Andhra Bank Education Loan
Wednesday, January 29, 2020
Education & Career
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Andhra Bank Education Loan Scheme

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I. Model Educational Loan Scheme for Pursuing Higher Education in India and Abroad

Student Eligibility

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

Education Loans are given to students who secure admission in accredited Institutions. List of accredited institutions for all the courses are given in the bank's official website.

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

Courses Eligible

Studies in India: (Indicative list)

Studies abroad

Expenses considered for loan

Notes :-
Reasonable lodging and boarding charges will be considered in proportion to the course cost incase the student chooses/ is required to opt for outside accommodation.

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.
Servicing of interest during study period and the moratorium period till Commencement of repayment is optional for students. Accrued interest will be compounded at the time of commencement of repayment & EMI will be fixed accordingly.

Quantum of Finance

Need based finance to meet the expenses worked out as above will be considered taking into account margins. No specific upper limit is suggested.

In case of studies abroad, part cost of the study can be considered for finance as requested by the student duly taking into consideration part time jobs as permitted by the institutes to part fund the course costs.

Need based as informed in the admission/ confirmation letter of the University/ College, subject to a maximum of Rs. 20.00 lacs 


Upto Rs..4 lacs Nil
Above Rs. 4 lacs
- Studies in India : 5%
- Studies Abroad 15%

Scholarship/ assistantship to be included in margin.
Margin may be brought-in on year-to-year basis as and when disbursements are made on a pro-rata basis.


Note :-
The loan documents should be executed by both the student and the parent/ guardian as joint-borrower.
The security can be in the form of land/ building/ Govt. securities/ Public Sector Bonds/Units of UTI, NSC, KVP, life policy, gold, and shares/mutual fund units/debentures, bank deposit in the name of student / parent / guardian / any other third party or any other tangible security acceptable to the bank with suitable margin.
Wherever the land/ building is already mortgaged, the unencumbered portion can be taken as security on second charge basis provided it covers the required loan amount.

Appraisal / sanction/ disbursement

Applications will be received either directly at bank branches or through on-line mode. Sanction/rejection will be communicated within 15 days of receipt of duly completed application along with supporting documents. In the normal course, while appraising the loan, the future earning potential of the course to the student and the percentage of income available for repayment only will be looked into. Rejection of loan application, if any, shall be done with the concurrence of the controlling authority of the branch concerned and conveyed to the student stating reason for rejection.

Applications for Educational Loans from eligible student can be accepted either at the Bank branch near the residence of parents or to the educational institution. Service area approach is not adopted while sanctioning Education Loans.


Repayment Holiday/Moratorium: Course period + 1 year or 6 months after getting job, whichever is earlier.

If a student takes up higher studies immediately upon completion of the course, the commencement of repayment would get shifted to 6 months from employment or one year from completion of the second course whichever is earlier. This would be so irrespective of whether the student had taken fresh/top up loan for higher studies or not.

No penalty will be levied for prepayment of loan.


Bank may, with the consent of the student, arrange for life insurance/liability insurance policy for the students availing Education Loan, but not mandatory.

Processing charges

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.


II. Model Educational Loans for pursuing Vocational Courses

Educational Loans for vocational courses are also covered under the same scheme of Dr. Pattabhi VidyaJyothi . The scheme is as follows:

Student Eligibility

Courses Eligible

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.

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

Expenses considered for 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.

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.2 Lakh for courses of duration above 1 year.

Repayment Term

For Loans upto to Rs.50000/- Repayment Term upto 2 years.
For Loans from Rs.50,000 to Rs.1.00 lakh 2 to 5 years.
For Loans above Rs.1,00,000 3 to 7 years.

Other terms and conditions as applicable to the Model Educational Loan Scheme for Pursuing Higher Education in India and Abroad are applicable to this scheme also.

Contact Details

Head Office - Andhra Bank
5-9-11, Dr Pattabhi Bhavan,
Secretariat Road, Saifabad
Hyderabad 500 004. Telangana
Ph: 040- 23252000
Website : visit


Click here for the nearest bank branches

Note : Since the rules, regulations, eligibility conditions, repayments and interests rates etc. are revised by the banks from time to time in keeping pace with the changing capital market conditions, students and parents are advised to thoroughly check the terms and conditions of educational loan scheme on offer at the time of application.

   Study Abroad Loan , Loan for vocational course

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