Education Loan in Allahabad Bank

Educational Loan in Banks »

Education Loan in Allahabad Bank

(a) Allahabad Bank Education Loan Eligibility Criteria :

Allahabad Bank Student Loan Eligibility

• Student be an Indian National.
• Secured admission to professional / technical courses in India or Abroad through Entrance Test / Merit based Selection process.

(b) Allahabad Bank Education Loan Eligible Courses :

Allahabad Bank Education Loan for Studies in India

• Graduation Courses : B.A, B.Com, B.Sc. etc.
• Post Graduation Courses : Masters Courses, Ph D, etc.
• Professional Courses : Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer etc.

• Computer Certificate Courses of reputed Institutes accredited to Department of Electronics or Institutes affiliated to University.
• Courses like ICWA, CA, CFA etc.
• Courses conducted by IIM, IIT, IISc, XLRI, NIFT etc.
• Regular Degree / Diploma courses like Aeronautical, pilot training, shipping etc., approved by Director General of Civil Aviation / Shipping, if the course pursued abroad, the Institute should be recognised by the competent local aviation / shipping authority.
• Courses offered in India by reputed foreign universities.
• Evening Courses of approved Institutes.
• Other Courses leading to diploma / degree etc conducted by the Colleges / Universities approved by UGC / Govt / AICTE / AIBMS / ICMR etc.

Education Loan in Allahabad Bank for Abroad Studies

• Graduation : For Job oriented professional / technical courses offered by reputed Universities.
• Post Graduation : MCA, MBA, MS etc.
• Courses conducted by CIMA London, CPA in USA etc.
• Regular Degree / Diploma courses like Aeronautical, pilot training, shipping etc., the Institute should be recognised by the competent local aviation / shipping authority.

Quantum of Education Loan :  Need based finance subject to repaying capacity of the parents / students with following ceilings :

• Studies in India : Maximum ₹ 10.00 lacs.
• Studies abroad : Maximum ₹ 20.00 lacs.

Expenses Considered for Education Loan from Allahabad Bank

• 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 does 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.
• Insurance premium for student borrower.
• Any other expenses required to complete the course, such as Study Tours, Project Work, and Thesis etc.

Allahabad Bank Student Loan Margin

• For loan upto ₹ 4.00 lacs : Nil
• For loan above ₹ 4.00 lacs :Studies in India : 5%.
1. Studies in India : 5%.
2. Studies abroad : 15%.

• Scholarship / Assistantship to be included in Margin.Margin Money to be brought on year-to-year basis and disbursements are made on a pro-rata basis.

Allahabad Bank Education Loan Interest Rate

• For IIT / IIM / ISB ( loan upto 10.00 Lacs ) : PLR – 1.75%.
• For Other:
1.  Loan upto 4.00 Lacs: PLR-0.75%.
2. For loan above ₹4.00 Lacs: PLR-1.00%.

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.

Allahabad Bank Education Loan Repayment

Repayment Holiday / Moratorium is Course Period + 1 year or 6 months after getting job, whichever is earlier. Loan to be repaid within a maximum period of 7 years after commencement of repayment.

Collateral Security for Education Loan in Allahabad Bank

For IIT/IIM/ISB :

For loan upto ₹10.00 lacs: No collateral security is required. co-obligation* of parents / guardian required.

ISB means Indian School Business, Hyderabad.

For others :

For loan upto ₹ 4.00 lacs : No collateral security is required. co – obligation* required For loan above ₹ 4.00 lacs and upto ₹ 7.50 lacs: Satisfactory third party guarantee & Co-obligation* required.

For loan above ₹ 7.50 lacs : Co – obligation * of parents / guardian together with tangible collateral security of suitable value covering full loan amount, alongwith the assignment of future income of the student for payment of installments.

( The education loan documents would be executed by both the student and the parent / guardian as joint-borrower i.e. co – obligator. The co – obligation should be parent / guardian of the student borrower. In case of married person, co – obligator can be either spouse or the parent ( s ) / parents –  in – law. )

Mortgage Charges : Actual expenses, if any, will be borne by the Student/Parent or Guardian.

Delivery Channel : From all of our branches ( Presently more than 2150 ) spread throughout the country. On – line sanction for leading 250 institutions within 72 hours.

Value added Service :

• Free Debit Card.
• For SB account holders in networked branches.

Insurance :

Group Life Insurance Cover.

For entire loan liability in tie – up with LICI.

( One time upfront premium, can also be financed by adding into project cost. ), Prospective borrowers, who are not covered under the group insurance scheme, will be allowed to take a single premium term insurance cover equal to the loan amount, individually on their own or premium being a component of project cost for financing.

Others :

1. The parent / guardian would become co-borrower with the student and application for education loan will also be signed by the parent / guardian alongwith the student while availing loan under Educational Loan Scheme.
2. Education Loan would preferably be sanctioned through branches / RBBs nearest to the place of residence of parents
3. Second time education loan is available for higher studies / escalation of cost.