filter your search allcollegesexamnews

Home > News >  Syndicate Bank Education Loan for India

Syndicate Bank Education Loan for India

Last Modified : May 09, 2018

One of the oldest bank in India, Syndicate Bank is a major commercial bank that is nearly 93 years old. The bank has ever since extended its roots both nationally and internationally. Syndicate Bank have around 3500 branches in India and one in London, United Kingdom. The bank is now home 34, 989 employees and caters to over a million customers.

To help students overcome the financial constraints for pursuing studies in India or abroad, Syndicate Bank have launched multiple schemes viz. Synd Vidya, Synd Super Vidya, and Synd Vidya Abroad.

Interested students can also avail for various other 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.

1. Synd Vidya

Syndicate Bank launched Synd Vidya to provide financial assistance to students who wish to pursue higher studies in recognized institutes in India. The bank aims at elimination of financial constraints for deserving/ meritorious students by providing them Synd Vidya Education Loan with maximum benefits and easy repayment terms.

Eligibility to avail Synd Vidya Education Loan

  • Student must be an Indian National
  • He/ She must have secured admission to Post Graduation/ Doctorate/ PG Diploma courses in any recognized institute approved by State or Central Government.
  • Student must have secured admission to any recognized institute/ university through mode of entrance exam or merit based
  • He/ She must have passed required course with essential grades
  • He/ She must have qualified graduation examination

Key points of Synd Vidya Education Loan

  • 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

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.

Margin

Upto INR 4 Lacs: Nil

Above INR 4 lacs: 5%

 

Maximum Loan Limit

INR 10 Lacs

Security

Less than 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

Courses covered under Synd Vidya Education Loan

  • All Post- Graduation or Doctorate courses
  • Professional Courses including Medical, Law, Dental, Engineering, Hospital Management, Hotel Management, Event Management, Mass Communication, Fashion Studies, Agricultural Studies, etc.
  • Courses that are offered by reputed foreign universities in India
  • Regular or Evening Courses conducted by colleges/ universities approved by UGC/ Government/ AICTE/ AIBMS/ ICMR etc.
  • Degree or Diploma courses in Teacher Training, Nursing, B.Ed provided the training institutes are approved by Central/ State Government.

Expenses covered under Synd Vidya Education Loan

  • Payment of Fee to College, Institute or University
  • Examination Fee or payment of fee to library or laboratory
  • Hostel Fee and other charges applicable
  • Cost of Books, equipment, instrument or uniforms
  • Miscellaneous expenses required for completion of the course- study tours, project work, thesis, etc.
  • Reasonable cost of computer or laptop (if required)

2. Synd Super Vidya

Synd Super Vidya Education Loan scheme was launched by Syndicate Bank to financially support students who have secured admission to reputed Institutions. The scheme is extended to exceptionally meritorious students with special provisions.

Eligibility to avail Synd Super Vidya Education Loan

  • Student must be Indian national
  • He/ She must have secured admission to any Post-Graduation/ M.Phil./ Ph.D. programme
  • He/ She must have secured admission to any premier technical and management institute

Key Points of Synd Super Vidya Education Loan

  • No collateral security required
  • Loan can be availed from branch near to permanent residence of parent/ guardian or a branch near the institute
  • Student can open self-introduced SB account with debit card
  • Student can avail additional loan upto INR 3 Lacs if selected to go abroad under student exchange programme

Present Rate of Interest

Rate of Interest on all amounts of loan is 1 year MCLR + 0.10%

Margin

5%

 

Maximum Loan Limit

INR 20 Lacs

Security

No collateral security

Guarantee of parents/ guardian for loan amounting above INR 4 Lacs 

Moratorium Period

Course Period + 1 year

Repayment (Maximum)

-

Prepayment Charges

Nil

Courses covered under Synd Super Vidya Education Loan

  • Post-Graduate/ Masters’ courses
  • One year Executive Development Programme
  • Courses offered in Premier Technical and Management Institutes

Expenses covered under Synd Super Vidya Education Loan

  • Payment of Fee to College, Institute or University
  • Examination Fee or payment of fee to library or laboratory
  • Hostel Fee and other charges applicable
  • Cost of Books, equipment, instrument or uniforms
  • Miscellaneous expenses required for completion of the course- study tours, project work, thesis, etc.
  • Reasonable cost of computer or laptop (if required)

Documents required for both the Loans

  • 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 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

3. Synd Vidya Skill Loan Scheme

Synd Vidya Skill Loan Scheme is a need base finance option to meet expenses of the course. The loan is extended to students who wish to pursue their education in skill based course to enhance their career prospects.

Eligibility to avail Synd Vidya Skill Loan Scheme

  • Student should be an Indian National
  • He/ She must have secured admission to course offered by Industrial Training Institutes (ITIs), Polytechnics or in school recognized by State/ Central Boards or any other recognized college or organization
  • The admission should be secured through entrance exam or merit based

Key points of Synd Vidya Skill Loan Scheme

  • Zero Margin
  • No collateral is required
  • 0.50% concession to girl students
  • 0.50% concession to SC/ST boy students and 0.75% to SC/ST girl students

Present Rate of Interest

The rate of interest to all amounts is 1 year MCLR +1.50% p.a.

Margin

No margin

 

Maximum Loan Limit

INR 1,50,000

Security

No collateral or security is required

Moratorium Period

Course duration upto  1 year: Course period+6 months

Course duration above 1 year: Course period+12 months

Repayment (Maximum)

Loan upto 50,000: 3 years

Loan between 50,000 to 1 Lac: 5 years

Loan above 1 Lac: 7 years

Prepayment Charges

Nil

Courses Covered under Synd Vidya Skill Loan Scheme

  • Courses recognized by:
  • Industrial Training Institutes (ITIs)
  • Polytechnics Institutes
  • School recognized by Central or State Education Boards
  • College affiliated to recognized university
  • Training partners affiliated to National Skill Development Corporation (NSDC), Sector Skill Councils, State Skill Mission, and State Skill Corporation
  • Courses leading to a certificate / diploma/degree issued by such organization as per National Skill Qualification Framework (NSQF)

Expenses Covered under Synd Vidya Loan Scheme

  • Payment of Fee to College, Institute or University
  • Examination Fee
  • Hostel Fee and other charges applicable
  • Cost of Books, equipment, instrument or uniforms
  • Miscellaneous expenses required for completion of the course
  • Reasonable cost of computer or laptop (if required)

4. Synd Vidya Vocational Courses

Syndicate Bank have taken up Synd Vidya Vocational Course schemeto extend a helping hand to students by financing expenses throughout the course. Vocational courses are job oriented short term courses that enhance students’ knowledge in specific field and prepare them for the industry.

Eligibility to avail Synd Vidya Vocational Course Scheme

  • Students must be an Indian national
  • He/ She should have completed 10th standard (SSC)
  • He/ She must have secured admission to course approved by State/ Central Government

Key Benefits of Synd Vidya Vocational Course Scheme

  • No Margin applied to the loan
  • No security in lieu of the loan sanctioned
  • Loan can be availed from nearest Syndicate Bank branch

Margin

Nil

 

Maximum Loan Limit

Course with 3 months duration: INR 20,000

Course with 3-6  months duration: INR 50,000

Courses with 6 months- 1 year duration: INR 75,000

Courses above 1 year duration: INR 1,50,000

Security

No security is required

No collateral or third party guarantee is asked for.

Moratorium Period

For course upto 6 months: Course Period + 6 months

For courses above 6 months duration: Course Period  + 1 year

Repayment (Maximum)

Courses with 1 year duration: 5 years

Courses above 1 year duration: 7 years

Prepayment Charges

Nil

Courses Covered under Synd Vidya Vocational Course Scheme

  • Vocational or Development courses of 2 months to 3 years duration
  • The course should lead you certificate, degree or diploma by a renowned organization.
  • University/ Institute should be approved by State/ Central Government

Expenses Covered under Synd Vidya Vocational Course Scheme

  • Payment of Fee to College, Institute or University
  • Examination Fee or payment of fee to library or laboratory
  • Hostel Fee and other charges applicable
  • Cost of Books, equipment, instrument or uniforms
  • Miscellaneous expenses required for completion of the course- study tours, project work, thesis, etc.
  • Reasonable cost of computer or laptop (if required)

Documents required for both the Schemes

  • Identity Proof such as 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 course
  • Two recent passport size photographs of applicant, co-obligant and guarantor
  • Educational Proof such as copy of admission letter along with fee structure, mark sheets, SSC, HSC and degree course certificates
  • Salary Proof such as 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
  • 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

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: Moratorium period is different for different variant of loans.

Q. 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

Q. What is tenure of an education loan?

Answer: Tenure of education loan provided by Syndicate Bank is maximum 15 years. For Synd Vidya- Skill Loan Scheme, maximum tenure is 7 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. 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 offers 0.50% concession to students who secure admission to top premier institutes.

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 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.

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:

  • Synd Vidya: Loan amount upto INR 7.5 Lacs: 10 years; Loan amount above INR 7.5 Lacs: 15 years
  • Synd Vidya- Skill Loan Scheme: Loan upto 50,000: 3 years; Loan between 50,000 to 1 Lac: 5 years; Loan above 1 Lac: 7 years.
  • Synd Vidya- Vocational Course Scheme: Courses with 1 year duration: 5 years; Courses above 1 year duration: 7 years

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.

Q. The Interest rate for Synd Super Vidya Education Loan is

Answer: Rate of Interest on all amounts of loan is 1 year MCLR + 0.10%

Q. The Interest Rate for Synd Vidya- Skill loan Scheme is

Answer: The rate of interest to all amounts is 1 year MCLR +1.50% p.a.

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. 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. 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.
  • Student can also avail an additional loan of INR 3 Lacs if he/ she is selected to go abroad for higher students through student exchange programme.

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. 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