Make college memories that last a lot longer than your student loan payments.

Andhra Bank Education Loan

“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.


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,


Loan Amount.

Higher Studies in India and Abroad.

No Upper Limit.

Vocational Courses- Duration Upto 3 months.


Vocational Courses- Duration Upto 3 - 6 months.


Vocational Courses- Duration Upto 6 months - 1 year.


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,


Loan Type.


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


Can be done at any time without penalty.

Interest Rates-

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


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,


Processing Fee.

Study in India

No processing or upfront charges.

Study Abroad

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


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



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.


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





Loans upto Rs.4 lakhs

Studies in India or Abroad


Scholarship/assistantship included in margin.

Loans above Rs.4 lakhs

Studies in India


Scholarship/assistantship included in margin.

Loans above Rs.4 lakhs

Studies Abroad


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-, and
  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
  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.


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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Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

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