State Bank of Patiala Education Loan | Education Loan in India | Student Loan in India

Student Education Loans by State Bank of Patiala

To extend financial assistance to deserving/meritorious students for pursuing higher education in India and abroad

Eligibility criteria
Student eligibility

  • Secured admission to professional/technical courses through test/selection process
  • Secured admission to foreign university/institution

Courses Eligible
Studies in India

  • Graduation courses: B.A,B.Com,B.Sc etc
  • Post graduation courses: Masters and Phd.
  • Professional courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management and computer etc.
  • Computer certificate courses of reputed institutes accredited to dept of electronics or institutes affiliated to a university.
  • Courses like ICWA,CA,CFA etc
  • Courses conducted by IIM,IIT,IISc,XLRI,NIFT etc
  • Courses offered in India by reputed foreign universities
  • Evening courses of approved institutes
  • Other courses leading to diploma/degree etc conducted by college /universities approved by UGC/govt./AICTE/AIBMS/ICMR etc
  • Courses offered by national institutes and other private institutions

Studies abroad:

  • Graduation: For job oriented professional/technical courses offered by reputed universities
  • Post Graduation:
  • MCA,MBA,MS etc.
  • Courses conducted by CIMA in London,CPA in USA etc.

Expenses considered for loan

  • Fee payable to college/school/hostel.
  • Examination/library/laboratory fee
  • Purchase of books/equipment/instruments/uniform
  • Caution deposit/building fund/refundable deposit supported by institution bills/receipts.
  • Travel expenses/passage money for studies abroad
  • Purchase of computers/two wheeler
  • Any other expenses required to complete the courses-like study tour, project work thesis etc.

Quantum of finance:
Need based finance subjected to repaying capacity of the parents/students with margin and the following ceilings

  • Studies in India-Max Rs 10 lacs
  • Studies in abroad-Max Rs 20 lacs


Up to Rs 4 lacs: Nil
Above Rs 4 Lacs: Studies in India

Studies abroad:15%

 A. Studies in India:

  • Up to Rs 4 Lacs: No securities
  • Above Rs 4 Lacs & up to Rs 7. 5Lacs: Collateral in the form of asuitable third party guarantee.
  • Above Rs 7.5 Lacs and up to  Rs 10 Lacs: tangible collateral securities for full value of loan.


B. Studies abroad:

  • Studies in India-Max Rs 10 lacs
  • Above Rs 4 Lacs & up to Rs 7. 5Lacs: Collateral in the form of suitable third party guarantee.
  • Above Rs 7.5 Lacs and up to  Rs 10 Lacs: Tangible collateral securities for suitable value or suitable third party gurantee alog with the assignment of future income of the student for payment installments
  • Above Rs 15 Lacs and up to Rs 20 Lacs: Tangible security for full value of loan

Rate of interest:

  • Up to Rs 4 Lacs:0.75 % below BPLR
  • Above Rs 4 lacs: -1% above BPLR

Interest concession
1% concession in rate of interest be provided if full interest is paid during the moratorium period when any moratorium is specified

Repayment to be made after completion of moratorium pr\period i.e. course period+1 year or 6 month after getting job, whichever is earlier?

The loan to be repaid in a maximum of 5-10 years after commencement of

Processing charges:
Penal interest
No penal interest to be charged on educational loan up to Rs 4 Lacs.
Above Rs 4 Lacs penal interest @ 2 % over and above the applicable rate ,on the entire loan outstanding for the period of such default will be charged if the EMIs remain unpaid for a period of 30 days from the due date, for any reason, including the bounced cheque
Processing charges:
No processing charges/upfront fee will be charged on education loan.
For loan to students going abroad, Rs 5000/=upfront for loan above Rs 4 Lacs will be recovered and dealt as under

  • If the applicant avails the loan the amount of Rs 5000 will be adjusted against the contribution of margin money/the interest payable on th loan
  • If the applicant does not avail the loan within a period of 4 months of sanction of the loan, the amount will be appropriated and credited to commission A/c


Documents required:

  • Completed application form
  • Mark sheet of last qualifying examination, proof of admission schedule of expenses and duration of courses.
  • Passport size photographs, passport/ID card/Voter card/PAN card etc of student /parent/guardian and guarantor
  • Details regarding the guarantor
  • Proof of income of the borrower/guarantor
  • Title deed of the property or other securities and other related papers etc.