The Gnanamitra Educational Loan by State Bank of Mysore enable students with academic brilliance to meet tuition and other fees / maintenance costs / books and equipment and cost of passage for studies abroad etc., for pursuing studies at recognised school / college / institution.

Interest Rate

Limit
Amount of loan MIN(Rs.) MAX(Rs.)
(in Indian Rupees)
Higher Education- In India 10000 30.00 lacs
Higher Education- Abroad 10000 40.00 lacs

Margin
Upto Rs. 4.00 lacs Nil
Above Rs. 4.00 lacs -
For studies in India 5%
For studies abroad 15%

Security
Amount. Security
Upto Rs. 4.00 lacs NIL
Above Rs. 4.00 lacs and upto Rs. 7.50 lacs Collateral in the form of a suitable 3rd party guarantee

Above Rs. 7.50 lacs and upto Rs. 10.00 lacs Collateral security by way of immovable property or equal to the loan amount in the form of Government securities / NSCs / Units of UTI.
Guarantee of parents / guardians (the parent / guardian execute the documents on behalf of the minor and also in his capacity as co-borrower) / third party guarantee where sufficient collateral security is not available.

Repayment
Completion of course + 1 year or 6 months after getting a job, whichever is earlier
The interest to be debited monthly on simple basis during the repayment holiday / moratorium period
Penal interest @2% is charged for amount above Rs. 2 lacs for the overdue amount and overdue period.
Interest concession of 1% per annum is available, provided the interest is repaid during moratorium period as and when the interest is applied.

SBM Gnanamitra Educational Loan