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  • Saraswat Bank Education Loan


    As one of the largest co-operative banks in India, Saraswat Bank has a network of 267 branches around the country and is widely popular for its affordable credit schemes and attractive interest rates. For students intending to pursue their higher education in India or abroad, Saraswat Bank offers a comprehensive education loan scheme with flexible repayment options, interest rate subsidies and higher loan amounts including special discounts for women. The Saraswat Bank education loan also offers a unique feature wherein borrowers can invest in Saraswat Bank shares when they avail their loans.

    Feature & Benefits of a Saraswat Bank educational loan:

    ‘Saraswati education loan’ from Saraswat Bank is an excellent financing facility available to students aspiring to study in premier institutions in India or abroad. As educational costs skyrocket, Saraswat Bank provides an educational loan with affordable interest rates, higher loan amounts and flexible repayment tenures.

    Quantum of Loan:

    Borrowers can avail up to a maximum of Rs. 10 lakhs for pursuing studies in India and up to a maximum of Rs 20 lakhs for education abroad. A Saraswat Bank education loan covers up to 90% of the cost of fees and other student expenses.


    The moratorium period includes the entire tenure of the course plus a period of six months or 3 years to repay a loan. Applicants can repay a Saraswat Bank education loan with a tenure extending up to 12 years inclusive of the moratorium period.

    Rate of Interest:

    For IBA approved courses, Saraswat Bank sanctions loans amounting up to Rs 20 lakhs at a floating interest rate of 14.50% per annum and a fixed interest rate of 14% per annum. Female applicants are eligible to get a concession of 0.50% on the interest rate and students applying to premier institutions like IIMs, IITs, XLRI or ISB get an additional discount of 0.25%.

    Processing Fees:

    Saraswat Bank does not levy any processing charges on education loans taken to finance education in India. A processing fee of 0.5% of the loan amount will be charged on education loans taken for studies abroad.


    • Two guarantors are required for education loans taken up to Rs. 2 lakhs.
    • Loans above Rs. 5 lakhs and up to Rs. 5 lakhs require hypothecation of household articles, along with two guarantors.
    • For any loan amount above Rs. 5 lakhs, borrowers can pledge any security accepted by the bank or make an equitable mortgage of their properties.


    Borrowers are required to invest in Saraswat Bank shares when they apply for an education loan. For loan amounts up to Rs 2 lakhs, borrowers need to pay a nominal amount to procure shares. For loan amounts above Rs 2 lakhs, shares need to be bought for a maximum of Rs. 25000/- or up to 2.5% of the total loan amount.

    Documentation required:

    1. Duly filled-in application form
    2. Photo ID and Proof of Residence of the applicant and guarantors
    3. Admission Letter
    4. Detailed estimate of the course fees and other expenses
    5. Fee receipt or any proof of payment
    6. Passport and Visa Photocopies (for overseas education)
    7. Income Proofs
      • Salaried Employees -Last three months’ pay slips/ Last three years IT returns with details of personal assets and liabilities.
      • Self-employed Businessmen -Last two years P/L statements and IT returns copies/ Balance sheet/ Bank statement for the last 6 months.


    Saraswat Bank education loans can be procured by individuals who have secured admission for Undergraduate or Postgraduate courses in any institution approved by IBA.

    Interest Subsidy Scheme for Saraswat Bank Education Loans:

    The Central Scheme of Interest Subsidy is an initiative from the Government of India to provide affordable financing options for pursuing higher education to the weaker sections of the society. The interest subsidy comes into effect only if the student is availing an education loan for admissions into recognised institutions after the completion of Class XII. Students belonging to families with an annual income of up to Rs. 4.50 lakhs can use this facility to get a full interest subsidy benefit, available for the moratorium period also.

    Padho Pardesh Scheme for Saraswat Bank Education Loans:

    This interest subsidy scheme has been introduced by the Government of India and IBA especially for the benefit of the weaker sections of minority communities. Students from these communities wanting to pursue their education abroad can avail this facility for approved post-graduation courses. Applicants belonging to families of minority communities with an annual family income of up to Rs. 6 lakhs can use the full subsidy benefit while procuring a Saraswat Bank education loan.

    Saraswat Bank Education Loan FAQs:

    1. As an existing education loan borrower with Saraswat Bank can I view my loan statements online?

      Yes, borrowers can create a login on the Saraswat Bank web portal and view all details related to their education loan online.

    2. Does the interest rate subsidy apply on all disciplines of UG and PG courses?

      Yes, irrespective of the discipline of study, the interest subsidy applies on education loan applications.

    3. Are additional student expenses like hostel fees, travel, books and equipment fees covered by a Saraswat Bank education loan?

      Yes, the Saraswati education loan covers all additional student expenses along with the tuition fees.

    4. How many guarantors are required as security while availing a Saraswat Bank education loan?

      The bank requires at least two guarantors as security for a Saraswat Bank education loan.

    5. Does Saraswat Bank have a cap on the interest rate discounts for education loans?

      Yes, the total discounts on the education loan interest rates will not exceed 0.50%.

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