Allahabad Bank Education Loan

Envisaged by Allahabad Bank to support needy and deserving students in their higher education studies, the Allahabad Bank Education Loan is more than just financial encouragement. Designed to benefit candidates in leading institutions & courses in India as well as abroad, the Allahabad Bank Education Loan aims to provide wholesome monetary support ranging from college/ tuition fees to travel expenses. Here, we aim to elaborate more on the specifics related to Allahabad Bank Education Loan.

Maximum Loan Limit	Rs. 20 Lacs
Processing Fee	No Processing Fee
Concession	0.50% for females
Loan repayment	10 – 15 years
Loan collateral	Up to Rs. 4 lacs no collateral Rs. 4 Lacs to 7.5 Lacs – Third-party guarantee Above Rs.7.5 Lacs – 100% loan amount tangible collateral
Interest rate	7 – 11 %

Also Read: Avanse Education Loan

Allahabad Bank Education Loan

Allahabad Bank was established in 1865 & was the oldest joint stock bank in India. In the year 2020, Allahabad bank merged with Indian Bank. After the merger, all account holders have to use the Indian Bank IFSC code, Cheque books, internet banking, etc. Allahabad Bank Education Loan will now follow norms & procedures followed by the Indian Bank.

Benefits of Allahabad Education Loan

Some of the benefits of applying for an educational loan with Allahabad Bank are as follows.

• Low-interest rate
• Less paperwork
• Faster Disbursal
• No prepayment charges
• 0.50% concession for girl students

Features of Allahabad Education Loan

The eye-catching features of the Allahabad education loan are:

• The loan will be provided to students who have plans to pursue their higher education at either a foreign or an Indian university.
• Students pursuing higher education from an Indian college will be eligible for up to INR 20 lakh worth of the loan. On the other hand, the bank would provide loans up to INR 50 lakh for students who want to study abroad.
• If the loan amount is less than INR 4 lakh, the students won’t need to pay any margin money. But loans more than INR 4 lakh would require 5% margin money for Indian colleges and 15% margin money for foreign universities.
• The repayment time of the loan is up to 15 years.

Allahabad Bank Education Loan Interest Rate

Allahabad Bank Education Loan Interest Rate depends on courses abroad, in India & on the amount of your loan. Here is the list of Allahabad Bank Education Loan Interest Rates.

Allahabad Bank Education Loan Interest Rate for Indian Institute & Courses

IIMs & IITs	MCLR
NITs	MCLR+ 1.50
Other Institutes	MCLR+2.00

Allahabad Bank Education Loan Interest Rate for Foreign Institute & Courses

Education loan up to Rs.4 lakhs	MCLR+2.00%
4 lakhs to Rs.7.5 lakhs	MCLR+2.00%
Above Rs.7.50 lakhs	MCLR+ 1.50

Check Out: Education Loan without Collateral

Allahabad Bank Education Loan Schemes

Here are the Allahabad Bank Education Loan Schemes with the maximum loan amount provided along with the interest rates:

Schemes	Maximum Loan Amount	Interest Rates
Allahabad Bank Student Loan	Rs.20 lakh	10.05%
Allahabad Bank Scholar Loan	Rs.40 lakh	8.95% to 9.25%
Allahabad Bank Global ED-Vantage	Rs.1.5 crore	10.05%
Allahabad Bank Skill Loan	Rs.1.5 lakh	9.55%
Allahabad Bank Take Over of Education Loan	Rs.1.5 crore	10.05%

Eligibility Criteria for Allahabad Bank Education Loan

The eligibility conditions of the Allahabad Bank Education Loan differ with respect to courses in India and abroad. The requirements have been mentioned below.

• Prospective students after successfully clearing their 10+2 exams must have been admitted to a post-secondary course such as a bachelor’s, master’s or graduate diploma. In the case of admission conducted through qualifying marks, the minimum cut-off marks are set at 50%.
• In India: Courses from leading institutions including but not limited to IIMs/IITs/NIFT/IISC etc recognised by Govt.UGC/AICTE/ICMR/AIBMS or other certified institutes.
• Abroad: candidates need to have secured admission in technical or professional courses at leading institutions around the world.

Documents Required

For applying for an education loan there are some important documents required. Here is the list of documents required:

• Address proof
• Identification card
• Application form
• Passport-size photographs
• Admission Letter
• Income proof of the guarantor
• Collateral Security documents
• GRE/IELTS/TOEFL/GMAT Score
• 10th and 12th exam mark sheets

Allahabad Bank Education Loan List of Colleges

Here are some of the top colleges that accept Allahabad Bank Education loans:

• Graduate/ Post-Graduate degree and P.G. Diplomas conducted by recognized Colleges/ Universities
• Courses like ICWA, CA, CFA, CIMA, CPA
• Courses conducted by IIMs, IITs/ IISc, XLRI, NIFT, NID
• Degree/ Diploma Courses like Aeronautical, Pilot Training, Shipping
• Reputed Foreign Universities.

Check out Loans by the Government: Education Loan by Delhi Government
Education Loan Scheme by Narendra Modi
Education Loan for Abroad Studies by Indian Government

Expenses Covered under Loan

The maximum loan amount is set at 75 lakhs for institutions in India as well as abroad. The awarded loan assistance to the candidate covers the following expenses (indicative):

• College/tuition fee
• Hostel/lodging fee
• Book/stationery/equipment expenses including electronic devices such as computers.
• Travel expenses
• Other expenses

Allahabad Bank Education Loan Repayment

The loan repayment & amount of EMIs depends upon the amount of the loan. If the loan amount is above 7.5 lacs, the loan repayment should be done within 15 years from the date of the loan. If the amount of the loan is below Rs.7.5 lacs then the repayment of the loan is between 10 years. In case of prepayment, there are no additional charges. Make sure to pay the EMIs on time to avoid any penalty. 

EMI Payment Methods

The Allahabad Bank education loan can be repaid in three ways.

• Standing Instruction (SI): If you already have an account with Allahabad Bank, Standing Instruction is the best way to repay. Your EMI will be deducted automatically from the Allahabad Bank account you specify at the end of the monthly cycle.
• Electronic Clearing Service (ECS): If you have a non-Allahabad Bank account and want your EMIs debited automatically at the end of the monthly cycle, you can use this mode.
• Post-Dated Cheques (PDCs): Post-dated EMI cheques from non-Allahabad Bank accounts can be submitted to your nearest Allahabad Bank Loan Centre. A new set of PDCs must be submitted in a timely manner. Please keep in mind that Post Dated Cheques will only be accepted at non-ECS locations.

Loan Conditions

Allahabad Bank Education Loan besides providing financial support for education in India also gives out loans to study abroad. Terms and conditions differ with respect to the amount of loan along with the institutions (India and abroad) in which admission has been gained by the candidate. These have been mentioned below.

Institute	Amount	Interest
Domestic: Institutes stated in this list	Upto 7.5 lakhs: Covered under Credit Guarantee Fund Scheme for Education Loans(CGFSEL) 7.5 Lakhs-20 lakhs: Full tangible security not required Above 20 lakhs: 100% tangible security required	1MYCLR or 1MYCLR +1.50% (may vary)*
Domestic: Institutes not listed in the above list but recognised by Govt./UGC/AICTE/AIBMS/MCI, etc	Max 7.5 lakhs: Covered under Credit Guarantee Fund Scheme for Education Loans(CGFSEL)	MCLR+ 2.00% (may vary)*
International	Upto 7.5 lakhs: Covered under Credit Guarantee Fund Scheme for Education Loans(CGFSEL) Above 7.5 lakhs: 100% tangible security required Note: In the case of the top 25 institutions in the world, no collateral is required upto 20 lakhs for PG studies and upto 15 lakhs for UG Studies	MCLR+ 2.00% (may vary)*

* Appropriate rebates and concessions with regard to girl students and the moratorium period will be applicable wherever necessary.

Collateral Security

Allahabad Bank Education Loan lists some conditions related to security that must be fulfilled for the successful approval of the loan amount. In some cases, you can also be granted an education loan without collateral. These have been delineated below.

• The candidate and his parent/guardian all must be designated, joint borrowers. In the case of married loanees, the spouse must be a joint borrower.
• Future income assignment of the candidate.
• Tangible security(wherever required)

Contact Number

After the merger, you have to contact an Indian bank. In case of any query or doubts, customers can contact the 24 x 7 Toll-Free numbers mentioned below

• 1800 425 00 000
• 1800 425 00 000

Don’t Miss: Education Loans for Abroad Studies

Other Funding Options

You can also look for several scholarship options such as HDFC Scholarship, Canara Bank Scholarship and Inspire Scholarship amongst others. that provide funding for studies in India and abroad. These have been given a run-down below.

• Inspire Scholarship
• DCE Scholarship
• Canara Bank Scholarship
• Moma Scholarship
• MHRD Scholarship
• JK Scholarship
• Santoor Scholarship
• Punjab Scholarship
• Indira Gandhi Single Girl Child Scholarship
• Ishan Uday Scholarship
• Oasis Scholarship
• Dr Ambedkar Scholarship
• NEC Scholarship
• Aditya Birla Scholarship
• Vidyasiri Scholarship
• GP Birla Scholarship
• Abdul Kalam Scholarship
• Siksha Abhiyan Scholarship
• HDFC Scholarship

FAQs

The need and competitiveness for funding, be that loans or scholarships have sharply risen in the past two-three decades as have the source of such funding opportunities. A well-thought-out, meticulous and systematic approach is needed to land any of the above-mentioned funding options which, undoubtedly, is a demanding task. Whether you are looking to study in India or abroad, the rich repository of value-added services including funding-related assistance at Leverage Edu will help you take the right and informed step towards the career of your dreams. Consider contacting us on 1800 57 2000 for 30-minute free counselling.