Syndicate Bank offers 4 distinct education loan schemes to students helping them realize their dream of higher education in India and abroad. Syndicate Bank education loans, part of the education loan category are discussed in detail below.
This Syndicate Bank student scheme provides loans for higher studies in India and abroad. The aspects of this loan are described below:
- The list of courses covered by the loan in India include graduate or postgraduate degree course, Ph.D. or PG Diploma conducted by colleges and universities which are recognized by UGC/ Government/ AICTE/ AIBMS/ ICMR, courses like CA, CS or ICWA, courses conducted by IITs, IIMs, NIFT, NID, IISc, XLRI, etc., regular degree or diploma courses in aeronautical, pilot training, shipping, courses conducted by approved foreign universities, courses conducted by national institutes or other private institutes of repute, teacher training course, nursing course, B.Ed. from institutes approved by the central or state government and lead to a degree or a diploma and not a certificate
- For studying abroad, the courses which are approved include job-oriented or technical graduation courses, MCA, MBA, MS or other postgraduate courses, courses conducted by CIMA (UK), CPA (USA), etc., degree or diploma courses like shipping, pilot training, aeronautical, etc. if they are conducted by recognized educational institutions and are taken for the purpose of employment in India or abroad
- The loan is given to a student who is an Indian resident and has secured admission in the course through a merit-based test or an entrance examination after completing his/ her HSC or equivalent studies
- The maximum amount of education loan for studying in India is Rs.10 lakh while if the student opts to study abroad, the maximum amount granted to him/ her would be Rs.20 lakh
- Loans equalling to Rs.4 lakh for studying in India or abroad do not require any margin but loans higher than this amount would involve a margin. For professional course study in India, the required margin is 5% of the loan amount while for studies abroad; the required margin is 15% of the loan amount.
- Loans up to Rs.4 lakh do not require any security for availing the loan and can be taken with parents as co-borrowers. Loans higher than this amount going up to Rs.7.5 lakh should be supported with the security of parents as co-borrowers and the guarantee of a third-party. If the student avails of a loan higher than Rs.7.5 lakh, a tangible security would have to be pledged to the bank of equal value along with assigning future incomes to the bank for repaying the loan. The security pledged can include PSU bonds, government bonds or securities, land, building, NSC, KVP, UTI units, gold, life insurance policy, shares, mutual funds, debentures, bank fixed deposits, etc.
- The rate of interest on educational loans depends on the base rate. For loans up to Rs.4 lakh, the rate of interest is MCLR+1.50%pa and for amounts above Rs.4 lakh, the interest rate is MCLR+1.75%pa
- A 1% concession in the interest rate is given to children of employees of government departments, public sector undertakings and blue chip companies as these institutions have a tie-up arrangement or corporates who can give an irrevocable undertaking letter
- Boy students belonging to the SC/ ST category can avail a concession of 0.50% while girl students of the same category can claim a concession of 0.75%. Other girl students can claim a concession of 0.50% on the rate of interest.
- The moratorium period under this Syndicate Bank student loan scheme for educational loans is course duration + 1 year or 6 months after getting a job, whichever is earlier
- For loans up to Rs.7.5 lakh, the maximum repayment tenure of loan is 10 years while for loans of a higher value the repayment period is extended to 15 years
- Processing and documentation charges and prepayment charges are not levied in this scheme of education loan
This is a loan which has special provisions and benefits and is given to students who show exceptional merit. The features include:
- The loan is given to meritorious students who have obtained admission in any one of the premier educational institutions identified by the bank
- This Syndicate Bank student education loan scheme gives a loan for courses that include technical, postgraduate, master’s degree and executive development programs conducted by premier technical and management educational institutions in India as specified by the bank
- A maximum amount of Rs.20 lakh can be taken as loan under this scheme of financing
- The bank maintains a 5% margin on the quantum of loan sanctioned by it
- The rate of interest is compounded monthly and if the interest is paid by the borrower during the moratorium period of the loan, the applicable rate of interest would be MCLR (Presently 9.65%pa).
- A copy of the identity proof, admit card, admission letter and the applicant’s photograph need to be submitted along with a duly filled in loan application form
- A student availing this loan can open a savings account with the bank and he/ she would receive an ATM-cum-Debit Card with the account. The student can also avail an additional loan of Rs.3 lakh if he/ she become eligible to go abroad for studies under the student exchange program in the second year of course.
- There are no processing charges or prepayment penalty under this Syndicate Bank education loan scheme
This student loan scheme provides need-based finance in the form of a skill loan for vocational education and training courses. The features of this Syndicate Bank loan for vocational education and training are listed below:
- Syndicate Bank vocational education and training loans are offered to individuals who have been admitted to courses run by Industrial Training Institutes (ITIs), polytechnics, schools recognized by the central or state education boards, colleges affiliated to recognized universities and training partners affiliated to National Skill Development Corporation (NSDC)/ Sector Skill Councils/ State Skill Mission/ State Skill Corporation. Courses by such organizations and training institutions should ideally result in a certificate/ diploma/ degree recognized by the National Skill Qualification Framework (NSQF).
- There is no pre-requisite course duration requirement as per the education loan eligibility criteria. The educational qualifications required are determined by the training institute.
- There is no age restriction to be eligible for a skill loan. If, however, the student is a minor, the parent will execute the loan documents and Syndicate Bank will take a letter of acceptance from the student when he/ she turn 18.
- Aadhaar Card is accepted as a valid proof under KYC norms in addition to other forms of identity and address proof
- Syndicate Bank loan for vocational education and training is in the range of Rs.5,000 to Rs.1.5 lakh. The details of training courses, training centres, etc. covered under this student loan scheme are available on the NSDC website – www.nsdcindia.org
- The rate of interest charged for vocational education and training loans is Marginal Cost of Funds Based Lending Rate (MCLR) + 1.50%. Male SC/ ST students receive a concession of 0.50%, whereas female SC/ ST students get a concession of 0.75%. Female students of other categories receive a concession of 0.50%. If the interest is serviced during the course of study and in the following moratorium period before the commencement of repayment, a discount of 1% on interest is provided.
- There is no margin requirement for a Syndicate Bank vocational education and training loan. Similarly, no collateral security and third party guarantee are required. The parent executes the loan document in the capacity of a co-borrower with the student.
- A moratorium period is provided after the completion of the course but before the beginning of repayment. This period is 6 months from the time of course completion for courses having duration of up to 1 year. Courses spanning more than 1 year have a moratorium period of 12 months.
- A loan for vocational education has to be repaid in Equated Monthly Instalments (EMIs). The repayment tenure (excluding duration of the course and moratorium period) for loans up to Rs.50,000 is 3 years. Where the loan amount is between Rs.50,000 and Rs.1 lakh, the maximum permitted repayment tenure is 5 years. And for loans greater than Rs.1 lakh, it is 7 years.
- There is no prepayment penalty, processing and documentation charge for a Syndicate Bank student education loan
This Syndicate Bank student loan scheme gives vocational education loans to students to pursue vocational and skill development courses. The highlights of the Syndicate Bank education loan are given below:
- The vocational training loan is given to a student who has passed 10th standard and has obtained admission in a government recognized vocational training course for the purpose of employment. The loan is given to individuals who are Indian nationals.
- The course should be of duration of 6 months to 3 years and result in obtaining a certificate or a diploma and should be done from an institution which is recognized by the government
- The loan amount depends on the tenure for which the course continues and a maximum amount of Rs.2 lakh is offered as loan
- There is no margin maintained by the bank and the loan also does not have any processing or documentation fee
- The rate of interest charged on the loan is Base rate + 2.25%
- If the course duration is up to 1 year, the loan should be repaid within 5 years. For courses where the duration is more than 1 year, repayment tenure of 7 years is provided.
Applicants can also visit the nearest branch of the bank and apply for an educational loan. The bank has appointed representatives to deal with loan related queries and extends assistance to any individual wishing to avail an education loan.