Allahabad Bank Education Loan: Application, Eligibility, Interest Rate, Documents & Much More.

Allahabad Bank Education loan

The Allahabad Bank (founded in 1865) is one of the Nationalised Bank in India with its Headquarter in Kolkata, India. The bank is considered as one of the oldest among the State Bank of India. There are various services provided by the bank like Finance and Insurance, Consumer Banking, Corporate Banking etc but one of the most popular among all is Allahabad Bank Education loan. If you too want to take Student Loan from Allahabad Bank to complete your higher studies then you are at the right place.

Allahabad Bank Education loan

In this post, we will discuss various aspect related to the bank like Loan Eligibility, How to apply, Interest Rates, Documents Needed, Interest Rates, Return Policy, General Instructions and other frequently asked questions (FAQ’s) related to Allahabad Bank Education Loan.


Allahabad Bank Education Loan


The major aim of the bank is to ensure anywhere and any time banking for the customer with the latest state-of-the-art technology. The Bank is very serious about its Education Loan Facility and by developing an effective customer-centric relationship it promises to emerge as a world-class education Loan provider. Before we share further, let us first have a brief review of the Bank.

Brief Review

Profile Description
Name of Bank  Allahabad Bank
Founded on 24 April 1865
Headquarter Kolkata
Type of Bank  Nationalised  Bank
Number of Employees 23771 (March 2016)
CEO Name S. S. Mallikarjuna Rao
Maximum Loan Amount  Rs. 75 lacs
Timeline for Loan Disposal Maximum 15 Working days
Annual Revenue Δ ₹ 19,051 crore (US$ 29 billion) (2017)
Processing Fees No Processing Fee will be charged
Other Subsidiaries
  • AllBank Finance Limited
  • Allahabad Bank, Asset Management Arm
Category  Education Loan in India

Types of Student Loan

S.no. Schemes Description
1. Allahabad Bank Education Loan
  • This scheme aims to Provide Financial Support to meritorious Students for pursuing Higher education in India and Abroad.
  • One can avail Loan of maximum Rs. 75 lakhs
2. Gyan Dipika Scheme
  • This scheme is for students pursuing school education from Nursery standard to 12th Standard.
  • One can Avail loan maximum of Rs. 1 Lakh (including all type of expenses)
3. Skill Loan
  • Allahabad Bank Skill Loan Scheme aims at providing a loan facility to individuals. who intend to take up skill development courses as per the Skilling Loan Eligibility Criteria.
  • One can avail a loan amount from Rs 5000 to Rs 1.5 Lakhs.
3. CSIS
  • This Scheme is for providing facilities to economically weaker sections of the society for Pursuing Professional /Technical courses from Accredited Institutions in India.
  • Under this scheme, Interest subsidy is provided to the students whose family annual income is up to 4.5 lakhs and the Education Loan amount is Rs 7.5 Lakhs

How to Apply

Online

  • Visit official Web Site of Allahabad Bank (Click Here).
  • Find the Education Loan Section Apply Now button.
  • Fill the online application Form.

Offline

  • Visit the nearest branch of Allahabad Bank to get offline Education Loan form.
  • You may also download the form from official web handle.
  • Submit the Application Form to Nearest Branch along with document needed.

Eligibility

  • The applicant should be an Indian National.
  • The student should have secured admission to a Recognized/Affiliated and Reputed School/High School / Junior School / College (including).

Documents Needed

  • Identity Proof
  • Residence Proof
  • Mark sheet of last qualifying examination for school and graduate studies in India.
  • Academic Records: 10th Result, 12th Result, Graduation result-semester Wise (if Possible) Entrance Exam Result through which admission is being taken
  • Proof of admission: Offer Letter or Admission Letter from the Institution.
  • Schedule of expenses for the course
  • Passport size photographs.

Expenses Considered

  • Tuition and course fee
  • Examination, library and laboratory fees
  • Caution deposit
  • Cost of books, Uniforms, Equipment and other instruments.
  • Travel Expenses

Return Policy

  • In case of Allahabad Bank Student loan, Repayment can be done Maximum up to  15 years.

EMI Calculator

EMI Calculator is used for calculating the periodic payment amount due on a loan. For calculating EMI one must input data like Amount, Interest Rate, tenure, Processing Fee etc.

  • If you want to calculate EMI for Allahabad Bank Education LoanClick Here

Security

  •  Up to Rs. 4 Lakhs: No Collateral Security.
  •  Above Rs.  4 Lakhs: Security varies from a third-party guarantee, co-obligation of parents, full collateral security.

List of Institutes Covered.

The Bank promises to give education loan for all government authorised educational institutes. One may visit the official website to check out the list of educational institutes that are within the eligibility circle of Allahabad Bank Education Loan Schemes. You may also see the list of affiliated institutes by visiting the officially released PDF from here.

Contact Details

Head office  Allahabad Bank: 2 Netaji Subhas Road, Kolkata -700001
Official website www.allahabadbank.in
Apply for Loan  Click Here
Contact Number 033-22319468, 1800226061

Allahabad Bank Student Loans FAQs

We hope that the information furnished above will guide you to get the best educational loan for your studies. In case of any doubt regarding the loan procedure and other related terms, read our FAQ’s session.

Q1. Who can be my co-borrowers?

  • Your parents/guardian can be a co-borrower as well as the spouse in case of a married applicant.
  • The co-borrower should have a steady source of income and a good credit history in order to improve the applicant’s chances of a successful loan application.

Q2. How long does it take to process Education Loan?

  • Generally, the time taken for the education loan to process is somewhat between 7-10 working days.
  • Often, the whole process can be easily completed within 3 to 5  Working days, once the student fulfils all documentation.

Q3. What all expenses will be covered by education loans?

Ans. Apart from the tuition fees, other aspects of expenses such as hostel charges, equipment purchases and other course-related expenses may also be covered by the education loan.

Q4. What are the courses for which an education loan can be availed?

  • An education loan can be availed for all courses recognized by the UGC in case of India and all regular courses abroad.
  • Each lender has its own list of educational institutions and courses that they would provide a loan for whether overseas or within India.

Q5. Can a student avail another loan for further studies?

Ans. Yes, this is possible. You can borrow a loan for a bachelor’s degree followed by one for master’s without repaying the first loan. This loan can be taken as a top-up loan against the already existing loan; however, it is subject to the lending bank’s discretion and the internal rules and regulations of the lender.

Q6. Do education loans have any Income Tax benefits?

  • Loan borrowers can avail tax benefits on interest paid on education loan under Sec 80E of the Income Tax Act. This benefit is available over and above the Rs. 150,000 deduction allowed under Section 80C.
  • Tax benefits can be availed once the borrower starts paying the interest on the education loan. Further, the deduction is available until the borrower pays off the full interest amount on the loan or for a maximum period of 8 years, whichever is earlier.

Q7. Why do banks require an insurance policy?

Ans. Banks usually prefer that students avail a life insurance policy equivalent to, or more than, the loan amount. The policy acts as a security feature and forms a part of the collateral. In case of the untimely demise of the borrower, the bank recovers the outstanding loan amount from the student’s life insurance policy and the remaining amount, if any, is paid out to the beneficiary of the policy.

Q8. Is any incentive available for a girl student applying for education loan?

Ans. Banks generally provide a 0.5% concession on the applicable education loan interest rate to girl students pursuing higher education in India and abroad.

Q9. Are there any special privileges for students of SC/ST category who avail education loans?

Ans. Yes, eligibility criteria and loan margins on education loan are relaxed for Scheduled Caste/Scheduled Tribe students availing education loans in India. The eligibility criteria are lowered from first/second class to pass class for SC/ST category students seeking education loan for graduate and postgraduate studies, while, margin money is sometimes lowered than the regular percentage or nil.

Q10. Where can I avail on Allahabad Bank education loan?
Ans. The loan is available from all branches in metro/urban areas as well as those having personal banking divisions.

Best of Luck..!!

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