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Syndicate Bank Education Loan for Abroad

Last Modified : June 30, 2018

To extend financial support to students pursuing their studies, Syndicate Bank has launched multiple schemes for Education Loans for India and Abroad viz. Synd Vidya, Synd Super Vidya, and Synd Vidya Abroad. 

Syndicate Bank Education Loan is offered with a variety of benefits and interest subsidy schemes. Interested students can avail for these schemes such as Synd Skill Loan Scheme, Synd Vocational Courses Scheme, and Central Sector Interest Subsidy Scheme for Education Loan to ease their loan liability.

Why Syndicate Bank?

With loan amount upto INR 20 Lacs, Syndicate Bank offers a variety of loans with maximum benefits and attractive rate of interests. The bank charges 1.60% + 1 year MCLR on loan amount upto INR 4 Lacs, for amount between INR 4 to 7.50 Lacs, it is 1 year MCLR+1.80% and for amount above INR 7.50 Lacs, interest charged is 1 year MCLR+2.85%.

Are you eligible for Syndicate Bank Education Loan?

  • Indian National. Student must be an Indian National or an Indian passport holder
  • 10+2.  You must have cleared 10+2 from a recognized board or institute with 50% marks.
  • Co-signer. A co-signer is mandate while applying for education loan
  • Eligible Institute. You must have secured admission to premier institute in India or abroad

1. Synd Vidya Abroad

Synd Vidya Abroad is education loan scheme launched by Syndicate Bank to eliminate financial constraints from students who wish have secured admission to foreign universities. The loan is provided with maximum benefits and special provisions to ease the monetary burden.

Eligibility to avail Synd Vidya Abroad

  • Indian National
  • 10+2 pass
  • Graduation/ Post Graduation courses in any recognized foreign institute or university
  • Qualified required course with essential grades

Present Rate of Interest

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

Quick Facts about Synd Vidya Abroad

Margin

15%

 

Maximum Loan Limit

INR 20 Lacs

Security

Tangible Collateral in form of liquid securities like relief bonds

Non-agricultural property of value not less than 125% of loan amount

Assignment of students future salary towards the bank 

Moratorium Period

Course Period + 1 year

Repayment (Maximum)

15 years

Prepayment Charges

Nil

2. Synd Vidya Education Loan

Synd Vidya Education Loan scheme is launched to help students overcome financial constraints of pursuing higher studies overseas. Syndicate Bank took this initiative to extend support to meritorious students and help them enhance their academic excellence by studying in reputed foreign universities.

Eligibility to avail Synd Vidya Education Loan

  • Indian National
  • Post Graduation/ Doctorate/ PG Diploma courses in any recognized foreign institute or university
  • Qualified required course with essential grades

Present rate of interest

Amount of Loan

Applicable Rate of Interest

Upto INR 4 Lacs

1 year MCLR + 1.60% p.a.

Between INR 4 Lacs to 7.50 Lacs

1 year MCLR + 1.85% p.a.

Above INR 7.50 Lacs

1 year MCLR + 2.85% p.a.

Quick Facts about Synd Vidya Education Laon

Margin

Upto INR 4 Lacs: Nil

Above INR 4 lacs: 15%

 

Maximum Loan Limit

INR 20 Lacs

Security

Upto INR 4 Lacs: No Collateral required

From INR 4 to 7.5 Lacs: Guarantee of bank approved third party

Above INR 7.5 Lacs: Collateral Security equal to amount of loan

Assignment of students future salary towards the bank 

Moratorium Period

Course Period + 1 year

Repayment (Maximum)

15 years

Prepayment Charges

Nil

Additional Facts about Synd Vidya Education Loan

  • Zero Margin for loan upto INR 4 Lacs
  • No collateral for loan upto 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

Courses Covered under both Syndicate Education Loan Scheme

  • Courses approved by reputed foreign universities or organizations.
  • Graduation, Post-Graduation, Doctorate courses
  • Technical, Professional or any other Job Oriented courses
  • Degree/ Diploma courses like Aeronautical, Pilot Training, Shipping, etc. (approved by Director General of Civil Aviation/ Shipping in India) 
  • Post- graduation courses such as MCA, MBA, MS, etc.
  • Courses conducted by CIMA, London or CPA, USA etc.

Expenses covered under Both Syndicate Education 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.
  • Reasonable cost of computer or laptop (if required)
  • Travel Expenses

Documents required for both Syndicate Education Loan Scheme

  • Identity Proof: Passport, Voter’s ID, Driving Licence or PAN Card
  • Mark sheet of recently qualified public exam for school, college in India
  • Admission Proof: Fee receipts, Transfer certificate, etc.
  • Schedule of expenses for the course
  • Community Certificate
  • Two recent passport size photographs of applicant, co-obligant and guarantor
  • Educational Proof: copy of admission letter along with fee structure, mark sheets, SSC, HSC and degree course certificates
  • Salary Proof: Latest salary slip, Form 16 and recent salary certificate

FAQs

Q. What schemes does Syndicate Bank considers for its education loans?

Answer: 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

Q. In whose name is the loan granted?

Answer: The loan is granted in the name of the student

Q. Is the loan contract executed only in student’s name?

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

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

Answer: 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.

Q. Are minors eligible to apply for Syndicate Bank Education Loan?

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

Q. What does margin on any loan mean?

Answer: 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.

Q. Should the student’s margin be paid upfront in the starting?

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

Q. Where can I avail Syndicate Bank Education Loan?

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

Q. Is there any provision to apply for loan online?

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

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

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

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

Answer: 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

Q. What is the discount/ rebate offered by Syndicate Bank?

Answer:

  • 0.50% concession is given to girl students
  • 1% concession to children of employees of government sector/ public sector undertaking/ blue chip companies.
  • 0.50% concession to SC/ST boy students and 0.75% to SC/ST girl students
  • Eligibility criteria and margin on education loan is relaxed for SC/ST students

Q. What all is included in tangible collateral security?

Answer: 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.

Q. Can I place my family property as collateral?

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

Q. Is scholarship or assistantship included in the margin?

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

Q. What is Moratorium Period?

Answer: Course Period plus one year, or six months after getting a job

Q. What is tenure of an education loan?

Answer: Tenure of education loan provided by Syndicate Bank is maximum 15 years

Q. What does MCLR stands for?

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

Q. What all expenses are covered under this course?

Answer: 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.

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

Answer: Yes, travel expenses are covered under this loan

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

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

Q. What do you mean by reputed or recognized institutes?

Answer: 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)

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

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

Q. What is the processing fee or prepayment charges?

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

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

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

Q. Why is Pan Card necessary?

Answer: 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

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

Answer: Diploma courses are not eligible under Syndicate Bank Education Loan for abroad. Regular degree like, shipping, pilot training, and aeronautical that are approved by Director General of Civil Aviation or Shipping can be considered.

Q. Is a co-borrower necessary for loan?

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

Q. Who can be my co-borrower?

Answer: 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.

Q. What all documents are required from the co-borrower?

Answer: 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).

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

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

Q. What is the KYC requirement in education loan?

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

Q. What are maximum term for repayment?

Answer: 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

Q. How can I repay the loan?

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

Q. What is EMI? How are they calculated?

Answer: 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.

Q. What are the charges for late EMI payment?

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

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

Answer: 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

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

Answer: 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.  

Q. What is method of application of interest on education loan?

Answer: 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. 

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

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

Q. What is interest rate of education loan?

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

Q. The Interest Rate for Synd Vidya Education Loan is

Amount of Loan

Applicable Rate of Interest

Upto INR 4 Lacs

1 year MCLR + 1.60% p.a.

Between INR 4 Lacs to 7.50 Lacs

1 year MCLR + 1.85% p.a.

Above INR 7.50 Lacs

1 year MCLR + 2.85% p.a.

The Interest Rate for Synd Vidya Abroad

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

Q. What is interest subsidy on education loan?

Answer: 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.

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

Answer: 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

Q. If I am availing loan for overseas studies, can I also avail interest subsidy scheme?

Answer: CSIS Scheme is not available for students who wish to pursue overseas studies whereas Padho Pardesh is formulated for foreign education.

Q. What is employment verification in an education loan?

Answer: 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.

Q. Are there any tax benefits in education loans?

Answer: 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).

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

Answer: 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.

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

Answer: 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.

Q. Why do banks require insurance policy as security?

Answer: 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

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

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

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

Answer: 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.

Q. Are NRIs eligible for the education loan?

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

Q. Is Visa a necessary document for studying abroad?

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

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

Answer: 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.

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

Answer: 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