Allahabad Bank Education Loan for Higer studies in India and Abroad

Allahabad Bank Education Loan for Higer studies in India and Abroad

Allahabad Bank Education Loan Scheme


  • Indian National who secures admission for professional/ technical courses in the recognized institutions in India or Abroad through Entrance Test/ Merit Based Selection Procedure after completion of H.S.C. (10 plus 2 OR equivalent).

Courses Eligible:

Courses eligible for study in India:

  • Approved courses lead the Graduation/ Posy-Graduation degree and P.G. Diplomas that would be conducted by recognized Colleges/ Universities that is recognized by UGC/ Govt./ AICTE/ AIBMS/ ICMR etc.
  • Courses like CA, CFA, ICWA etc.
  • Courses are conducted by IITs/  IISc, XLRI, NIFT, IIMs, NID etc.
  • Regular Degree or Diploma Courses like Aeronautical, Pilot Training, Shipping etc. which is approved by Director General of Civil Aviation/ Shipping, if the course is pursued in India.
  • Approved courses would be offered in India by reputed Foreign Universities.

Courses eligible for Study abroad:

  • Graduation: Job oriented professional/technical courses offered by reputed Universities.
  • Post Graduation: MBA, MS, MCA etc.
  • Courses conducted by CPA in USA, CIMA London, etc.
  • Regular Degree/ Diploma courses like Aeronautical, pilot training, shipping etc., the Institute duly recognized by the Competent University/ State Body/ Local Aviation/ Shipping Authority.

The information on the recognition status for the Institute that may be gathered from the following websites: , , (For studies in India) (For studies abroad)

Quantum of Loan:

Finance that is based on need is subjected for repaying capacity of the parents / students with following ceilings:

  • Studies in IndiaMaximum Rs. 10.00 lac
  • Studies abroadMaximum Rs. 20.00 lac.

Expenses Considered for Loan

  • Purchase of Books / Equipments/ Instruments/ Uniforms.
  • Caution Deposit/ Building Fund/ Refundable Deposit supported by Bills/Receipts of the Institution, subject to the conditions that amount does not exceed 10% of the total tuition fees for the entire course.
  • Travel Expenses/Passage Money for studies abroad.
  • Purchase of Computers essential for completion of the course at reasonable cost.
  • Insurance premium for student borrower.
  • Any other expenses required to complete the course, such as- Study Tours, Project Work, and Thesis etc.
  • Fee is payable for College / School /Hostel
  • Examination/Library/Laboratory Fee
  • Reimbursement of the fee paid at the time of counseling if applied within 60 days from the date of such payment.


There will be no margin upto Rs 4 lacs for loans. Above that Rs 4 lacs, 5% margin for studies within India and 15% for higher studies overseas.

Application of Interest:

  • In Moratorium period, Simple interest will be applicable .
  • Service interest during moratorium period regularly and a special discount of 1.00% in the interest rate.


  • Repayment Holiday or Moratorium is the “Course Period + 1 year” or “6 months after getting job”, which is earlier.
  • Loans up to Rs.7.50 Lac should be repaid in a maximum of 10 years & those above Rs.7.50 Lac in a maximum of 15 years after commencement of repayment period.


  • For IIT/IIM/ISB(Indian School of Business, Hyderabad ), for loan upto Rs 10.00 lac- NIL, Only co-obligation of Parent / Guardian
  • For others
    • Loan upto Rs 4.00 lacs: NIL, Only the co-obligation by Parent / Guardian
    • Loan above Rs 4.00 lacs and upto Rs 7.50 lacs: that Satisfactory third party guarantee & Co-obligation* of parent/ guardian.
    • Loan above Rs 7.50 lacs: Co-obligation * of parents/ guardian and the tangible collateral security covering full loan amount.

Delivery Channel

  • From our Branches, Retail Banking Boutiques and Centralized Retail Banking Boutiques
  • On-line approval facility for leading 250 institutions within 72 hours.

Value added Service

  • FREE Debit Card


  • Group Life Insurance Cover for the extent for loan liability with the entire repayment period that is available.
  • Others
    • The parent / guardian would be the co-borrower to the student
    • Education Loan would be sanctioned by branches / RBBs/ CRBBs nearest to the place of residence of parents.
    • Second time education loan would be available for higher studies / escalation of cost.

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