Last Modified : June 26, 2018
Allahabad Bank offers two diverse variants of loan for studies in India and Abroad. The loan is available for loan amount upto INR 20 Lacs for Studies in India and INR 50 Lacs for studies overseas.
The Bank offers Education Loan for India and Abroad through three major schemes namely Education Loan for Higher Studies, AB Vocational Course Loan and Gyan Dipika Scheme.
Are you eligible for Allahabad Bank Education Loan?
Students wishing to avail loan from Allahabad Bank can either do it through the official website or through Vidyalakshmi Portal. Applicants can also visit the nearest branch and fill the form.
Applicants can directly visit the nearest branch and ask for an application form. The bank representative will then guide you with all the necessary information regarding eligibility, documents required and also which loan is best suitable.
Here are various aspects of student loan offered by Allahabad Bank. We have curated all the vital information to help you decide.
Bank offers this education loan scheme for students who aspire to pursue their higher studies in India or abroad. Management quota students are also eligible to apply under this loan scheme.
What makes you eligible for Allahabad Bank Education Loan for Higher Studies?
Quick Facts about Education Loan for Higher Studies
|Margin||Up to INR 4 Lacs: Nil|
Above INR 4 Lacs:
|Maximum Loan Limit||For studies in India: INR 20 Lacs|
For studies in Abroad: INR 50 Lacs
|Moratorium Period||Course Period plus one year, or six months after getting a job|
|Repayment (Maximum)||Repayment of the loan can be done after the moratorium period by mode of EMI|
Up to INR 7.5 Lakhs: 10 years
Above INR 7.5 Lakhs: 15 years
|Prepayment Charges||Nil, if paid during the repayment period|
Additional Facts about the loan
Expenses Covered Under Allahabad Bank Education Loan for Higher Studies
Courses Covered under Allahabad Bank Education Loan for Higher Studies
Documents Required for Allahabad Bank Education Loan for Higher Studies
Allahabad Bank offers this AB Vocational Course loan for students aspiring study vocational education and training courses. Through this scheme, the bank aims to cover various categories such as technicians, craftsmen, medicine, accountancy, engineering, pharmacy, law, nursing, and more.
What makes you eligible for AB Vocational Course Loan
Quick Facts about AB Vocational Course Loan
|Maximum Loan Limit||INR 1,50,000|
|Moratorium Period||Maximum of one year|
|Repayment (Maximum)||For up to INR 50,000 – Two years|
For loan amount between INR 50,000 and 1 Lac – 2 to 5 years
For loan amount above 1 Lac – 3 to 7 years
|Margin and Processing Fee||Nil|
Additional Details about AB Vocational Course Loan
Expenses Covered Under AB Vocational Course Loan
Courses Covered Under AB Vocational Course Loan
All vocational education courses for a minimum period of 2 months and a maximum period of 3 years approved by Central Government or by State Government.
Documents Required for AB Vocational Course Loan
Q. What schemes does Allahabad bank considers for its education loans?
Answer: There are two schemes offered by Allahabad Bank apart from the basic education loan. These are:
AB Vocational Loan – for students who wish to pursue vocational courses through ministry/ department/ NSDC supported institutes
Gyan Dipika – for parents/ guardians of students who are in course of completion of their school education
Q. In whose name is the loan granted?
Answer: The loan is granted in the name of the student
Q. What is the age limit for availing loan in Allahabad Bank?
Answer: There is no restriction on age. Student must clear the other eligibility criteria’s stated by the bank
Q. What does margin on any loan mean?
Answer: Margin amount is the amount that a borrower has to pay through his/ her own sources in form of a down payment as his/ her contribution towards the education.
Q. Where can I avail Allahabad Bank Education Loan?
Answer: You can either contact your nearest branch for the application form or details regarding the loan or apply online.
Q. Is there any provision to apply for loan online?
Answer: : Yes, you can apply online through Vidyalakshmi portal to avail for this loan.
Q. Is there any minimum aggregate marks to meet the eligibility criteria to avail Allahabad Bank education loan?
Answer: Yes, a student must have secured a minimum aggregate of 60% marks in their last qualifying examination.
Q. What is the discount/ rebate offered by Allahabad bank?
Q. What all is included in tangible collateral security?
Answer: Mostly Allahabad bank asks tangible security for loan amount above INR 4 Lacs. Tangible security includes documents related to land/ building/ government security/ public sector bonds/ units of UTI, NSC, Life insurance policy/ bank deposits/ shares or debentures. The value of the security should be equal to the education loan amount.
Q. Is scholarship or assistantship included in the margin?
Answer: Yes any scholarship or assistantship will be a part of margin charged on education loan.
Q. What is Moratorium Period?
Answer: Course Period plus one year, or six months after getting a job
Q. What is tenure of an education loan?
Answer: Tenure of education loan provided by Allahabad Bank is 15 years
Q. What does MCLR stands for?
Answer: MCLR stands for Marginal Cost of funds based Lending Rate. It refers to the minimum interest rate of bank below which it cannot lend.
Q. What all expenses are covered under this course?
Answer: Expenses covered by Allahabad Bank education loan are:
Q. Will my travel expense will be covered if I take loan from Allahabad Bank?
Answer: Yes, travel expenses are covered under this loan
Q. I have taken admission through management quota. Am I eligible?
Answer: Yes, even if you have taken admission through management quota, you are eligible for education loan by Allahabad bank
Q. What do you mean by reputed or recognized institutes?
Answer: Institutes that are affiliated to state/ central universities and comes under UGC or AICTE are considered as recognized institutes. Reputed institutes are those which are well known and have standard course of repute. More often, banks provide the list of institutes they consider for loan. (You can contact nearest branch for the same)
Q. Are there any special benefits if I have secured admission to one of the top premier institutes?
Answer: There is no tangible security required in lieu of loan of you secure admission in top IITs or NITs. Also there is concession of 0.50% for the same.
Q. What is the processing fee or prepayment charges?
Answer: The education loan offered by Allahabad Bank does not carry any processing fee or any other charges
Q. Will cost of my computer be covered under the loan sanctioned?
Answer: Reasonable cost for the computer or laptop well be covered under the loan if it is required to complete the course.
Q. Why is Pan Card necessary?
Answer: Pan Card is one of the mandatory document required by banks these days. It is mandatory because:
Q. Are diploma or certificate courses considered under Allahabad Bank education Loan (both for India and Abroad)?
Answer: Yes diploma or certificate courses are eligible under Allahabad Bank Education Loan. Regular degree or diploma courses like, shipping, pilot training, and aeronautical that are approved by Director General of Civil Aviation or Shipping
Q. Is a co-borrower necessary for loan?
Answer: Yes, it is mandatory to have a co-borrower to avail loan from Allahabad bank.
Q. Who can be my co-borrower?
Answer: Your parent/ spouse/ guardian can be a co-borrower. A co-borrower should be your immediate family member, should have a steady source of income, and a good credit history.
Q. What all documents are required from the co-borrower?
Answer: Documents required from the co-borrower are:
Answer: KYC requirements are the documents as a proof of personal identification and residence proof of the applicant as well as the co-borrower.
Q. What are maximum term for repayment?
Answer: Maximum term for repayment is 15 years
Q. How can I repay the loan?
Answer: You can repay the loan after the moratorium period by mode of EMI or through post- dated cheques.
Q. What is EMI? How are they calculated?
Answer: 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.
Q. Is the loan disbursed in name of individual applicant or to the institute/ university directly?
Answer: The loan is disbursed directly to the institute/ university that you have taken admission to. Hence, an applicant is supposed to submit institute brochure with proper division of the fee
Q. If I am unable to complete my course in given tenure, will my repayment term be extended?
Answer: It is completely on the banks discretion to extend the moratorium period or not. You can contact your nearest branch for the same.
Q. What is method of application of interest on education loan?
Answer: The interest will be charged at simple rate from the date of disbursement till commencement of repayment of loan. After that, compound interest is charged on reducing balance.
Q. What is interest rate of education loan?
Answer: The interest rate is different for different category of Institutes. Refer the table below:
|Category of Academic Institution||Max. Loan Amount||Interest Rate|
|IIMs, ISBs, XLRI||INR 20 Lacs||Base Rate + 1.50%|
|IITs, BITS and other premier engineering, management & medical institutions||INR 15 Lacs||Base Rate + 2.00%|
|NITs, BITS and other reputed medical, management & engineering institutions||INR 10 Lacs||Base Rate + 2.50%|
|Other colleges / universities recognized by UGC / Govt. / AICTE / AIBMS / ICMR etc.||INR 10 Lacs||Base Rate + 3.00%|
|For students applying under the Management Quota||Loan up to and above INR 4 Lacs||Base Rate + 3.0|
Q. What is interest subsidy on education loan?
Answer: There is no Interest subsidy mentioned on the official website to be applied on Education Loan offered by Allahabad Bank
Q. What is employment verification in an education loan?
Answer: The bank takes the responsibility to cross verify all the employment details of the applicant and co-borrower. If the banks fails to cross verify every detail provided, it might reject the loan application.
Q. Are there any tax benefits in education loans?
Answer: Under Section 80E of Income Tax Act, loan borrowers can avail the tax benefits. This benefit is only available over and above INR 1,50,000. Tax benefits can be availed once the borrower starts paying interest on loan. The deduction is available until borrower pays off full interest amount on loan or for maximum of 8 years (whichever is earlier)
Q. Is it necessary to have bank account with the bank while availing loan from that particular bank?
Answer: It is not necessary to have a bank account while availing the loan but it makes it easier for the borrower to get loan application approved.
Q. Can I repay my loan in foreign currency even if my bank is in India?
Answer: Yes, you can pay the amount in foreign currency (Euro, Pound, Dollar, etc.) The bank might charge an additional currency conversion fee as per RBI regulations.
Q. Why do banks require insurance policy as security?
Answer: The banks require insurance policy as security in lieu of education loan provided. The insurance policy should be equal or more to the amount of loan sanctioned. In case of untimely demise of the borrower, the bank recovers the amount from the insurance policy
Q. Are there any additional benefits on availing loan from Allahabad loan?
Answer: Applicants can get a free debit card along with the loan amount. The can also avail an additional loan for higher studies. Student applying for the loan can also avail Group Life Insurance Cover equal to the amount of loan
Q. What is credit score? Is it important for education loan?
Answer: Credit Score is inclusive of various factors such as credit history (Loan history or credit card). If a student does not have a credit score, banks calculate it by considering factors such as University, College and the Course of admission. Banks consider the academic background of student and credit history of co-borrower.
Q. Are NRIs eligible for the education loan?
Answer: NRIs are eligible for the loan if they have Indian citizenship and are Indian passport holder.
Q. Is Visa a necessary document for studying abroad?
Answer: Visa is needed as a document proof but it is not a sole requirement.
Q. What all procedures do one have to go through while applying for abroad?
Answer: A student who is applying for studying abroad have to give necessary documents required by the bank. One needs to have a thorough knowledge of the course they are applying for and in which institute as it can be asked on the airport by the foreign officials.
Q. If a student have any query, where or whom to contact?
Answer: Student can reach out to the nearest branch in case of any query.
Customer Care Number:1800220363.
Customer Care ID: firstname.lastname@example.org