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  • Andhra Bank Education Loan

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    “Education is not preparation for life, education is life itself”, this quote from the famous American educational reformer, John Dewey, symbolises the crucial role that proper education plays in our lives. However, in these times of increasing prices and constant competition, getting a proper education could solely depend on its affordability and the easy availability of timely funding. This is where education loans come in- a sizable influx of funds, offered by the banks to eligible students (to their parents/guardians, practically) in order to help them pursue their higher education goals, both in India and/or abroad.

    Overview:

    Andhra Bank, a banking behemoth that commenced operations from 28th November 1923, has always been much admired for its customer-first approach and a progressive outlook towards improving the standards of personal and commercial banking in India. In this vein, the Andhra Bank Education Loan is a comprehensive, scalable, customer centric product that has been a big hit since its initial launch. Loaded with attractive features, including the very competitive Andhra Bank Education Loan interest rate, and benefits that are immensely attractive to students who are looking to pursue further education in India and abroad.

    Features & Benefits- Why do you need an Education Loan?

    Fundamentally, the following reasons form the crux of what prompts one to subscribe to an education loan in general, and the Andhra Bank Education Loan scheme in particular,

    Education, the title of this loan type was a clear hint, right? Today, quality education is still the prerequisite towards a successful and fulfilling life. However, quality education is costly, especially the higher level courses and studies abroad. Ergo, the need for an all-encompassing and streamlined education loan.

    Andhra Bank offers loans towards education in two distinct formats:

    1. Educational Loans for Higher Studies in India and Abroad.
    2. Educational Loans for pursuing Vocational Courses.

    Expenses considered for the Andhra Bank Education Loan are as follows:

    1. Fees payable to School/College/Hostel.
    2. Fees applicable for Examination, Library and Laboratories.
    3. Variables like Building fund, Refundable deposits, Insurance premium for student (if applicable) etc.
    4. Purchase of uniforms, books, equipment’s and instruments, computer at a reasonable cost.
    5. Expenses incurred in Travel, also inclusive of passage money for studies abroad.
    6. Spends that are crucial to the successful completion of the course- Study tours, Projects, Thesis, etc.
    7. For vocational courses, the applicable fees must be fixed by either the Government or authorities appointed by the Government. Again, with respect to course fee of Private Institutions, the expenses will be limited to 125% of the fees prescribed by the Govt.

    Note- for Degree level courses in non-technical and/or non-professional courses, the expenses that may be considered for finance by Andhra Bank Education Loan must not exceed Rs.1 lakh.

    Age Restrictions-

    None. Anyone with the will to study is eligible.

    Maximum Loan Limit-

    The following table illustrates the maximum loan amounts that can be disbursed under the Andhra Bank Educational Loan scheme,

    Condition.

    Loan Amount.

    Higher Studies in India and Abroad.

    No Upper Limit.

    Vocational Courses- Duration Upto 3 months.

    Rs.20,000

    Vocational Courses- Duration Upto 3 - 6 months.

    Rs.50,000

    Vocational Courses- Duration Upto 6 months - 1 year.

    Rs.75,000

    Vocational Courses- Duration Above 1 year.

    Rs.1,50,000 - Rs.2 lakhs

    Repayment Tenure-

    The following table illustrates the repayment tenures and other details that apply to the various types of educational loans from Andhra Bank,

    Condition.

    Loan Type.

    Tenure.

    Repayment Holiday or Moratorium

    Higher Studies in India & Abroad

    Course period + 1 year or 6 months after getting job, whichever comes first.

    Student applies for higher studies immediately after completion of current course.

    Higher Studies in India & Abroad

    Shifted by 6 months from employment or 1 year from the completion of the second course, whichever comes first.

    Loans upto to Rs.50000/-

    Vocational Courses

    2 years.

    Loans from Rs.50,000 to Rs.1 lakh

    Vocational Courses

    2 to 5 years.

    Loans above Rs.1 lakh

    Vocational Courses

    3 to 7 years.

    Student prepays loan

    Any

    Can be done at any time without penalty.

    Interest Rates-

    The following table illustrates the applicable Andhra Bank Education Loan interest rate.

    Condition.

    Rate of Interest.

    Up To Rs. 7.50 Lakhs

    Base Rate+2.75%

    Above Rs. 7.50 Lakhs

    Base Rate+1.50%

    Kindly note the following conditions, applicable to all educational loans from Andhra Bank,

    1. 0.50% concession for girl students.
    2. Concessional interest rates also apply for student who are pursuing their education at premier institutions. This applies on the base rate of 10.25%.
    3. Simple interest will be charged through the study period and upto the commencement of repayment.
    4. Accumulated interest will be compounded at the start of repayment tenure and the applicable EMI will be fixed accordingly.

    Processing Fees-

    The table illustrates the applicable charges for processing of the student’s application,

    Condition.

    Processing Fee.

    Study in India

    No processing or upfront charges.

    Study Abroad

    Applicable fees collected initially, refunded when student avails the loan.

    Security-

    The following table illustrates the applicable security that applies to the educational loans from Andhra Bank,

    Condition.

    Security.

    Loans upto Rs.4 lakhs

    No security required. Parents must be joint borrower(s). The limit of Rs.4 lakhs applies to the student and not the family. Other siblings can apply for the loan irrespective of the fact that a sibling has already availed the security free loan.

    Loans above Rs.4 lakhs and upto Rs.7.5 lakhs

    Third party guarantee needed as security. Also, parent(s) must execute the document as joint borrower(s).

    Loans above Rs.7.5 lakhs

    Collateral security of suitable value is required. Also, future income of the student must be earmarked for payment of loan installments. Parent(s) must sign-in as joint borrower(s).

    Herein, note that, the applicable collateral/security can be land, building, public sector bonds, government securities, gold, units of UTI, NSC, KVP, shares or mutual funds, life insurance policies, bank deposits in the name of the student/parent/guardian/third party, or any other tangible security that is deemed acceptable to the bank and provides the latter with a suitable margin.

    Margin-

    The following table describes the margin that applies to Andhra Bank educational loans,

    Condition.

    Sub-Condition.

    Margin.

    Notes.

    Loans upto Rs.4 lakhs

    Studies in India or Abroad

    0%

    Scholarship/assistantship included in margin.

    Loans above Rs.4 lakhs

    Studies in India

    5%

    Scholarship/assistantship included in margin.

    Loans above Rs.4 lakhs

    Studies Abroad

    15%

    Scholarship/assistantship included in margin.

    Note- Margin applies on a year-to-year basis as and when disbursements are made on a pro-rata basis.

    Eligible Courses-

    The following is an exhaustive list of courses (in India and abroad) that are considered eligible to be funded by the Andhra Bank Education Loan scheme. Herein, note that, all courses that are conducted in India must be properly certified by the government or any regulating body (UGC/ Govt./AICTE/ AIBMS/ ICMR etc.) that has been properly authorized by the government. The course list is as follows-

    1. ICWA, CA, CFA etc.
    2. Courses conducted by IIMs, IITs, IISc, XLRI. NIFT,NID etc.
    3. Degree/Diploma courses like Aeronautical, pilot training, shipping, etc.,
    4. Aircraft Maintenance Engg, Pre-Sea Training courses and the like.
    5. Nursing and Para Medical courses (includes admission via management quota).
    6. Courses offered by reputed institutes that assure employment and are Govt. certified.
    7. Courses offered in India by reputed foreign universities. Ensure that these courses are properly certified.
    8. All courses listed here- www.ugc.ac.in, www.education.nic.in and www.aicte.org.in
    9. Education loan for Research work, applied for by a student with Master's Degree.
    10. Exceptions- Off campus courses, onsite/partnership programs, home study programs, correspondence courses, courses offered by coaching classes will not be funded.

    Studies Abroad-

    The following courses, conducted abroad, will be considered for the Andhra Bank Education Loan procedure and provided the same are conducted by reputed, approved educational institutions with the course having employment value abroad and in India.

    1. MCA, MBA, MS and other post-graduation courses.
    2. Job oriented courses, technical courses offered by reputed universities as part of their graduation programs.
    3. Courses conducted by CIMA- London, CPA in USA etc.
    4. Degree or Diploma courses in aeronautical, pilot training, shipping etc.
    5. Job oriented Diploma and Certificate courses that succeed a graduation course in India.
    6. Finance is approved for courses listed under www.webometrics.info.
    7. Post graduate courses that result in PG degrees/diplomas.
    8. Exception- Exclusive Diploma and/or Certificate courses that are not preceded by any graduation course in India or abroad. These Diplomas or Certificate courses, when standalone, aren’t funded as per the Andhra Bank Education Loan terms and conditions.

    Vocational Courses-

    Herein, the subscribed course must be duly recognized by the Central/ State Government, properly authorized Statutory/ Technical body or Training Department of Government. Also, the applicable course must not be lesser than 6 months in duration and over 3 years.

    List of Approved Educational Institutes:

    In practice, the concerned educational institution’s reputation and the courses’ scope in terms of employment are vital factors when deciding the student’s Andhra Bank Education Loan eligibility. The loan is provided to students who secure a seat in such accredited institutions.

    The complete list of approved educational institutions can be viewed here.

    Eligibility:

    The following conditions set the primary Andhra Bank Education Loan eligibility for Indian students,

    1. The student must be a resident Indian.
    2. If the student is a Non-Resident Indian (NRI), he/she should hold a valid Indian Passport.
    3. The applicant must provide a collateral/security that is enforceable in India.
    4. The student must have secured admission into the higher education course, in a recognized Indian or foreign institution, through an entrance test, after completing his/her 10+2 or equivalent qualification.
    5. In case point 4 is based only on the marks secured in the qualifying examination, then a minimum of 65% in aggregate is required to qualify for the educational loan from Andhra Bank.
    6. Loans are allowed for merit students, who qualify in the entrance exam and yet choose to pursue the course under the management quota for whatever applicable personal reasons.

    Continuing, the eligibility for students applying for any vocational course is as follows-

    The student/applicant must have gained admission into a course that is certified/conducted by any Department/Affiliate/Organization/Ministry of the government or National Skill Development Corporation approved Organization or Society. At the end of the course, the certificate/diploma/degree issued by the said organization must be fully certified and authorized by the Government (State or Central).

    Subsidy Scheme- Central Scheme to provide Interest subsidy (CSIS) :

    1. The CSIS is an attempt by the Government of India to help students from the economically weaker sections of the society, by providing full subsidy on interest during the moratorium period (ideally, course duration plus one year/six months after getting job, whichever comes first).
    2. This scheme applies to students whose familial annual gross income is not more than Rs.4.50 lakhs/year.
    3. To confirm upon the income status of the applicant (his/her family’s gross annual income), income proof must be issued by public authorities who are authorized by the State Governments to do so.
    4. The applicable subsidy is allowed ONLY once for either the first undergraduate degree or the post graduate degree/diploma attempted by the student in India. However, integrated courses, graduation plus post-graduation, have interest subsidy applicable at all times.
    5. Interest subsidy is nullified if the student, a) quits the course, b) is expelled from the institution on disciplinary or academic grounds.
    6. The subsidy claims are admissible on a yearly basis, as decided by the HRD Ministry, Government of India.

    In terms of the Applicable Income Tax- Interest charged to the educational loan account and paid is exempted from income tax deductions.

    Andhra Bank Education Loan FAQs:

    1. Is it true that admission into certain ‘premier educational institutions’ allots the student concessional interest rates? Which are these institutions?

      Yes. Admission into certain elite educational institutions automatically qualify the student for concessional interest rates and other discounts. The complete list of these ‘premier institutions’ is as follows-

      1. Indian Institute of Technology(I.I.T.)
      2. Birla Institute of Technology and Science (BITS)
      3. Indian Institute of Management (IIM)
      4. Xavier Labour Relations Institute (XLRI) Jamshedpur.
      5. Management Dev. Institute (MDI)-Gurgaon
      6. SP Jain Institute of Management and Research (SPJJMR)- Mumbai
      7. Institute of Mgt. Technology (IMT) - Ghaziabad
      8. Jaman Lal Bajaj Instt. of Mgt. Studies (JBIMS)- Mumbai
      9. Somaiya Instt. of Mgt. Studies and Research. Mumbai
      10. Netaji Subash Inst. of Technology ( formerly Delhi University of Technology) N.S.I.T New Delhi
      11. International Institute of Information Technology (IIIT)- Hyderabad
      12. Indian School of Business (ISB), Hyderabad and Mohali
    2. Is life/liability insurance mandatory for students subscribing to the Andhra Bank Education Loan?

      No, this is not mandatory. However, the bank, with the consent of the student, may arrange for the same.

    3. What is the minimum and maximum eligibility age to qualify for this loan?

      There is no specific restriction in this regard. Anybody, with a will to study and compliant with the Andhra Bank Education Loan terms and conditions can apply.

    4. What about boarding and lodging? Is this covered per the education loan?

      Yes. Boarding and lodging charges to a maximum of Rs. 50,000 per year is provided for in the loan, if the student isn’t allotted in-campus hostel accommodation or opts for outside accommodation.

    5. What type of concession is accorded to girl students as per the Andhra Bank Educational Loan?

      On the applicable interest rate, girl students are accorded a 0.50% concession.

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    Andhra Bank Education Loan Reviews

  • Page 1 of 1
    • andhra Bank Education Loan
      "Its a okay process"
      ANDHRA BANK
      0.5 4.0/5 "Great!"
      In simple words, if you have the local surety and local property within the bank limits Andhra bank will provide an educational loan and they would be able to process the loan with ease. It was taken for my brother and I was one who guaranteed it. As a guarantor I had given my ID proof and I had signed for it. It can be recommendable if they resource are availiable within the limit of the bank they can go for it
      Was this review helpful? 2
      , bangalore
      Reviewed on Jan 16, 2017
    • andhra Bank Education Loan
      "Very much competitive"
      ANDHRA BANK
      0.5 3.0/5 "Satisfactory"
      ANDHRA Bank educational loan it is pretty competitive in terms of interest rate. The interest rate offered by them was around Base rate plus one percent they had asked for the grantor, nor they did not ask for any collateral security which is required for this loan and its on-going no issues absolutely and I am yet to make the payment.
      Was this review helpful? 0
      , mumbai
      Reviewed on Jan 11, 2017
    • andhra Bank Education Loan
      "Go for it "
      ANDHRA BANK
      0.5 4.5/5 "Excellent!"
      I never got a chance to apply for an educational loan at the branch as everything is done online. I did not face any problem when it comes to loan tenure prelosure etc, I am holding this Educational loan for a period of 5 years. There is no drawback nor any challenges till date. I had to submit the land paper works for availing this educational loan.
      Was this review helpful? 6
      , hyderabad
      Reviewed on Nov 15, 2016
    • andhra Bank Education Loan
      "Can be better"
      ANDHRA BANK
      0.5 3.0/5 "Satisfactory"
      Before a decade, I had taken my educational loan from Andhra. During those days it was very difficult to get a loan because there was no online facility and one has to walk in to the branch directly for the personal loan. My Father was the surety for my educational loan. I had cleared the loan completely within 6 months after joining my job.
      Was this review helpful? 3
      , secunderabad
      Reviewed on Oct 08, 2016
    • andhra Bank Education Loan
      "Good rate!"
      ANDHRA BANK
      0.5 5.0/5 "Blown Away!"
      Interest rate offered for the educational loan was pretty low. Loan was processed within 20 days. I took this loan for my sonâ??s education and kept my house documents as collateral. More over the response was quick from the Andhra bank executives for the process.
      Was this review helpful? 6
      , hyderabad
      Reviewed on Feb 29, 2016
    • andhra Bank Education Loan
      "Good "
      ANDHRA BANK
      0.5 2.0/5 "Expected more"
      I got the educational loan with the Andhra Bank. I am not sure about this because its before 6 to 8 years of time. The rate of interest is around 6% to 8%, which I guess. Service is good with them. I paid bulk amount as 1.5 lakh per years to settle this loan. Customer service is good with them.
      Was this review helpful? 5
      , coimbatore
      Reviewed on Oct 09, 2015
    • andhra Bank Education Loan
      "Its okay"
      ANDHRA BANK
      0.5 4.0/5 "Great!"
      Andhra bank Education loan is okay. There is no need to pay the EMI until I get the job. They were providing some buffer period for that and this was the case before 5 years. I am not sure about the current scenario. Interest rate offered by them was fine. This loan was taken for a peirod of one year.
      Was this review helpful? 9
      , chennai
      Reviewed on Sep 09, 2015
    • andhra Bank Education Loan
      "wonderful"
      ANDHRA BANK
      0.5 4.0/5 "Great!"
      Six year ago I have taken educational loan and almost I completed all the EMI where only one is pending. I cannot recall the interest rate now but the offered rate was affordable. Employees of Andhra bank helped me very much and the bank is very near to my house so it was easy to complete all the formalities. For documentation, my father had submitted financial papers and they asked my KYC and more than that my institution details. Loan amount was transferred to the institute and the amount that we have spent was credited in our account.
      Was this review helpful? 20
      , mumbai
      Reviewed on Feb 19, 2015
    • andhra Bank Education Loan
      "Excellent customer service!!!!!!!!"
      ANDHRA BANK
      0.5 4.5/5 "Excellent!"
      Though I closed on educational loan from andhra bank again I took one loan for my MTECH study . Initially I applied for 80% and later in I paid 20% in MTECH . The best part was managers used to send reminders for EMI every month. Overall it was excellent.
      Was this review helpful? 6
      , hyderabad
      Reviewed on Nov 05, 2014
    • andhra Bank Education Loan
      "Excellent customer service!!!!!!!!"
      ANDHRA BANK
      0.5 4.5/5 "Excellent!"
      I am paying my regular emi to andhra bank for my educational loan . I have taken this loan when I started my BTECH . My father and myself had a joint account from andhra bank where I am paying through that account. He was working with andhra university where he got some reference for my btech loan. I am very much satisfied by their services.
      Was this review helpful? 9
      , hyderabad
      Reviewed on Nov 05, 2014
    • andhra Bank Education Loan
      "Customer support needs to get improvised"
      ANDHRA BANK
      0.5 3.0/5 "Satisfactory"
      Overall services with Andhra bank in availing educational loan is quite good. However, the processing was much delayed. Interest rate is 14% which is much lesser without no pre closure charges and no processing fees. Everything is good however customer service team could get improvised in terms of response, information as well as allocating particular executive to each customers.
      Was this review helpful? 7
      , bangalore
      Reviewed on Oct 24, 2014
    • andhra Bank Education Loan
      "Good one"
      ANDHRA BANK
      0.5 4.0/5 "Great!"
      Andra Bank I have taken educational loan it has been the first bank and they regularly update the interest rates also like other bank like HDFC ltd educational loan and the advantage is the interest rate and disadvantage is customer service in terms of lengthy documentation and customer service and they have to simply the application form and get a door to door service
      Was this review helpful? 4
      , bangalore
      Reviewed on Jul 23, 2014
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