Andhra Bank Education Loan Rate of Interest
The scheme has attractive features to boost people's interest.
- There is no age limit.
- The loan is sanctioned co-jointly to the applicants and their guardians.
- Applicable only for vocational courses of duration from 6 months to 3 years.
The interest rates are in accordance with the RBI guidelines.
- The RoI for a loan up to INR 7.5 Lacs is 1-year MCLR+2.00%.
- The RoI for a loan above INR 7.5 Lacs is 1-year MCLR+1.70%.
- The girls get a concession of 0.5%.
CALCULATE YOUR EDUCATION LOAN EMI
1,000 per month
1,000
1,000
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Andhra Bank Education Loan Eligibility
- Indian National. The student should be a citizen of India.
- 10+2. The student should have qualified 10+2 from a school/college recognized by an Indian or a foreign university.
- Eligible Courses. Diploma/ Degree/ Certification/ Training programs which are duly recognized by the Central/ State government, authorized by the Technical/ Statutory or Training Department or Government.
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| Bank / Financer |  Change bank |  Change bank |  Change bank |  Change bank |  Change bank |
| Applicable Rate of Interest | Up to INR 7.5 Lacs : 1-year MCLR+2.00% Above INR 7.5 Lacs : 1-year MCLR+1.70%. | 10.05% | up to 3 Years: BR+1.50% Above 3 Years :1.50% + Term Premium where BR is at the rate of 10.00%. | Upto 4 Lacs- 16.50% Upto 7.5 Lacs- 17.50% Above 7.5 Lacs- 15.50% | |
| Max Loan with Collateral | INR 50,000 to 1 lakh | INR 50,000 to 1 Lac (depends on course duration) | up to 3 months :20, 000 above 3-6 months:50,000 6 months to 1 year:75,000 above 1 year:1,50,000 | 10Lacs | |
| Max loan without collateral | INR 50,000 to 1 lakh | INR 50,000 to 1 Lac (depends on course duration) | up to 3 months :20, 000 above 3-6 months:50,000 6 months to 1 year:75,000 above 1 year:1,50,000 | 10Lacs | |
| Processing Fee | Nil | Upto INR 4 Lakhs: No Above INR 4 Lakhs: INR 5,000 | Nil | Nil | |
| Repayment Period | Up to INR 50,000: 2 years INR 50,000 to 1 Lac: 2-5 years Above INR 1 lac: 3-7 years | Up to INR 50,000: 3 years From 50,000 to 1 Lac: 5 years Above 1 Lac: 7 years | Up to 1 year of course: 2 to 5 years Above 1 year: 3 to 7 years | 7 Years | |
| Loan for top institutions | No | Yes, SBI Scholar Scheme | Yes, PNB Pratibha loan | No | |
| Margin | Nil | Nil | No margin applicable | Upto loan 4 Lacs _ No margin Above 4 Lacs_ for India: 5% | |
| Age Limit | No age criteria | No age criteria | No age criteria | No age criteria | |
| Loan Security | No collateral or third party guarantee needed. | Upto INR 4 Lacs: Parents considered as co-borrower Between INR 4 to 7.50 Lacs: Parent as well as third party guarantee is required Above INR 7.50 Lacs: Tangible security along with parents as co borrower | Co-obligation of parents/guardian as joint co-borrowers | Third party guarantee Collateral security Additionally, assignment of LIC policy in favor of bank amounting 100% of education loan amount Assignment of Future salaries in favor of Axis Bank | |
| Eligibility concession for SC/ST | No | No | 50% for SC/ST 60% for General category. | No | |
| Processing Time | N.A | 20 days | 15 Days | 14 Days | |
| Prepayment charges | Nil | Nil | Nil | Nil | |
| Penal charges | Nil | Penal interest @ 2% to be charged for loans above Rs.4 lacs for the overdue amount and overdue period. | Nil | @ 2% per month on the overdue installment/s | |
| Mandatory insurance cover | Yes | Yes | Yes | Yes | |
| Travel expeneses | Yes | Yes | Yes | Yes | |
| Bank transfter allowance | No such clause mention | Yes | Branch Transfer allowance is available | No such clause mentioned | |
| Top up loan availability | Unavailable | Available. Also, takeover loan facility is also available | Available | No such clause mentioned | |
| Interest Subsidy Schemes | CSIS Skill Loan Scheme Andhra Bank Education Loan Subsidy Scheme Padho Pradesh | Skill Loan Scheme CSIS | Padho Pardesh CSIS Skill Loan Scheme | CSIS | |
| Tax benifit | Yes | Yes | Yes | Yes | |
| Concession/benefits | The girls get a concession of 0.5%. The concessional rate for those studying in premier institutes is 1-year MCLR+0.20%. Zero processing fee in India | Concession to girl students 1% concession if interest is serviced during moratorium period including course period | 0.5% concession to girl students 0.5% concession if interest is serviced during moratorium period including course period Online application | There is no processing fee charged No pre- payment charges are applied No pre- closure charges are applied Loan Disbursal period is 15 working days from the date of final submission of documents |
How to apply for Andhra Bank Education Loan ?
Andhra Bank Education loan application form can be available online or offline at Bank branches.
Visit the official website for Andhra Bank or Vidyalakshmi portal.
Select the scheme and click on Apply Now.
Fill out the form with your details.
Upload the mandatory documents required.
Submit the form and take out a print out of the application.
Visit the bank branch for further formalities.
Applicants can directly visit the nearest branch and ask for an application form. The bank representative will then guide them with all the necessary information regarding eligibility, documents required and also which loan is best suitable.
Andhra Bank Education Loan Details
INR 50,000 to 1 Lac: 2-5 years
Above INR 1 lac: 3-7 years
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Expenses covered under Andhra Bank Student Loan Scheme
- College/Institute/University fee
- Skill-development center fee
- Examination fee
- Cost of books, equipment, instrument or uniforms
Courses Covered Under Andhra Bank Student Loan Scheme
In India
All vocational education courses for a minimum period of 2 months and a maximum period of 3 years approved by the Central Government or by State Government.
Education Loan Documents Required ?
Admission Letter along with all details.
Attested copies of age proof, residence proof, and birth date.
Recent passport size photograph of the applicant, co-applicant, and guarantor.
Marksheet of qualifying course
Income proof and/or a copy of income tax return file of co-applicant, parents, and guarantor (if any).
Proof of admission to a vocational course
Bank account statement of the applicant.
Copy of passport and visa
Frequently Asked Questions
I heard certain premier institutions are allotted concessional interest rates for students. Which are these institutions?
+ -Yes. Admission into few of the elite educational institutions is automatically qualified for availing loans at concessional interest rates and other discounts. The complete list of these ‘premier institutions’ is as follows
- Indian Institute of Technology(I.I.T.)
- Birla Institute of Technology and Science (BITS)
- Indian Institute of Management (IIM)
- Xavier Labour Relations Institute (XLRI) Jamshedpur.
- Management Dev. Institute (MDI)-Gurgaon
- SP Jain Institute of Management and Research (SPJJMR)- Mumbai
- Institute of Mgt. Technology (IMT) - Ghaziabad
- Jaman Lal Bajaj Instt. of Mgt. Studies (JBIMS)- Mumbai
- Somaiya Instt. of Mgt. Studies and Research. Mumbai
- Netaji Subash Inst. of Technology ( formerly Delhi University of Technology) N.S.I.T New Delhi
- International Institute of Information Technology (IIIT)- Hyderabad
- Indian School of Business (ISB), Hyderabad and Mohali
In whose name will the loan be granted?
+ -The Andhra Bank Education Loan is granted solely in the name of the student.
What is the age limit for availing for the Education Loan from Andhra bank?
+ -There is no specific age limit for availing for the program. Anyone who fulfills the terms and conditions of Andhra Bank Education Loan is eligible for availing the loan.
Where can I avail for the education loan from Andhra Bank?
+ -Students who wish to educational loan or vocational loan can contact the nearest branch for the application form or details of the loan. They can also apply online.
What is the Moratorium Period?
+ -The Moratorium period for higher studies in India or Abroad is course period +1 year or 6 months after getting the job or whichever comes first.
What is the tenure for Education Loan granted by Andhra Bank?
+ -The tenure for education loan granted by students are as follows:
| Loan Type | Tenure |
|---|---|
| Higher Studies in India/ Abroad | Course period + 1 year or 6 months after getting a job, whichever comes first. |
| Loans up to Rs.50000/- | 2 years |
| Loans from Rs.50,000 to Rs.1 lakh | 2 to 5 years |
| Loans above Rs.1 lakh | 3 to 7 years |
What is the limit of education loan granted under different categories?
+ -Thefollowing table illustrates the education loan granted and its limit which is as follows:
| Type of Loan | Limit |
|---|---|
| Higher Studies availed in India or Abroad. | No Upper Limit |
| Vocational Courses- Duration Upto 3 months. | Rs. 20,000 |
| Vocational Courses- Duration Upto 3 - 6 months. | Rs. 50,000 |
| Vocational Courses- Duration Upto 6 months - 1 year. | Rs. 75,000 |
| Vocational Courses- Duration Above 1 year. | Rs.1,50,000 to 2 lakhs |
What expenses are covered under the education loan?
+ -The Expenses covered under the Andhra Bank Education Loan include
- Hostel/ College/ School Fees
- Examination Fees
- Library/ Laboratory Fees
- Building Fund/ Insurance Premium/ Refundable premiums
- Cost of Uniform/ Books/ instruments/ computers
- Travel and passage cost
- Cost incurred on Study tours/ projects/ thesis.
I pursue to take the loan under management quota. Is the educational loan applicable on management quota?
+ -Yes. Students who have taken admission through management quota are also eligible for education loan under Andhra Bank Education Loan.
Are there any charges applicable on late payment of EMI?
+ -EMI stands for Equated Monthly Installments. It can be calculated by using the formula given below:
EMI = [P x R x (1+R) ^n] / [(1+R)^ n-1]
Here, P is Amount of Education Loan, R is Rate of Interest, n is Tenure of the Loan.
Or simply you can use the EMI calculator provision available on Allahabad Bank’s official website.
Does the education loan cover Diploma and Certification programs?
+ -Yes. The Education Loan by Andhra bank covers Diploma/ Degree/ PG/ Vocational Courses as well as Certification programs.
Who can be the borrower?
+ -The student's parent/ Spouse/ guardian can be their co-borrower. A co-borrower has to be from the immediate family member having a steady source of income and a good credit score.
Is there any processing fee applicable for student's application?
+ -There is no processing fee applicable for students who wish to pursue higher studies in India. However, the processing fee is applicable initially and should be refunded after the student avails the loan.
What is the maximum term for repayment?
+ -Maximum term for repayment of Educational Loan for Vocational Course for of duration is 7 years.
What are the modes of repayment of loans?
+ -Students can repay the loan after the moratorium period through EMI por post-dates cheques.
What documents are required in case of co-borrower?
+ -The co-borrower are supposed to submit their residential proof and income proof documents.
Are girl students get any concession benefit?
+ -Yes. Girl Students get a concession of 0.50% on their interest rate.
What are the KYCs required for co-borrower?
+ -The KYC documents required for co-borrower include
- Attested copies of age proof, residence proof and birth date.
- Self-attested passport size photograph
- Income proof and/or a copy of income tax return file
- Details of collateral security along with government approved valuation certificate (if any)
Is the loan offered in name of the individual applicant or to the institute/ university directly?
+ -Yes. The loan is offered in the name of the institute/ university directly.
Can the loan be repaid in foreign currency even if my bank is in India?
+ -Yes, students can repay the loans using foreign currencies such as Euro, Pound, Dollar, etc. However, the bank may charge additional charges as conversion fee as per RBI regulations.
Are NRIs eligible for availing education loan?
+ -Yes. NRIs are eligible for availing education loan only if the citizen is a Indian passport holder or has Indian citizenship.
Is Visa a mandatory document for studying abroad?
+ -Yes. Visa is needed as a mandatory a document proof but is nor a sole requirement.
What is the interest rate of education loan?
+ -There is no interest rate charged on loan up to the margin of 4 lakhs. Loans above 4 lakhs for studying in India is charged an interest rate of 5% and for those studying Abroad are charged an interest rate of 15%.
What is the interest calculated on subsidy education loan?
+ -Andhra Bank offers Subsidy on education load initiated by the government of india. The scheme is offered for students belonging to economically backward classes to promote education among them.
What documents are necessary for availing interest subsidy scheme?
+ -The documents necessary for availing interest subsidy scheme are as follows:
- Income certificate issued by authorised authorities
- Bonafide student certificate
- Letter of undertaking or declaration signed by borrower/ co-borrower
In case of any further query whom should I contact?
+ -Students can contact the nearest branch in case of any query.
- Customer Care Number – 1800 425 1515
- Customer Care ID – customerservice@andhrabank.co.in
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