Andhra Bank Education Loan For Overseas | GyanDhan
Published date: 30 Oct 2020
Updated on: 30 Oct 2020
Education loans help students seize their education dreams. Abroad education is, no doubt, expensive, but has equally great returns. There are many lenders in the market to help students fulfill their abroad education dreams. In this blog, we are discussing one of the lenders - Andhra Bank.
So, read on further to know about the education loan from Andhra Bank in detail -
What are the loan eligibility criteria for the Andhra Bank Education loan?
The Andhra Bank Education loan eligibility criteria are as follows -
The student must be an Indian citizen.
The student must be above the age of 17 but below the age of 35.
The student must have secured admission to a recognized overseas university/college/school.
The student must have a valid admission confirmation letter from the concerned university.
The student must have a valid passport and visa.
Which courses and universities are eligible for the Andhra Bank abroad Education Loan?
To help maintain a level of quality, the bank has a list of colleges and programs for which it gives out educational loans to students. Students can turn to Andhra Bank overseas education loan for the following programs -
Graduation - job oriented professional and technical courses offered by reputed universities.
Post Graduation - MCA, MBA, MS, etc.
Courses conducted by CIMA - London, CMA in the USA, etc.
Graduate/Post Graduation in Arts, Science, Commerce, and Business Administration.
Graduate/ Post Graduate studies in Pharmacy.
Graduate/Post Graduate studies in any professional or technical course
Ph.D. programs
What are the expenses covered in the Andhra Bank overseas Education Loan?
The expenses covered by an education loan from Andhra Bank are -
Tuition fees
Examination fees
Study tours, project work
Cost of books, stationery
Equipment essential for the course
Caution Deposits/ Building Funds/ Refundable Deposits supported by institution bills/receipts.
The cost of Hostel fees, air passage, and maintenance of health insurance are also included.
How much loan amount is possible from the Andhra Bank education loan for abroad studies?
There is no minimum amount that can be borrowed under this scheme. However, the maximum amount that a student can borrow for abroad studies is INR 20 lakhs. The student will have to pledge appropriate collateral to support the loan amount.
What is the Andhra Bank Education loan interest rate?
The interest rate offered by the bank depends on the loan amount. If the quantum of finances is only up to INR 7.5 lakhs, the interest rate is 11.45% (RLLR + 2%). If the quantum of finance is above INR 7.5 lakhs, the interest rate is 11.15% (RLLR + 1.7%). There is a 0.50% concession to girl students and a further 0.20% concession for admission into premier institutes.
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Andhra Bank Education Loan Details
Maximum Loan Amount
INR 20 lakhs
Eligibility
Must be an Indian citizen.
Should have secured admission to a recognized and a reputed institute.
Must have a valid passport and visa.
Student’s age should not be below 17 years and not be above 35 years.
Interest Rate
For loan amount up to INR 7.5 lakhs - 11.45%
For loan amount above INR 7.5 lakhs -11.15%
(extra 0.5% discount for girls and a further 0.2% discount for premier institutes )
Margin Money
For loan amount up to INR 4 lakhs - NIL
For loan amount above INR 4 lakhs - 15%
Repayment Period
5-7 years
Moratorium Period
Course period + 1 year, or 6 months after getting a job, whichever is earlier.
What are the documents required for Andhra Bank Student Loan for Study Abroad?
The list of documents required for the Andhra Bank overseas education loan depends on a case-to-case basis. However, an indicative list of documents is as follows -
Loan application form
Identity proof of the borrower, co-borrower
Passport size photographs of the borrower and co-borrower
Proof of date of birth
Academic documents from 10th onwards
Bonafide certificate
Certificate of domicile
Rank card of the university
Proof of admission
Fee particulars from the university/school
Letters informing the allotment of hostel/accommodation, if any.
Proof of availability of scholarship, if any
Certified copies of a valid passport and Visa
Estimate for travel and health insurance
Proof and source of income of the co-applicant(s)
Collateral documents - such as the certificate of the title deed, tax paid receipts, NIL encumbrance certificate, valuation report, etc.
Credit Information Report from CIBIL
What is the margin money in the Andhra Bank education loan?
The margin money for loan amount up to INR 4 lakhs is NIL, whereas for a loan amount above INR 4 lakhs is 15%. It means that the student’s contribution to the entire expenses incurred would be 15%.
What collateral is accepted by the Andhra Bank for abroad education loans?
Public Sector banks offer unsecured education loans for a loan amount only up to INR 7.5 lakhs. If the quantum of finance is above this amount, the applicant will have to pledge collateral. For a loan amount up to INR 4 lakhs, there is no requirement for collateral. For a loan amount ranging from INR 4 lakhs to INR 7.5 lakhs, parents/guardians are required to become co-borrowers. For a loan amount above INR 7.5 lakhs, tangible security is required. Types of collateral accepted by the bank -
Immovable property - house, flat, apartment, or a plot with boundary.
Liquid assets - LIC Policy, Fixed Deposit, government bonds, etc.
The market value of the collateral is an important factor on which the loan amount is decided. As a safe measure, applicants should always pledge collateral with more value than the amount required.
What is the mode of disbursement of the loan amount in the Andhra Bank Education Loan?
The disbursement of the loan amount happens only after the successful completion of the loan application process, including submission and verification of the required documents. Once the applicant and the co-applicant have signed the final loan agreement, the student can request the loan amount to be disbursed. The initial disbursement includes a loan amount equal to the cost of air passage and the payment of the semester fee and hostel expenses. The further loan amount is released on an annual basis according to the semester fee, hostel fee, etc.
What is the repayment policy for the Andhra Bank education loan?
The bank offers a moratorium period of the study period, plus 1 year after course completion. However, if the student gets a job then the repayment starts 6 months after employment. Over and above the moratorium period, the bank has a loan repayment period of 5-7 years.
How can GyanDhan help you get an education loan?
Selecting and applying for an education loan is an enormous task, especially because a wrong loan product would become a huge liability for a considerable number of years. Whereas, the right loan product could end up helping you save more than INR 2 lakhs.
At GyanDhan, we know the importance of the right loan product. To make the education loan journey simple for you, we discuss all the available options with you and your parents. Our executives go through your profile thoroughly to gauge the needs and requirements before suggesting a lender. You can apply for the loan on GyanDhan’s portal, as well as track the progress of the loan on the dashboard of your GyanDhan account. We have partnered with several lenders in the market, leading to a swift and early sanctioning of the loan. If a problem arises, we contact the concerned bank official to get the issue resolved at the earliest. The list of services does not end here, and best of all, GyanDhan offers all these services at zero cost to the students.
To simplify your education loan process with minimal bumps, apply for the loan through GyanDhan. How to initiate the process? Just check your loan eligibility, and that’s it.
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This is a companion discussion topic for the original entry at https://www.gyandhan.com/blogs/andhra-bank-education-loan