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.
- 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%.
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 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
- Loans upto Rs.4 lakhs:
- Co-obligation of parent/ guardian/ spouse/ parent-in-law/ grandparents as the case may be.
- No security.
- Upto Rs. 4 lacs : Nil
- Above Rs.4 lacs :
- Studies in India : 5%
- Studies abroad : 15%
Expenses considered for SBT education loan:
- College, school and hostel fees.
- Fees payable for Examination, Library and Laboratory.
- Amount required for purchase of books, equipment, instruments as well as uniforms.
- Deposits such as: Caution Deposit, Building Fund or Refundable Deposit.
- Travel expenses for studies abroad.
- Purchase of computers if needed for completion of the course.
- 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.
- 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.
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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.
2nd 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.
14th December 2015