State Bank of Hyderabad Student Loans

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Initially known as Hyderabad State Bank, State Bank of Hyderabad came into existence under Hyderabad State Bank Act, 1941 in Hyderabad. However it started operating in the year 1942. It got its existing name when it was taken over by RBI in 1956. Later in 1959, it started functioning as a subsidiary of State Bank of India. The bank caters different needs of its customers as it offers diversified type of loans. It also offers education loan to deserving students who aspire to pursue higher studies in India or abroad.


Various academic programs in India and abroad for which educational loans are made available to applicants are as follows:

  • Education loan can be sanctioned for pursuing school education in India.

  • Graduate, postgraduate and doctoral programs in India are considered for loan application.

  • Professional Courses like Engineering and Medical programs, specialized courses like ICWA, CFA or CA, programs by nationally reputed institutes like IIM and IISc or computer certificate programs of recognized institutes in India can be considered eligible for this loan.

  • Even courses by recognized foreign universities, diploma programs sanctioned by the likes of UGC, AICTE and the government in India are considered eligible for applying for this loan.

  • Loan application can also be given to study employment-oriented graduate courses, postgraduate programs like MS or MBA, or courses by CPA in the US or CIMA-London in abroad.


Few criteria have to be met to get the loan sanctioned. Loan is available only to an Indian national. The student also should have been admitted to a vocational or professional course on the basis of a selection procedure or entrance test. Admission to a foreign institute also creates a path to get the loan benefit.

Amount of Loan, Margin & Security

The amount of loan is decided on the basis of a person's requirement as well as the repaying capability of the borrower student or his parents.

A maximum amount of Rs. 10 lacs is given for studying in India while this amount is Rs. 20 lacs for studying in abroad. The bank also has guidelines in regard to the margin and security of its Educational Loan Scheme.

  • No amount of margin and security is there for loan amount upto Rs. 4 lacs.

  • However, for a loan amount above Rs. 4 lacs, there is a margin of 5% and 15% if you pursue studies in India and abroad respectively.

  • A borrower needs to present guarantee of a 3rd party for a loan amount above Rs. 4 lacs.

  • Loan amount exceeding Rs. 7.5 lacs needs either a collateral security of considerable value to be submitted or a co-obligation of guardian, parents or a 3rd party. Even the future income of the student needs to be assigned for paying the installments.


The student loan obtained from State Bank of Hyderabad can be repaid in a time period of 5 to 7 years after repayment is begun.

Further Information

To know more about the rate of interest, processing fee or other terms and conditions of State Bank of Hyderabad Student Loans, you can click on State Bank of Hyderabad