EDUCATION LOAN

A term loan granted to Indian Nationals for pursuing higher education in India or abroad where admission has been secured.


Eligible Courses

All courses having employment prospects are eligible.

• Graduation courses/ Post graduation courses/ Professional courses
• Other courses approved by UGC/Government/AICTE etc.

Expenses considered for loan

• Fees payable to college/school/hostel
• Examination/Library/Laboratory fees
• Purchase of Books/Equipment/Instruments/Uniforms
• Caution Deposit/Building Fund/Refundable Deposit
• Travel Expenses/Passage money for studies abroad
• Purchase of computers considered necessary for completion of course
• Cost of a Two-wheeler upto Rs. 50,000/-

Any other expenses required to complete the course like study tours, project work etc.

Amount of Loan

• For studies in India, maximum Rs. 10 lacs
• Studies abroad, maximum Rs. 20 lacs

Interest Rate

For loans upto Rs.4 lacs - 12.75% p.a. Floating

For loans above Rs.4 lacs - 13.75% p.a. Floating

Processing Fees

• No processing fee/ upfront charges
• Deposit of Rs. 5000/- for education loan for studies abroad which will be adjusted in the margin money

Repayment Tenure

Repayment will commence one year after completion of course or 6 months after securing a job, whichever is earlier.

Place of Study	Loan Amount	Repayment Period in Years
In India	Up to Rs. 7.5 lacs	5-7
	Above Rs. 7.5 lacs	5-10
Abroad	Up to Rs. 15 lacs	5-7
	Above Rs. 15 lacs	5-10

Security

Amount	Studies In India	Studies Abroad
Upto Rs. 4 lacs	No Security	No Security
Above Rs. 4 lacs to Rs. 7.50 lacs	Third Party Guarantee	Third Party Guarantee
Above Rs. 7.50 lacs to Rs. 10 lacs(India)/ Rs. 15 lacs(Abroad)	Tangible Collateral security for full value of loan	Tangible Collateral security of suitable value of loan or third party guarantee
Rs 15 lacs to Rs. 20 lacs	___	Tangible Collateral security for full value of loan

Margin

• For loans up to Rs.4.0 lacs : No Margin
• For loans above Rs.4.0 lacs:
  • Studies in India: 5%
  • Studies Abroad: 15%

Documentation Required

• Completed Education Loan Application Form.
• Mark sheets of last qualifying examination
• Proof of admission scholarship, studentship etc
• Schedule of expenses for the specified course
• 2 passport size photographs
• Borrower's Bank account statement for the last six months
• Income tax assessment order, of last 2 years
• Brief statement of assets and liabilities, of the Co-borrower
• Proof of Income (i.e. Salary slips/ Form 16 etc)

* Conditions Apply

Download Form

Source : http://www.statebankofindia.com/viewsection.jsp?id=0,1,20,118

----------------------------------------------------------------------------------------------

Objective of the Education loan Scheme

The Education loan scheme aims at providing financial assistance on reasonable terms:

• To the poor and needy to undertake basic education.
• To the meritorious students to pursue higher/professional/technical education.

Eligibility Criteria of Education loan scheme

1. Courses Eligible

1. Studies in India

• School education including plus 2 stage

• Normal Graduation Courses - B.A., B.Com., B.Sc., Microbiology, etc.

• Post Graduation Course: Masters Courses, Ph.D., etc.

• Professional Courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management (including Hotel Management), Computer/ Information Technology, Journalism & Mass Communication, etc.

• Courses like: ICWA, CA, CFA, etc.

• Computer Certificate Courses of reputed Institutes accredited to Department of Electronics or Institutes affiliated to University.

• Courses conducted in India by reputed Foreign Universities.

• Evening courses of approved institutes.

• Courses leading to diploma / degree etc. conducted by the Colleges/ Universities approved by UGC / Govt./ AICTE / AIBMS / ICMR etc

2. 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

Quantum of Loan:

Need based finance subject to repaying capacity of the parents/ students with following ceilings:

Studies in India: Maximum Rs 7.50 lacs

Studies abroad: Maximum Rs.15.00 lacs

Margin:

• For loan upto Rs 4.00 lacs: NIL

• For loan above Rs 4.00 lacs:
  
  (i) Studies in India: 5%

(ii) Studies abroad: 15%

• Scholarship / Assistantship to be included in Margin.

• Margin Money to be brought on year to year basis as and disbursements are made on a pro-rata basis

2. Eligibility

• Should be an Indian National
• Secured admission to professional/technical courses through Entrance Test/ Selection process.
• Secured admission to foreign university/Institutions.

3. Expenses considered for loan:

• Fee payable to college/school/ hostel.
• Examination/Library/Laboratory fee.
• Purchase of books/ equipment’s/instruments/uniforms.
• Caution deposit/building fund/refundable deposit supported by Institution bills/ receipt.
• Travel expenses/ passage money for studies abroad.
• Purchase of computers-essential for completion of the course.
• Any other expenses required to complete the course- like study tours, project work, thesis etc.

Group Life Insurance cover

Under the plan a low cost group life insurance cover will be provided for the loan liability of Educational Loan borrowers (students) during entire period of loan (i.e., course period & moratorium period plus repayment period), in case of his unfortunate death. Click here for more

Security

Loan Upto Rs.4.00 lacs	No collateral security
Loan above Rs.4.00 lacs & upto Rs.7.50 lacs	Security is in the form of satisfactory third party guarantee
Loan above Rs.7.50 lacs	(a) Collateral security of suitable value (b) Co - obligation of parents/ guardians/third party along with assignment of future income of the student for payment of installments

In case of loan above 4 lacs, the documents should be executed by the both the student and parent/guardian.

1. The security can be in the form of land/building/Govt. Securities/Public Sector Bonds/Units of UTI , NSC, KVP, LIC policy, gold shares/debentures , bank deposit in the name of student/parent/guardian or any other third party.
2. In case the loan is given for purchase of computer the same to be hypothecated to the Bank.
3. The assignment of future income of the student for payment of installments may also be obtained irrespective of loan amount.

Rate of Interest

EDUCATION LOAN
For the students of IITs & IIMs & Other professional courses
Revised Interest Rate exclusively for students of IIMs/IITs & other professional courses for regular Management & Technology Courses:- PLR - 2% (Floats)(For Loan upto or above Rs.4.00 lacs).
The aforesaid revision will be applicable to exists & future Education Loan to the students or IIMs/IITs.
For others (Irrespective of Loan amount)
For loan upto Rs. 4.00 lacs or above Rs. 4 lacs	At PLR with monthly rests.
Interest Rate will be PLR - 1% for loans above Rs. 7.50 lacs if collateral security in the form of residential property upto full value of loan or liquid security for more than 50% of loan is offered
For all types of Education Loans (for students of IIT, IIM, Professional courses & others)
0.50% concession in the interest rate during moratorium period will be allowed if the borrower services the interest regularly.
Simple rate of interest will be applied till the course period.

Repayment of study loan

Repayment holiday/Moratorium :
Course period +1 year or 6 months after getting job, whichever is earlier.

• Loan together with accrued interest will be repaid in maximum 84 Equated Monthly Instalments (EMI).

Processing Charges for study loan

No processing/upfront charges.

Capability Certificate

Some of the foreign universities require the students to submit a certificate from their bankers about the sponsors’ solvency/financial capability , with a view to ensure that the sponsors of the students going abroad for higher studies are capable of meeting the expenses till completion of studies. Accordingly branches can also issue the capability certificate for students going abroad for higher studies. For this financial and other supporting documents may be obtained from applicant, if required.

Online Sanction

Online sanction of study loan facility is available for the students opting for professional courses offered by the following institutes

S.N.	Institute	Branch
1	IIM Ahmedabad	SP Nagar Ahmedabad
2	IIM Bangalore	Jayanagar Bangalore
3	IIM Calcutta	Alipore Calcutta
4	IIM Indore	Embassy Towers Indore
5	IIM Lucknow	Aliganj Lucknow
6	IIM Calicut	Calicut
7	IIT Chennai	Adyar Chennai
8	IIT Delhi	Ananlok &Adhchini New Delhi
9	IIT Guwahati	Pan Bazar Guwahati
10	IIT Kanpur	Lakhanpur Kanpur
11	IIT Kharagpur	Rly Market Kharagpur
12	IIT Mumbai	Ghatkopar Mumbai
13	IIT Roorkee	Roorkee
14	IIT Varanasi	Brij Enclave Varanasi
15	IIS Bangalore	KG Road Bangalore
16	Jamunalal Bajaj Intt of Mgt Science	Fort, Mumbai
17	XLRI Jamshedpur	Bistupur Jamshedpur
18	Indian School of Mines Dhanbad	Dhanbad
19	AMITY Delhi (Ritnand Balved Edu. Foundantion)	South Extension New Delhi
20	AMITY Noida (Ritnand Balved Edu. Foundantion)	Noida
21	AMITY Lucknow (Ritnand Balved Edu. Foundantion)	Ujariyawan Lucknow
22	AMITY Jaipur (Ritnand Balved Edu. Foundantion)	Tonk Road Jaipur
23	AMITY Bhubaneshwar (Ritnand Balved Edu. Foundantion)	Nayapalli Bhubaneswar
24	Symbiosis Pune	Pune
25	Faculty of Management Studies Delhi	South Extension Delhi
26	Narsee Moonjee Institute of Mgt Studies Mumbai	Ghatkopar Mumbai
27	National Instt. of Planning & Mgt. Delhi	South Extension Delhi
28	Loyola Instt. of Bus. Adm. Chennai	Advar Chennai
29	Xavier Instt. of Mgt. & Technology Ghaziabad	N.Y. Market Ghaziabad
30	Mgt Development Instt Gurgaon	Gurgaon
31	XIM Bhubneswhwar	Nayapalli Bhubaneswar
32	PSG Institute of Management	Coimbatore
33	ICFAI Business School Hyderabad	Hyderabad Main
34	Tata Instt. of Social Scinces, Mumbai	Ghatkopar Mumbai
35	Nirma Instt. of Management Ahmedabad	SP Nagar Ahmedabad
36	Indian School of Business, Hyderabad	Hyderabad Main
37	IISWBM, Kolkata	Alipore Kolkata
38	IIFT, Delhi	ADCHINI Delhi
39	SP Jain Intt. of Mgt & Research, Mumbai	Ghatkopar Mumbai
40	KJ Somaya Intt of Mgt Studies& Research Mumbai	Ghatkopar Mumbai
41	DEI Agra	Agra University
42	AVV Coimbatore	Coimbatore
43	BC Pune	Pune
44	Aihshew Coimbatore	Coimbatore
45	SPA Delhi	South Extension Delhi
46	GKV Haridwar	Haridwar
47	Jamia Hamdard Delhi	South Extension Delhi
48	Shri Mata Vaishnoa Devi University, Jammu Tawi	Jammu
49	MGR ERI Chennai	Adyar Chennai
50	Mody Instt. of Tech and Science, Lakshmangarh Sikar Rajasthan	Tonk Road Jaipur
51	TIEY Patiala	Patiala
52	BITS Pilani	Tonk Road Jaipur
53	BIT Ranchi	Ranchi
54	SRM Instt. of Science and Technology, Chennai	Advar Chennai
55	Sikkim Manipal Instt of Technology, E Sikkim	Gangtok
56	SIST Chennai	Adyar Chennai
57	SASTRA Thanjavur	Adyar Chennai
58	VIT Vellore	Adyar Chennai
59	IIIT Alallahabad	Civil Lines Allahabad
60	ABV-IIITM Gwalior	Gwalior
61	IIIT Hyderabad	Hyderabad Main
62	NIT ALLAHABAD	Civil Lines Allahabad
63	NIT Bhopal	Arera Colony Bhopal
64	NIT Calicut	Calicut
65	NIT Durgapur	Durgapur
66	NIT Hamirpur	Hamirpur
67	NIT Jaipur	Tonk Road Jaipur
68	NIT Jalandhar	Civil Lines Jalandhar
69	NIT Jamshedpur	Bistupur Jamshedpur
70	NIT Kurukshetra	Kurukshetra
71	NIT Nagpur	Civil Lines Nagpur
72	NIT Patna	Patna University Branch
73	NIT Rourkela	Rourkela
74	NIT Silchar	Silchar
75	NIT Surathkul	Mangalore
76	NIT Srinagar	Jammu
77	NIT Surat	Nanpara Surat
78	NIT Tiruchirappalli	Trichy
79	NIT Warangal	Warangal
80	IICT Bhadohi	Bhadohi
81	Punjab University, Chandigarh	Chandigarh Main
82	NIFFT Ranchi	Ranchi Main
83	Ready to Go? Animate - A Machino,	Kolkata
84	International Institute of Information Technology (I2IT)	Pune
85	Kalinga Institute of Technology (KIIT)	Bhubaneswar

Other Institutes

For students of other institutes, study loans are available from all branches of Allahabadbank.
Click here for printable Application Form.

Click here for online application form (study loan)

Source : http://www.allahabadbank.com/educationloan.htm