Education Loan in Allahabad Bank

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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.

JEE Main

Application Form Submission 16 Dec 2020 to 16 Jan 2021.