Andhra Bank offers best interest rates on education loans to students for higher studies in India & Abroad. Check eligibility, documents & income criteria for loan approval.
|Interest Rates||6.90% – 9.55%|
|Max. Loan Amount||upto 25 Lakh|
|Loan Repayment||upto 15 years|
- The student should be an Indian National
- NRI-if student is holding Indian PassPort. (Suitable Collateral Security enforceable in India is to be provided for all such proposals.)
- For the purpose of this scheme higher education is defined as studies taken up after completion of higher secondary school i.e. Ten plus two stage
- Should have secured admission to a higher education course in recognized institutions in India or Abroad through Entrance Test/ Merit Based Selection process after completion of HSC(10 plus 2 or equivalent).
- In case where admission is not through common entrance test and the marks secured in the qualifying examination is the only criteria adopted, the minimum cut off marks should be 65% in aggregate in the qualifying academic examination.
- The cut-off of 65% marks in aggregate in the qualifying academic examination is also applicable to all courses offered by deemed universities and also to non-professional and non-technical courses, irrespective of the common entrance test.
- The revised Model Educational Loan Scheme (2011) covers only merit channel seats for the courses. Admissions through management quota are outside the purview of IBA Model Scheme on Educational Loans for Higher Studies. However we may consider sanction of loans to students securing admissions under management quota with a suitable collateral security of not less than 150% value of the sanctioned limit irrespective of quantum of loan whether it is below Rs. 4 lakhs or above Rs. 4 lakhs.
- The eligibility for loan is determined based on employability of the course and reputation of the institution concerned.
- List of accredited institutions for all the courses is to be prepared by the Zonal Offices, and individual scores have to be allotted based on scoring methodology designated for the purpose. The rating system and modalities of accrediting Educational Institutes is as per Annexure I. Education Loans should be given to students who secure admission in such accredited Institutions only.
- Studies in India: (Indicative list)
- Approved courses leading to graduate/ post graduate degree and P G diplomas conducted by recognized colleges/ universities recognized by UGC/ Govt./AICTE/ AIBMS/ ICMR etc. Courses like ICWA, CA, CFA etc.
- Courses conducted by IIMs, IITs, IISc, XLRI. NIFT,NID etc.
- Regular Degree/Diploma courses like Aeronautical, pilot training, shipping, etc., approved by Director General of Civil Aviation/Shipping, if the course is pursued in India. Air Craft Maintenance Engg, Pre-Sea Training courses must be either a degree course recognized by a competent University or Diploma course recognized by appropriate State Govt. body to be eligible for considering loan.
- Approved courses offered in India by reputed foreign universities.
- Educational Loans for Nursing Courses and other Para Medical courses offered by approved institutes are to be sanctioned at Zonal level of the Bank only .Considering demand for pursuing nursing courses, loans for students getting admission through management quota also can be sanctioned. The fee considered for finance is restricted to fee structure as approved by the State Government or regulatory body. It is to be ensured that the student has financial resources to meet the funding gap.
- Zonal Offices can also identify and recommend to H.O for approval/administrative clearance, any other course offered by institutes of repute with assured employment potential for the students and where the degrees/diplomas /certificates issued by such institutes have due recognition by Govt. Of India/State Govt./Academic Bodies duly constituted by State/Central Govt in addition to the list of premier institutes presently enlisted by us.
- The list of courses contained in the websiteswww.ugc.ac.in, www.education.nic.in,www.aicte.org.inare considered to be eligible courses.
- Off campus courses and onsite/partnership programmes are not eligible for educational loans.
- 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. Degree/diploma courses like aeronautical, pilot training, shipping etc provided these are recognized by competent regulatory bodies in India/abroad for the purpose of employment in India/abroad.
- Reference to other courses approved for financing are as indicated inwww.webometrics.info.
Diploma courses and certificate courses have not been included as eligible courses for the scheme. Post graduate studies leading to PG degrees and PG diplomas offered by reputed institutes/universities only will be covered by the scheme. Assessment of employment potential or future prospects is very important criterion considering the higher cost of studies involved.
Expenses considered for loan
- Fee payable to college/ school/ hostel*
- Examination/ Library/ Laboratory fee
- Travel expenses/ passage money for studies abroad
- Insurance premium for student borrower, if applicable
- Caution deposit, Building fund/refundable deposit supported by Institution bills/receipts. **
- Purchase of books/ equipments/ instruments/ uniforms***
- Purchase of computer at reasonable cost, if required for completion of the course***
- Any other expense required to complete the course – like study tours, project work, thesis, etc***
- In respect of Degree level courses in Non Technical and Non Professional courses the aggregate of all expenses considered for finance should not exceed Rs.1 Lakh for the total course .
Quantum of Finance
- Need based finance to meet the expenses worked out as above will be considered taking into account margins. No specific upper limit is suggested. Loans allowed with the following ceilings for finance will be classified under Priority Sector.
– Studies in India – Maximum upto Rs.10 lakhs.
– Studies Abroad – Maximum upto Rs.20 lakhs.
- However for loans at degree level courses in non technical and non professional courses the maximum finance may be pegged at Rs.1 Lakh keeping in view the lower future income potential for these courses.
- For Nursing Courses the quantum of finance is restricted to fee structure as approved by the State Government or regulatory body. It is to be ensured that the student has financial resources to meet the funding gap.
- In case of studies abroad, part cost of the study can be considered for finance as requested by the student duly taking into consideration part time jobs as permitted by the institutes to part fund the course costs
|Upto Rs..4 lacs||Nil|
|Above Rs. 4 lacs||Studies in India||5%|
Scholarship/ assistantship to be included in margin.
Rate of Interest
- Interest to be charged at rates linked to the Base rate as decided by the Bank from time to time.
· Simple interest to be charged during the study period and up to commencement of repayment.
· 0.50% concession in spread for Girl Students including children of the Staff members of the Bank.
- Servicing of interest during study period and the moratorium period till Commencement of repayment is optional for students. Accrued interest will be added to the principal amount borrowed while fixing EMI for repayment.
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