2) If the student is a Non-Resident Indian (NRI), he/she should hold a valid Indian Passport.
3) The applicant must provide a collateral/security that is enforceable in India.
4) The student must have secured admission into the higher education course, in a recognized Indian or foreign institution, through an entrance test, after completing his/her 10+2 or equivalent qualification.
5) In case point 4 is based only on the marks secured in the qualifying examination, then a minimum of 65% in aggregate is required to qualify for the educational loan from Andhra Bank.
6) Loans are allowed for merit students, who qualify in the entrance exam and yet choose to pursue the course under the management quota for whatever applicable personal reasons.
Higher Studies in India and Abroad - No Upper Limit.
Duration Upto 3 months - Rs.20,000
Duration Upto 3 - 6 months - Rs.50,000
Duration Upto 6 months - 1 year- Rs.75,000
Duration Above 1 year - Rs.1,50,000 - Rs.2 lakhs
Up To Rs. 7.50 Lakhs- Base Rate+2.75%
Above Rs. 7.50 Lakhs- Base Rate+1.50%
Higher Studies in India & Abroad- Course period + 1 year or 6 months after getting job, whichever comes first.
Student applies for higher studies immediately after completion of current course.-Higher Studies in India & Abroad- Shifted by 6 months from employment or 1 year from the completion of the second course, whichever comes first.
Loans upto to Rs.50000/- 2years
Loans from Rs.50,000 to Rs.1 lakh-2 to 5 years.
Loans above Rs.1 lakh - 3 to 7 years.
Student prepays loan- Anyone - Can be done at any time without penalty.
Upto Rs.4 lakhs- 0%
Above Rs.4 lakhs in India- 5%
Above Rs.4 lakhs abroad - 15%
Upto Rs.4 lakhs: No security.
Parents must be joint borrower(s).
The limit of Rs.4 lakhs applies to the student and not the family.
Other siblings can apply for the loan irrespective of the fact that a sibling has already availed the security free loan.
Above Rs.4 lakhs and upto Rs.7.5 lakhs: Third party guarantee needed as security.
parent(s) must execute the document as joint borrower(s).
Above Rs.7.5 lakhs: Collateral security of suitable value is required.
Future income of the student must be earmarked for payment of loan installments.
Parent(s) must sign-in as joint borrower(s).
0.50% concession for girl students.
Concessional interest rates also apply for student who are pursuing their education at premier institutions. This applies on the base rate of 10.25%.
Simple interest will be charged through the study period and upto the commencement of repayment.
Accumulated interest will be compounded at the start of repayment tenure and the applicable EMI will be fixed accordingly.
Subsidy Scheme- Central Scheme to provide Interest subsidy (CSIS):
1) The CSIS is an attempt by the Government of India to help students from the economically weaker sections of the society, by providing full subsidy on interest during the moratorium period (ideally, course duration plus one year/six months after getting job, whichever comes first).
2) This scheme applies to students whose familial annual gross income is not more than Rs.4.50 lakhs/year.
3) To confirm upon the income status of the applicant (his/her family’s gross annual income), income proof must be issued by public authorities who are authorized by the State Governments to do so.
4) The applicable subsidy is allowed ONLY once for either the first undergraduate degree or the post graduate degree/diploma attempted by the student in India. However, integrated courses, graduation plus post-graduation, have interest subsidy applicable at all times.
5) Interest subsidy is nullified if the student, a) quits the course, b) is expelled from the institution on disciplinary or academic grounds.
6) The subsidy claims are admissible on a yearly basis, as decided by the HRD Ministry, Government of India.
7) In terms of the Applicable Income Tax - Interest charged to the educational loan account and paid is exempted from income tax deductions.
Fees payable to School/College/Hostel.
Fees applicable for Examination, Library and Laboratories.
Variables like Building fund, Refundable deposits, Insurance premium for student (if applicable) etc.
Purchase of uniforms, books, equipment’s and instruments, computer at a reasonable cost.
Expenses incurred in Travel, also inclusive of passage money for studies abroad.
Spends that are crucial to the successful completion of the course- Study tours, Projects, Thesis, etc.
The applicable fees must be fixed by either the Government or authorities appointed by the Government. Again, with respect to course fee of Private Institutions, the expenses will be limited to 125% of the fees prescribed by the Govt.