Allahabad Bank Education Loan - It is often seen that many meritorious students in India do not get the chance to pursue higher education or attend some of the most prestigious universities due to their lack of monetary funds. Additionally, the cumulative expenditure required in order to attend a course or program at any foreign university is even greater than that required for an Indian university. In order to avail of such educational opportunities, many Indian students seek education loans to monetarily back their educational expenses. Allahabad bank is one such bank which offers education loans for exceptionally meritorious students who wish to pursue higher education at both the undergraduate and the post graduate levels. The Allahabad Bank education loans are available for students who have gained merit based admission/admittance to both Indian universities as well as reputed universities abroad.

Allahabad Bank Education Loan

 

Allahabad Bank Education Loan Eligibility Criteria

In order for a candidate to be eligible for an education loan from Allahabad bank, the candidate must have:

  • Gained admission into an Indian or foreign university through an entrance exam or merit based selection procedure i.e. the admission is purely based on marks scored in the qualifying examination.

  • Has completed senior secondary education (up till the 10+2 level) and satisfies a minimum cut off of 50% marks.

Exceptionally meritorious students admitted under the Management Quota are also eligible for the education loan.

University

Course Requirement

Indian

Approved by UGC/ AICTE/ AIBMS/ Govt./ ICMR etc.

Foreign/Abroad

Technical or professional courses which are job oriented and offered by a reputed university

Allahabad Bank Education Loan: Documents Required

The documents required for an Allahabad Bank education loan include the following:

  • A complete and filled-in loan application form.

  • Statement of cost of study.

  • Letter of admission from the prospective college/institution.

  • 2 passport sized photographs.

  • PAN card of the student as well as the parent or guardian.

  • AADHAR card of the student as well as the parent or guardian.

  • Official government issued photo identification of the applicant (Passport/ Driving License/ Aadhar card etc).

  • Proof of residence of the applicant (Passport/ Telephone bill/ Electricity bill etc.).

  • Bank account statement for the last 6 months of the co-borrower/student/guarantor.

  • Proof of income of the parent/guardian/other co-borrower.

  • In case of IT payee, IT returns/IT assessment order of the preceding 2 years of the parent/guardian/other co-borrower.

  • Statement of assets and liabilities of the parent/guardian/other co-borrower.

Allahabad Bank Education Loan Amount

The loan amount available within the Allahabad education loan varies in accordance to the location of the prospective university.

 

For education in India:

The loan amount depends on the university of admission and is dependent on the list of universities available on the Allahabad bank website:

The maximum loan amount for education in India is Rs. 75 lacs.

 

For education abroad:

The loan amount depends on the requirements of the candidate in accordance to prospective college or university. The maximum loan amount is Rs. 75 lacs.

 

Allahabad Bank Education Loan Interest Rate

The interest rate for education loan from Allahabad Bank depends on the college/institution of admission as well as the loan amount as given below.

 

Interest Rate for Education Loan From Allahabad Bank

Educational Institution

Loan Amount

Interest Rate

Indian Universities

Universities in the 'List of Institutions'

Up to INR 75 lacs

One year MCLR

Universities not in the list but within the top 50 colleges/ institutions for a specific stream at www.www.nirfindia.org

INR 7.5 lacs – 25 lacs

One year MCLR + 1.50% per annum

Other recognized  colleges/universities

Up to INR 7.5 lacs

MCLR + 2.00% per annum

 

Study Abroad

Up to INR 75 lacs

MCLR + 2.00% per annum

Allahabad Bank Education Loan Interest Concession

The various  concessions available in the education loan from Allahabad Bank for different loan types are:

 

For Universities in the 'List of Institutions' :

No concessions in the interest rate are allowed

 

For Universities not in the list but within the top 50 colleges/ institutions for a specific stream at www.www.nirfindia.org and other UGC/ AICTE/ AIBMS/ Govt. etc. recognized colleges/universities:

  • A concession of 0.50% per annum is available for girl scholars.

  • A concession of 1.00% is available during the study and moratorium period if the interest is paid within the period.

  • The maximum allowable concession is 1.00% per annum under the condition that the effective interest rate is not below MCLR.

For education abroad:

  • A concession of 0.50% per annum is available for girl scholars.

  • A concession of 1.00% is available during the study and moratorium period if the interest is paid within the period.

  • The maximum allowable concession is 1.00% per annum under the condition that the effective interest rate is not below MCLR.

Allahabad Bank Education Loan Collateral and Security

In order for a candidate to avail an Allahabad Bank education loan, he or she must ensure that the loan documents are jointly executed with the parent/guardian as a joint borrower. In the situation that the spouse's income is considered for eligibility, he or she must be a co-borrower.

 

For an Allahabad Bank education loan, there is no collateral requirement for a loan of up to INR 4 lacs.

For an education loan from Allahabad Bank with the loan amount greater than INR 4 lacs, the security and collateral requirement varies as given below.

 

For education in India:

Allahabad Bank education loans available for education in India depends on the institution or university of admission as well as the loan amount.

Educational Institution

Loan Amount

Collateral and Security

Universities in the 'List of Institutions'

INR 4 lacs – 20 lacs

  • Assignment of Future Income

  • Co-obligation of parents/guardians

INR 20 lacs – 75 lacs

  • Assignment of Future Income

  • Co-obligation of parents/guardians

  • Full tangible collateral security

Universities not in the list but within the top 50 colleges/ institutions for a specific stream at www.www.nirfindia.org

INR 7.5 lacs – 25 lacs

  • Assignment of Future Income

  • Co-obligation of parents/guardians

  • Full tangible collateral security

Other recognized  colleges/universities

INR 4 lacs – 7.5 lacs

  • Assignment of Future Income

  • Co-obligation of parents/guardians

For education abroad:

The Allahabad Bank education loan collateral and security requirements for education abroad varies in accordance to the global ranking of the prospective college or university.

 

Program Type

Loan Amount

Collateral and Security

Master's program in one of the top 25 universities (worldwide) as per www.webometrics.info

INR 4 lacs – INR 75 lacs

  • Assignment of Future Income

  • Co-obligation of parents/guardians

  • No collateral security requirements for loans up to INR 20 lacs.

Undergraduate program in one of the top 25 universities (worldwide) as per www.webometrics.info

  • Assignment of Future Income

  • Co-obligation of parents/guardians

  • No collateral security requirements for loans up to INR 15 lacs

Other programs at prestigious foreign universities

INR 4 lacs – INR 7.5 lacs

  • Assignment of Future Income

  • Co-obligation of parents/guardians

INR 7.5 lacs – 75 lacs

  • Assignment of Future Income

  • Co-obligation of parents/guardians

  • Full tangible collateral security

Allahabad Bank Education Loan Disbursements

Education loans from Allahabad Bank are disbursed as per the candidate's requirement on a quarterly/biannual/annual basis.

 

The margin for various Allahabad Bank education loans is:

  • No margin for loans up to loan amount of INR 4 lacs.

  • Margin of 5% of the loan amount for loans above INR 4 lac for education in India.

  • Margin of 15% of the loan amount for loans above INR 4 lac for education abroad.

Allahabad Bank Education Loan Repayment

The Allahabad Bank education loan repayment criteria is the same for all types of education loans regardless of the interest rates and loan amounts. The maximum repayment period for the education loan from Allahabad Bank is up till 15 years from the commencement of the repayment period.

 

The moratorium period for an Allahabad Bank education loan is either of the following:

  • Course duration + 1 year

  • Six months after getting a job

Allahabad Bank Customer Care

For further details and/or assistance regarding Allahabad Bank education loans, prospective scholars may visit their local branch or the online portal.

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