Andhra Bank

Andhra Bank’s Educational Loan

Objective of the Scheme:

Andhra Bank provides financial support to meritorious students for pursuing higher education in India and abroad. Meritorious Students under management Quota are eligible for Education Loan.

Eligibility of the Student:

The student should be an Indian National

NRI-if student is holding Indian Passport.

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

The cut-off of 65% marks in aggregate in the qualifying academic examination is also applicable to all courses offered by deemed universities and also to non-professional and non-technical courses

The revised Model Educational Loan Scheme ( 2011 ) covers only merit channel seats for the courses. Admissions through management quota are outside the purview of IBA Model Scheme on Educational Loans for Higher Studies.

Eligibility of the Institute :

The eligibility for loan is determined based on employability of the course and reputation of the institution concerned.

List of accredited institutions for all the courses is to be prepared by the Zonal Offices, and individual scores have to be allotted based on scoring methodology designated for the purpose. Education Loans should be given to students who secure admission in such accredited Institutions only.

Studies in India:

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, Air Craft Maintenance Engg

Approved courses offered in India by reputed foreign universities.

Nursing Courses and other Para Medical courses

The list of courses contained in the websites,, considered to be eligible courses.

Off campus courses and onsite / partnership programmes are not eligible for educational loans.

Studies in 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. 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.

Reference to other courses approved for financing are as indicated in

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 only will be covered by the scheme. Assessment of employment potential or future prospects is very important criterion considering the higher cost of studies involved.

Liability of Finance:

Expenses allotted for the Loan:

  • 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 / equipments / 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, etc
  • 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.

Quantum of Finance:

  • Studies in India - Maximum Upto Rs.10 lakhs.
  • Studies Abroad - Maximum Upto Rs.20 lakhs.

Margin :

Upto Rs..4 lacs



Above Rs. 4 lacs           

Studies in India



Studies Abroad           


Moratorium: NIL

Processing Fee :

  • 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.

Rate of Interest :

  • 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 including children of the Staff members of the Bank.
  • Servicing of interest during study period and the moratorium period till Commencement of repayment is optional for students. Accrued interest will be added to the principal amount borrowed while fixing EMI for repayment.

Repayment Period of the Loan:

  • Repayment Holiday / Moratorium: Course period + 1 year or 6 months after getting job, whichever is earlier.
  • The accrued interest during the holiday period is to be added to the principal while repayment in EMI is fixed.

For loans upto Rs. 7.5 lakh

- Upto 10 years

For loans above Rs.7.5 lakh

- Upto 15 years

To know the list of accredited educational institutes for financing loans to students, Visit the Link :

For more Details, Kindly refer the following link :

Andhra Bank’s Educational Loan for Vocational Courses

Objective of the Scheme :

The scheme is developed by I.B.A. as an extension of the Revised Model Educational Loan Scheme for Studies In India and Abroad. Educational Loans for vocational courses are also covered under the same scheme of ‘ Dr. Pattabhi VidyaJyothi’. The scheme proposed to be implemented is as follows.

Eligibility of the Student :

  • The student should be an Indian National
  • Should have passed 10th Standard examination conducted by State  /  Central Boards.
  • Should have secured admission to a Govt. Recognised Vocational Training Course which is employment oriented.

Age Criteria :

No specific restriction

Eligible Courses to Study :

Vocational And Skill Development Courses of duration from 6 months to 3 years leading to certificate  / diploma offered by recognized State  / Central Govt. Institution or Statutory /  Technical Body or Training Dept. of Govt. etc.

Liability of Finance :

Expenses allotted for the Loan :

  • Tuition / Course fixed by Govt / Authorities appointed by Govt.
  • Examination / Library / Laboratory fee
  • Caution deposit.
  • Purchase of books / equipments / instruments
  • Any other expense required to complete the course.
  • In respect of course fee of Private Institutions, the expenses will be limited to 125% of the fees prescribed by the Govt. for similar courses, if such fees is not fixed by Govt / Authorities appointed by Govt.

Quantum of Finance:

  • Need based finance to meet the expenses worked out as above will be considered subject to the following ceilings. No Margin from the borrower.
  • For Courses of Duration Upto 1 year : Rs. 50,000 / -
  • For Courses of Duration above 1 year: Rs.1,50,000 / -
  • In respect of courses offered by reputed institutions having regard to the nature of such courses and employability, ability to repay out of job earnings the ceilings may be relaxed to Rs.75,000 / - in respect of courses Upto 1 year duration and Rs.2 Lakh for courses of duration above 1 year.

Margin : NIL

Moratorium : NIL

Processing Fee /  Mortgage Charges : NIL

Repayment Period of the Loan :

  • For Courses of Duration upto 1 year: 3 to 5 years with a moratorium period of 6 months from the completion of the course.
  • For Courses of Duration above 1 year: 5 to 7 years with a moratorium period of 12 months from the completion of the course.

For more Details, Kindly refer the following link :

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