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Abhyudaya Bank Education Loan

Last Modified : September 01, 2018

Abhyudaya Bank is known for offering high-value education loans and easy loan repaying schemes for studies both in India and Abroad. This bank offers loans to students pursuing undergraduate, postgraduate or diploma courses from India or Foreign Universities.

The Bank offers Education Loans for India and Abroad through popular schemes named as Abhudayaya Bank Education Loan, Abhyudaya Vidya Vardhini Education Loan Scheme for higher education in India and Abroad.

Why Abhyudaya Bank?

Due to high amounts of education loan and easy repayment loan methods offered by the bank makes it popular in the education loan market. The bank offers a maximum loan of INR 25 Lacs for Studies in India and INR 50 Lacs for Studies Abroad.

Are you eligible for Abhyudaya Bank Education Loan?

To get an education loan from Abhyudaya Bank, applicant have to fulfill the following conditions laid down by the bank:

  • Indian National:  The student should be an Indian National. The student’s parents or guardians who are borrowers or co-borrowers should also be Indian Nationals.
  • 10+2 Pass:  Student should have passed HSC examination.
  • Premier Universities:  Should have secured admission to a higher education program in a recognized institution in India or Abroad.
  • Joint Borrower:  Joint Borrower should usually be parents/ guardian of the applicant. In case of a married person, joint borrower can be Spouse or the parents/ parent’s in law/ brother or sister in case of not having parents.

How can you apply for Abhyudaya Bank Education Loan?

Students who wish to avail education loan from Abhyudaya Bank can apply for the same either online or offline. The steps to fill the application form for education loan are given below:

Online:

  • Visit the Official website
  • Click on Abhyudaya Bank Education Loan
  • Select the particular loan scheme you want to apply for
  • Click on Apply Online
  • Enter all the information correctly in the application form
  • Upload the photograph, signature and other documents required
  • Submit the form
  • Take the print out of the duly filled application form
  • Take the print out with all the original documents to the nearby Abhyudaya Bank for the further proceedings

Offline:

To apply for education loan offline, students can visit the bank and ask for the application form for education loan. After that, the bank representative will guide you for the further process such as interest rates, loan repayment methods and eligibility criteria about the loan suitable for you.

Various aspects of education loan offered by the Abhyudaya Bank are given below:

1. Abhyudaya Bank Education Loan for Higher Studies

The Abhyudaya Bank offers this loan scheme for students who wish to seek admission to higher studies in India or Abroad. Students from Management quota are also eligible to apply under this education loan scheme.

What makes you eligible for Abhyudaya Bank Education Loan?

  • Indian National
  • Graduate/ Postgraduate degree and PG Diploma courses
  • Professional, technical and career-oriented courses
  • Entrance Test/ Merit Based Selection Process
  • Passed Class HSC examination or graduation
  • Premier Universities in India or Abroad

Interest Rates on Abhyudaya Bank Education Loan

The interest rates charged by the bank on the education loan are provided in the table given below:

Loan TypeLoan AmountInterest Rates
Education Loan (Including Pilot Training)Upto INR 10 LacsPLR – 0.50 = 11.50%
Above INR 10 Lacs and Upto INR 20 LacsPLR + 0.50 = 12.50%
Education Loan for Girl StudentsUpto INR 10 LacsPLR – 1.0 = 11%
Above INR 10 Lacs and Upto INR 20 LacsPLR = 12%

Quick Facts about Abhyudaya Bank Education Loan

MarginUpto Loan 4 Lacs – Nil Above INR 4 Lacs –
  • For India: 5%
  • For Abroad: 15%
Maximum Loan LimitFor India -x INR 10 Lacs
For Abroad - INR 20 Lacs
SecurityUpto INR 4 Lacs: Nil
From INR 4 to 7.5 Lacs: Third party guarantee needed as security. Also, parent(s) must execute the document as joint borrower(s).
Above INR 7.5 Lacs: Collateral of tangible security equal to amount of loan. 
Moratorium PeriodCourse Period + Maximum period of 1 year or 6 months after getting job
Repayment (Maximum)EMI for the period of 15 years
Prepayment ChargesNil

Additional Facts about Abhyudaya Bank Education Loan

  • Zero margin for loan amount up to INR 4 Lacs
  • 0.50% rebate in the rate of interest for female applicants
  • Zero processing fee (in India)
  • Loan is sanctioned co-jointly to the applicants and their guardians

Expenses Covered Under Abhyudaya Bank Education Loan

  • Tuition Fee
  • Examination/ Library/ Laboratory Fee
  • passage money for Studies Abroad
  • Hostel Fee
  • Cost of books, equipment required, instrument or uniforms
  • Miscellaneous expenses such as study tours, project work, thesis etc.

Courses Covered under Abhyudaya Bank Education Loan for Higher Studies

Abhyudaya Bank offers education loan for higher studies in various Indian and Foreign Universities. The details of courses covered by the bank are provided below.

For India

  • Graduate/ postgraduate/ postgraduate diploma courses
  • Courses offered by institutions recognized by UGC, Government, AICTE, AIBMS or ICMR
  • Courses like ICWA, CA, CFA etc.
  • Courses offered by popular institutes such as IIMs, IITs, IISc, XLRI, NIFT, NID etc.
  • Regular Degree/ Diploma programs such as Aeronautical, pilot training, shipping etc. which are approved by Director General of Civil Aviation/ Shipping (in case if the course is pursued in India)
  • Approved courses offered by reputed foreign universities in India

For Abroad

  • Job oriented Professional and Technical Courses
  • Post graduation courses such as MCA, MBA, MS etc.
  • Courses which are conducted by CIMA, London and CPA, USA
  • Courses that lead to a Degree or Diploma such as Pilot Training, shipping, aeronautical etc.

Documents required for Abhyudaya Bank Education Loan

For Salaried Students

  • Identity Proof – Passport, Pan Card, Voter ID or Driving License
  • Salary Proof – Latest Salary Slip, Form 16 and recent pay certificate
  • Residence proof – Electricity Bill, Bank Account Statement, Telephone bill or house lease agreement
  • Bank statement of last 6 month
  • Guarantor form
  • Educational Proof – admission letter along with fee structure, mark sheets, SSC, HSC and Degree Course Certificates

For Other Students

  • Identity Proof – Passport, Pan Card, Voter ID or Driving License
  • ITR of last 2 years
  • Residence proof – Electricity Bill, Bank Account Statement, Telephone bill or house lease agreement
  • Bank statement of last 6 month
  • Guarantor form
  • Educational Proof – admission letter along with fee structure, mark sheets, SSC, HSC and Degree Course Certificates

2. Abhyudaya Vidya Vardhini Education Loan Scheme

Abhyudaya Bank offers this loan to provide economic support to needy students who wish to pursue higher education in India and Abroad.

What makes you eligible for Abhyudaya Vidya Vardhini Education Loan Scheme?

  • Indian National
  • Graduate/ Postgraduate degree and PG Diploma courses
  • Professional, technical and career-oriented courses
  • Entrance Test/ Merit Based Selection Process
  • Passed Class HSC examination or graduation
  • Premier Universities in India or Abroad

Present Rate of Interest

For Girls StudentsPLR12.00
For Other StudentsPLR+0.5012.50

Quick Facts about Abhyudaya Bank Vidya Vardhini Education Loan Scheme

MarginUpto Loan 4 Lacs – Nil
Above INR 4 Lacs –
  • For India: 10%
  • For Abroad: 20%
Maximum Loan LimitFor India - INR 25 Lacs
For Abroad - INR 50 Lacs
SecurityTwo sureties with net income of INR 12,000 or above per month and INR 25,000 or above per month
Collateral of tangible security equal to entire loan amount
Moratorium PeriodCourse Period + 6 months
Repayment (Maximum)180 months EMI including Moratorium Period
Prepayment ChargesNil

Additional Facts about Abhyudaya Bank Vidya Vardhini Education Loan Scheme

  • No prepayment charges
  • Loan is sanctioned conjointly to the applicants and their guardians
  • Interest to be serviced during the moratorium period

Expenses Covered Under Abhyudaya Bank Vidya Vardhini Education Loan Scheme

  • Fee Payment
  • Hostel Fee and Examination fee
  • Expenditure on books, equipment and uniforms
  • Miscellaneous expenses such as study tours, project work, thesis etc.

Courses Covered Under Vidya Vardhini Education Loan Scheme

For India

  • Graduate/ postgraduate/ postgraduate diploma courses
  • Courses offered by institutions recognized by UGC, Government, AICTE, AIBMS or ICMR
  • Courses such as MBBS, PG in Medicine etc.
  • Courses offered by IIMs, IITs, IISc, XLRI, NIFT, NID etc.
  • Regular Degree/ Diploma program such as Aeronautical, pilot training, shipping etc. which are approved by Director General of Civil Aviation/ Shipping (only if it is pursued in India)
  • Approved courses offered by reputed foreign universities in India

For Abroad

  • Job oriented Professional and Technical Courses
  • Post graduation courses such as MCA, MBA, MS etc.
  • Courses which are conducted by CIMA, London and CPA, USA
  • Courses that lead to a Degree or Diploma such as Pilot Training, shipping, aeronautical etc.

Documents required for Abhyudaya Bank Vidya Vardhini Education Loan Scheme

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

3. Abhyudaya Bank Education Loan for Vocational Courses

Abhyudaya Bank also offers education loan for vocational courses of duration ranging from 6 months to 3 years from a recognized institute.

What makes you eligible for Abhyudaya Bank Education Loan for Vocational Courses?

  • Indian National
  • Passed Class 10 examination from a recognized board
  • Must have secured admission to a Govt. recognized vocational training institute

Quick Facts about Abhyudaya Bank Education Loan for Vocational Courses

MarginNil
Maximum Loan LimitFor Courses of duration up to 1 year – Rs. 50,000
For Courses of duration above 1 year – Rs. 1,50,000
Note: For particular courses, the bank considers limits up to Rs. 75,000 for courses with a duration less than 1 year and limits up to Rs 2,00,000 for courses with duration of more than a year.
SecurityBoth parents to be joint borrowers
Moratorium PeriodCourse duration upto 1 year: 6 months from the completion of course
Course duration above 1 year: 12 months from the completion of course
Repayment Course duration upto 1 year: 3 to 5 years
Courses duration above 1 year: 5 to 7 years
Prepayment ChargesNil

Additional Facts about Abhyudaya Bank Education Loan for Vocational Courses

  • No prepayment charges
  • Loan is sanctioned conjointly to the applicants and their guardians

Expenses Covered Under Abhyudaya Bank Education Loan for Vocational Courses

  • Fee Payment
  • Hostel Fee and Examination fee
  • Caution Deposit
  • Expenditure on books, equipment, and uniforms
  • Miscellaneous expenses such as study tours, project work, thesis etc.

Interest Subsidy

CSIS (Central Scheme for Interest Subsidy)

In addition of the education loans mentioned above, the bank also offers a Central Scheme to provide Interest Subsidy on education loans for economically weaker students. Candidates who fulfill the following conditions will be eligible for the Interest Subsidy provided by the Abhyudaya Bank.

  • This subsidy scheme is given only to those students who are enrolled in any of the technical and professional courses after Class 12 in India.
  • This scheme is restricted on to the EWS Category candidates.
  • Candidates are required to submit the income certificate to avail this scheme
  • Students who left the program mid steam will not get any benefit of this scheme.

FAQs

Q: What schemes does Abhyudaya bank considers for its education loans?

Answer: The bank offers CSIS scheme apart from basic education loans.

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 Abhyudaya 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 Abhyudaya 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 Abhyudaya Bank education loan?

Answer: No, there are no minimum aggregate marks to be secured for eligibility criteria of the bank.

Q: What is the discount/ rebate offered by Abhyudaya bank?

Answer: The bank offers:

  • 0.5% concession to girl students
  • 1% concession if interest is serviced during moratorium period

Q: What all is included in tangible collateral security?

Answer: Mostly Abhyudaya 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 Abhudaya Bank is 5 to 7 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 Abhyudaya Bank education loan are:

  • Tuition/ college/ hostel fee
  • Examination/ lab/ library fee
  • Books/ uniform/ instruments
  • Caution deposit
  • Passage money for studies abroad, etc.

Q: Will my travel expense will be covered if I take loan from Abhyudaya 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 ABHYUDAYA 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 a special variant of loan named as Abhyudaya Vidya Vardhini Education Loan scheme dedicated for students securing admission in premier institutes

Q: What is the processing fee or prepayment charges?

Answer: The education loan offered by Abhyudaya 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:

  • Easy to assess Income
  • Easy to trace borrowers

Q: Are diploma or certificate courses considered under Abhyudaya Bank education Loan (both for India and Abroad)?

Answer: Yes diploma or certificate courses are eligible under ABHYUDAYA 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 Abhyudaya 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:

  • Attested copies of age proof, residence proof and birth date.
  • Self-attested passport size photograph
  • Income proof and/or copy of income tax return file
  • Details of collateral security along with government approved valuation certificate (if any).

Q: What is the KYC requirement in education loan?

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 5-7 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 ABHYUDAYA 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?

Loan TypeLoan AmountInterest Rates
Education Loan (Including Pilot Training)Upto INR 10 LacsPLR – 0.50 = 11.50%
Above INR 10 Lacs and Upto INR 20 LacsPLR + 0.50 = 12.50%
Education Loan for Girl StudentsUpto INR 10 LacsPLR – 1.0 = 11%
Above INR 10 Lacs and Upto INR 20 LacsPLR = 12%
For Girls StudentsPLR12.00
For Other StudentsPLR+0.5012.50

Answer: Interest rate charged by the bank is different for different variants offered by bank. Have a look at them below:

  • Abhyudaya Bank Education Loan for Higher Studies
  • Abhyudaya Vidya Vardhini Education Loan

Q: What is interest subsidy on education loan?

Answer: Interest subsidy are offered as per IBA guidelines by Abhyudaya 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 Abhyudaya loan?

Answer: 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: 022-24115047, 24105097
  • Customer Care ID: secretarial@abhyudayabank.net