Allahabad Bank Education Loan , Students loan details , Education Loan Interest Rates , Eligibility , Application Form

Allahabad Bank

Allahabad Bank’s Education Loan

Objective of the Scheme:

Allahabad 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

The student  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 ). Where the admission is purely based on the marks scored in qualifying examinations then the cutoff marks for loan eligibility is 60%.

Students admitted under management quota are also eligible for loan.

Age Limit :

There is no specific restriction with regard to the age of the student to be eligible for education loan.

Studies in India :

Approved courses leading to graduate / post graduate degree and PG 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.

Teacher training Courses / Nursing courses / B. Ed is also eligible for Education loan provided the Training Institutions are approved either by Central Government or by State Government and such courses should lead to Degree or Diploma Course and not to a Certification Course.

Approved courses offered in India by reputed foreign universities.

Studies over a Wide Area :


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, and Shipping etc provided these are recognized by competent regulatory bodies in India / abroad for the purpose of employment in India / abroad.

Liability of Finance :

Expenses Allotted for the Loan :

Fee payable to college / hostel.

Exam / Library / Laboratory Fee.

Passage money for study for abroad.

Purchase of books / equipments / uniforms

Purchase of computers, if required for completion of course.

Reimbursement of fee paid at the time of counseling (If the student applies for loan within 60 days of such payment).

Quantum of Finance :

Need based finance to meet the expenses worked out will be considered taking in to account margins subject to the following ceilings:

Studies in India - Maximum up to Rs. 20 Lac. Institutes are graded and loan amount depends upon the grading of the institute.

Studies Abroad - Maximum up to Rs. 20 Lac.

Margin :

Up to Rs. 4.00 lacs           


Above Rs. 4.00 lacs

In India                        


Studies Abroad           


Moratorium :

“Course Period plus one year” or “Six Months after getting Job”, whichever is earlier.

Processing Fee / Mortgage Charges :

Processing Fees / Documentation Charge :

For studies in India - NIL

Mortgage Charges :

Actual expenses, if any, will be borne by the Student/Parent or Guardian.

Rate of Interest:

Rate of Interest is institute specific varies from BR+1.50 to BR+3.00 (11.70% to 13.20%). Simple interest during the course & moratorium period.

0.50% rebate in Rate of Interest for girl students.

1.00% concessions during moratorium period if interest is serviced during moratorium period.

Repayment Period of the Loan :

For loans up to Rs. 7.5 Lac      -     up to 10 years

For loans above Rs. 7.5 Lac    -     up to 15 years

For more Details, Kindly refer the following link :

II. Allahabad Bank’s Education Loan - Gyan Dipika

Objective of the Scheme :

Allahabad Bank provides financial support to Parents / Guardians of students pursuing school education from Nursery standard to 12th Standard.

Eligibility of the Student  :

Should be an Indian national residing in India.

Student should have secured admission to a Recognized / Affiliated and Reputed School  / High School / Junior School / College ( including CBSE / ICSE / State Board ) for courses under Nursery standard to 12th Standard identified / approved by the respective Zonal Office of the Bank.

Liability of Finance :

Expenses allotted for the Loan :

Admission fees including caution money, building fund, refundable other deposits, maintenance fees etc.

Annual fees including Development fees, Examination fees, Library / Laboratory fees, Hostel charges and other fees related to Hostels, purchase of Books, Equipment, Uniforms, Computer etc.

Tuition Fees to be paid in advance on quarterly / half-yearly / yearly basis.

Quantum of Finance :

Need based finance subject to the repaying capacity of the parents,

Maximum limit limit of the quantum of finance - Rs.1 lac, including all types of expenses or any of the expenses under the scheme as mentioned above,

Net combined income of the parents'/guardians' should be above 40% of gross income, after considering the EMI of the proposed loan.

Margin : NIL

Moratorium : NIL

Processing Fee : NIL

Loan Limit :  Maximum Rs. 1,00,000/-

Rate of Interest :  BR + 4.00% (14.20%)

Repayment Period of the Loan :

The loan is repayable in three years by 36 Equal Monthly Installments to be paid by Post Dated Cheques ( PDCs ).

However, if the loan is taken for quarterly / half yearly expenses, the repayment period would be adjusted in line with the periodicity of the expenses.

First installment will be due in the next month after the last disbursement.

For more Details, Kindly refer the following link :

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