State Bank of Mysore


"State Bank of Mysore's Gnanamitra Education Loan Scheme sanctions education loans to eligible students who aspire to pursue their higher education in recognized institutions in India or abroad. State Bank of Mysore branches ensure quick and easy availability of an education loan to students, with their reliable interest rates and policies."

Loan Interest Rates:

"The interest accrued during the moratorium period is added to the principal and when the moratorium period (Holiday Period) is over, repayment is fixed in the form of EMI." The current interest rates that are applicable are:
  • For loans up to Rs. 4.00 Lacs - 11.50%
  • Loans ranging from Rs. 4.00 Lacs up to Rs.10.00 Lacs - 12.50%
  • Loans above Rs.10.00 Lacs - 13.00%
  • Interest rates are subject to fluctuations and hence, for updated information on the prevailing interest rate kindly get in touch with the Bank.

Loan Eligibility:

Courses Eligible For Loan:
"Diploma / Graduate / Post-graduate courses in the faculties of Engineering, Technology, Architecture, Medicine, Dental Science, Agricultural Science, Veterinary Science and Computer Certificate courses of reputed institutes accredited to department of electronics or affiliated to university."
Documents Required:
  • Completed Education loan application form.
  • Mark sheets of last qualifying examination.
  • Proof of admission scholarship, studentship, etc.
  • Schedule of expenses for the specified course.
  • 2 passport size photographs.
  • Borrower's Bank account statement for the last six months.
  • Income tax assessment order, of last 2 years.
  • Brief statement of assets and liabilities, of the co-borrower.
  • Proof of Income (i.e. Salary slips/ Form 16, etc.)

Candidate Education Loan Eligibility:
  • Student should be an Indian National.
  • Secured admission to professional/ technical courses through Entrance Test / Selection process.
  • Secured admission to foreign University / Institution.

Expenses Covered under Education Loan:

  • College, school or 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.

Loan Repayment:

"The repayment tenure begins as soon as the loan is disbursed and the parent/guardian has to start paying for it from his/her own income. Instalments will be nominal during this period. The amount to be paid in instalments will be increased within one year after completion of the course or after the student procures a job, whichever is earlier, so that the loan gets repaid together with interest within a period of 60 to 84 months."

Security Required:

"Security is not required to if the loan taken is less than Rs. 4.00 Lacs. However, if the education loan is above Rs.4.00 Lacs and within Rs.7.50 Lacs, a suitable third party guarantee should be given as collateral.If the loan is above Rs.7.50 Lacs and up to Rs. 10 lakhs, collateral security in the form of immovable property or a collateral such as Government securities / NSCs / Units of UTI of suitable value is to be provided along with an assignment of future income of the student for paying instalments. Security can be offered in the form of gold, land / buildings / Govt. securities / Public Sector Bonds / Units of UTI, KVP, NSC, life policy, shares/debentures, bank deposit with a suitable margin for loaning against the securities, etc. In the case of minors, the parent / guardian will execute the documents on behalf of the minor and also in his capacity as co-borrower. Security in the form of parents / guardians / third party guarantee can be placed where sufficient collateral security is not available."


1.What is the penalty on overdue amount/period?
Ans. For the overdue amount and overdue period, penal interest of additional 2% will be charged for a loan amount above Rs. 2 lacs.

2.Who can act as a co-obligant to the loan?
Ans. The co-obligant can be parent(s) or guardian of the student borrower. If the borrower is married, co-obligant can be either spouse or the parents-in-law.

3.Is insurance provided to the student along with the loan?
Ans. 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 into one with endowment benefits. The Bank will pay the insurance premium on the policy by debiting it to the loan account. On liquidation of the loan, the policy will be reassigned and delivered to the borrower.

4.Is it possible to get a second education loan?
Ans. To enable the students for taking higher education, provided the student secures 60% marks in existing course. The second loan is to be availed only from the branch where the first educational loan has been sanctioned.

5.Are any concessions applicable on the loan?
Ans. A concession of 1% is given on interest during the moratorium period towards repayment of interest charges during this period.