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Andhra Bank Education Loan

Last Modified : September 01, 2018

Andhra Bank offers two distinct loans for students studying in India and Abroad. The bank also offers loans to students who are pursuing vocational courses.

The bank offers Education Loan for India and Abroad with an interest base rate of 0% on the loan amount up to 4 lakhs, base rate +2.75% up to a loan amount of INR 7.50 Lacs and a base rate +1.50% on a loan amount above INR 7.50 Lacs

Why Andhra Bank?

Andhra Bank offers user-friendly education loan for higher studies and vocational courses in the dominant education loan market. Applicants are offered loan up to 4 lakhs on zero margin. Also, there is no maximum loan amount limit in loan amount for students studying in India and Abroad for higher studies whereas the maximum loan amount for vocational courses ranges from INR 50,000 to 1,50,000.

Are you eligible for Andhra Bank Education Loan?

  • Indian National. Student must be Indian National or an NRI holding Indian Passport
  • 10+2. Candidates should have passed their 10+2 or equivalent examination
  • Co-signer. Applicant for a loan must have a co-signer to act as co-borrower while applying for the education loan.

How can you apply for Andhra Bank Education Loan?

Prospective candidates can apply for the loan online by visiting the official website of Andhra Bank or offline by visiting the bank in person. Online application form can be filled either through Andhra Bank’s official portal or via Vidyalakshmi portal.

Online Mode

  • Visit the official website of the bank
  • Click on Andhra Bank Education Loan
  • Select the particular load scheme you wish to apply for
  • Click on Apply Online
  • Fill up the necessary details on the form
  • Upload your scanned signature, photograph, and other documents as required
  • Click on Submit Form

For Offline

Applicants who wish to apply through offline mode, must visit the nearest branch of Andhra Bank and ask for the application form for education loan. The bank representative will further guide the students with all the necessary information regarding eligibility, documents required and the loan which is best suitable.

Here’s a quick guide regarding the loan offered to Andhra Bank. It consists of all the information curated for your reference. Have a look:

1. Andhra Bank Educational Loan for Higher Studies

Andhra bank offers education loan scheme for students who contemplate undertaking higher studies in India and Abroad. Management quota students are also covered under the educational loan scheme.

What makes you eligible for Andhra Bank Education Loan for Higher Studies?

  • Indian National
  • Higher Education courses like Diploma and Degree, PG courses, research program
  • 10+2 with an average of 65%
  • Management quota is also eligible

Quick Facts About Education Loan for Higher Studies

MarginUp to 4 lakhs - Zero Interest
Above 4 lakhs for Indian students - 5%
Above 4 lakhs for abroad students - 15%
Maximum Loan LimitNo Upper Limit
Moratorium PeriodCourse Period + 1 year or 6 months after job whichever comes first
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
Margin and Processing FeeNil
Prepayment ChargesNil if paid within the repayment period.

Additional Facts about the loan

  • 0.50% concession for girl students
  • The concessional interest rate will be applicable for students pursuing an education at premier institutions with a base rate of 10.25%.
  • Zero processing fee in India
  • Loan is sanctioned conjointly to applicants and their guardians.

Expenses covered under Andhra Bank Education Loan for Higher Studies:

  • 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)

Courses covered under Andhra Bank Education Loan for Higher Studies

For India

  • Courses conducted by NIFT, IIMs, IITs, IISc, XLRI, NID, etc.
  • Graduate and Diploma Courses like shipping, Aeronautical Engineering, etc.
  • Academic Courses like ICWA, CFA, CA, etc.
  • Courses conducted and certified by the government or regulating body such as UGC, AIBMS, ICMR, Govt. AICTE or institutions that assure employment
  • All courses listed under www.ugc.ac.in/www.education.nic.in and www.aicte.org.in
  • Courses such as Aircraft Maintenance Engineering, Pre-Sea Training, Nursing and Paramedical Courses as well as those included under management quota.
  • Reputed foreign universities offering approved and certified courses in India
  • Research programs for students who are pursuing a Master’s degree.

For Abroad

  • Job oriented Diploma and certification programs pursued after graduation, technical courses offered by reputed universities.
  • Post graduation programs like MBA, MCA, and MS
  • Diploma or degree oriented training programs in shipping, pilot training, aeronautics, etc.
  • Reputed courses conducted by CPA in the USA, CIMA in London, etc.
  • All courses listed under www.webometrics.info
  • Masters program that results in PG diplomas and degrees.

Documents Required for Andhra Bank Education Loan for Higher Studies

  • Completely filled Loan Application form
  • Bonafide certificate from College/Institution
  • ID Proofs such as Aadhar Card, Pan Card, Voter ID, Passport, Ration Card, etc.
  • Salary Proof – Form 16, Salary Slip and recent salary certificate
  • Updated Passbook/ Bank Statement of last 3 months with your photo on it
  • Certificate of Address issued by MP/ MLA/ Group A Gazetted Officer in Letter Head
  • Certificate of Address with a photo from a government recognized institution.
  • Income Proof of Guardians/ Parents or latest Income Tax Return (ITR Copy)
  • Photocopy of Marksheets of your highest education qualification
  • Recent Passport Size Photograph of the loan applicant.

2. Andhra Bank Vocational Course Loan

Andhra Bank offers Vocational Course Loan for students who deem to undertake vocational education and training programs.

What makes you eligible for Vocational Course Loan

  • Indian national
  • NRI students who hold a valid passport
  • Diploma/ Degree/ Certification/ Training programs which are duly recognized by the Central/ State government, authorized by the Technical/ Statutory or Training Department or Government.
  • 10+2 – Students who have passed their 10+2 or equivalent examination recognized by the Indian or foreign university.

Quick Facts about Andhra Bank Vocational Course Loan

MarginNil
Maximum Loan LimitINR 50,000 to 1 lakh
Moratorium PeriodCourse Period + 1 year or 6 months after job whichever comes first
Repayment (Maximum)For INR 50,000 – Maximum 2 years For INR 50,000 to 1 lac – maximum within 2 to 5 years For above INR 1 lac – Maximum of 3 to 7 years
Margin and Processing FeeNil

Additional Details about Vocational Course Loan

  • Zero Limit up to 4 Lacs
  • The minimum period for the loan scheme is 2 years to a maximum of 7 years
  • No age limit
  • The loan is sanctioned conjointly to the applicants and their guardians
  • Applicable on courses less than 6 months or over 3 years

Expenses Covered under Andhra Bank Vocational Loan

  • Fee payment includes college/ institute/ university fee as well as skill development center
  • Examination fee
  • Cost of books, equipment, instrument or uniforms
  • Courses Covered Under Andhra Bank Vocational Course Loan

Courses covered under Andhra Bank Vocational Loan

All vocational education courses for a minimum period of 2 months and a maximum period of 3 years approved by the Central Government or by State Government.

Documents Required for AB Vocational Course Loan

  • Admission letter
  • Attested copies of age proof, residence proof, and birth date.
  • Self-attested passport size photograph of the applicant, co-applicant, and guarantor.
  • Copies of qualifying courses.
  • Income proof and/or a copy of income tax return file of co-applicant, parents, and guarantor (if any).
  • Bank account statement of the applicant.

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. 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.

How is Andhra Bank Education Loan Beneficial?

Andhra Bank Education Loan aids in fuelling the dreams of aspirants who wish to pursue further studies in India and abroad.

FAQs

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

Answer: 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

Q: In whose name will the loan be granted?

Answer: The Andhra Bank Education Loan is granted solely in the name of the student.

Q: What is the age limit for availing for the Education Loan from Andhra bank?

Answer: 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.

Q: Where can I avail for the education loan from Andhra Bank?

Answer: 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.

Q: What is the Moratorium Period?

Answer: 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.

Q: What is the tenure for Education Loan granted by Andhra Bank?

Answer: 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

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

Answer: The following 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

Q: What expenses are covered under the education loan?

Answer: 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.

Q: I pursue to take the loan under management quota. Is the educational loan applicable on management quota?

Answer: Yes. Students who have taken admission through management quota are also eligible for education loan under Andhra Bank Education Loan.

Q: Are there any charges applicable on late payment of EMI?

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: Does the education loan cover Diploma and Certification programs?

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

Q: Who can be the borrower?

Answer: 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.

Q: Is there any processing fee applicable for student’s application?

Answer: 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.

Q: What is the maximum term for repayment?

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

Q: What are the modes of repayment of loans?

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

Q: What documents are required in case of co-borrower?

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

Q: Are girl students get any concession benefit?

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

Q: What are the KYCs required for co-borrower?

Answer: 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)

Q: Is the loan offered in name of the individual applicant or to the institute/ university directly?

Answer: Yes. The loan is offered in the name of the institute/ university directly.

Q: Can the loan be repaid in foreign currency even if my bank is in India?

Answer: 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.

Q: Are NRIs eligible for availing education loan?

Answer: Yes. NRIs are eligible for availing education loan only if the citizen is a Indian passport holder or has Indian citizenship.

Q: Is Visa a mandatory document for studying abroad?

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

Q: What is the interest rate of education loan?

Answer: 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%.

Q: What is the interest calculated on subsidy education loan?

Answer: 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.

Q: What documents are necessary for availing interest subsidy scheme?

Answer: 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

Q: In case of any further query whom should I contact?

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

  • Customer Care Number – 1800 425 1515
  • Customer Care ID – customerservice@andhrabank.co.in