Description

Allahabad Bank was established on April 24, 1865 by a group of Europeans in Allahabad. It is one of the oldest nationalized joint stock banks in India with rich experience in extending various banking solutions to its valued consumers since 1865. Catering to a diverse clientele, Allahabad Bank offers a range of financial products and services under various categories like personal banking, social banking, MSME banking, corporate banking, international banking and a host of Retail Credit products.

Allahabad Bank education loan

Under the loan category, one of the popular products offered by Allahabad Bank is Education Loan. This loan has been specially designed to meet different levels of academic requirements of individuals. Allahabad Bank offers financial support to aspiring students who seek higher studies in India or abroad. The aspirant must have secured admission in professional or technical course through entrance test or merit based selection procedure. The bank also offers ‘Group Life Insurance’ cover facility for the students.

Being one of the major education loan providers, Allahabad Bank understands the needs of the students and offers extremely competitive education loans at better interest rates. Every year, a large number of students secure admissions in top universities and colleges in India and abroad with Allahabad Bank education loans.

What Is an Education Loan?

An Education loan is the advance or funds acquired by a student to pursue higher studies in India or abroad. The repayment of the loan commences for the candidate after completing the education and a period of 6 months or 1 year which is given as grace period for students to get a job.

The repayment amount to be paid depends upon you. That is if you want to start paying during the time of moratorium period itself or after the moratorium period. The Moratorium period is the time of your education plus 6 months or 1 year given to get a job. It is only after this time that you are expected to pay the loan.

What is Afinoz.com?

Afinoz.com is India's foremost online financial marketplace for availing loans and investments. Our main objective is to make the process of getting a loan or making an investment safer, convenient and hassle-free for individuals. We work with public and private banks, NBFCs and mutual fund houses across the entire country and offer an unbiased quotation on financial products. You can contact our team to get more information or apply for a loan or investment by calling on +918795021552 or by emailing at info@afinoz.com. Afinoz.com provides solutions which are quick, reliable, transparent, confidential and above all free.

Features & Benefits

Objective:Educational Loan Scheme aims at providing financial support from the banking system to meritorious students for pursuing higher education in India and abroad.
Quantum of Loan
For study in India: Up to Rs.75 Lac depending on the Institute. (List of the Institutes is available on Bank’s website.)
Study abroad:Up to Rs.75 Lac.
Margin: No margin required for loans up to INR 4 Lakhs, 5% of margin for loans above INR 4 Lakhs for studies in India and 15% of margin for above 4 Lakhs for studies overseas
Repayment Period: Up to 15 years, and the moratorium period is up to 1 year after completing the course.
Security:The parents or the guardian will be the co-applicant or the loan and the primary debtor. Tangible collateral will be accepted as security by the bank with the third-party guarantee. No security required for loans up to 4 Lakhs.
Processing Fees:0.15% for studies in India and 0.10% for studies abroad

Courses eligible in India:

  • Courses that are approved by Govt. / UGC/ AIBMS /AICTE / ICMR recognized colleges / universities recognized which offer Graduate / Post-Graduate degrees and P.G. Diplomas.
  • Courses(Professional) such as CFA, CA, ICWA
  • Courses offered by institutions like IITs, IIMs, XLRI, IISC, NIFT, NID etc.
  • Courses such as pilot training,aeronautical, shipping etc. which are approved by (DGCA) / Shipping (within India).
  • Courses that are approved and offered in India by reputed foreign universities.

Courses eligible Abroad:

  • Graduation: Job oriented professional/technicalcourses
  • Post-Graduation: Degrees like MBA, MCA, MS etc.
  • Courses such as CPA(USA) and CIMA(London)
  • Courses such as pilot training, aeronautical, shipping etc. offered by recognized institutions.

Allahabad Bank Education Loan Expenses Considered for Loan:

  • Fee payable to College / School /Hostel
  • Examination/Library/Laboratory Fee
  • Purchase of Books / Equipments/ Instruments/ Uniforms
  • Caution Deposit/ Building Fund/ Refundable Deposit supported by Bills/Receipts of the Institution, subject to the conditions that amount do not exceed 10% of the total tuition fees for the entire course.
  • Travel Expenses/Passage Money for studies abroad.
  • Purchase of Computers essential for completion of the course at reasonable cost.
  • Insurance premium for student borrower
  • Any other expenses required to complete the course, such as- Study Tours, Project Work, and Thesis etc.
  • Reimbursement of the fee paid at the time of counseling if applied within 60 days from the date of such payment.

Application of Interest:

  • Simple interest during moratorium period.
  • Service interest during moratorium period regularly and avail a special discount of 1.00% in interest rate.

Benefits of Allahabad Bank education loan

  • Following are some of the advantages of applying for an educational loan with Allahabad Bank.
  • Low rate of interest.
  • Less paperwork.
  • Customized education loans & flexible repayment plans
  • Quick approval process & Faster Disbursal
  • Hassle-free loans & 100% education finance
  • Principal amount can be paid after the completion of the course.
  • Flexible co-applicant & collateral requirements
  • 0.50% concession for girl students

Eligibility

  • Should have secured admission to a higher education course in recognized institutions in India or Abroad through Entrance Test/ Merit Based Selection process after completion of HSC (10 plus 2 or equivalent).
  • Where the admission is purely based on the marks scored in qualifying examinations then the cut off marks for loan eligibility is 50%.
  • Meritorious Students admitted under Management Quota are also eligible for loan.

Studies in India (Indicative list):

  • Approved courses recognized by UGC/ Govt. / AICTE/ AIBMS/ ICMR etc.

Studies abroad:

  • For job oriented professional/ technical courses offered by reputed universities

Student loan eligibility in India varies from person to person based on monthly obligation and monthly income. If you are wondering the amount you will get as education loan, there is education loan eligibility calculator for you on afinoz’s website. This calculator is designed keeping in mind the education loan eligibility in India & Abroad; so that you know the maximum amount you can get, before applying for the loan.

Documents Required

  • Letter of admission
  • Filled in Loan Application Form
  • 2 passport size photographs
  • Statement of cost of study
  • PAN Card of the student and Parent/ Guardian
  • AADHAR Card of the student and Parent/ Guardian
  • Proof of identity (Driving Licence/Passport/Aadhar/ any photo identity)
  • Proof of residence (Driving Licence/Passport/Electricity bill/Telephone bill)
  • Student/Co-borrower/ guarantor's bank account statement for last 6 months
  • IT return/ IT assessment order, of previous 2 years of Parent/ Guardian/ other co-borrower (if IT Payee)
  • Brief statement of assets & liabilities of Parent/ Guardian/ other co-borrower
  • Proof of income (i.e. salary slips/ Form 16) Parent/ Guardian/ other co-borrower

Interest Rates

Courses in India
Max Loan Amount for courses in IndiaUp to Rs.75 Lacs depending on the Institute.
Max Loan Amount for Studies AbroadUp to Rs.75 Lacs
Interest Rates
For IIMs, IITs & others MCLR*+0.35%
For NITs & othersMCLR+1.85%
For other InstitutesMCLR+2.00%
For Studies Abroad
For loan amount up to Rs.4.00 LacMCLR+2.00%
For loan amount above Rs.4.00 Lac up to Rs.7.50 LacMCLR+2.00%
For loan amount above Rs.7.50 LacMCLR+1.85%
*MCLR stands for marginal cost of funds based lending rate

Special Note: Rates are subject to periodic changes & may vary from bank to bank or any other financial institution or NBFC. The main components which are the deciding factors when it comes to the rate of interest for education loans in India are whether the loan provided is secured or unsecured. Unsecured loans have a higher interest rate as; however, secured loans have a lower rate of interest.

FAQs

Query- What is the rate of interest charged during the moratorium period?

Reply-Only simple interest will be charged during the moratorium period. After the moratorium period the actual interest mentioned will be charged.

Query-Can I take an education loan without a co-borrower?

Reply-No, a co-borrower is needed to take an education loan. The loan will be taken as a joint loan in collaboration with your parent/ guardian or spouse.

Query-I am planning to study abroad. Am I eligible to apply for an Education Loan?

Reply-Yes, Allahabad Bank offers up to INR 75 Lakhs for courses pursued abroad which also includes travel expenses and study tours. Higher amount can be obtained based on eligibility and creditworthiness.

Query- Is there a processing fee for an education loan with Allahabad Bank?

Reply-Yes, 0.15% of processing fee for studies in India and 0.10% for studies abroad

Query-Is there a way I can reduce the interest paid?

Reply- There is special subsidy provided by Central Government for education loans. Allahabad Bank also provides special interest rates for some premier institutions. The other option is your parent/ guardian or spouse can pay the loan amount during the moratorium period due to which the loan amount you need to repay becomes less.

Query- Is there any discount / rebate on the Allahabad Bank interest rate?

Reply-Yes, girl students are entitled to a rebate of 0.50% on the chargeable interest rate. Also, interest concession of 1.00% will be awarded if borrower pays the interest amount within the study & moratorium period.

Query-Will my travel expenses be covered by this loan if I am going to pursue a course abroad?

Reply-Yes, this loan does cover your travel expenses or passage money if you are going to pursue a course overseas.

Query-Are there any additional benefits which the Allahabad Bank education loan provides?

Reply-Applicants of this loan are entitled to a free debit card along with the loan amount. They can also avail an additional loan for higher studies or to cover any cost of escalation.

Query- What is the moratorium period allowed with this loan?

Reply-Applicants are entitled to a moratorium period which of either 1 year after the end of the course duration or 6 months after getting a job, whichever takes place earlier.

Query- If I get a scholarship or assistantship, will it be included in the loan margin?

Reply-Yes, any Scholarship or Assistantship will be included in the Margin.