Allahabad Bank, founded in 1865, was one of India’s oldest public sector banks. Allahabad Bank merged with Indian Bank in 2020. All of the bank’s customers were transferred to Indian Bank, and Allahabad Bank effectively ceased independent operations on April 1, 2020. The Allahabad Bank education loan was also discontinued as a standalone product. Check out the Indian Bank education loans if you want to apply for Allahabad Bank study loans. Let’s go over all of the characteristics and details of the current education loan product to make things easier for you.
What Is The Interest Rate On The Allahabad Bank Education Loan For Studying Abroad?
Applicants can obtain an Allahabad Bank education loan interest rate of 12.5% per annum. Females can also get a 0.50% p.a. interest rate reduction.
What Is The Amount Of The Allahabad Bank Education Loan’s Margin?
For study loans up to INR 4 Lakhs, no margin money is required. For amounts greater than INR 4 Lakhs, the applicant must pay a margin of up to 15% for international education and 5% for study in Indian colleges.
What Is The Amount Of Loan Available Through Allahabad Bank’s Education Loan?
The bank could provide up to INR 15 lakhs for in-country studies and up to INR 25 lakhs for out-of-country studies.
Important Details
| Maximum Loan Amount | For abroad education: Up to INR 25 LakhsFor study in India: Up to INR 15 Lakhs |
| Loan Tenure | For up to INR 7.5 Lakhs: up to 10 YearsAbove Rs.7.5 lakh: Moratorium period + 15 years |
| Interest Rate | 12.50% per annum with 0.5% concession for girls |
| Moratorium Period | Either after the course completion or 1 year after the student gets a job |
| Margin Money | Up to INR 4 Lakhs- NilFor more than INR 4 Lakhs- 15% for studying abroad and 5% for Indian college/university |
| Eligibility | The student should be an Indian citizen. Students should have secured admission to professional or technical courses in India or abroad. |
How Long Does The Allahabad Bank Education Loan Take To Repay?
Repayment of an education loan can begin after the course is completed or a year after the student obtains a permanent job. If the loan amount is up to INR 7.5 Lakhs, the repayment period is up to 10 years; if the loan amount is greater than INR 7.5 Lakhs, the repayment period is up to 15 years.
What Kind Of Security Must Be Pledged For An Education Loan?
- Students are not required to mortgage any form of collateral if the required loan amount is less than INR 4 Lakhs. It is sufficient for parents to sign as co-applicant.
- A third-party co-applicant is required in addition to the parents for loans ranging from INR 4 Lakhs to INR 7.5 Lakhs.
- For loans of more than INR 7.5 Lakhs, parents can be co-applicants, and collateral of sufficient value is required to ensure loan repayment.
What Documents Are Needed For An Allahabad Bank Education Loan?
- Voter ID, passport, Aadhar card, and other forms of identification can be used to prove your address.
- Academic record: 10th/12th-grade mark sheet for undergraduate students and graduate degree and mark sheet for graduate students.
- Proof of age
- Proof of family income includes a salary certificate, an ITR, and the guardian’s pension certificate.
- Certificate of community service
- Admission certificate or proof of I-20 fee details
- Documents used as collateral (if applicable): valuation certificate, registry documents, LIC policy, and so on.
- An affidavit stating that the student and parent have not obtained an education loan from any other bank.
Where In India Can A Student Apply For An Allahabad Bank Education Loan?
Students can apply for an Allahabad Bank loan for overseas education at any branch in or near their place of residence.
Is The Education Loan Available For All Degrees And Fields Of Study?
Allahabad Bank provides education loans for diploma, undergraduate, and postgraduate courses in India and abroad that lead to professional and technical degrees.
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