Education Loan by State Bank of Mysore

Gyanamitra Educational Loan

Purpose : To enable students with academic brilliance to meet tuition and other fees/maintenance costs/books and equipment and cost of passage for studies abroad etc.for pursuing studies at recognised school/college/institution.
     
Courses Eligible- Higher Studies : Diploma/Graduate/Post-graduate courses in the faculties of Engineering, Technology, Architecture, Medicine, Dental Science, Agricultural Science, Veterinary Science and Computer Certificate courses of reputed institutes accredited to department of electronics or affiliated to university.

Limit :

Amount of loan (in Indian Rupees)	MIN(Rs.)	MAX(Rs.)
Higher Education-In India	10000	10.00lacs
Higher Education- Abroad	10000	20.00lacs

Margin :

Upto Rs.4.00 lacs	Nil
Above Rs.4.00lacs	-
For studies in India	5%
For studies abroad	15%

INTEREST RATES : SCHEMES AND INTEREST RATES ARE SUBJECT TO CHANGES FROM TIME TO TIME.

Second Educational Loan : To enable the students for taking higher education, provided the student secures 60% marks in existing course. The second loan is to be availed only from the branch where the first educational loan has been sanctioned.

Repayment

Technical/Professional Higher studies in India/Abroad : Repayment of loan to commence immediately after disbursal, by the parent/guardian, out of his/her income. Instalments may be nominal (to cover interest portion, atleast) during the period the student is undertaking the studies. The instalments will be stepped up one year after the completion of the course or after the student gets a job,whichever is earlier,so that the loan gets repaid together with interest within a period of 60 to 84 months thereafter.

Security :

Amount.	Security
Upto Rs.4.00lacs	NIL
Above Rs.4.00lacs and upto Rs.7.50lacs	Collateral in the form of a suitable 3rd party guarantee
Above Rs.7.50lacs and upto Rs.10.00lacs	Collateral security by way of immovable property or equal to the loan amount in the form of Government securities /NSCs/Units of UTI
	Guarantee of parents/guardians (in the case of minors, the parent/guardian will execute the documents on behalf of the minor and also in his capacity as co-borrower)/ third party guarantee where sufficient collateral security is not available

Insurance : An insurance policy will be taken on the life of the student borrower for an amount equivalent to the loan amount and the policy should be convertible whole-life one for 25/30 years, convertible after 5 years into one with endowment benefits. The Bank will pay the insurance premia on the policy by debiting it to the loan account. On liquidation of the loan, the policy will be reassigned and delivered to the borrower.

Repayment : Completion of course + 1 year or 6 months after getting a job, whichever is earlier.The interest to be debited monthly on simple basis during the repayment holiday/moratorium period. Penal interest @2% will be charged for amount above Rs.2 lacs for the overdue amount and overdue period.

Interest concession of 1% per annum is available, provided the interest is repaid during moratorium period as and when the interest is applied.

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