Syndvidya scheme: Education loan scheme offered by Syndicate Bank

Syndicate Bank, a Public Sector Bank, provides education loan to deserving students for pursuing higher education in India and abroad. The article furnishes the details of the scheme offered by the Syndicate Bank, which is named as Syndvidya scheme.

With the passage of time, education, especially higher education, is becoming more and more costly. As a result, Indian parents from all economic classes are being forced to go for education loan to meet the expenditure associated with higher education in India and abroad for their children. It is absolutely necessary that all of us know the details of education loan being offered by various banks. In this article we are going to discuss the Syndvidya scheme – education loan being offered by Syndicate Bank for studies within India and abroad.

Purpose of the loan

The purpose of this loan is to provide financial support to deserving meritorious students for pursuing higher education in India and abroad.


Students (who are Indian nationals) who have secured admission to a higher education course in recognized institutions in India or abroad through entrance test/ merit-based selection process after completion of Higher Secondary or equivalent.

Eligible courses in India

The following courses in India are eligible:
  • Approved courses leading to Graduate/ Post Graduate degree, PhD and PG diploma recognized by UGC/ Govt./AICTE/AIBMS/ ICMR
  • Courses like ICWA, CA, CFA, etc.
  • Courses conducted by IIMs, IITs, IISc, XLRI, NIFT, NID, etc.
  • Regular Degree/Diploma courses like aeronautical, pilot training, shipping etc., Degree/Diploma in nursing or any other discipline approved by Director General of Civil Aviation/Shipping/ Indian Nursing Council or any other Regulatory Body as the case may be, if pursued in India.
  • Approved courses offered in India by reputed foreign universities.
  • In addition, Syndicate Bank may approve other job-oriented courses leading to technical/professional Degrees, Post Graduate Degrees/Diplomas offered by recognized institutions under this scheme. Important thing is that the course is approved/ recognized by the designated academic authority/regulatory body for the stream of study concerned.

Eligible courses abroad

The following courses in foreign countries are eligible for Syndividya scheme:
  • Graduation for job oriented professional/technical courses offered by reputed universities.
  • Post Graduation, MCA, MBA, MS, etc.
  • Courses conducted by CIMA-London, CPA in USA, etc.
  • Degree/Diploma courses like aeronautical, pilot training, shipping etc, provided these are recognized by competent regulatory bodies in India/abroad for the purpose of employment in India/abroad.

Quantum of loan

The upper limits of educational loan are as under:
  • Studies in India – Maximum up to Rs. 10 lakhs
  • Studies Abroad - Maximum up to Rs. 20 lakhs

Applicable margin

The margins for this scheme are as under:
  • Up to Rs. 4 lakhs: Nil
  • Above Rs. 4 lakhs: (a) Studies in India - 5%; (b) Studies abroad - 15%

Rate of interest

Interest rates in Syndvidya scheme are linked to base rate. The details are as under:
  • For amount of loan up to Rs. 4.00 lakhs: Applicable rate of interest is MCLR+1.50% p.a
  • For amount of loan above Rs. 4.00 lakhs up to Rs. 7.50 lakhs: Rate of interest is MCLR + 1.75% pa
  • For amount of loan above 7.50 lakhs: Rate of interest is MCLR + 2.75% p.a
  • Simple interest is charged during the study period and up to commencement of repayment.
  • 1% concession in applicable rate is available to children of Employees of Government Department/ Public Sector Undertakings/ Corporations.


The applicable security in the scheme is as under:
  • Up to Rs. 4 lakhs: No security is required. Parents are to be joint borrowers
  • Above Rs. 4 lakhs and up to Rs. 7.50 lakhs: Parents as joint borrowers and suitable third party guarantee will be taken; Wherever loan is covered under Credit Guarantee Scheme, third party guarantee is waived. Parents are considered as joint borrowers.
  • Above Rs. 7.50 lakhs: Parents are included as joint borrowers. Tangible collateral security of suitable value is acceptable to Syndicate Bank, along with the assignment of future income of the student for payment of installments. The security can be in the form of land/building/Govt. Securities/ Public Sector Bonds/ Units of UTI, NSC, Kishan Vikas Patra, Life Policy, gold and shares/ mutual fund Unites/ debentures, bank deposits, etc.


The procedures of repayment of this educational loan are as under:
  • Repayment holiday/ Moratorium: Course period + One year
  • Repayment of the loan will be in equated monthly installments for a period of 15 years from the date of commencement of repayment irrespective of loan amount.

Processing and Documentation charge

No processing/documentation/upfront charge is levied on loans sanctioned under the Syndvidya Scheme.

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