STATE BANK OF MYSORE

EDUCATION LOAN

Eligibility:

The student should have 60% in the Previous examination. The scheme is for students who have secured admission in Technical / Professional courses and for higher studies in India and abroad.

Loan Amount :

(i).Minimum 10,000 and Maximum 1 lakh for School / College going students in India.

(Ii).Minimum 10,000 and Maximum 8 lakhs for students doing higher indian education while it is maximum 10 lakhs for students doing higher education abroad.

Tuition and other fees.

Maintenance Costs / books, stationary instruments and equipment.

Travel cost for studies abroad.

Compounded at quarterly intervals on reducing balance.

Repayment

Repayment of loan to commence immediately after disbursal, by the parent, guardian, out of his / her income.Installments may be nominal( to cover interest position, atleast)during the period the student is understanding the studies. These installments will be stepped up one year after the completion of the course or the student gets a job, whichever is earlier, so that the loan gets repaid together with interest within a period of 48 months there after.

Security:

(i). The loan will be granted in the joint names of student and Parent / guardian.

(Ii) Collateral security equal to the amount of loan in the form of Government securities / NSCs / Units of UTI and /or immovable property.

(iii) Guarantee of suitable third party if deemed necessary and where sufficient collateral security is not available.

(iv) 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 ; one with endowment benefits. The bank will pay the insurance premier Policy by debiting it from the loan account. On liquidation of the loan, policy will be reassigned and delivered to the borrower.