How to apply for Allahabad Bank education loan scheme

Allahabad Bank is a public sector bank of India. The corporate office of this bank is located at Kolkata. Like all other banks, Allahabad Bank also offers various schemes for meritorious students pursuing higher education in India and abroad. In this article we are going to discuss the details of educational loan scheme of Allahabad Bank for students pursuing higher education abroad and even within India.

List of eligible courses

Students' eligibility

• The student must be an Indian national.
• He/She 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).
• Where the admission is purely based on the marks scored in qualifying examinations then the cut off marks for loan eligibility is 50%.
• Meritorious students admitted under management quota are also eligible for this loan.>/li>

Quantum of loan

• Study in India: Up to Rs. 20 lakh depending on the Institute.
• For study abroad: The upper limit is Rs. 50 Lakh

Applicable margin

• Upto Rs. 4 Lakh: Nil
• Above Rs. 4 Lakh: In India – 5%; Abroad – 15%

Loan coverage

Moratorium period and Security

• Course period plus one year or six months after getting job, whichever is earlier.
• The loan documents should be executed jointly by the student and the parent (s)/ guardian as joint-borrower.
• Up to Rs. 4 Lakh: No collateral security
• Above Rs. 4 Lakh: (Depending on the course/ institutes) Security varies from third party guarantee, co-obligation of parents, full collateral security.

Rate of interest

Processing charges/ Documentation charges

• For studies in India: For loan amount above Rs. 10.00 Lakh -- 0.15%, subject to maximum of Rs. 3000/-
• For studies abroad: For loan amount above Rs. 20.00 Lac – 0.10% subject to a maximum of Rs. 5000/-

Repayment

Concluding comments