Educational Loans - Andhra Bank

Andhra Bank offers educational loans to meritorious students for pursuing a higher degree either in India or abroad.

Eligibility:

Age :
12-30 years for studies in India
18 to 35 years for study in other countries

Qualifying Marks Exempted

Quantum of Loan:
Maximum
Rs. 10.00 Lacs for studies in India
Rs. 20.00 Lacs for Studies Abroad

Purpose of Loan :
To meet cost of Tuition fee, Hostel fee, Examination fee, Books, Project work, Study tours, and Refundable deposits.
PLUS
AIR PASSAGE AND MAINTENANCE, FOR ABROAD STUDIES.

Margin :
Upto Rs.4.00 Lacs Exempted
Above Rs.4.00 Lacs 5% In India 15% for Abroad Studies.

Security:
Upto Rs.4.00 Lacs guarantee of parent
Rs.4.00 to 7.50 lacs - guarantee of the parent
Above Rs.7.50 Lacs--Collateral Security of suitable value & guarantee of the parent

Rate of Interest is subject to change in BMPLR from time to time
Interest   w.e.f., 01.04.2009
Upto Rs.4.00 Lacs--(BMPLR -1.25) - Presently 11.00%
Above Rs.4.00 lacs--(BMPLR + 0.50) presently 12.75%
          (BMPLR at present: 12.25% w.e.f., 01.04.2009)

Concession of 0.50% for women for sanctions after 01.07.2005
DIFFERENT RATES OF INTEREST - DIFFERENT INSTITUTES

For IIMs (with out MOU), Rate of Interest is BMPLR-2.50 = 9.75% (Sanctions made from 15.07.2008)

NO PROCESSING CHARGES ; NO PREPAYMENT CHARGES APPLICABLE FOR EDUCATIONAL LOANS

INTEREST WILL BE CHARGED ON SIMPLE BASIS DURING STUDY /HOLIDAY PERIOD only.

B) AB Career Advancement Loan Scheme (ABCALS)

1	Eligibility	Permanent employee of Govt / Public Sector Cos / Corporations /reputed Companies with 10 years of balance of service.
2	Purpose	For studies with reputed Institutes and with International affiliations (Computer including printer can be purchased for all the courses with a maximum of Rs.50,000/-, within the over all limit.)
3	Amount of loan	Maximum Rs.7.50 Lakh
4	Margin	10 %
5	Collateral security	NSCs, KVP, LIC policy surrender value, Govt. securities, Gold ornaments, Bank deposits, Building/flat of applicant / co-obligant value not less than loan amount.
6	Gestation Period	One month
7	Repayment period	Maximum 60 monthly installments commencing after one month from the date of advance.
8	Prepayment Charges	2% flat on the prepaid amount for all Term Loans where the repayment is fixed beyond 36 months. i.e. installments paid ahead of repayment schedule.
9	Other requirements	i) No objection certificate from the employer for prosecuting higher studies and to avail loan from the Bank. ii)Salary undertaking letter from employer for recovery of installments. iii) Undertaking letter from employer to adjust the dues to the bank from out of terminal benefits, of the employee if needed.