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Syndicate bank Education Rate of Interest

Syndicate Bank offers education loan to meet financial needs of student for maximum loan amount of 20 Lacs

  • A margin of 15% is charged.
  • The maximum loan amount offered is INR 20 Lacs.
  • The maximum repayment time is 15 years
  • No processing fee is charged and there is no criterion for margin.

Rate of Interest charge by the bank depends on the base rate set by Syndicate Bank as per the guideline set by RBI:

  • The RoI for studying abroad is 1-year MCLR+2.10%

CALCULATE YOUR EDUCATION LOAN EMI

Fill the Loan Amount
Fill the Interest Rate
Fill the Loan Tenure
EMI Payable

188 per month

Total Interest

1,280

Payable Amount

11,280

Total Interest
Principal Loan Amount

Looking for admission for India and Abroad?

Know Fees

Syndicate bank Education Loan Eligibility

loan eligibility image
  • Indian National. The student must be an Indian National or an NRI having an Indian passport
  • 10+2. The student must have cleared 10+2 from a recognized board or institute with 50% marks.
  • Admission Basis. The admission should have been secured through an entrance exam or on merit basis.
  • Eligible Course. Graduation/Post Graduation courses
  • Eligible Institute. You must have secured admission in a recognized foreign university.
  • Qualification. Qualified essential games with appropriate grades.

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Applicable Rate of Interest 1-year MCLR+2.10%
1.70% above the base rate
up to INR 7.5 Lacs: MCLR + 2.00%
above INR 7.5 Lacs: 2.60%
Upto 4 Lacs- 16.50%
Upto 7.5 Lacs- 17.50%
Above 7.5 Lacs- 15.50%
Max Loan with Collateral 20 Lacs
For Abroad: 30 Lacs
For Abroad: 20 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs and beyond based requirement
Max loan without collateral 20 Lacs
For Abroad: 30 Lacs
For Abroad: 20 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs and beyond based requirement
Processing Fee Nil
INR 10,000
Nil
Nil
Repayment Period 15 Years
15 years
15 years
7 years
Loan for top institutions Yes, Synd Super Vidya
Yes, SBI Scholar Loan Scheme
Yes, PNB Pratibha
No
Margin 15%
15%
Up to INR 4 Lacs - NIL
Above INR 4 Lacs - 15%
Upto loan 4 Lacs: No margin
Above 4 Lacs: for India: 5%
for Abroad: 15%
Age Limit No age criteria
no age limit
No age limit
No
Loan Security Tangible Collateral in form of liquid securities like relief bonds
Non-agricultural property of value not less than 125% of the loan amount
Assignment of students future salary towards the bank
Tangible collateral security is required
Collateral security by third party are also accepted
Upto INR 7.50 Lacs: Parent(s)/guardian be made joint borrower (s). No tangible Security and /or 3rd party guarantee is required.
Above INR 7.50 Lacs: Parent(s)/guardian be joint borrower(s). Tangible collateral security of suitable value acceptable to bank.
Third party guarantee
Collateral security
Additionally, assignment of LIC policy in favor of bank amounting 100% of education loan amount
Assignment of Future salaries in favor of Axis Bank
Eligibility concession for SC/ST 0.50% to SC/ST Boy
0.75% for SC/ST Girl
No
50% for SC/ST, and;60% for General category.
No
Processing Time N.A
20 days
15 days
14 Days
Prepayment charges Nil
Nil
Nil
Nil
Penal charges Nil
Penal interest @ 2% to be charged for loans above Rs.4 lacs for the overdue amount and overdue period
Nil
@ 2% per month on the overdue installment/s
Mandatory insurance cover Not mandatory
Yes
yes
yes
Travel expeneses Yes
yes
yes
yes
Bank transfter allowance No such clause mentioned
available
available
No such clause mentioned
Top up loan availability Unavailable
yes
available
unavailable
Interest Subsidy Schemes No
Padho Pardesh
CSIS
Skill Loan Scheme
Padho Pardesh
CSIS
Skill Loan Scheme
CSIS
Tax benifit Yes
yes
yes
yes
Concession/benefits Zero Margin for Loan upto INR 4 Lacs
No collateral is required if the loan is less than INR 4 Lacs
0.50% concession to girl students
0.50% concession to SC/ST boy students and 0.75% to SC/ST girl students
Concession to girl students
1% concession if interest is serviced during moratorium period including course period
0.5% concession to girl students
0.5% concession if interest is serviced during moratorium period including course period
Online application
There is no processing fee charged
No pre- payment charges are applied
No pre- closure charges are applied
Loan Disbursal period is 15 working days from the date of final submission of documents
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How to apply for Syndicate bank Education Loan ?

Syndicate bank Education loan application form can be available online or offline at Bank branches.

Visit the official website of Syndicate Bank.

Select loan scheme and click on Apply Now

Fill out the form with your details

Upload the mandatory documents required.

Submit the form and take out a print out of the application.

Visit the bank branch for further formalities.

Applicants can directly visit the nearest branch and ask for an application form. The bank representative will then guide them with all the necessary information regarding eligibility, documents required and also which loan is best suitable.

Syndicate bank Education Loan Details

Loan Limit
20 Lacs
Margin
15%
Processing Fee
Nil
Loan Security
Tangible Collateral in form of liquid securities like relief bonds
Non-agricultural property of value not less than 125% of the loan amount
Assignment of students future salary towards the bank
Loan Repayment
15 Years

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Expenses covered under Syndicate bank Student Loan Scheme

  • Tuition fee
  • Examination fee
  • Library/ Laboratory fee
  • Hostel Fee
  • Cost of Books, equipment, instrument or uniforms
  • Miscellaneous expenses- study tours, project work, thesis, etc.
  • A reasonable cost of computer or laptop (if required)
  • Travel Expenses

Education Loan Documents Required ?

Admission letter Admission Proof including along with fee structure, mark sheets, and other documents

Copies of ID proof and residence proof including PAN, Aadhar, etc.

Two recent passport size photographs of applicant, co-applicant, and guarantor

Mark sheet of recently qualified public exam for school, college in India

Latest salary slip, Form 16 and recent salary certificate.

Schedule of expenses for the course

Details such as Fee receipts and Transfer certificate

Interest Subsidy Schemes

Padho Pardesh

Formulated under the Prime Minister's 15 point programme, this subsidy scheme benefits the students of the minority community who want to study abroad. Such students are provided 100% interest subsidy.

Padho Pardesh

Procedure for availing Padho Pradesh

  • Students are supposed to inform their lending banks about the recently launched scheme of Padho Pardesh by Ministry of Minority Affairs.
  • Then the students have to submit the proof of their eligibility for the particular scheme
  • If a student is eligible, the lending bank will feed the students information into a portal of Padho Pardesh.
  • The portal will remain open for the period of two months in every quarter.

Courses covered under Padho Pardesh Scheme

Courses that are covered by Government of India under this scheme are as follows:

Arts/ Humanities/ Social SciencesCommerce
Pure ScienceEngineering
Bio- technology/ Genetic EngineeringIndustrial Environmental Engineering
Nano- technologyMarine Engineering
Petro-chemical EngineeringPlastic Technology
Cryogenic EngineeringMechatronics
Automation Robotics including artificial intelligenceLaser Technology
Low Temperature Thermal DynamicsArt Restoration Technology
OptometryDock and Harbour Engineering
Imaging System TechnologyComposite Materials Engineering including Decentralized power
Packaging Engineering/ TechnologyNuclear Engineering
Information Technology including Computer Engineering, Software, Software Quality assurance, etc.Industrial Safety Engineering
MedicalAgriculture & Agro Technology
AgronomyFloriculture & Landscaping
Forestry & Natural ResourcesFood Sciences & Technology
Plant PathologyHorticulture
Energy StudiesFarm Power & Machinery
Veterinary SciencesSoils & Water Management
Plant Breeding & GeneticsSmall- scale Rural Technology
Ocean & Atmospheric SciencesMB/MCA
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Frequently Asked Questions

01

What schemes does Syndicate Bank considers for its education loans?

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There are multiple other schemes offered by Syndicate Bank apart from the basic education loans viz Synd Vidya, Synd Super Vidya and Synd Abroad. These are:

  • CSIS Scheme
  • Padho Pardesh
  • Synd Vidya – Vocational Courses
  • Synd Vidya – Skill Loan Scheme
02

In whose name is the loan granted?

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The loan is granted in the name of the student

03

Is the loan contract executed only in student?s name?

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No, the loan can be executed both in name of student and co-borrower as both are equally responsible for repayment of loan.

04

What is the age limit for availing loan in Syndicate Bank?

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A student must be above 18 years of age while applying for the loan and should also meet other eligibility criteria stated by the bank.

05

Are minors eligible to apply for Syndicate Bank Education Loan?

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Yes, Minors aspiring for further studies can apply for education loan with help of legal representation from parents/ guardians.

06

What does margin on any loan mean?

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Margin amount is the amount that a borrower has to pay through his/ her own sources in form of a down payment as his/ her contribution towards the education.

07

Should the student?s margin be paid upfront in the starting?

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Margin can be paid on a year to year pro rata basis whenever bank disburses loan amount as per requirement.

08

Where can I avail Syndicate Bank Education Loan?

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You can either contact your nearest branch for the application form or details regarding the loan or apply online from the official website.

09

Is there any provision to apply for loan online?

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Yes, you can apply online through Vidyalakshmi portal to avail for this loan.

10

Can I view my loan statement online if I am an existing education loan borrower?

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Yes, by creating a login on Syndicate Bank web portal, you can view all details related to education loan online.

11

Is there any minimum aggregate marks to meet the eligibility criteria to avail Syndicate Bank education loan?

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Yes, a student must have secured a minimum aggregate marks in their last qualifying examination (10+2 or Graduation). Relaxation in the marks is given to SC/ ST students

12

What is the discount/ rebate offered by Syndicate Bank?

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  • 0.50% concession is given to girl students
  • 0.50% concession to students who have secured admission to top premier institutes.
  • 1% concession to children of employees of government sector/ public sector undertaking/ blue chip companies.
  • Eligibility criteria and margin on education loan is relaxed for SC/ST students
13

What all is included in tangible collateral security?

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Mostly Syndicate Bank asks tangible security in lieu of the loan amount sanctioned along with assignment of future salaries in favour of Syndicate Bank. Tangible security includes documents related to land/ building/ government security/ public sector bonds/ units of UTI, NSC, Life insurance policy/ bank deposits/ shares or debentures. The value of the security should be equal to the education loan amount.

14

Can I place my family property as collateral?

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Yes, but it will need consent of all family members involved.

15

Is scholarship or assistantship included in the margin?

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Yes any scholarship or assistantship will be a part of margin charged on education loan.

16

What is Moratorium Period?

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Moratorium period is different for different variant of loans.

For Synd Vidya and Synd Super Vidya: Course Period plus one year, or six months after getting a job

For Synd Vidya – Skill loan scheme and vocational course scheme: For course upto 6 months: Course Period + 6 months; For courses above 6 months duration: Course Period  + 1 year

17

What is tenure of an education loan?

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Tenure of education loan provided by Syndicate Bank is maximum 15 years. For Synd Vidya- Skill Loan Scheme, maximum tenure is 7 years.

18

What does MCLR stands for?

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MCLR stands for Marginal Cost of funds based Lending Rate. It refers to the minimum interest rate of bank below which it cannot lend.

19

What all expenses are covered under this course?

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Expenses covered by Syndicate Bank education loan are:

  • Tuition/ college/ hostel fee
  • Examination/ lab/ library fee
  • Books/ uniform/ instruments
  • Caution deposit
  • Passage money for studies abroad, etc.
20

Will my travel expense will be covered if I take loan from Syndicate Bank?

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Yes, travel expenses are covered under this loan

21

I have taken admission through management quota. Am I eligible?

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This depends totally on bank?s discretion as whether a student meets other eligibility criteria or not.

22

What do you mean by reputed or recognized institutes?

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Institutes that are affiliated to state/ central universities and comes under UGC or AICTE are considered as recognized institutes. Reputed institutes are those which are well known and have standard course of repute. More often, banks provide the list of institutes they consider for loan. (You can contact nearest branch for the same)

23

Are there any special benefits if I have secured admission to one of the top premier institutes?

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Syndicate Bank does not offer any rebate or concession to students securing admission to premier institutes abroad.

24

What is the processing fee or prepayment charges?

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The education loan offered by Syndicate Bank does not carry any prepayment charges/ processing fee/ documentation charges.

25

Will cost of my computer be covered under the loan sanctioned?

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Reasonable cost for the computer or laptop well be covered under the loan if it is required to complete the course.

26

Why is Pan Card necessary?

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Pan Card is one of the mandatory document required by banks these days. It is mandatory because:

  • Easy to assess Income
  • Easy to trace borrowers
27

Are diploma or certificate courses considered under Syndicate Bank education Loan (both for India and Abroad)?

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Diploma courses are eligible under Syndicate Bank Education Loan. Regular degree or diploma courses like, shipping, pilot training, and aeronautical that are approved by Director General of Civil Aviation or Shipping.

28

Is a co-borrower necessary for loan?

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Yes, it is mandatory to have a co-borrower to avail loan from Syndicate Bank.

29

Who can be my co-borrower?

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Your parent/ spouse/ guardian can be a co-borrower. A co-borrower should be your immediate family member, should have a steady source of income, and a good credit history.

30

What all documents are required from the co-borrower?

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Documents required from the co-borrower are:

  • Attested copies of age proof, residence proof and birth date.
  • Self-attested passport size photograph
  • Income proof and/or copy of income tax return file
  • Details of collateral security along with government approved valuation certificate (if any).
31

How many guarantors do I need to borrow loan from Syndicate Bank?

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You need at least 2 guarantors to avail loan from Syndicate Bank.

32

What is the KYC requirement in education loan?

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KYC requirements are the documents as a proof of personal identification and residence proof of the applicant as well as the co-borrower.

33

What are maximum term for repayment?

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Maximum Term for repayment for Loan amount upto INR 7.50 Lacs is 10 years and maximum term for repayment is 15 years for loan amount above INR 7.50 Lacs

34

How can I repay the loan?

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You can repay the loan after the moratorium period by mode of EMI or through post- dated cheques.

35

What is EMI? How are they calculated?

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EMI stands for Equated Monthly Installments. It can be calculated by using the formula given below

  • EMI = [P x R x (1+R) ^n] / [(1+R)^ n-1]
  • Here, P is Amount of Education Loan, R is Rate of Interest, n is Tenure of the Loan.
36

What are the charges for late EMI payment?

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24% per annum on outstanding amount is charged for the late EMI payment and INR 500 for every bounced cheque.

37

Is the loan disbursed in name of individual applicant or to the institute/ university directly?

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The loan is disbursed directly to the institute/ university that you have taken admission to. Hence, an applicant is supposed to submit institute brochure with proper division of the fee

38

If I am unable to complete my course in given tenure, will my repayment term be extended?

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It is completely on the banks discretion to extend the moratorium period or not. It can be extended for maximum 2 years based on student?s reason. You can contact your nearest branch for more details.

39

What is method of application of interest on education loan?

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The interest will be charged at simple rate from the date of disbursement till commencement of repayment of loan. After that, compound interest is charged on reducing balance.

40

If I am joining the course soon after current course, can I get an extension?

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Mostly, in such cases, you do not get an extension and even if you do there is a possibility that interest rates are higher

41

What is interest rate of education loan?

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Interest rate varies for different variants of education loan schemes provided by Syndicate Bank. These are:

The Interest Rate for Synd Vidya Education Loan is

Amount of LoanApplicable Rate of Interest
Upto INR 4 Lacs1 year MCLR + 1.60% p.a.
Between INR 4 Lacs to 7.50 Lacs1year MCLR + 1.85% p.a.
Above INR 7.50 Lacs1 year MCLR + 2.85% p.a.

The Interest Rate for Synd Vidya Abroad

Rate of interest on all amounts under Synd Vidya Abroad is One year MCLR + 2.10%

42

What is interest subsidy on education loan?

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Syndicate Bank offers

  • CSIS- Interest Subsidy scheme for economically weaker sections and to promote education amongst them
  • Synd Vidya – Vocational Course Scheme for students who wish to purse Vocational (Skill Development) courses.
  • Padho Pardesh scheme for students who wish to pursue studies abroad
  • Synd Vidya – Skill Loan Scheme for students who wish to pursue courses to enhance their skills and attain better career opportunities.
43

What documents do I need to submit to avail interest subsidy scheme?

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The documents that need to be submitted are:

  • Income certificate issued by authorised authorities
  • Bonafide student certificate
  • Letter of undertaking or declaration signed by borrower/ co-borrower
44

What is employment verification in an education loan?

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The bank takes the responsibility to cross verify all the employment details of the applicant and co-borrower. If the banks fails to cross verify every detail provided, it might reject the loan application.

45

Are there any tax benefits in education loans?

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Under Section 80E of Income Tax Act, loan borrowers can avail the tax benefits. This benefit is only available over and above INR 1,50,000. Tax benefits can be availed once the borrower starts paying interest on loan. The deduction is available until borrower pays off full interest amount on loan or for maximum of 8 years (whichever is earlier).

46

Is it necessary to have bank account with the bank while availing loan from that particular bank?

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It is not necessary to have a bank account while availing the loan but it makes it easier for the borrower to get loan application approved.

47

Can I repay my loan in foreign currency even if my bank is in India?

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Yes, you can pay the amount in foreign currency (Euro, Pound, Dollar, etc.) The bank might charge an additional currency conversion fee as per RBI regulations.

48

Why do banks require insurance policy as security?

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The banks require insurance policy as security in lieu of education loan provided. The insurance policy should be equal or more to the amount of loan sanctioned. In case of untimely demise of the borrower, the bank recovers the amount from the insurance policy

49

Are there any additional benefits on availing loan from Syndicate Bank?

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Borrowers can open a saving account with bank and he/ she would receive ATM cum Debit Card.

50

What is credit score? Is it important for education loan?

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Credit Score is inclusive of various factors such as credit history (Loan history or credit card). If a student does not have a credit score, banks calculate it by considering factors such as University, College and the Course of admission. Banks consider the academic background of student and credit history of co-borrower.

51

Are NRIs eligible for the education loan?

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NRIs are eligible for the loan if they have Indian citizenship and are Indian passport holder.

52

Is Visa a necessary document for studying abroad?

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Visa is needed as a document proof but it is not a sole requirement.

53

What all procedures do one have to go through while applying for abroad?

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A student who is applying for studying abroad have to give necessary documents required by the bank. One needs to have a thorough knowledge of the course they are applying for and in which institute as it can be asked on the airport by the foreign officials.

54

If a student have any query, where or whom to contact?

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student can reach out to the nearest branch in case of any query.

Customer Care Number:

Head Office: 0820 2571181 to 2571196

Corporate Office: (080) 2226 7545/ 7548/ 6889/ 6256/ 5959

Toll Free Numbers: 1800 3011 3333/ 1800 208 3333

Other General Enquires: 080 – 222260281

Local rates apply on every call

Customer Care Id: syndcare@syndicatebank.co.in

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