Under the loan category, one of the most popular products offered by Allahabad Bank is Education Loan. This loan has been specially designed to meet different levels of academic needs of individuals.
Features & Benefits of Allahabad Bank Education Loan:
Following are the notable features of the Allahabad Bank Education Loan.
Quantum of Loan:
Need based finance subject to repaying capacity of the parents / students:
Studies in India/Abroad: Maximum Rs. 20.00 lakh.
Processing Fees:
This loan does not carry any processing fee or any other charges
Repayment Period:
| Loan Amount | Repayment Period |
| Up to Rs 7.50 lakh | Within a maximum period of 10 years |
| Above Rs 7.50 lakh | Within a period of 15 years after the repayment period begins |
The holiday period allowed on this loan is ‘course duration + 1 year’ OR ‘6 months after getting a job’, whichever occurs earlier.
Maximum Loan Limit:
The maximum amount for which this loan may be availed is capped at Rs 20 lakhs. The loan amount is also subject to the need and repayment capacity of the borrowing applicants.
Margin:
Following is the margin applicable to the Allahabad Bank Education Loan.
| Loan Amount | Margin |
| Up to Rs 4 lakh | NIL |
| Above Rs 4 lakh | Studies in India: 5%
Studies abroad: 15% |
Any Scholarship or Assistantship will be included in the Margin. Also, the margin amount will be brought on a year-to-year basis.
Application for Loan:
Applicants can easily apply for this loan online or by visiting any Allahabad Bank’s branch, Retail Banking Boutique or Centralized Retail Banking Boutique.
Life Insurance Cover:
Any student applying for this loan can also avail Group Life Insurance Cover equal to the amount of the loan which will be valid for the entire loan repayment period.
Allahabad Bank Education Loan Interest Rate:
| Category of Academic Institution | Max. Loan Amount | Interest Rate |
| IIMs, ISBs, XLRI | Rs 20 lakh | Base Rate + 1.50% |
| IITs, BITS and other premier engineering, management & medical institutions | Rs 15 lakh | Base Rate + 2.00% |
| NITs, BITS and other reputed medical, management & engineering institutions | Rs 10 lakh | Base Rate + 2.50% |
| Other colleges / universities recognized by UGC / Govt. / AICTE / AIBMS / ICMR etc. | Rs 10 lakh | Base Rate + 3.00% |
| For students applying under the Management Quota | Loan up to and above Rs 4 lakh | Base Rate + 3.00% |
Eligible Courses for Allahabad Bank Education Loan:
Following are the courses which one is eligible to apply for with the help of the Allahabad Bank education loan.
India:
- Courses approved by UGC / Govt. / AICTE / AIBMS / ICMR recognized colleges / universities recognized which offer Graduate / Post-Graduate degrees and P.G. Diplomas.
- Professional courses like ICWA, CA, CFA etc.
- Courses conducted by premier institutions like IIMs, IITs / IISC, XLRI, NIFT, NID etc.
- Regular Degree / Diploma courses like aeronautical, pilot training, shipping etc. which are approved by Director General of Civil Aviation (DGCA) / Shipping (if the course is pursued in India).
- Approved courses offered in India by reputed foreign universities.
Abroad:
- Graduation: For job oriented professional / technical courses being offered by reputed universities.
- Post-Graduation: Degrees like MCA, MBA, MS, etc.
- Courses conducted by CIMA in London, CPA in USA, etc.
- Regular degree/ diploma courses like aeronautical, pilot training, shipping etc. offered by institutes which are recognized by the concerned university / state body / local aviation / shipping authority.
Expenses Covered under Allahabad Bank Education Loan:
Following are the expenses covered under this loan.
- College / school / hostel fee.
- Examination / library / laboratory fee.
- Cost of books / equipment / instruments / uniforms.
- Caution deposit / building fund / refundable deposit which must be supported by relevant \ bills / receipts of the institution. (Subject to the condition that the amount must not exceed 10% of the total tuition fees for the entire course).
- Any travel expenses / passage money required for studies abroad.
- Purchase of gadgets like computers which are needed for completing the course.
- Insurance premium payable for the student borrower.
- Other expenses towards activities like study tours, project work, thesis, etc. which are essential for successful completion of course.
- Reimbursement of fees paid at the time of counselling (if applied within 60 days from the date of said payment).
Security Required for Allahabad Bank Education Loan:
| Category of Academic Institution | Security Required |
| IIMs, ISBs, XLRI | For any amount of loan:
|
| IITs, BITS and other premier engineering, management & medical institutions | Loans under Rs 10 lakh:
Loans over Rs 10 lakh:
|
| NITs, BITS and other reputed medical, management & engineering institutions | Loan amount over Rs 7.50 lakh:
|
| Other colleges / universities recognized by UGC / Govt. / AICTE / AIBMS / ICMR etc. |
|
| For students applying under the Management Quota | For loans up to Rs 4 lakh:
For loans above Rs 4 lakh:
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Allahabad Bank Education Loan Eligibility:
Any Indian national who has secured admission to professional / technical course with a recognized institution in India or abroad through an Entrance Test / Merit-based selection process after successfully completing Higher Secondary School (10+2 OR equivalent), is eligible to apply for the Allahabad Bank education loan.