Allahabad Bank Education Loan

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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 of 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

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 Rate.

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

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 bachelor’s, master’s or graduate diploma. In case of admission conducted through qualifying marks, the minimum cut-off marks is 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 loan:

  • 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 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 cover 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 amount of the loan is above 7.5 lacs then 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. 

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 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 requiredAbove 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 case of 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 rebate and concessions with regards to girl students and moratorium period will be applicable wherever necessary.

Collateral Security

Allahabad Bank Education Loan lists some conditions related to security that must be fulfilled for successful approval of the loan amount. In some cases you can also be granted 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 Indian bank. In case of any query or doubts, customers can contact at 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

Also Read:

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.

FAQs

Can we get an education loan to study abroad?

Yes, you can get an education loan to study abroad.

Can I get an education loan without collateral?

Loans up to Rs. 4 lacs don’t require any collateral. 

Which bank has the lowest interest rate on education loans?

PNB, SBI, HDFC has the lowest interest rate on education loans.

Which bank is the best for education loans abroad?

Some of the best banks for education loans abroad are Axis Bank, HDFC Bank, PNB & Bank of Baroda

Is there any processing fee in the bank of Allahabad?

No, there is not any processing fee.

How can I locate the nearest Allahabad bank branch?

There are no Allahabad bank branches, existing & new customers can go to the nearest Indian bank branches.

The need and competitiveness for funding, be that loan 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 methodical 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 a career of your dreams

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2 comments
  1. Hi Team Leverageedu,
    You guys are doing great and the content over your post is very much informative about the same niche of education loan. Keep up your work of guidance.

    1. Thanks for your feedback! Do share our blog with your friends looking for educational loans or related opportunities.

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