State Bank Of Travancore


"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."

Loan 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%.

Loan Eligibility:

Courses Eligible For Loan:
  • 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.

Documents Required:

Candidate Education Loan Eligibility:
  • 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.

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.

Expenses Covered under 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.

Loan Repayment:

Loan Amount Repayment Period
Up to Rs 7.50 lakh Within a maximum period of 10 years
Above Rs 7.50 lakh Within a period of 15 years after the repayment period begins

Security Required:

  • 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.


1.Who can act as a co-obligor to the loan?
Ans. 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.

2. Is there a minimum age for being eligible for the State Bank of Travancore education loan?
Ans. There is no specific restriction with regard to the age of the student to be eligible for Education Loan.

3. What all can be placed as security?
Ans. 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.

4. What is the penalty if interest is not paid on time?
Ans. 2% interest is charged as penalty for loans above Rs. 2 lakhs.

5. Is there any concession or rebate on interest of the loan?
Ans. 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.