Allahabad Bank Loan

Allahabad Bank Education Loan for Higher Studies in India and Abroad Education

Since the rules, regulations, eligibility conditions, repayments and interests rates etc are revised by the banks from time to time. students and parents are advised to check thoroughly the terms and conditions of educational loan scheme of respective bank on offer at the time of application.

Allahabad Bank

Highlights of the Scheme :

  • Under the plan a low cost group life insurance cover will be provided for the loan liability of Educational Loan borrowers (students) during entire period of loan (i.e., course period & moratorium period plus repayment period), in case of his unfortunate death.
  • The age of entry into the plan is 18 to 25 years Existing Educational Loan borrowers can opt to join the plan on exercising simple option and payment of one time single premium.
  • No medical examination is required for joining the plan. The one-time (single) premium amount (as per table below) will be paid upfront and if requested, the Bank will finance the same as project cost


Course Period 1 year 2 years 3 years 4 years 5 years
Moratorium + Course Period 2 years 3 years 4 years 5 years 6 years
Repayment Period 7 years 7 years 7 years 7 years 7 years
Loan & Insurance Cover Period 9 years 10 years 11 years 12 years 13 years
Premium (Rs. per lac) Rs. 738/- Rs. 832/- Rs. 920/- Rs. 1005/- Rs. 1086/-


  • The course period of existing borrower for the purpose of insurance cover and ascertaining the premium amount under the plan shall be determined on the basis of the left over course period in completed years. For example, if the borrower has already completed 2 years out of his/her 4 years course period, the premium amount in such case shall be calculated as 2 years considering the remaining course period only. Accordingly, the amount of premium in this case shall be Rs. 832/- per lac. If however the above borrower has completed only 2 year 6 months of his course at the time of his/her entry to the scheme, the left over course period will be counted as only 1 year in such case.
  • The amount of premium is quoted per lac of rupees. In case of part of this amount proportionate premium would be charged depending on the actual loan amount to be covered under the scheme.

Amount of insurance Cover :

  • Maximum insurance cover available under the scheme is Rs. 7.5 lacs for study within Indian and Rs. 15 lacs for study abroad. Insurance cover will be granted subject to the member being in good health on the date of entry, a declaration of which (as per Annexure- II) is to be submitted by the member along with the Application Form for Membership (as per Annexure- I) at the time of joining the scheme.

Target Group:

  • Should have secured admission to a higher education course in recognized institutions in India or Abroad through Entrance Test/ Merit Based Selection process after completion of HSC (10 plus 2 or equivalent).
  • Where the admission is purely based on the marks scored in qualifying examinations then the cut off marks for loan eligibility is 60%.
  • Meritorious Students admitted under Management Quota are also eligible for loan.


Educational Loan Scheme aims at providing financial support from the banking system to meritorious students for pursuing higher education in India and abroad. A meritorious student, though poor, is provided with an opportunity to pursue education with the financial support from the banking system with affordable terms and conditions.

Courses eligible :

Studies in India (Indicative list):

  • Approved courses recognized by UGC/ Govt. / AICTE/ AIBMS/ ICMR etc.

Studies abroad :

  • For job oriented professional/ technical courses offered by reputed universities.


Parents/ Guardians of students pursuing school education from Nursery standard to 12th Standard.

Eligibility Criteria :

Any individual who has secured admission in a course run by Industrial Training Institutes (it is), Polytechnics or in a School recognized by Central or State Education Boards or in a College affiliated to recognized University, Training Partners affiliated to National Skill Development Corporation (NSDC) / Sector Skill Councils, State Skill Mission, State Skill Corporation, preferably leading to a Certificate / Diploma / Degree issued by such Organization as per National Skill Qualification Framework (NSQF) is eligible for loan under the Scheme. The Government of India / State Governments may, from time to time, notify Institutes / Organizations for this purpose, which will be advised accordingly. Courses run by above mentioned Training Institutes aligned to National Skill Qualification Framework (NSQF) shall be covered by the? Skill Loan Scheme?.

Expenses considered for loan :

  • Fee payable to college/ school/ hostel and other related expenses.

Amount of Loan:

Study in India:

Up to Rs.20 Lac depending on the Institute.

Study abroad:

Rs.50 Lac.


  • Up to Rs.4 Lac: Nil Above Rs.4 Lac: in India:5%; Abroad:15%

Period of loans:

Course Period plus one year or Six Months after getting Job, whichever is earlier.

Loan Amount Interest Rate:

For studies in India
For IIMs, IITs & others MCLR
For NITs & others MCLR+1.50%
For other Institutes MCLR+2.00%
For studies Abroad
For loan amount up to Rs.4.00 Lac MCLR+2.00%
For loan amount above Rs.4.00 Lac up to Rs.7.50 Lac MCLR+2.00%
For loan amount above Rs.7.50 Lac MCLR+1.50%
  • 0.50% rebate for girl students
  • 1.00% interest concession if interest is paid during study & moratorium period


  • The loan documents should be executed jointly by the student and the parent (s)/ guardian as joint-borrower.
  • Up to Rs.4 Lac ? no collateral security
  • Above Rs.4 Lac ? (depending on the Course / Institutes) security varies from third party guarantee, co-obligation of parents, full collateral security


Repayment can be done upto 5years

Processing Fee :

For studies in India :

  • For loan amount above Rs.10.00 Lac -- 0.15%, maximum of Rs.3000/-

For studies abroad :

  • For loan amount above Rs.20.00 Lac -- 0.10%, maximum of Rs.5000/-

Course Duration :

  • There is no specific restriction with regard to the age of the student to be eligible for skilling loan.

Minimum Age :

  • There is no specific restriction with regard to the age of the student to be eligible for skilling loan.
  • However, if the student is a minor, while the parent executes documents for the loan, the branches will obtain a letter of acceptance / ratification from him / her (student) upon attaining majority.

Quantum of Finance :

  • Minimum quantum of finance is Rs. 5,000/- and maximum Rs.150,000/-.


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