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Allahabad Bank Education Loan Scheme

Eligibility Criteria: Studies in India:

• School education including plus 2 stage
• Normal Graduation Courses - B.A., B.Com., B.Sc., Microbiology, etc.
• Post Graduation Course: Masters Courses, Ph.D., etc.
• Professional Courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management (including Hotel Management), Computer/ Information Technology, Journalism & Mass Communication, etc.
• Courses like: ICWA, CA, CFA, etc.
• Computer Certificate Courses of reputed Institutes accredited to Department of Electronics or Institutes affiliated to University.
• Courses conducted in India by reputed Foreign Universities.
• Evening courses of approved institutes.
• Courses leading to diploma / degree etc. conducted by the Colleges/ Universities approved by UGC / Govt./ AICTE / AIBMS / ICMR etc

Studies Abroad:

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

Quantum of Loan:

Need based finance subject to repaying capacity of the parents/ students with following ceilings:

Studies in India: Maximum Rs 10.00 lacs

Studies abroad: Maximum Rs.20.00 lacs

Margin:

For loan upto Rs 4.00 lacs: NIL

For loan above Rs 4.00 lacs:

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 as and disbursements are made on a pro-rata basis

Rate of Interest:

Girls students may be provided a special relief of 1.00% in all cases as above.

Application of Interest:

Simple rate of interest will be applied during course / moratorium period and thereafter the entire outstanding interest (if servicing of interest not done during moratorium period) will be added back to the principal account and compound interest (with monthly rest) will be applied in the account till liquidation of the entire loan.

0.5% rebate will be allowed during moratorium period in case interest is serviced regularly

Repayment:

Repayment Holiday / Moratorium is Course Period + 1 year (in case job is not obtained) or 6 months after getting job, whichever is earlier.

Loan to be repaid within a maximum period of 7 years after commencement of repayment.

Security:

For loan upto Rs 4.00 lacs: No collateral security is required.

For loan above Rs 4.00 lacs and upto Rs 7.50 lacs: Satisfactory third party guarantee is required.

For loan above Rs 7.50 lacs:

1. Collateral security of suitable value.
2. Co-obligation of parents / guardian / third party alongwith assignment of future income of the student for payment of instalments

Processing Fee:

Nil

Others

1. The parent / guardian would become co-borrower with the students 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 should be sanctioned through the branch situated close to the permanent residence / place of domicile of the borrower student.

Online Application form for Students of IITs/IIMs

Downloadable Application form for students of other institutions

Group Life Insurance Plan (in tie-up with LICI)