State Bank of Hyderabad was constituted as Hyderabad State Bank on 8.8.1941 under Hyderabad State Bank Act, 1941. The Bank started with the unique distinction of being the central bank of the erstwhile State of Hyderabad, covering present-day Telangana region of Andhra Pradesh, Hyderabad-Karnataka of Karnataka and Marathwada of Maharashtra, to manage its currency – Osmania Sikka and public debt apart from the functions of commercial banking. The first branch of the Bank was opened at Gunfoundry, Hyderabad on 5th April, 1942.

In 1953, the Bank took over the assets and liabilities of the Hyderabad Mercantile Bank Ltd. In the same year, the Bank started conducting Government and Treasury business as agent of Reserve Bank of India. In 1956, the Bank was taken over by Reserve Bank of India as its first subsidiary and its name was changed from Hyderabad State Bank to State Bank of Hyderabad. The Bank became a subsidiary of the State Bank of India on the 1st October 1959 and is now the largest Associate Bank of State Bank of India



To extend financial assistance to all eligible/ deserving/ meritorious students for pursuing higher education in India & Abroad.

Amount of Loan


For studies in India, maximum `10 lacs
Studies abroad, maximum `20 lacs



For loans up to `4 lacs: No Margin

For loans above `4 lacs:

  • Studies in India: 5%
  • Studies Abroad: 15%



  • Amount: For loans upto `10 lacs for Studies in India and upto 20 lacs for studies abroad
  • Upto `4 lacs: No Security
  • Above `4 lacs to `7.50 lacs: Collateral security in the form of suitable third party guarantee.
  • Above `7.50 lacs.: Tangible collateral security of suitable value, along with the assignment of future income of the student for payment of installments.

Rate of Interest


CLICK HERE to view interest rates

BASE RATE: 10.20%


Upto `4.00 Lakhs


12.70% p.a. (2.50% above BR)

Above `4.00 Lakhs


13.20% p.a. (3.00% above BR)

Advances against Govt. Securities NSC, IVPs etc


13.45% p.a. (3.25% above BR)

Advances against shares and debentures/ Bonds/ Units/ Mutual Funds


14.70% p.a. (4.50% above BR)

RBI Relief Bonds


13.70% (3.50% above BR)

Advances against surrender value of of Life Insurance policy


13.70% (3.50% above BR)

Advances against Bank’s Term Deposit


1.50 % above the interest rate allowed on the deposit

Advances against balances in the Janata Deposit Account a) For Public b) For Staff


a) 14.20 % (4.00% above BR)b) 12.20 % (2.00% above BR


  • Student Should be an Indian National.
  • Secured admission to professional/ technical courses through Entrance Test / Selection process.
  • Secured admission to foreign University / Institution.



  • Fees payable to college/school/hostel
  • Examination/Library/Laboratory fees
  • Purchase of Books/Equipment/Instruments/Uniforms
  • Caution Deposit/Building Fund/Refundable Deposit (maximum 10% tuition fees for the entire course)
  • Travel Expenses/Passage money for studies abroad
  • Purchase of computers considered necessary for completion of course
  • Any other expenses required to co mplete the course like study tours, project work etc.



  • 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)



Studies in India:

  • Graduation, Post-graduation including regular technical and professional Degree/Diploma courses conducted by colleges/ universities approved by UGC/ AICTE/ IMC/Govt. etc
  • Regular Degree/ Diploma Courses conducted by autonomous institutions like IIT, IIM etc
  • Teacher training/ Nursing courses approved by Central government or the State Government
  • Regular Degree/Diploma Courses like Aeronautical, pilot training, shipping etc. approved by Director General of Civil Aviation/Shipping
  • Vocational Training and skill development study courses will not be covered under the Education Loan Scheme, as the scheme is framed to provide bank loans for higher studies

Studies abroad:

  • Graduation/ Post-graduation for job oriented professional/ technical courses offered by reputed universities

Leave a Reply

Your email address will not be published. Required fields are marked *