Make college memories that last a lot longer than your student loan payments.

Saraswat Bank Education Loan


Saraswat Bank offers education loans for graduate, postgraduate, and vocational courses in India and abroad. The repayment period is long and convenient with a maximum tenure of 12 years excluding the moratorium period. The moratorium period is for three years or for the duration of the course plus one year, whichever is earlier. The moratorium period gives students a breather before they have to get employed and start repaying the loans. The rate of interest is competitive with girl students being given 0.50% less interest than others. There is a lower interest rate of 0.25% for students of the Indian Institute of Management (IIMs), Indian Institute of Technology (IITs), government-recognised medical colleges, Indian School of Business (ISB), and Xavier School of Management (XLRI).

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.50 lakh for pursuing studies in India and a maximum of Rs.75 lakh for education abroad. The maximum amount sanctioned for vocational courses is Rs.10 lakh. 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 one year or three years, whichever is earlier. Applicants can repay a Saraswat Bank education loan with a tenure extending up to 12 years excluding the moratorium period.

Rate of Interest:

For IBA approved courses, Saraswat Bank sanctions loans amounting up to Rs.75 lakh at a floating interest rate of 8.50% 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.


  • 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.

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%.

News About Saraswat Bank Education Loan

  • Saraswat Bank's pre-approved education loan at its lowest ever interest rate

    Saraswat Bank is offering pre-approved education loan at its lowest interest rate to help students meet the cost of education.

    The outbreak of Covid-19 has caused a huge financial implication for various households in India which has severely affected students who do not have the means to meet the cost of their further education. Hence, the lender in order to help the students are offering pre-approved education loan with interest rate starting at 8.50% p.a.

    Apart from that, other benefits such as 100% finance of course fees, zero processing fee, etc. will be offered. Girl students can avail this education loan at 8% p.a.

    8 June 2021

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