Allahabad Bank Education Loans

Education Loans offered by Allahabad Bank is quite high in amount as compared to that offered by the other nationalized banks in India. Students who plannned to study in India or abroad can apply for a high sum of education loan from Allahabad Bank.

Any Indian National, who is an adult or a minor student represented by a guardian can apply for the education loan from Allahabad Bank. The applicant will be considered eligible for Allahabad bank education loan if he gets admission to a professional or vocational program on the basis of a selection procedure or an entrance test. However, there can be exceptions made in special cases.

The amount of Allahabad Bank Education Loan is decided on the basis of the applicant's requirement. The maximum amount of education loan for studying in India is Rs 15 lacs while it is Rs 25 lacs for studying abroad.

There is no margin on the education loan amount upto Rs 4 lacs. However on the education loan amount above Rs 4 lacs, there is a margin of 5% and 15% for studying in India and abroad respectively. If you apply for a education loan amount above Rs 4 lacs, you need to submit a 3rd party as a guarantee. When the amount exceeds Rs 7.5 lacs, you need to submit a collateral security along with 25% margin that covers the amount of education loan. In this case, you also need to assign the future income of the student for paying the installments.

The college, hostel or school fee and even exam fee is covered by the Allahabad Bank education loan. Other expenses like cost of buying books, travel expenses, cost of essential equipment, caution deposit, building fund and refundable deposit are also covered in Allahabad Bank education loans. The education loan borrower from Allahabad bank can repay the loan in 5 to 7 years beginning from 6 months after getting a job or 1 year after completing the course, whichever happens earlier.

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