Last Modified : May 17, 2018
The oldest Joint Stock Bank of India, Allahabad Bank is in continual service of Indian citizens for over past 150 years. The bank has extended the network of more than 2,500 branches across the country. It has also an overseas branch in Hong Kong and a representative office in Shenzen. The bank employs around 22,557 personal.
The bank supports the finances for the education of aspirants who like to pursue higher education but do not have enough money to make it. Allahabad Bank Education Loan is available for students of up to INR 20 Lacs for Indian courses, and INR 50 Lacs for abroad courses.
Allahabad Bank offers education loan in three major schemes – Education Loan for Higher Studies, AB Vocational Course Loan, and Gyan Dipika Scheme.
The Education Loan for Higher Studies from Allahabad Bank is meant to be availed by only those students who like to pursue their career in higher education in India or abroad, and seek financial support. The students seeking admission under the management quota for higher education may also apply to avail this scheme.
Eligibility to Avail Allahabad Bank Education Loan for Higher Studies
Key Details of Allahabad Bank Education Loan for Higher Studies
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
Course Period plus one year, or six months after getting a job
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
Nil, if paid during the repayment period
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
The AB Vocational Course Loan is intended to be availed by only those students who like to pursue their career in vocational education and training courses, and seek financial support. Through this scheme, the band aims to cover various categories such as technicians, craftsmen, medicine, accountancy, engineering, pharmacy, law, nursing, and more.
Eligibility to Avail AB Vocational Course Loan
Key Details of AB Vocational Course Loan
Maximum Loan Limit
Maximum of one year
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
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
Answer: There are two schemes offered by Allahabad Bank apart from the basic education loan. These are:
Answer: The loan is granted in the name of the student
Answer: There is no restriction on age. Student must clear the other eligibility criteria’s stated by the bank
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.
Answer: You can either contact your nearest branch for the application form or details regarding the loan or apply online.
Answer: : Yes, you can apply online through Vidyalakshmi portal to avail for this loan.
Answer: Yes, a student must have secured a minimum aggregate of 60% marks in their last qualifying examination.
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.
Answer: Yes any scholarship or assistantship will be a part of margin charged on education loan.
Answer: Course Period plus one year, or six months after getting a job
Answer: Tenure of education loan provided by Allahabad Bank is 15 years
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.
Answer: Expenses covered by Allahabad Bank education loan are:
Answer: Yes, travel expenses are covered under this loan
Answer: Yes, even if you have taken admission through management quota, you are eligible for education loan by Allahabad bank
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)
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.
Answer: The education loan offered by Allahabad Bank does not carry any processing fee or any other charges
Answer: Reasonable cost for the computer or laptop well be covered under the loan if it is required to complete the course.
Answer: Pan Card is one of the mandatory document required by banks these days. It is mandatory because:
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
Answer: Yes, it is mandatory to have a co-borrower to avail loan from Allahabad bank.
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.
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.
Answer: Maximum term for repayment is 15 years
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
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
Answer: It is completely on the banks discretion to extend the moratorium period or not. You can contact your nearest branch for the same.
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.
Answer: The interest rate is different for different category of Institutes. Refer the table below:
Category of Academic Institution
Max. Loan Amount
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
Answer: There is no Interest subsidy mentioned on the official website to be applied on Education Loan offered by Allahabad Bank
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.
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)
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.
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.
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
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
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.
Answer: NRIs are eligible for the loan if they have Indian citizenship and are Indian passport holder.
Answer: Visa is needed as a document proof but it is not a sole requirement.
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.
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
|Overall Rating: 4.5/5|
|Interest Charges: 3/5||Customer Service: 4/5||Loan Disbursal: 3/5||Flexibility: 3.5/5|
“The bank was very prompt in the disbursement of the loan. They took a maximum of 10 to 15 days in Loan Disbursement. The Rate of Interest charged is average”
Not at all satisfied
“The Bank Manager was not very clear about their own guidelines and as well as government guidelines related to education loans. As a result, he refused to sanction me the loan”
“The procedure followed by the bank is very smooth. I witnessed no such problem in the whole process. The only con I felt, was the interest charges are very high”
– How to Apply for Education Loan?
– Why take Education Loan?/ Benefits of Education Loan?
– Documents Required for Education Loan?
– Government Schemes for Education Loan?