Allahabad Bank Education Loan Scheme

Allahabad Bank Education Loan Scheme
Eligibility Criteria:
(a) Student eligibility:
Student be an Indian National
Secured admission to professional/ technical courses in India or Abroad through Entrance Test / Merit based Selection process.
(b) Courses Eligible:
Studies in India
Graduation Courses- B.A, B.COM, B.Sc. etc.
Post Graduation Courses: Masters Courses, Ph D, etc.
Professional Courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computeretc.
Computer Certificate Courses of reputed Institutes accredited to Department of Electronics or Institutes affiliated to University.
Courses like- ICWA, CA, CFA etc.
Courses conducted by IIM, IIT, IISc, XLRI, NIFT etc.
Regular Degree/ Diploma courses like Aeronautical, pilot training, shipping etc., approved by Director General of Civil Aviation/ Shipping, if the course pursued abroad, the Institute should be recognised by the competent local aviation/ shipping authority.
Courses offered in India by reputed foreign universities.
Evening Courses of approved Institutes.
Other Courses leading to diploma/degree etc conducted by the Colleges/ Universities approved by UGC/Govt/AICTE/AIBMS/ICMR etc.
Studies Abroad:
Graduation: For Job oriented professional/technical courses offered by reputed Universities.
Post Graduation: MCA, MBA, MS etc.
Courses conducted by CIMA London, CPA in USA etc.
Regular Degree/ Diploma courses like Aeronautical, pilot training, shipping etc., the Institute should be recognised by the competent local aviation/ shipping authority.
Quantum of Loan:
Need based finance subject to repaying capacity of the parents / students with following ceilings:Studies in India: Maximum Rs 10.00 lacsStudies abroad: Maximum Rs. 20.00 lacs.
Expenses Considered for Loan
Fee payable to College / School /Hostel
Examination/Library/Laboratory Fee
Purchase of Books / Equipments/ Instruments/ Uniforms.
Caution Deposit/ Building Fund/ Refundable Deposit supported by Bills/Receipts of the Institution, subject to the conditions that amount does not exceed 10% of the total tuition fees for the entire course.
Travel Expenses/Passage Money for studies abroad.
Purchase of Computers essential for completion of the course.
Insurance premium for student borrower.
Any other expenses required to complete the course, such as- Study Tours, Project Work, and Thesis etc.
Margin
For loan upto Rs 4.00 lacs: NIL
For loan above Rs 4.00 lacs: (i) Studies in India: 5%(ii) Studies abroad: 15%
Scholarship / Assistantship to be included in Margin.
Margin Money to be brought on year-to-year basis and disbursements are made on a pro-rata basis.
Rate of Interest:
Loan Upto Rs. 4.00 lacs

For students of IIT / IIM/ ISB*
PLR-1.75%
For Others
PLR-0.75%
Loan above Rs. 4.00 lacs

For students of IIT / IIM/ ISB*
PLR-1.75%
For Others
PLR-1.00%
*ISB means Indian School of Business, HyderabadGirl students may be provided a special relief of 1.00% in all cases as above.
Application of Interest:
Simple interest during moratorium period. Service interest during moratorium period regularly and avail a special discount of 1.00% in interest rate.
Repayment:
Repayment Holiday / Moratorium is Course Period + 1 year or 6 months after getting job, whichever is earlier.
Loan to be repaid within a maximum period of 7 years after commencement of repayment.
Security:
For IIT/IIM/ISB*
For loan upto Rs 10.00 lacs- No collateral security is required. co-obligation* of parents/ guardian required
*ISB means Indian School Business, Hyderabad
For others
For loan upto Rs 4.00 lacs: No collateral security is required. co-obligation* required For loan above Rs 4.00 lacs and upto Rs 7.50 lacs: Satisfactory third party guarantee & Co-obligation* required.
For loan above Rs 7.50 lacs: (a) Co-obligation * of parents/ guardian together with tangible collateral security of suitable value covering full loan amount, alongwith the assignment of future income of the student for payment of installments.
*(The loan documents would be executed by both the student and the parent/ guardian as joint-borrower i.e. co-obligator. The co-obligation should be parent / guardian of the student borrower. In case of married person, co-obligator can be either spouse or the parent(s)/ parents-in-law.)
Processing Fee:
Processing Fees/ Documentation Charge:
For studies in India- NilFor studies abroad -Rs.500/- upfront subject to the conditions that this amount would be adjusted against the loan amount once the loan is availed from us.
Mortgage Charges:
Actual expenses, if any, will be borne by the Student/Parent or Guardian.
Delivery Channel
From all of our branches (Presently more than 2150) spread throughout the country.On-line sanction for leading 250 institutions within 72 hours.
Value added Service
FREE Debit Card-For SB account holders in networked branches.
Insurance:
Group Life Insurance Cover -For entire loan liability in tie-up with LICI(One time upfront premium, can also be financed by adding into project cost.), Prospective borrowers, who are not covered under the group insurance scheme, will be allowed to take a single premium term insurance cover equal to the loan amount, individually on their own or premium being a component of project cost for financing.
Others
The parent / guardian would become co-borrower with the student and application for education loan will also be signed by the parent / guardian alongwith the student while availing loan under Educational Loan Scheme.
Education Loan would preferably be sanctioned through branches / RBBs nearest to the place of residence of parents.
Second time education loan is available for higher studies / escalation of cost.