Educational loans

State Bank of Patiala

Bank Type : Goverment Bank
No. Of Branches : 1010

About Bank

The rich heritage of State Bank of Patiala dates back to the year 1917, when it was founded by Late His Highness Bhupinder Singh, Maharaja of erstwhile Patiala state, with one branch by the name of 'Chowk Fort, Patiala' to begin with. The Bank, then known as the 'Patiala State Bank' was state owned and setup for the explicit purpose of fostering growth of agriculture, trade and industry. The constitution, scope and operations of the Bank underwent a sea change with the formation of the Patiala and east Punjab States Union (PEPSU) in 1948.The Bank was then reorganized and brought under the control of Reserve Bank of India.

It was christened as the Bank of Patiala. Another milestone in history of the Bank was its becoming a subsidiary of the State Bank of India on 1st April,1960 when it was named as the State Bank of Patiala and since then it has grown significantly both in size and volume of business. During these glorious years, the Bank has been playing an important role in Banking sphere.

Our Bank has now added a golden chapter to its history by fully networking all its brances on Core Banking Solutions on 08.08.2005 and become the first fully networked Public Sector Bank in the country.

Loan Procedures


For financing tuition fees of entrance exams for professional courses such as CAT, MAT, CET, IIT, JEE, AIJEE, AIEEE, AIPMT, GATE, CA, CS, ICWA, COMED-K, NEET, GRE, SAT, CLAT, MBA, Civil Services Test, GMAT etc. 

For financing lodging/hostel/room rent, boarding/ paying guest accommodation during the period of tuition, where the student is required to stay away from his residence. However, loan component for such expenses shall not exceed 75% of loan amount sanctioned.

For financing advance fees/deposit amountfor allotment of seats while attendingcounselling on passing entrance exam likeCET/CAT/COMED etc. 

For financing course expenses for pursuing PUC or Plus2 level. Where the college offers PUC course along with combined coaching for PUC/CET/ AIEEE/AIPMT etc., aggregate expenses for the same are eligible for finance. 

For purchase of Books, Laptop etc. However, loan component for such expenses shall not exceed 25% of tuition fee.


Student has appeared /completed previous qualifying exam i.e. 10th pass or appearing for 10th. 

The applicant shall be the father, mother or spouse of the student having regular and verifiable income and having repayment capacity for meeting tuition fees of son, daughter or spouse. 

Loan to be availed by the parent/s or spouse of the student. Student not required to join as applicant/co- applicant. 

In case of salaried class, repayment period not to exceed the retirement age.

Net Monthly Income to be minimum Rs.15000/- or Net Annual Income to be minimum Rs.1.80 lac.

Nature of facility:

In the form of short term demand loan.

Maximum loan amount:

Maximum Rs. 2.00 lacs

Margin contribution:

10% of the tuition fee as per the fee structure issued by the Institute.


For the applicants with Check off facility whose salary/pension is routed through the Branch: 

 No other collateral security is required but third party guarantee is mandatory. 

For Other applicants including Salaried class without check off facility:

The entire loan shall be fully secured by collateral in the form of financial asset such as NSC, LIC Policies, Deposits, KVP etc. aftermaintaining uniform margin of 10% on such  securities. In such cases, third party guarantee is not required. 

In exceptional cases, immovable property may also be taken as security with a margin of 25% on value of such property 

Pledge of Gold/Jewellery also accepted assecurity to the loan.

Processing fees:


Repayment period:

Repayment of the loan will start after 6 months from the date of disbursement of 1 instalment. 

Repayable in maximum repayment period of 2 to 3 years.

Interest rate:

2.75% above Base Rate, i.e.13.00 % p.a.

Other Conditions:

The borrower has to submit tuition fee structure issued by the Institute.

Prepayment penalty:



The loan will be disbursed in instalments or lumpsum, as per the payment structure/periodicity of the coaching institute and requirement of the borrower. 

The loan amount along with margin shall be directly remitted to the institute. In respect other expenses, reimbursement permitted based on declaration.

Loan will be sanctioned at the place of residence or at the place of work of the borrower.

List of Approved Institutes Can Be Downloded From The Documents Below,To Apply For Loan Click Here


State Bank of Patiala Head office, The Mall, Patiala


Banking Exams