Education Loan in Andhra Bank

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Education Loan in Andhra Bank

Andhra Bank Education Loan for Studies in India

Eligibility for Education Loan in Andhra Bank

  • Must be an Indian National.
  • Must be over 12 years of age but within 30 years.
  • Secured admission to Professional / Technical courses through Entrance Test / Selection Process.
  • No minimum qualifying marks.

Andhra Bank Education Loan Eligibility Courses

School Education / Intermediate / Graduation Courses / Post Graduation Courses / Professional Courses: Engineering / Medical / Agricultural / Veterinary / Dental / Physiotherapy / Nursing / Law / Management / PGDRIM / ICWA / CA / CFA / IIM / IIT / IISC / XLRI / NIFT and other courses approved by State / Central Government.

All other courses leading to diploma / degree etc., conducted by colleges / universities approved by UGC / Govt. / AICTE / AIBMS / ICMR etc., and offered by National Institutes and other reputed private institutions.

Quantum of Finanace : Need based finance subject to repaying capacity of the parents / students with a maximum of ₹ 10.00 lacs.

Andhra Bank Education Loan Margin :

  • Upto ₹ 4,00,000/- – Nil
  • Above ₹ 4,00,000/- – 5%

Mode of Disbursement: The education loan amount should be released in proportion to the number of years, depending upon the progress of the student. The scholar should produce a certificate from the competent authority for successful completion of academic year for further releases.

Andhra Bank Educational Loan for Studies Abroad:

Scope of the scheme : The scheme will apply to deserving / meritorious students who wish to pursue studies abroad.

Andhra Bank Student Loan Eligibility :

  • Must be an Indian National.
  • Must be over 17 years of age but within 35 years.
  • Must have secured admission in Overseas College / University / Institution in any of the following disciplines.
  • Must be in possession of Admission confirmation letter from the concerned University.
  • Must be in possession of a valid Passport and Visa.

Courses Eligible for Finance :

  • Graduation – For job oriented profession / technical courses offered by reputed universities.
  • Post Graduation – MCA, MBA, MS etc.
  • Courses conducted by CIMA – London, CPA in USA etc.
  • Graduate / Post Graduate studies in Arts, Science, Commerce and Business Administration.
  • Graduate / Post Graduate studies in Pharmacy.
  • Graduate / Post Graduate studies in any Professional / Technical courses.
  • PhD ( Doctor of Philosophy ).

Quantum of Finance : Need based as informed in the admission / confirmation letter of the University / College, subject to a maximum of ₹ 20.00 lacs.

Education Loan Margin :

  • Upto ₹ 4,00,000/- – Nil.
  • Above ₹ 4,00,000/- – 15%.

Mode of Disbursement : Initially an amount equal to the cost of air passage and Foreign Exchange towards the payment of semester fee and hostel expenses as per admission card of the college. Further amounts will be released proportionate to expenses towards semester fees, hostel fees etc. on annual basis.

At any point of time there should not be more than two Andhra Bank Educational loans outstanding in the name of the student under the scheme.

Andhra Bank Other Aspects Common to Inland and Abroad Studies

Purpose : Loan under the scheme should be considered towards:

  • Tution Fees
  • Examination Fees
  • Study Tours, Project work
  • Cost of Books, Stationary
  • Equipment essential for courses
  • Caution Deposits / Building Funds / Refundable Deposits supported by institution bills / receipts, subject to the condition that the amount does not exceed 10% of the total tution fees for the entire course.
  • Hostel Fees
  • In case of studies abroad Cost of Air Passage to the foreign country and maintenance including Health Insurance as per Foreign Exchange permit and correspondence from the college abroad.

Mode of Charging Interest :

  • The interest to be debited monthly on simple basis during the repayment – holiday / gestation period.
  • The accrued interest during the repayment holiday period to be added to the principal and repayment in EMI fixed.
  • Penal Interest : For the loans above ₹ 2.00 lacs penal interest at 2% be charged on the overdue amount for the over due period.

Co – obligation :

  • Co-obligation of parents. Must be an Indian Citizen.
  • Wherever parents are not there, Andhra Bank could consider grandparents as co-obligator to the education loans taking into account their networth.
  • In case of court appointed guardians, their co-obligation shall be obtained.
  • In case of married person, co-obligator can be spouse or the parents(s)/ Parents-in-law.

Collateral Security for Education Loan in Andhra Bank

  • Upto ₹4.00 lacs – Nil
  • ₹ 4.00 lacs to 7.5 lacs – Co-obligation of parent / guardian / third party
  • Above ₹ 7.50 lacs – Tangible security of suitable value besides co-obligation of parent. Parent co-obligation and assignment of future income.

Holiday Period : 1 year after course period or 6 months after getting job, whichever is earlier.

Repayment of Education Loan in Andhra Bank : The education loan to be repaid in 5 – 7 years after commencement of repayment.

Others : Only one education loan will be sanctioned for abroad studies subject to a maximum of ₹ 20.00 lacs.

Multiple Loans in the same family : In case of receipt of application of more than one loan for student borrower from a family the family as a unit will be taken into account for considering the loan and security norms are applicable taking into account the total quantum of finance sanctioned to the family subject to margin, repaying capacity of the student / parent.

JEE Main

Application Form Submission 16 Dec 2020 to 16 Jan 2021.