Education and Career Forum

I want to study MBA with the help of an education loan. I want to apply an education loan in State Bank of Mysore. I have heard about the education loan of this bank but don’t know about the co-borrower term. Can I know about the co-borrower?

State Bank of India Mysore is now merged with State Bank of India. Co borrower is generally an individual who along with you borrow the education loan. Generally in most of case of education loan, co borrower is parent or guardian.

In case of default from main individual, co borrower is liable to pay the required amount of education loan.

Co borrower is the person who is responsible to pay education loan in case of default by main loan account holder.

For example, if you are an individual who has applied for education loan then your parent is the co borrower for loan.

Any person who is earning in your family can become your co-borrower or co-applicant for your education loan. Education loan is an unsecured loan, and you one person has to become your guarantor and co-borrower.

It can be your blood relative or father or brother or any person who is earning in your own family.

The definition of co borrower in State Bank of Mysore Education loan:

He/she is an Indian citizen who with main applicant sign the loan agreement to agree to all terms and conditions of loan scheme.

If the main application fails to pay loan after moratorium period, co borrower will have to pay the loan.

The definition of "Co borrower" as per bank is that individual who borrows the required amount of money for MBA course with the main applicant.

Suppose in case, main applicant defaults on education loan, co borrower who is the parent of guardian will have to pay the education loan on behalf of main applicant.