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  • Allahabad Bank Education Loan

    Allahabad Bank Education Loan
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    Overview:

    Founded in the year 1865, Allahabad Bank is an Indian nationalized bank with a total revenue of Rs 189.13 billion. 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 most popular products offered by Allahabad Bank is Education Loan. This loan has been specially designed to meet different levels of academic needs of individuals.

    Features & Benefits of Allahabad Bank Education Loan:

    Following are the notable features of the Allahabad Bank Education Loan.

    Quantum of Loan:

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

    Studies in India/Abroad: Maximum Rs. 20.00 lakh.

    Processing Fees:

    This loan does not carry any processing fee or any other charges

    Repayment Period:

    Loan Amount

    Repayment Period

    Up to Rs 7.50 lakh

    Within a maximum period of 10 years

    Above Rs 7.50 lakh

    Within a period of 15 years after the repayment period begins

    The holiday period allowed on this loan is ‘course duration + 1 year’ OR ‘6 months after getting a job’, whichever occurs earlier.

    Maximum Loan Limit:

    The maximum amount for which this loan may be availed is capped at Rs 20 lakhs. The loan amount is also subject to the need and repayment capacity of the borrowing applicants.

    Margin:

    Following is the margin applicable to the Allahabad Bank Education Loan.

    Loan Amount

    Margin

    Up to Rs 4 lakh

    NIL

    Above Rs 4 lakh

    Studies in India: 5%

    Studies abroad: 15%

    Any Scholarship or Assistantship will be included in the Margin. Also, the margin amount will be brought on a year-to-year basis.

    Application for Loan:

    Applicants can easily apply for this loan online or by visiting any Allahabad Bank’s branch, Retail Banking Boutique or Centralized Retail Banking Boutique.

    Life Insurance Cover:

    Any student applying for this loan can also avail Group Life Insurance Cover equal to the amount of the loan which will be valid for the entire loan repayment period.

    Allahabad Bank Education Loan Interest Rate:

    Category of Academic Institution

    Max. Loan Amount

    Interest Rate

    IIMs, ISBs, XLRI

    Rs 20 lakh

    Base Rate + 1.50%

    IITs, BITS and other premier engineering, management & medical institutions

    Rs 15 lakh

    Base Rate + 2.00%

    NITs, BITS and other reputed medical, management & engineering institutions

    Rs 10 lakh

    Base Rate + 2.50%

    Other colleges / universities recognized by UGC / Govt. / AICTE / AIBMS / ICMR etc.

    Rs 10 lakh

    Base Rate + 3.00%

    For students applying under the Management Quota

    Loan up to and above Rs 4 lakh

    Base Rate + 3.00%

    Eligible Courses for Allahabad Bank Education Loan:

    Following are the courses which one is eligible to apply for with the help of the Allahabad Bank education loan.

    India:

    • Courses approved by UGC / Govt. / AICTE / AIBMS / ICMR recognized colleges / universities recognized which offer Graduate / Post-Graduate degrees and P.G. Diplomas.
    • Professional courses like ICWA, CA, CFA etc.
    • Courses conducted by premier institutions like IIMs, IITs / IISC, XLRI, NIFT, NID etc.
    • Regular Degree / Diploma courses like aeronautical, pilot training, shipping etc. which are approved by Director General of Civil Aviation (DGCA) / Shipping (if the course is pursued in India).
    • Approved courses offered in India by reputed foreign universities.

    Abroad:

    • Graduation: For job oriented professional / technical courses being offered by reputed universities.
    • Post-Graduation: Degrees like MCA, MBA, MS, etc.
    • Courses conducted by CIMA in London, CPA in USA, etc.
    • Regular degree/ diploma courses like aeronautical, pilot training, shipping etc. offered by institutes which are recognized by the concerned university / state body / local aviation / shipping authority.

    Expenses Covered under Allahabad Bank Education Loan:

    Following are the expenses covered under this loan.

    • College / school / hostel fee.
    • Examination / library / laboratory fee.
    • Cost of books / equipment / instruments / uniforms.
    • Caution deposit / building fund / refundable deposit which must be supported by relevant \ bills / receipts of the institution. (Subject to the condition that the amount must not exceed 10% of the total tuition fees for the entire course).
    • Any travel expenses / passage money required for studies abroad.
    • Purchase of gadgets like computers which are needed for completing the course.
    • Insurance premium payable for the student borrower.
    • Other expenses towards activities like study tours, project work, thesis, etc. which are essential for successful completion of course.
    • Reimbursement of fees paid at the time of counselling (if applied within 60 days from the date of said payment).

    Security Required for Allahabad Bank Education Loan:

    Category of Academic Institution

    Security Required

    IIMs, ISBs, XLRI

    For any amount of loan:

    1. Assignment of future income
    2. Co-obligation of parents / guardians

    IITs, BITS and other premier engineering, management & medical institutions

    Loans under Rs 10 lakh:

    1. 1. Assignment of future income
    2. Co-obligation of parents / guardians

    Loans over Rs 10 lakh:

    1. Assignment of future income
    2. Co-obligation from parents / guardians
    3. Full tangible collateral security

    NITs, BITS and other reputed medical, management & engineering institutions

    Loan amount over Rs 7.50 lakh:

    1. Assignment of future income
    2. Co-obligation of parents / guardians
    3. Full tangible collateral security

    Other colleges / universities recognized by UGC / Govt. / AICTE / AIBMS / ICMR etc.

    1. Assignment of future income
    2. 2. Co-obligation of parents / guardians
    3. 3. If the loan amount is above Rs 4 lakh & up to Rs 7.50 lakh, then Collateral security by way of third party guarantee is required.
    4. 4. If loan amount is above Rs 7.50 lakh, then full tangible collateral security is required.

    For students applying under the Management Quota

    For loans up to Rs 4 lakh:

    1. Assignment of future income
    2. Co-obligation of parents / guardians
    3. No collateral security

    For loans above Rs 4 lakh:

    1. Assignment of future income
    2. Co-obligation of parents / guardians
    3. Full tangible collateral security

    Allahabad Bank Education Loan Eligibility:

    Any Indian national who has secured admission to professional / technical course with a recognized institution in India or abroad through an Entrance Test / Merit-based selection process after successfully completing Higher Secondary School (10+2 OR equivalent), is eligible to apply for the Allahabad Bank education loan.

    Allahabad Bank Education Loan FAQs:

    1. Is there any discount / rebate on the Allahabad Bank interest rate?

    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.

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

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

    3. Are there any additional benefits which the Allahabad Bank education loan provides?

    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.

    4. What is the moratorium period allowed with this loan?

    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.

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

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

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