Allahabad Bank Education Loan
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13%
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Allahabad Bank Education Loans
What Is an Education Loan?
An Education loan is the loan or funds acquired by an individual to pursue higher studies in India or abroad. The loan repayment commences for the student after completing the education and a period of 6 months is given as grace period to students to get or join a job.
The repayment amount will be determined by your choice of interest, you need to decide how you want to repay the loan. That is if you want to start paying during the time of moratorium period itself or after the moratorium period. The Moratorium period is the time of your education plus 6 months or 1 year given to get a job. It is only after this time that you are expected to pay the loan.
The loan interest starts to accrue at the time of dispersal of funds, so at the time of your graduation you have a huge amount to repay. The other option is your parents or guardian can start paying the loan during the moratorium period itself where it is calculated as a simple interest.
This way your loan amount at the time of graduation is drastically reduced.
There are 4 types of education loans in India
1. Under Graduate education loan - These are given to students who have completed their secondary education and looking to do higher studies in the form of under graduation. It can be done in India or abroad.
2. Post graduate education loan - These are education loans given to individuals who want to pursue post-graduation after completing under graduation course from a reputed university/college. Here also the loan can be for studying in India or abroad.
3. Parents availing education loan - This is the case where the parents take loan for the education purposes of their children. This is an unsecured loan and need not be for graduate or post-graduation courses but also for elementary and higher secondary courses.
4. Career growth education loans - These are loans provided to young people who want to pursue courses or trainings, certifications that will benefit their career growth.
About Allahabad Bank
Allahabad Bank was founded in 1865 in Allahabad. Headquartered in Kolkata, it is the oldest joint stock bank in India. The bank has over 2,500 branches across India. It provides a wide range of banking products and financial services to its customers.
An Introduction to Canara Bank Education Loans
Education is one area where everybody is willing to spend a lot of money to live a prosperous life in the future. Being one of the major education loan providers, Allahabad Bank understands the needs of the students and offers extremely competitive education loans at better interest rates. Every year, a large number of students secure admissions in top universities and colleges in India and abroad with Allahabad Bank education loans.
Advantages of Allahabad Bank Education Loan
Following are some of the advantages of applying for an educational loan with Allahabad Bank.
- Low interest rate
- Less paperwork
- Faster Disbursal
- No prepayment charges
- 0.50% concession for girl students
Key Highlights
| Eligibility Criteria | Students who have secured admission |
|---|---|
| Loan Tenure | Up to 15 years |
| Loan Amount | Up to 50 Lakhs |
| Interest Rate | Base rate + 2.00% |
| Processing Fees | Nil |
Features of Allahabad Bank Education Loan Scheme
Objective: To provide term loan to Indian students for pursuing higher education in India and foreign universities
Quantum of Loan: Up to 20 Lakhs for studies in India and up to 50 Lakhs for studies overseas
Margin: No margin required for loans up to INR 4 Lakhs, 5% of margin for loans above INR 4 Lakhs for studies in India and 15% of margin for above 4 Lakhs for studies overseas
Repayment Period:Up to 15 years, and the moratorium period is up to 1 year after completing the course.
Security: The parents or the guardian will be the co-applicant or the loan and the primary debtor. Tangible collateral will be accepted as security by the bank with the third-party guarantee. No security required for loans up to 4 Lakhs.
Processing Fees: 0.15% for studies in India and 0.10% for studies abroad
Courses Covered
Studies in India:
Approved courses recognized by UGC/ Govt. / AICTE/ AIBMS/ ICMR etc.
Studies Abroad:
For job oriented professional/ technical courses offered by reputed universities.
Expenses Covered
Expenses covered under Allahabad Bank education loan are payment of course fees, purchase of books, equipments, instruments, uniform, payment of hostel fees, examination fees, study tools, and passage expenses, (for study abroad).
Eligibility Criteria: Who Can Apply?
- Must be an Indian Resident
- Applicant should have secured admission with the educational institution
Interest Rate of Allahabad Bank Education Loan for Studies in India and abroad:
| Loan Amount | Rate of Interest |
|---|---|
| Up to 4 Lakhs | MCLR + 2.00% |
| Above 4 Lakhs and up to 7.5 Lakhs | MCLR + 2.00% |
| Above 7.5 Lakhs | MCLR + 1.85% |
Girl students get 0.50% of concession on interest rate and 1% of concession on interest to the individuals who pay the interest during study and moratorium period.
Features of Allahabad Bank Gyan Dipika Scheme
Objective: To provide term loan to Indian students covering Nursery to 12th standard
Quantum of Loan: Up to INR 1,00,000
Margin: No margin required.
Repayment Period:Subject to the repaying capacity of the parents/guardian
Security: No security required, however, personal guarantee of the parents is taken.
Processing Fees: There are no processing fees for availing Allahabad Bank education loan.
Courses Covered
CBSE/ICSE/State Board) for courses under Nursery standard to 12th Standard identified/ approved by the respective Zonal Office of the Bank.
Expenses Covered
- Admission fees including caution money, building fund, refundable other deposits, maintenance fees etc.
- Annual fees including Development fees, Examination fees, Library/ Laboratory fees, Hostel charges and other fees related to Hostels, purchase of Books, Equipment, Uniforms, Computer etc.
- Tuition Fees to be paid in advance on quarterly/half-yearly/yearly basis.
Eligibility Criteria: Who Can Apply?
- Must be an Indian Resident
- Should have completed 10th standard
- Applicant should have secured admission with the educational institution
Interest Rate on Allahabad Gyan Dipika Scheme
| Loan | Interest Rate |
|---|---|
| Gyan Dipika Scheme | MCLR + 4.50% |
Documents Required
- Letter of admission
- Filled in Loan Application Form
- 2 passport size photographs
- Statement of cost of study
- PAN Card of the student and Parent/ Guardian
- AADHAR Card of the student and Parent/ Guardian
- Proof of identity (Driving Licence/Passport/Aadhar/ any photo identity)
- Proof of residence (Driving Licence/Passport/Electricity bill/Telephone bill)
- Student/Co-borrower/ guarantor's bank account statement for last 6 months
- IT return/ IT assessment order, of previous 2 years of Parent/ Guardian/ other co-borrower (if IT Payee)
- Brief statement of assets & liabilities of Parent/ Guardian/ other co-borrower
- Proof of income (i.e. salary slips/ Form 16) Parent/ Guardian/ other co-borrower
EMI Payment Methods
Allahabad Bank education loan can be repaid in following three ways.
Standing Instruction (SI): If you are an existing account holder with Allahabad Bank, Standing Instruction is the best mode of repayment. Your EMI amount will be debited automatically at the end of the monthly cycle from the Allahabad Bank account you specify.
Electronic Clearing Service (ECS): This mode can be used if you have a non-Allahabad Bank account and would like your EMIs to be debited automatically at the end of the monthly cycle from this account.
Post-Dated Cheques (PDCs): You can submit post-dated EMI cheques from a non-Allahabad Bank account at your nearest Allahabad Bank Loan Centre. A fresh set of PDCs will have to be submitted in a timely manner. Please note Post Dated Cheques will be collected non-ECS locations only.
It is recommended that you opt for either the SI or ECS mode of payment for faster and less prone to error than the use of PDCs.
How to Apply for Allahabad Bank Education Loan?
You can either apply online or visit a nearby Allahabad Bank branch for the application. You can also download the education loan application form from the Allahabad Bank official website, complete the form and submit it the bank representative.
You can also check your eligibility for an education loan through CreditMantri and apply for it.
Allahabad Bank Education loan FAQ
1. What is the interest charged during moratorium period?
Only simple interest will be charged during the moratorium period. After the moratorium period the actual interest mentioned will be charged.
2. Can I take an education loan without a co-borrower?
No, a co-borrower is needed to take an education loan. The loan will be taken as a joint loan in collaboration with your parent/ guardian or spouse.
3. I am planning to study abroad. Am I eligible to apply for an Education Loan?
Yes, Allahabad Bank offers up to INR 50 Lakhs for courses pursued abroad which also includes travel expenses and study tours. Higher amount can be obtained based on eligibility and creditworthiness.
4. Is there a processing fee for an education loan with Allahabad Bank?
Yes, 0.15% of processing fee for studies in India and 0.10% for studies abroad
5. Is there a way I can reduce the interest paid?
There is special subsidy provided according to Central Government subsidy for education loans. Allahabad Bank also provides special interest rates for some premier institutions. The other option is your parent/ guardian or spouse can pay the loan amount during the moratorium period due to which the loan amount you need to repay is less.