Educational Loans from Allahabad Bank

Objective of the Education loan Scheme

The Education loan scheme aims at providing financial assistance on reasonable terms:

• To the poor and needy to undertake basic education.
• To the meritorious students to pursue higher/professional/technical education.

 

Eligibility Criteria of Education loan scheme

1. Courses Eligible

1. Studies in India

• School education including plus 2 stage

• Normal Graduation Courses - B.A., B.Com., B.Sc., Microbiology, etc.

• Post Graduation Course: Masters Courses, Ph.D., etc.

• Professional Courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management (including Hotel Management), Computer/ Information Technology, Journalism & Mass Communication, etc.

• Courses like: ICWA, CA, CFA, etc.

• Computer Certificate Courses of reputed Institutes accredited to Department of Electronics or Institutes affiliated to University.

• Courses conducted in India by reputed Foreign Universities.

• Evening courses of approved institutes.

• Courses leading to diploma / degree etc. conducted by the Colleges/ Universities approved by UGC / Govt./ AICTE / AIBMS / ICMR etc

1. Studies abroad

• Graduation: For job oriented professional / technical courses offered by reputed Universities.

• Post Graduation: MCA, MBA, MS, etc.

• Courses conducted by CIMA London, CPA in USA etc

 Quantum of Loan:

Need based finance subject to repaying capacity of the parents/ students with following ceilings:

Studies in India: Maximum Rs 7.50 lacs

Studies abroad: Maximum Rs.15.00 lacs

Margin:

• For loan upto Rs 4.00 lacs: NIL

• For loan above Rs 4.00 lacs:
   
  (i) Studies in India: 5%

(ii) Studies abroad: 15%

• Scholarship / Assistantship to be included in Margin.

• Margin Money to be brought on year to year basis as and disbursements are made on a pro-rata basis

1. Eligibility

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

1. Expenses considered for loan:

• Fee payable to college/school/ hostel.
• Examination/Library/Laboratory fee.
• Purchase of books/ equipment’s/instruments/uniforms.
• Caution deposit/building fund/refundable deposit supported by Institution bills/ receipt.
• Travel expenses/ passage money for studies abroad.
• Purchase of computers-essential for completion of the course.
• Any other expenses required to complete the course- like study tours, project work, thesis etc.

Group Life Insurance cover

Under the plan a low cost group life insurance cover will be provided for the loan liability of Educational Loan borrowers (students) during entire period of loan (i.e., course period & moratorium period plus repayment period), in case of his unfortunate death.     Click here for more

Security

Loan Upto Rs.4.00 lacs	No collateral security
Loan above Rs.4.00 lacs & upto Rs.7.50 lacs	Security is in the form of satisfactory third party guarantee
Loan above Rs.7.50 lacs	(a) Collateral security of suitable value (b) Co - obligation of parents/ guardians/third party along with assignment of future income of the student for payment of installments

In case of loan above 4 lacs, the documents should be executed by the both the student and parent/guardian.

1. The security can be in the form of land/building/Govt. Securities/Public Sector Bonds/Units of UTI , NSC, KVP, LIC policy, gold shares/debentures , bank deposit in the name of student/parent/guardian or any other third party.
2. In case the loan is given for purchase of computer the same to be hypothecated to the Bank.
3. The assignment of future income of the student for payment of installments may also be obtained irrespective of loan amount.

Rate of Interest

Repayment of study loan

Repayment holiday/Moratorium :
Course period +1 year or 6 months after getting job, whichever is earlier.

• Loan together with accrued interest will be repaid in maximum 84 Equated Monthly Instalments (EMI).

Processing Charges for study loan

No processing/upfront charges.

Capability Certificate

Some of the foreign universities require the students to submit a certificate from their bankers about the sponsors’ solvency/financial capability , with a view to ensure that the sponsors of the students going abroad for higher studies are capable of meeting the expenses till completion of studies. Accordingly branches can also issue the capability certificate for students going abroad for higher studies. For this financial and other supporting documents may be obtained from applicant, if required.

Online Sanction

Online sanction of study loan facility is available for the students opting for professional courses offered by the following institutes

Other Institutes

For students of other institutes, study loans are available from all branches of Allahabadbank.
Click here for printable Application Form.

Click here for online application form (study loan)