STATE BANK OF HYDERABAD
Education Loan Scheme
These are loans are for pursuing studies in recognize schools / colleges / institutions to meet tuition and other fees and maintenance costs, books and equipment etc.

Eligibility:

For School / College indian education.

(a). Minimum second division ( Pass marks for SC / ST).

(b). Parents / guardians (Including persons engaged in agriculture / allied activities) having independent regular source of income.
Loan Amount :

(I) School / College indian education: Upto 6 times the monthly net (take home) income of the parents / guardian. Minimum loan of Rs.4,000/-. Minimum Rs.1 lack.

(ii) Technical / Professional higer studies in India and Abroad 90% of the cost of study, subject to maximum of Rs.8 lack

Repayment

(i) For School / College indian education :Loans to be repaid in a period of 36 months, (commencing) immediately after (disbursal),by the parents / guardian.

(ii) For Technical / Professional higher studies in India and abroad : The loan is to be repaid in 60 months after the completion of the course of securing job, whichever is earlier.Regular periodic repayment as much as possible should be made during the period of study. Quarterly interest should be paid regularly.

(iii)(Permitted) without any penalty.

Security:

(i) For School / College indian education Collateral security equal to the amount of the loan consisting of any one or more then following.

A. Govt.Securities, Units of UTI, SBI Magnums, NSCs,LIC Policy, Bank Deposits of equivalent (value) or

B. Shares,Public Sector Bonds, Hypothecation of Motor Vehicle, Immovable Property, after retaining 50% margin on their market value.

(ii) For Technical / Professional higher studies in India and abroad :

A. Third party guarantee, supported by charge movable or immovable asset or value equivalent to the loan amount of more. (Where both parents of the students are earning, the guarantee of the non borrowing parent can be accepted as collateral, with charge over the movable / immovable assets. Tie - up Arrangement . Where tie - up arrangement is established, the security for the loan would be reduced to 50% of the loan amount.
Processing Fees:

Upto Rs.25000/- : Rs.500/- (one time) Above Rs.25,000/- : subject to Minimum. Rs.500/- Maximum, Rs.2,500.

Interest Rates:

At competition rates on reducing balance only.Please check - up for latest rates at your nearest branch.Interest is compounded at quarterly basis.