Allahabad Bank Education Loan
Allahabad Bank Education Loan: Allahabad Bank is a public sector bank in India that was founded in 1865 in Allahabad (now Prayagraj), Uttar Pradesh. It was nationalized in 1969 and is now a wholly-owned subsidiary of Indian Bank. Allahabad Bank has a network of over 3,000 branches across India, providing a wide range of banking products and services to its customers.
Some of the products and services offered by Allahabad Bank include savings and current accounts, fixed deposits, loans (such as home loans, personal loans, car loans, and education loans), credit cards, debit cards, and internet banking facilities. The bank also provides services such as RTGS and NEFT, insurance products, and mobile banking services.
Allahabad Bank offers education loans to students who wish to pursue higher studies in India or abroad. Here are the details of Allahabad Bank’s education loan:
1. Eligibility
- The applicant should be an Indian national.
- The applicant should have secured admission to a recognized course in India or abroad through an entrance test or a merit-based selection process.
- The applicant should have a good academic record.
2. Loan Amount
The loan amount is based on the fee structure of the course and the estimated cost of living. The maximum loan amount for studies in India is Rs. 10 lakhs, and for studies abroad, it is Rs. 20 lakhs.
3. Interest Rate
The interest rate on Allahabad Bank’s education loan varies from time to time, based on the market conditions. Currently, the interest rate starts at 6.75% per annum.
4. Repayment
The repayment of the education loan starts one year after the completion of the course, or six months after getting a job, whichever is earlier. The maximum repayment period is 15 years, including the moratorium period.
5. Security
For loans up to Rs. 4 lakhs, no collateral or third-party guarantee is required. For loans above Rs. 4 lakhs and up to Rs. 7.5 lakhs, a third-party guarantee is required. For loans above Rs. 7.5 lakhs, collateral security in the form of property or any other asset of adequate value is required.
6. Application Process
The application for the education loan can be made online or at any of the Allahabad Bank branches. The following documents are required:
- Admission letter from the educational institution
- Fee structure of the course
- Mark sheets of the qualifying examination
- Proof of income of the co-applicant/guarantor
- Identity proof of the applicant/co-applicant/guarantor
- Address proof of the applicant/co-applicant/guarantor
- Photographs of the applicant/co-applicant/guarantor
The loan application will be processed once all the documents are submitted and verified. Once the loan is approved, the applicant will receive a sanction letter, which will contain the loan amount, interest rate, repayment schedule, and other terms and conditions.
FAQs
Which bank is best for applying for education loan?
State Bank of India is best for applying for education loan.
Which bank has lowest interest rate on education loan?
State Bank of India has lowest interest rate on education loan. SBI’s education loan interest rates start from 6.20% p.a. for loans up to Rs. 50 lakhs.
How can I check my education loan eligibility in India?
You can check your education loan eligibility in India by following these steps: Choose a bank or financial institution, Check eligibility criteria, Use online loan eligibility calculators, and Contact the bank or financial institution.
Which student loan has no interest?
There is no student loan in India that charges zero interest. Most education loans offered by banks in India come with an interest rate.
Final Words:
In conclusion, Allahabad Bank’s education loan offers a great way for students to finance their higher education in India or abroad. However, it is advisable to thoroughly read and understand the terms and conditions before applying for a loan.
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