Student Education Loans by Saraswat Bank

Purpose
Studies in India & Abroad

Maximum Loan Amount

• Studies in India- Max up to Rs. 10.00 lakhs
• Studies in Abroad- Max up to Rs 20.00 lakhs

 

Eligibility
a) 100% of cost of the fees and other expenses Or
b) 90% of market value of the property Or 75% of Accrued Value of NSC's Or 70% of Valuation of Gold or 85% of outstanding balance, in case of cumulative deposits or 95% of outstanding balance in case of other deposits
c) 50 times of the net salary of parents Or 3 times of the net cash accruals in case of businessman.

A, b,c, whichever is lower.

Limit of Loan 

• Studies in India- Max up to Rs. 10.00 lakhs
• Studies in Abroad- Max up to Rs 20.00 lakhs

 

Rate of Interest

• 11 % on Daily Reducing Balance
• Branch Managers are authorized to consider concession in processing fee and Rate of Interest ranging from 0.25% to 1% based on Credit Rating, banking relations, previous repayment record etc.

Equated Monthly Installments: ( For Rs 10 Thousands )

Repayment Period 

Maximum 84 months OR Subject to age/residual service of the parent (considered as borrowers) whichever is earlier. 84 months includes a moratorium period-( Duration of the course plus an additional period of six months with a maximum ceiling of 3 years whichever is earlier.) In case of phased disbursement total repayment period of 7 years to be allowed for each component separately, inclusive of moratorium period subject to age/residual service of the parent (considered as borrowers) whichever is earlier.

§The borrower be allowed to bring in margin/own stake and security/collateral security from year to year in proportion of the loan to be disbursed.
 
 
Security
Collateral Cover: You shall offer 100% collateral cover.      
            
Up to Rs.2.00 lakhs.
Hypothecation of household articles and two guarantors with nominal membership OR only two guarantors with 5% shareholding

Above Rs.2.00 lakhs and up to Rs.5.00 lakhs
Hypothecation of household articles and two guarantors.
Branches should not insist on security if the proposal is within the norms and the credit rating is above 65 marks.

Above Rs.5.00 lakhs and up to Rs.15.00 lakhs
Equitable mortgage or any other tangible security acceptable to the bank.
Minimum two guarantors of well placed means.

In case of loans above Rs. 5.00 lakhs,
 Guarantors can be waived if credit rating of the borrower is above 65 marks.
The borrower are allowed to bring in the margin/own stake and security/collateral security from year to year in proportion of the loan disbursed

 

Processing Charges
1% of loan amount. (In case of credit rating of more than 65 marks, Branch Managers are authorized to waive processing fees from 0.25% to 1%)
 
Shareholding

• Up to Rs.2.00 lakhs: nominal membership OR 5% (refer to security clause)
• Above Rs.2.00 lakhs: 2.5% of the sanctioned loan amount.

Documents Required
a) Covering letter stating sources of owned funds.
b) Proof of confirmed admission & other related documents.
Fee receipts or proof of payments made.
c) Estimate of course fees & other expenses (traveling/lodging/boarding)
d) Fee receipts or proof of payments made.
e) Copy of Passport & Visa, if the student is going abroad for higher education and related documents.
f) Income proof of the applicant in the form of last 3 months salary slip/certificate or copy of the last three years IT returns filed with computation details of personal assets and liabilities.
g)Letter  of  comfort from the flying club and holding of passing certificate of student by the flying club.
h)Job assurance from Flying club

 

Two guarantors with their latest salary slip/certificate in case guarantor belongs to service class or latest income tax returns filed with the computation of income in case the guarantor is a businessman, professional or self-employed.

Processing Fees:

 

For studies in India – NIL

For studies abroad -- 1% of the loan amount

 

In cases where students are recommended to us through tie-up arrangement, a processing fee of 1% to be charged.