals (applicable only in case where Search and Title report is recommended by our legal department from approved panel advocate )
  2. For loans above Rs. 1.00 Cr. – 0.20% of the loan amount 
for loans or at actuals whichever is higher


  1. Upto Rs. 5.00 lacs: Unsecured : 5% of sanctioned loan amount maximum Rs. 25000/-
  2. Above Rs. 5 lakh : Secured : 2.5% of the loan amount, max Rs. 25000/-.

Documents Required:

  1. Prescribed loan application form
  2. Latest Photograph, Photo Identity Proof, Residence proof of the Applicant and Guarantors
  3. Proof of confirmed admission & Estimate of course fees & other expenses (traveling/lodging/boarding)
  4. Fee receipts or proof of payments made.
  5. Copy of Passport & Visa and related documents, if the student is going abroad for higher education.
  6. Income proof of the applicant in the form of
    1. Salaried: last 3 months’ salary slip/certificate or copy of the last three years IT returns or form 16 of last two years, 3 month bank statement.
    2. Businessman: last 3 years’ profit & loss and balance sheet, ITR copies of last three years, 3 month bank statement.