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Andhra Bank Education Loan
Max Tenure
NA
Best Rate
10.25%
Processing Fee
nil*
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Andhra Bank Education Loans
What Is an Education Loan?
An Education loan is the loan or funds acquired by an individual to pursue higher studies in India or abroad. The loan repayment commences for the student after completing the education and a period of 6 months is given as grace period to students to get or join a job.
The repayment amount will be determined by your choice of interest, you need to decide how you want to repay the loan. That is if you want to start paying during the time of moratorium period itself or after the moratorium period. The Moratorium period is the time of your education plus 6 months or 1 year given to get a job. It is only after this time that you are expected to pay the loan.
The loan interest starts to accrue at the time of dispersal of funds, so at the time of your graduation you have a huge amount to repay. The other option is your parents or guardian can start paying the loan during the moratorium period itself where it is calculated as a simple interest.
This way your loan amount at the time of graduation is drastically reduced.
There are 4 types of education loans in India
1. Under Graduate education loan - These are given to students who have completed their secondary education and looking to do higher studies in the form of under graduation. It can be done in India or abroad.
2. Post graduate education loan - These are education loans given to individuals who want to pursue post-graduation after completing under graduation course from a reputed university/college. Here also the loan can be for studying in India or abroad.
3. Parents availing education loan - This is the case where the parents take loan for the education purposes of their children. This is an unsecured loan and need not be for graduate or post-graduation courses but also for elementary and higher secondary courses.
4. Career growth education loans - These are loans provided to young people who want to pursue courses or trainings, certifications that will benefit their career growth.
About Andhra Bank
Headquartered in Hyderabad, Andhra Bank is a medium-sized public-sector bank, offering a wide range of financial services to its customers. With the network of 2803 branches, 4 extension counters, 38 satellite offices and over 3700 ATMs, Andhra Bank operates in 25 countries and 3 union territories across India. Andhra Bank is a pioneer in introducing credit card in the country in 1981.
An Introduction to Andhra Bank Education Loans
Education is one area where everybody is willing to spend a lot of money to live a prosperous life in the future. Being one of the major education loan providers, Andhra Bank understands the needs of the students and offers extremely competitive education loans at better interest rates. Every year, a large number of students secure admissions in top universities and colleges in India and abroad with Andhra Bank education loans.
Advantages of Andhra Bank Education Loan
Following are some of the advantages of applying for an educational loan with Andhra Bank.
- Low interest rate
- Less paperwork
- No processing fees
- Faster Disbursal
- No prepayment charges
- No pre-closure charges
- 0.50% concession for girl students
Key Highlights of Andhra Bank Education Loan
| Eligibility Criteria | Students who have secured the admission |
|---|---|
| Loan Tenure | Up to 15 years |
| Loan Amount | No cap |
| Interest Rate | Base Rate 10.25% |
| Processing Fees | Nil |
Features of Andhra Bank Education Loan for Studies in India and Abroad
Objective: To provide term loan to Indian students for pursuing higher education in India and foreign universities
Quantum of Loan: No cap on the upper limit
Margin: No margin required for loans up to INR 4 Lakhs, 5% of margin for loans above INR 4 Lakhs for studies in India and 15% of margin for above 4 Lakhs for studies overseas
Repayment Period: The tenure is up to 15 years after completing the course. The moratorium period is 1 year after completing the course or 6 months after getting a job.
Security: The parents or the guardian will be the co-applicant or the loan and the primary debtor. Tangible collateral will be accepted as security by the bank with the third-party guarantee. No security required for loans up to 4 Lakhs.
Processing Fees: There are no processing fees for availing Andhra Bank education loan.
Courses Covered
The courses are determined by the employability and reputation of the institution.
Expenses Covered
Expenses covered under Andhra Bank education loan are payment of course fees, purchase of books, equipments, instruments, uniform, payment of hostel fees, examination fees, study tools, and passage expenses, (for study abroad).
Eligibility Criteria: Who Can Apply?
- Must be an Indian Resident
- Applicant should have secured admission with the educational institution
Interest Rate of Andhra Bank Education Loan for Studies in India and abroad:
| Loan Amount | Rate of Interest |
|---|---|
| Up to 7.5 Lakhs | MCLR (one year) + 2.00 % |
| Above 7.5 Lakhs | MCLR (one year) + 1.70 % |
Girl students get 0.50% of concession on interest rate.
Documents Required
- Letter of admission
- Filled in Loan Application Form
- 2 passport size photographs
- Statement of cost of study
- PAN Card of the student and Parent/ Guardian
- AADHAR Card of the student and Parent/ Guardian
- Proof of identity (Driving Licence/Passport/Aadhar/ any photo identity)
- Proof of residence (Driving Licence/Passport/Electricity bill/Telephone bill)
- Student/Co-borrower/ guarantor's bank account statement for last 6 months
- IT return/ IT assessment order, of previous 2 years of Parent/ Guardian/ other co-borrower (if IT Payee)
- Brief statement of assets & liabilities of Parent/ Guardian/ other co-borrower
- Proof of income (i.e. salary slips/ Form 16) Parent/ Guardian/ other co-borrower
EMI Payment Methods
Andhra Bank education loan can be repaid in following three ways.
Standing Instruction (SI): If you are an existing account holder with Andhra Bank, Standing Instruction is the best mode of repayment. Your EMI amount will be debited automatically at the end of the monthly cycle from the Andhra Bank account you specify.
Electronic Clearing Service (ECS): This mode can be used if you have a non-Andhra Bank account and would like your EMIs to be debited automatically at the end of the monthly cycle from this account.
Post-Dated Cheques (PDCs): You can submit post-dated EMI cheques from a non-Andhra Bank account at your nearest Andhra Bank Loan Centre. A fresh set of PDCs will have to be submitted in a timely manner. Please note Post Dated Cheques will be collected non-ECS locations only.
It is recommended that you opt for either the SI or ECS mode of payment for faster and less prone to error than the use of PDCs.
How to Apply for Andhra Bank Education Loan?
You can either apply online or visit a nearby Andhra Bank branch for the application. You can also download the education loan application form from the Andhra Bank official website, complete the form and submit it the bank representative.
You can also check your eligibility for an education loan through CreditMantri and apply for it.
Andhra Bank Education loan FAQ
1. What is the interest charged during moratorium period?
Only simple interest will be charged during the moratorium period. After the moratorium period the actual interest mentioned will be charged.
2. Can I take an education loan without a co-borrower?
No, a co-borrower is needed to take an education loan. The loan will be taken as a joint loan in collaboration with your parent/ guardian or spouse.
3. I am planning to study abroad. Am I eligible to apply for an Education Loan?
Yes, Andhra Bank prescribes no limit on the loan amount for courses pursued abroad which also includes travel expenses and study tours. Higher amount can be obtained based on eligibility and creditworthiness.
4. Is there a processing fee for an education loan with Andhra Bank?
No, there are no processing fees on Andhra Bank education loan.
5. Is there a way I can reduce the interest paid?
There is special subsidy provided according to Central Government subsidy for education loans. Andhra Bank also provides special interest rates for some premier institutions. The other option is your parent/ guardian or spouse can pay the loan amount during the moratorium period due to which the loan amount you need to repay is less.