Andhra bank offers educational loans for Higher Studies in India and Abroad. Student eligibility: 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.). Students 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)/higher qualification. 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. Educational loans are allowed to meritorious students, who qualify in entrance examination but decide to pursue under Management quota for reasons like proximity, choice for a course of discipline or any other reasons pertaining to his academic/career interests.
For studies in India, students get loan for 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 is eligible for considering loan, approved courses offered in India by reputed foreign universities, Nursing Courses and Para Medical courses offered by approved institutes including admissions through management quota.
The fee considered for finance is restricted to fee structure as approved by the State Government or regulatory body. Education loan for Home Study/Correspondence courses with contact classes or Coaching classes is not considered.
To studies abroad, students get loan for graduation such as for job oriented professional/ technical courses offered by reputed universities, Post-graduation such as MCA, MBA, MS, 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. Loan is also sanctioned for job oriented Diploma and certificate courses pursued abroad after completion of Graduation Course in India. 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 is covered under the scheme.
Expenses considered for loan are 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/ equipment/ 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. 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.
Need based finance to meet the expenses worked out as above will be considered taking into account margins. No specific upper limit is suggested. 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.
Up to Rs.4 lacs, it is nil. Above Rs. 4 lacs, Studies in India, there is 5% and studies Abroad, 15%. Scholarship/ assistantship to be included in margin. Margin may be brought-in on year-to-year basis as and when disbursements are made on a pro-rata basis.
Up to Rs. 4 lakh, Parents to be joint borrower(s).
No security. Collateral free limit of Rs.4 lakh is student specific and not family specific. More than one loan can be considered for other siblings in the same family even when one of the siblings has already availed a collateral free loan.
Above Rs.4 lakh and up to Rs.7.5 lakh, Besides the parent(s) executing the documents as joint borrower(s), collateral security in the form of suitable third party guarantee will be taken.
Above Rs.7.5 lakhs, Parent(s) to be joint borrower(s) Tangible collateral security of suitable value acceptable to bank along with the assignment of future income of the student for payment of instalments.
The loan documents should be processed by the student and the parent/ guardian as joint-borrower. The security can be in the form of land/ building/ Govt. securities/ Public Sector Bonds/Units of UTI, NSC, KVP, life policy, gold, and shares/mutual fund units/debentures, bank deposit in the name of student / parent / guardian / any other third party or any other tangible security acceptable to the bank with suitable margin. Wherever the land/ building is already mortgaged, the unencumbered portion can be taken as security on second charge basis provided it covers the required loan amount.
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. Servicing of interest during study period and the moratorium period till commencement of repayment is optional for students. Accrued interest will be compounded at the time of commencement of repayment & EMI will be fixed accordingly.
Up To Rs. 4.00 Lakhs, Base Rate+2.75% Above Rs. 4.00 Lakhs to Rs. 7.50 Lakhs, Base Rate+2.75% Above Rs. 7.50 Lakhs, Base Rate+1.50%
For Meritorious students interest concession of 50 basis points on Educational loans to students (for studies in India/Abroad/Vocational courses) securing 90% or above in aggregate/equivalent grade at 10th or 10+2 qualifying level in respect of loans for vocational /graduate level courses. In respect of loans for pursuing P.G. courses, interest concession of 50 basis points is introduced to students who secured 80% or above in aggregate / equivalent grade at qualifying degree/graduation level examination. Top 50 rankers in case of State level and top 100 rankers in case of National level are offered educational loans at 100 basis points lower to normal rate of interest subject to a minimum of base rate.
It is important to note that bank allows Educational Loans to students who got admission to certain leading institutes at concessional interest rates and some other concessions. Premier Educational Institutes are as under.
Repayment: Repayment Holiday/Moratorium: Course period + 1 year or 6 months after getting job, whichever is earlier. If a student takes up higher studies immediately upon completion of the course, the commencement of repayment would get shifted to 6 months from employment or one year from completion of the second course whichever is earlier. This would be so irrespective of whether the student had taken fresh/top up loan for higher studies or not. No penalty will be levied for prepayment of loan.
Bank may, with the consent of the student, arrange for life insurance/liability insurance policy for the students availing Education Loan, but not mandatory. Processing charges: No processing / upfront charges may be levied on loans sanctioned under the scheme for studies in India. For studies abroad, processing fee as applicable are to be collected initially at the time of sanction and are to be refunded upon the student taking up the course and availing the loan.
For further details please click on the link: Andhra Bank Educational Loans