Andhra Bank Education Rate of Interest

Management quota students are also covered under this scheme.

  • There is no maximum loan limit.
  • Zero processing fee in India
  • No margin is charged for a loan up to INR 4 Lacs.

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%.
  • The concessional rate for those studying in premier institutes is 1-year MCLR+0.20%.


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EMI Payable

188 per month

Total Interest


Payable Amount


Total Interest
Principal Loan Amount

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Andhra Bank Education Loan Eligibility

loan eligibility image
  • Indian National. The student should be a citizen of India.
  • 10+2. The student should have qualified 10+2 with at least 65% marks.
  • Eligible Courses. Higher Education courses like Diploma and Degree, PG courses, research program
  • Management Quota. Management quota students are also eligible for this scheme.

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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%.
Up to INR 7.50 Lacs: 10.55%
Above INR 7.50 Lacs: 10.80%
up to INR 7.5 Lacs: MCLR + 2.00%
above INR 7.5 Lacs: 2.60%
Upto 4 Lacs- 16.50%
Upto 7.5 Lacs- 17.50%
Above 7.5 Lacs- 15.50%
Max Loan with Collateral No maximum limit
For India: 10 Lacs
For Abroad: 20 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs and beyond based requirement
Max loan without collateral No maximum limit
For India: 10 Lacs
For Abroad: 20 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs and beyond based requirement
Processing Fee Nil
Up to INR 4 Lacs: Nil
Above INR 4 Lacs: INR 5000
Repayment Period 15 Years
15 years
15 years
7 years
Loan for top institutions No
Yes, SBI Scholar Loan Scheme
Yes, PNB Pratibha
Margin Up to INR 4 Lacs: Nil
Above INR 4 lacs:
For India: 5%
For Abroad: 15%
For loan above INR 4 Lacs
In India: 5%
In abroad: 15%
Up to INR 4 Lacs - NIL
Above INR 4 Lacs - 5%
Upto loan 4 Lacs: No margin
Above 4 Lacs: for India: 5%
for Abroad: 15%
Age Limit No age criteria
no age limit
No age limit
Loan Security Up to INR 4 Lacs: Nil
Between 4 Lacs and 7.5 Lacs: The parents or the guardian will be co-applicant.
Above 7.5 Lacs: Tangible collateral by the bank with the third-party guarantee.
Upto 7.50 Lacs: Only Parent/ Guardian as co-borrower. No Collateral Security or third party guarantee
Above INR 7.50 Lacs: Tangible security along with parents as co borrower
Upto INR 7.50 Lacs: Parent(s)/guardian be made joint borrower (s). No tangible Security and /or 3rd party guarantee is required.
Above INR 7.50 Lacs: Parent(s)/guardian be joint borrower(s). Tangible collateral security of suitable value acceptable to bank.
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
50% for SC/ST, and;60% for General category.
Processing Time N.A
20 days
15 days
14 Days
Prepayment charges Nil
Penal charges Nil
Penal interest @ 2% to be charged for loans above Rs.4 lacs for the overdue amount and overdue period
@ 2% per month on the overdue installment/s
Mandatory insurance cover Yes
Travel expeneses Yes
Bank transfter allowance No such clause mention
No such clause mentioned
Top up loan availability Unavailable
Interest Subsidy Schemes CSIS
Skill Loan Scheme
Andhra Bank Education Loan Subsidy Scheme
Padho Pradesh
Padho Pardesh
Skill Loan Scheme
Padho Pardesh
Skill Loan Scheme
Tax benifit 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 the New India Co-Operative Bank Education Loan.

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

Loan Limit
No maximum Loan Limit
Up to INR 4 Lacs: Nil
Above INR 4 lacs:
For India: 5%
For Abroad: 15%
Processing Fee
Loan Security
Up to INR 4 Lacs: Nil
Between 4 Lacs and 7.5 Lacs: The parents or the guardian will be the co-applicant or the loan and the primary debtor.
Above 7.5 Lacs: Tangible collateral will be accepted as security by the bank with the third-party guarantee.
Loan Repayment
15 years

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Expenses covered under Andhra Bank Student Loan Scheme

  • Tuition Fee
  • Hostel Fee
  • Examination Fee
  • Library/ Laboratory Fee
  • Cost of books, instruments, equipment, and computers
  • Cost of uniform
  • Miscellaneous _ Building Funds, Refundable deposits
  • Student's Insurance premium (if applicable)
  • Study tours, thesis, Projects
  • Travel Cost/ Passage money (when studying abroad)

Education Loan Documents Required ?

Completely filled Loan Admission Form

Attested copies of Aadhar Card, Pan Card, Voter ID, etc.

Recent passport size photograph of the loan applicant

Marksheet of highest education qualification

ITR and Salary Proof Form 16, Salary Slip and recent salary certificate

Bonafide certificate from College/Institution

Updated Passbook/ Bank Statement of last 3 months with your photo on it.

Interest Subsidy Schemes

Skill Loan Scheme

The bank offers a Skill Loan Scheme for students who aspire to gain knowledge and specialized training in one specific field.

Central Scheme of Interest Subsidy (CSIS)

Formulated by the Govt. of India, a scheme to assist the students belonging to the economically weaker section.

Andhra Bank Education Loan Subsidy Scheme

The Ministry of Human Resource Department has launched an interest subsidy program under which it offers 100% subsidy during the moratorium period.

Padho Pardesh

Formulated under the Prime Minister's 15 point programme, this subsidy scheme benefits the students of the minority community who want to study abroad. Such students are provided 100% interest subsidy.

Skill Loan Scheme

Some additional benefits of Skill Loan Scheme include concession of 1% for the full tenure of the loan, if the interest charged is serviced promptly as and when applied during the period of the moratorium and including during the period of the course.

Central Scheme of Interest Subsidy (CSIS)
  • The gross annual parents’ income should be less than INR 4.50 Lacs
  • Repayment of the loan has to be done after 12 months of course completion or 6 months after getting the job (whichever is earlier).

This scheme is applicable for technical and professional courses from govt. recognized institutes for courses after class XII.

Under IBA education loan scheme, the maximum loan limit is INR 10 Lacs.


The subsidy is provided for a moratorium period of 1 year after course completion or 6 months after getting a job (whichever is earlier). After this, the loan amount should be paid in accordance with the education loan scheme.

Scheme Applicable Year:

  • This scheme is implemented in the academic year 2009 – 2010 from April 1, 2009.
  • Loan disbursed after April 1,2009, irrespective of the date of sanction shall only be covered under the scheme.
  • In case of loans sanctioned prior to April 1, 2009, for the courses beginning prior to the academic year 2009-10, the interest subsidy is available to the extent of disbursements made after April 1, 2009.

Canara Bank has been appointed as the nodal bank by the government to facilitate this scheme.

Andhra Bank Education Loan Subsidy Scheme

The subsidy is offered to students who belong to economically backward classes whose gross income is not more than INR 4.50 lacs/ year. The scheme can be availed by students pursuing approved integrated courses, graduation plus PG courses.

Key Points of the Scheme

  • This subsidy can be availed by students only once for pursuing the undergraduate/ postgraduate course from India.
  • The interest subsidy will be discontinued or subject to be nullified in case they are expelled from the institution on disciplinary or academic grounds or in case the student quits in between.
  • Interest rates applicable on loan will be in sync with interest rates applicable under the Educational Loan Scheme.
Padho Pardesh

Procedure for availing Padho Pradesh

  • Students are supposed to inform their lending banks about the recently launched scheme of Padho Pardesh by Ministry of Minority Affairs.
  • Then the students have to submit the proof of their eligibility for the particular scheme
  • If a student is eligible, the lending bank will feed the students information into a portal of Padho Pardesh.
  • The portal will remain open for the period of two months in every quarter.

Courses covered under Padho Pardesh Scheme

Courses that are covered by Government of India under this scheme are as follows:

Arts/ Humanities/ Social SciencesCommerce
Pure ScienceEngineering
Bio- technology/ Genetic EngineeringIndustrial Environmental Engineering
Nano- technologyMarine Engineering
Petro-chemical EngineeringPlastic Technology
Cryogenic EngineeringMechatronics
Automation Robotics including artificial intelligenceLaser Technology
Low Temperature Thermal DynamicsArt Restoration Technology
OptometryDock and Harbour Engineering
Imaging System TechnologyComposite Materials Engineering including Decentralized power
Packaging Engineering/ TechnologyNuclear Engineering
Information Technology including Computer Engineering, Software, Software Quality assurance, etc.Industrial Safety Engineering
MedicalAgriculture & Agro Technology
AgronomyFloriculture & Landscaping
Forestry & Natural ResourcesFood Sciences & Technology
Plant PathologyHorticulture
Energy StudiesFarm Power & Machinery
Veterinary SciencesSoils & Water Management
Plant Breeding & GeneticsSmall- scale Rural Technology
Ocean & Atmospheric SciencesMB/MCA

Frequently Asked Questions


I heard certain premier institutions are allotted concessional interest rates for students. Which are these institutions?

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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?

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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?

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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?

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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?

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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?

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The tenure for education loan granted by students are as follows:

Loan TypeTenure
Higher Studies in India/ AbroadCourse 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 lakh2 to 5 years
Loans above Rs.1 lakh3 to 7 years

What is the limit of education loan granted under different categories?

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Thefollowing table illustrates the education loan granted and its limit which is as follows:

Type of LoanLimit
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?

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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?

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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?

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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?

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Yes. The Education Loan by Andhra bank covers Diploma/ Degree/ PG/ Vocational Courses as well as Certification programs.


Who can be the borrower?

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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?

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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?

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Maximum term for repayment of Educational Loan for Vocational Course for of duration is 7 years.


What are the modes of repayment of loans?

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Students can repay the loan after the moratorium period through EMI por post-dates cheques.


What documents are required in case of co-borrower?

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The co-borrower are supposed to submit their residential proof and income proof documents.


Are girl students get any concession benefit?

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Yes. Girl Students get a concession of 0.50% on their interest rate.


What are the KYCs required for co-borrower?

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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?

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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?

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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?

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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?

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Yes. Visa is needed as a mandatory a document proof but is nor a sole requirement.


What is the interest rate of education loan?

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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?

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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?

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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?

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Students can contact the nearest branch in case of any query.

  • Customer Care Number – 1800 425 1515
  • Customer Care ID –
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