Education Loan from State bank of patiala

Education Loan from State bank of patiala

Education Loan from State bank of patiala

State bank of Patiala launched Gyan Jyoti scheme of education Loan for pursuing higher studies in India and abroad:

Gyan Jyoti scheme is a loan system for all the Indian Nationals for higher education in India and abroad. No processing fee and low margin. Repayment upto 10-15 years. Simple interest during moratorium. 0.50% concession to girl students.


To extend financial assistance to deserving/meritorious students for pursuing higher education in India and abroad.

Eligibility Criteria:

Student Eligibility:

  • Should be an Indian National.
  • Secured admission to a higher education course in recognized institutions in India through Entrance Test/ Merit Based Selection process after completion of HSC (10 plus 2 or equivalent)
  • Secured admission to foreign university/Institutions.
    In cases, where there is no Entrance Test/ Merit based selection procedure, securing admission to a higher education course in a recognized institute may be considered.

Course Eligible:

Studies in India:

  • Graduation courses: B.A, B.Com. B.Sc., etc.
  • Post-Graduation courses: Master’s Degree and Ph.D.
  • Professional courses: Engineering, Medical, Agriculture, Veterinary, Law, Management, Computer, etc.
  • Computer Certificate courses of reputed institutes accredited to Department of Electronics or Institutes affiliated to a university.
  • Courses like ICWA, CA, CFA, etc.
  • Courses conducted by IIM, IIT, IISc, XLRI, NIFT, etc.
  • Courses offered in India by reputed foreign universities.
  • Evening courses of approved institutes.
  • Other courses leading to Diploma/Degree etc., conducted by colleges/universities approved by UGC/Govt./AICTE/ AIBMS/ICMR, etc.
  • Courses offered by National Institutes and other reputed private institutions.
  • Regular Degree/Diploma Courses like Aeronautical, pilot training, shipping etc. approved by Director General of Civil Aviation/Shipping, if the course is pursued in India. In case the course is pursued abroad, the Institute should be recognized by the competent local aviation/shipping authority.
  • Degree/ Diploma in Nursing or any discipline approved by Indian Nursing Council or any other regulatory body as the case may be, if the course is pursued in India.
  • Teacher Training Course/Nursing Course/B.Ed., will be eligible for education loan provided the training institutions are approved either by the Central Government or by State Government and such courses should lead to Degree or Diploma Course and not to Certification Course. The fees to be considered for the purpose should be the fees structure as approved by State Government or a Government approved Regulatory Body for merit seats in Government/Private Self Financing Colleges, Cooperative and Colleges run by Universities, as the case may be.
  • Vocational Training and skill development study courses will not be covered under the Model Education Loan Scheme, as the scheme is framed to provide bank loans for higher studies. Such courses/requests shall be considered under our SBP Education Loan for Vocational courses.
  • Medical courses in countries of the erstwhile USSR, China, Nepal, and other countries not recognized by Medical Council of India will not be covered.

Studies abroad:

  • Graduation: For job oriented professional/ Technical courses offered by reputed universities.
  • Post graduation: MCA, MBA, MS, etc.
  • Courses conducted by CIMA (Chartered Institute of Management Accountants) – London, CPA (Certified Public Accountant) in USA etc.
  • In addition to these courses, job oriented professional / technical Post Graduate Diploma courses offered by reputed universities will also be covered under the scheme.
  • Degree/ Diploma Courses like Aeronautical, pilot training, shipping etc. provided these are recognized by competent regulatory bodies in India/abroad for the purpose of employment in India/abroad.

Expenses Considered for:

  • Fees payable to college/school/hostel
  • Examination/Library/Laboratory fees
  • Purchase of Books/Equipment/Instruments/Uniforms, Purchase of computers- essential for completion of the course (maximum 20% of the total tuition fees payable for completion of the course)
  • Caution Deposit/Building Fund/Refundable Deposit (maximum 10% tuition fees for the entire course)
  • Travel Expenses/Passage money for studies abroad
  • Cost of a Two-wheeler upto Rs. 50,000/-
  • Any other expenses required to complete the course like study tours, project work etc.

Note: For courses under Management Quota seats considered under the scheme, fees as approved by the State Government/Government approved regulatory body for payment seats will be taken, subject to viability of repayment.

Quantum of Finance:

Need based finance subject to repaying capacity of the parents/students with margin and the following ceilings:

Studies in India

Maximum Rs. 10.00 Lacs.

Studies Abroad

Maximum Rs. 20.00 Lacs.


For loans up to Rs.4.0 Lacs: No Margin 
For loans above Rs.4.0 Lacs:  Studies in India: 5% 
Studies abroad: 15%


  • Upto Rs. 4 Lacs: No Security
  • Above Rs. 4 Lacs to Rs. 7.50 Lacs: Collateral security in the form of suitable third party guarantee.
  • Above Rs. 7.50 Lacs: Tangible collateral security of suitable value, along with the assignment of future income of the student for payment of installments.

(All loans should be secured by parent(s)/guardian of the student borrower. In case of married person, co-obligator can be spouse or the parent(s)/ parents-in-law)

Rate of Interest:

  • For loans upto Rs.7.50 lacs-2.75% above base rate i.e. 13.00% currently
  • Above Rs.7.50 Lacs– 1.75% above base rate i.e. 12.00 % currently


  • 50 bps concession in interest for girl child.
  • Simple interest to be charged during moratorium period.
  • Interest subsidy is given by Govt. during moratorium period if parental income is upto Rs.4.5 lakhs.


Repayment to be made after completion of moratorium period i.e. Course period + 1 year, or 6 months after getting job, whichever is earlier.

  • For loans up to Rs. 7.50 Lacs: upto 10 years
  • For loans above Rs. 7.50 Lacs: upto 15 years

Processing Charges:

No processing/upfront charges are to be collected on educational loans.

For loans to students going abroad: 

a) All those students who approach us for an education loan of more than Rs.4.00 Lacs for studies

Abroad, will be required to make a deposit of Rs.5000/- only. 
b) If the applicant avails the loan, the amount of Rs.5000/- will be adjusted against the contribution of margin money by him. If no margin is payable by him, the amount may be adjusted against the interest payable on the loan.

Documents required:

  • Application Form,
  • Appraisal Form,
  • Term Loan Agreement,
  • Guarantee Agreement,
  • Arrangement Letter,
  • In-principle sanction letter

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