State Bank of Travancore Education Loan- Student Loan in India

State Bank of Travancore Education Loan Scheme

Gyan Jyothi Education Loan   

The scheme provides financial assistance to deserving meritorious students to pursue higher education in India and abroad

PURPOSE

To meet the tuition and other fees\Examination\Library\Laboratory fee, cost of books\purchase of Computers\equipments\instruments\uniforms and the cost of passage for studies abroad. Caution Deposit, Building Fund, Refundable deposit subject to 10% of the Tuition Fee. Any other expenses required to complete the course like study, tours, project work, thesis etc. also be financed.

ELIGIBLE COURSES

Studies in India

Approved courses leading to graduate/post graduate degree and PG diplomas conducted by recognized colleges/universities recognized by UGC/Govt./AICTE/AIBMS/ICMR etc.

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, 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 the course is pursued in India.

Approved courses offered in India by reputed foreign universities.

Studies abroad

 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, shipping etc provided these are recognized by competent regulatory bodies in India/abroad for the purpose of employment in India/abroad.

ELIGIBILITY

The student should be an Indian National (NRIs not eligible)

i) have secured admission to professional\technical courses through entrance test\ merit based selection process conducted by a Govt Agency / University

ii) have secured admission to foreign university institution.

BORROWER: Student and parent/guardian/spouse/parent-in-law/grandparents jointly.
In the case of employed students\professionals, loans can be granted in individual names, with suitable guarantee.

LOAN Amount:

For studies in India Rs. 10 lacs

For studies abroad Rs. 20 lacs

MARGIN

Upto Rs. 4 lacs - Nil
Above Rs.4 lacs - 

i) Studies in India - 5%
ii) Studies abroad -15%

INTEREST click here for interest rates (Interest Rebate:  1 % Interest concession if interest debited during a financial year is remitted within one month of its debit in account)
0.5% concession for Girl Students.

PENAL INTEREST: 2% FOR LOAN ABOVE RS.2 LAKHS

REPAYMENT

To commence 1 year after completion of course or 6 months after getting job, whichever is earlier. The loan is to be repaid in 10-15 years after commencement of repayment.

SECURITY

Loans upto Rs.4 lacs : Co-obligation of parent/guardian/spouse/parent-in-law/grandparents as the case may be. No security

Above Rs.4 lacs and upto Rs.7.5 lacs Co-obligation of parent/guardian/spouse/parent-in-law/grandparents as the case may be along with collateral in the form of a satisfactory third party guarantee required.

For loans above Rs7.5 lacs Co-obligation of parent/guardian/spouse/parent-in-law/grandparents along together with tangible collateral security of suitable value preferably not less than 200% of the loan limit, along with assignment of future income of the student for payment of installments and tangible security of suitable value

Security can be in the form of land\building\ Govt. securities\public sector bonds\units of UTI, KVP, LIC Policy, gold, shares\debentures, bank deposit in the name of student\parent\guardian or any other third party with suitable margin.

PROCESSING FEE 

No processing fee for studies in India.
For studies Abroad
Upto Rs.4 lacs - 0.5%
Above Rs.4 lacs - 0.4%
(Refundable on availment of 1st instalment)

PAPERS TO BE SUBMITTED TO THE BANK

Two copies of passport size photographs.

Testimonials in original form from the head of the institution where the student studied last and from one or two other respectable persons not related to the student.
Proof of admission to the course

Proof of selection in an approved merit based selection process.
Schedule of expenses for the course

Documents required for KYC Compliance (ID and address proof)
Copies of foreign exchange permit (if applicable)
Copy of salary slips \ statement of income of parent \guardian.

FOR MORTGAGE OF PROPERTY

Original and prior title deeds
Latest tax receipts
Possession certificate

Encumbrance certificate for the last 15 years from the Sub Registrar
Title clear certificate from the banks approved advocate
Valuation report from the banks approved valuator.