Allahabad Bank Education Loan
Based on 245 Customer Reviews
Published on: January 24, 2018
Based on 245 Customer Reviews
Published on: January 24, 2018
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.
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.
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.
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|Objective:||Educational Loan Scheme aims at providing financial support from the banking system to meritorious students for pursuing higher education in India and abroad.|
|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 eligible Abroad:
Allahabad Bank Education Loan Expenses Considered for Loan:
Application of Interest:
Studies in India (Indicative list):
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.
|Max Loan Amount for courses in India||Up to Rs.75 Lacs depending on the Institute.|
|Max Loan Amount for Studies Abroad||Up to Rs.75 Lacs|
|For IIMs, IITs & others||MCLR*+0.35%|
|For NITs & others||MCLR+1.85%|
|For other Institutes||MCLR+2.00%|
|For loan amount up to Rs.4.00 Lac||MCLR+2.00%|
|For loan amount above Rs.4.00 Lac up to Rs.7.50 Lac||MCLR+2.00%|
|For loan amount above Rs.7.50 Lac||MCLR+1.85%|
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.
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.