Indian Government Rules & Updates..: Allahabad Bank Education Loan Scheme

Eligibility:

Indian National who has secured admission to professional/ technical courses in India or Abroad

Courses Eligible:

Courses eligible for study 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, Computer etc.
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 recognized 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.

Courses eligible for Study 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 recognized by the competent local aviation/ shipping authority.

Quantum of Loan:

Need based finance subject to repaying capacity of the parents / students with following ceilings:

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 lac: NIL
For loan above Rs 4.00 lac:
(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

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(Indian School of Business, Hyderabad ), for loan upto Rs 10.00 lac- NIL, Only co-obligation of Parent / Guardian
For others
- For loan upto Rs 4.00 lacs: NIL, Only co-obligation of Parent / Guardian
- For loan above Rs 4.00 lacs and upto Rs 7.50 lacs: Satisfactory third party guarantee & Co-obligation* of parent/ guardian.
- For loan above Rs 7.50 lacs: Co-obligation * of parents/ guardian & tangible collateral security covering full loan amount.

Delivery Channel

From all our Branches, Retail Banking Boutiques and Centralized Retail Banking Boutiques
On-line approval facility for leading 250 institutions within 72 hours.

Value added Service

Insurance:

Group Life Insurance Cover to the extent of loan liability for entire repayment period is available .
Others
- The parent / guardian would become co-borrower with the student
- Education Loan would be sanctioned preferably through branches / RBBs/ CRBBs nearest to the place of residence of parents.
- Second time education loan is available for higher studies / escalation of cost.

Online Application form for Students of IITs/ IIMs and other leading Institutions

Downloadable Application form for students of other institutions

Group Life Insurance Plan (in tie-up with LICI)

The Demo Site