State Bank of Hyderabad Education Loan- Student Loan in India

State Bank of Hyderabad Education Loan Scheme

Purpose
To extend financial assistance to all eligible / deserving / meritorious students for pursuing higher education in India & Abroad.

Eligibility

Student should be an Indian National.
Secured admission to professional/ technical courses through Entrance Test / Selection process.
Secured admission to foreign University / Institution.

Amount

Amount of finance Need based finance subject to repaying capacity of the parents / students.-
Studies in India - Maximum Rs.10.00 lacs
Studies abroad - Maximum Rs.20.00 lacs

Margin money
Up to Rs.4.00 Lacs - NIL
Above Rs. 4.00 Lacs
           Studies in India - 5% AND Studies Abroad - 15%
           - Scholarship /assistantship to be included in margin.
          - Margin may be brought in on year to year basis as and when disbursements are made on a pro-rata basis.

Security Norms

Upto Rs. 4.00 Lacs - No Security (Co-obligation of parent / guardian is compulsory).
Above Rs.4.00 Lacs and upto Rs.7.50 Lacs: Collateral in the form of a suitable third party guarantee.
Above Rs.7.50 Lacs: - Collateral security of suitable value or Co-obligation of parents / Guardians / third party guarantee along with the assignment of future income of the student for payment of installments.

Rate of Interest

Loans up to Rs.4.00 Lacs – 11.50%
Loans above Rs.4.00 Lacs & upto 10.00 Lacs - 12.50%
Loans above Rs.4.00 Lacs – 13.00%

Penal rate of Interest @2% on all irregular Education loans above Rs.4.00 Lacs for the over due amount and over due period.
Repayment Period
Course period + one year or six months after getting job, whichever is earlier.
5 to 7 years after commencement of repayment.

Processing Charges
No processing charges for studies abroad up to Rs.4.00 Lacs and in case of studies in India irrespective of loan amount.
In case of loans above Rs.4.00 Lacs for studies abroad.
            1. Rs. 5000/- to be collected at the time of delivering sanction letter to the student
                Guardian.
            2. Rs.1000/- to be appropriated towards processing fees.
            3. Rs.4000/- to be adjusted towards student's margin at the time of release of the
                 loan.
            4. In case the loan is not availed for any reason by the student, the amount of Rs.4000/- to be refunded to the student without interest.
No processing charges to be levied on the loans to the wards of Bank's staff members including Retired Staff.

Also See

Public Sector Banks to offer Insurance linked Education Loans