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  • State Bank of Travancore Education Loan

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    State Bank of Travancore education loan scheme provides financial assistance to deserving students so that they can pursue college education, technical, professional or vocational course in India/ abroad. The student and parent or guardian can jointly borrow the loan amount from the Bank.

    Feature & Benefits of State Bank of Travancore Education Loan:

    Objective of State Bank of Travancore Education Loan:

    The objective of the Bank is to provide financial aid to students and help them pay their tuition and other fees. This loan is made available to students, with their parent or guardian as co-obligor.

    Interest Rates:

    • For loan amount up to Rs. 4 lakhs, the interest rate is 13.90%.
    • For loan amount between Rs. 4 lakhs and Rs. 7.5 lakhs, the interest rate applicable is 13.65%.
    • Interest rate applicable for a loan amount above Rs. 7.5 lakhs, is 13.15%.

    Processing Fees:

    There are no processing fees for education loans taken in order to pursue studies in India. However, if the loan is taken to fund studies abroad, a nominal fee is levied as processing fees, depending on the amount of loan:

    • For loan amount up to Rs. 4 Lakhs - 0.5%
    • Above Rs.4 lacs : 0.4%

    This is refundable upon availing 1st instalment of the loan.

    Repayment Tenure:

    • Repayment is to begin within 1 year of completion of the course or 6 months after getting a job, whichever is earlier.
    • The loan has to be repaid within 10-15 years from commencement of repayment.

    Maximum Loan Limit:

    • For studies in India : Rs. 10 lacs
    • For studies abroad : Rs. 20 lacs


    1. Loans upto Rs.4 lakhs:
      • Co-obligation of parent/ guardian/ spouse/ parent-in-law/ grandparents as the case may be.
      • No security.
    2. Above Rs.4 lacs and upto Rs. 7.5 lacs: Co-obligation of parent/ guardian/ spouse as the case may be along with collateral in the form of a satisfactory third party guarantee required.
    3. For loans above Rs. 7.5 lacs: Co-obligation of parent/ guardian/ spouse/ parent-in-law/ grandparents along with tangible collateral security of suitable value preferably not less than 200% of the loan limit, along with the assignment of future income of the student for payment of instalments and tangible security of suitable value.


    • Upto Rs. 4 lacs : Nil
    • Above Rs.4 lacs :
      1. Studies in India : 5%
      2. Studies abroad : 15%

    Expenses considered for SBT education loan:

    1. College, school and hostel fees.
    2. Fees payable for Examination, Library and Laboratory.
    3. Amount required for purchase of books, equipment, instruments as well as uniforms.
    4. Deposits such as: Caution Deposit, Building Fund or Refundable Deposit.
    5. Travel expenses for studies abroad.
    6. Purchase of computers if needed for completion of the course.
    7. Miscellaneous expenses required to complete the course like study tours, project work, etc.

    Eligible courses - India/Abroad:

    Studies in India:

    • Graduate/ Post Graduate degree and PG diplomas conducted by approved colleges/ universities, recognized by UGC/ Govt. / AICTE/ AIBMS/ ICMR, etc.
    • Courses like ICWA, CA, CFA.
    • 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, if the course is pursued in India.
    • Approved courses offered in India by reputed foreign universities.

    Studies abroad:

    • Job-oriented professional/technical courses offered by reputed universities for Graduation.
    • Post-graduation in MCA, MBA, MS, and so on.
    • Courses offered by CIMA-London, CPA in USA, etc.
    • Degree/diploma courses like Aeronautical, Shipping, etc. that are recognized by competent regulatory bodies in India/abroad for the purpose of employment.


    • The student should be an Indian National. NRIs are not eligible.
    • Student should have secured admission to professional/ technical courses through entrance test or merit-based selection process conducted by a Govt Agency / University.
    • A minimum mark of 60% in aggregate is required and this is applicable to subjects in the last qualifying examination for students who have passed the entrance test or secured admission under management quota.
    • Student should have secured admission in any foreign university institution through merit.


    The Ministry of HRD has initiated the Central Scheme for Interest subsidy on education loans and this scheme is offered by State Bank of Travancore to its customers. Students from financially weaker sections of the society who wish to pursue their Graduation or Post Graduation studies in Technical / Professional disciplines are eligible to avail this subsidy.

    State Bank of Travancore Education Loan FAQs:

  • Who can act as a co-obligor to the loan?
  • The co-obligor can be parent(s) or guardian of the student borrower. If the borrower is married, co-obligor can be either spouse or the parents-in-law.
  • Is there a minimum age for being eligible for the State Bank of Travancore education loan?
  • There is no specific restriction with regard to the age of the student to be eligible for Education Loan.
  • What all can be placed as security?
  • Security can be in the form of land/ building/ Govt. securities/ public sector bonds/ units of UTI, KVP, and LIC Policy, gold, shares / debentures, bank deposit in the name of student / parent / guardian or any other third party with suitable margin.
  • What is the penalty if interest is not paid on time?
  • 2% interest is charged as penalty for loans above Rs. 2 lakhs.
  • Is there any concession or rebate on interest of the loan?
  • 1% interest concession can be availed if interest is debited during a financial year and is remitted within one month of its debit in account. 0.5% concession is given for female students.

    News About State Bank of Travancore Education Loan

    • Grievance Package launched by State Bank of Travancore

      The State Bank of Travancore has introduced a grievance package called the ‘Karunya Hasta 2016’. This package has been launched to help people who are struggling with the repayment of the education loans that they took from the Thiruvananthapuram branches because of agriculture and economic reasons. The facilities for this new settlement plan has been arranged in the zonal office of the bank and can be availed on March 28th and 29th. According to this package, people have to pay 50 percent of the settlement sum on the day they avail the facility and the remaining amount has to be paid within 60 working days. Borrowers who will pay the full settlement sum at one go do not have to pay any fine on their interest rates.

      2 May 2016

    • State Bank of Travancore Introduces New Education Loan Settlement Scheme

      State Bank of Travancore has launched a new one time settlement scheme called SBT Karunya for the benefit of its customers who have availed education loans and are unable to repay the same. This scheme will take into consideration the financial plight and other reasons due to which the borrower is unable to repay the education loan and seeks to take a humanitarian approach while dealing with cases of defaulted payments. This scheme offers concessions to such customers and is valid from 1st December 2015 to 30th January 2016. It covers all education loans taken for facilitating studies within India. In case the borrower has passed away, the loan will be written off by the Bank.

      14 December 2015

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    State Bank of Travancore Education Loan Reviews

  • Page 1 of 1
    • State Bank of Travancore Education Loan
      0.5 4.0/5 "Great!"
      The required loan amount was high but the loan amount which I got from Sbt was rupees 1 lakh and I am not happy with that but the staffs are friendly. The documents procedure was been very easy and the rate of interest they quoted me was fine. I feel the service of Sbi educational loan service is good.
      Was this review helpful? 0
      , kochi
      Reviewed on Jan 18, 2018
    • State Bank of Travancore Education Loan
      "Simple loan procees"
      0.5 5.0/5 "Blown Away!"
      State bank of tarvancore disbursed the education loan amount within 24 hours after submitting the document with the rate of interest 12.75% . They gave five years time to re pay the amount after completing the education. Formalities are normal
      Was this review helpful? 4
      , nagpur
      Reviewed on Jan 23, 2016
    • State Bank of Travancore Education Loan
      "Not good"
      0.5 3.0/5 "Satisfactory"
      SBT loan educational loan is not good. It is a Government undertaken bank they are not keen in providing customer service. They will not inform anything correctly . Call centers are there its very difficult to reach them. This was taken by my father and I will not recommend this as well
      Was this review helpful? 21
      , bangalore
      Reviewed on Nov 20, 2015
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