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Andhra Bank Education Loan - Student Loan in India

Andhra Bank Education Loan

Educational Loans for Higher Studies in India and Abroad

Andhra Bank Education Loan Student eligibility

The student should be an Indian National.

NRI-if student is holding Indian Passport. (Suitable Collateral Security enforceable in India is to be provided for all such proposals.)

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)/higher qualification.

In case where admission is not through common entrance test and the marks secured in the qualifying examination is the only criteria adopted, the minimum cut off marks should be 65% in aggregate in the qualifying academic examination.

Educational loans are allowed to meritorious students, who qualify in entrance examination but choose to pursue under Management quota for reasons like proximity, choice for a course of discipline or any other reasons pertaining to his academic/career interests.

Andhra Bank Education Loan Institute Eligibility

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

List of accredited institutions for all the courses is to be prepared by the Zonal Offices, and individual scores have to be allotted based on scoring methodology designated for the purpose. The rating system and modalities of accrediting Educational Institutes is as per Annexure I. Education Loans should be given to students who secure admission in such accredited Institutions only. 

Andhra Bank Education Loan Courses eligible 

Studies in India: (Indicative list)

Approved courses leading to graduate/ post graduate degree and P G diplomas conducted by recognized colleges/ universities recognized by UGC/ Govt./AICTE/ AIBMS/ ICMR etc. Courses like ICWA, CA, CFA etc.

Courses conducted by IIMs, IITs, IISc, XLRI. NIFT,NID etc. 

Regular Degree/Diploma courses like Aeronautical, pilot training, shipping, etc., approved by Director General of Civil Aviation/Shipping, if the course is pursued in India. Air Craft Maintenance Engg, Pre-Sea Training courses must be either a degree course recognized by a competent University or Diploma course recognized by appropriate State Govt. body to be eligible for considering loan. 

Approved courses offered in India by reputed foreign universities. 

Educational Loans for Nursing Courses and other Para Medical courses offered by approved institutes are to be sanctioned at Zonal level of the Bank only .Considering demand for pursuing nursing courses, loans for students getting admission through management quota also can be sanctioned. 

The fee considered for finance is restricted to fee structure as approved by the State Government or regulatory body. It is to be ensured that the student has financial resources to meet the funding gap. 

Zonal Offices can also identify and recommend to H.O for approval/administrative clearance, any other course offered by institutes of repute with assured employment potential for the students and where the degrees/diplomas /certificates issued by such institutes have due recognition by Govt. Of India/State Govt./Academic Bodies duly constituted by State/Central Govt in addition to the list of premier institutes presently enlisted by us. 

The list of courses contained in the,, considered to be eligible courses. 

Off campus courses and onsite/partnership programmes are not eligible for educational loans.

Andhra Bank Education Loan for Studies abroad

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

Post graduation: MCA, MBA, MS, etc.

Courses conducted by CIMA- London, CPA in USA etc. Degree/diploma courses like aeronautical, pilot training, shipping etc provided these are recognized by competent regulatory bodies in India/abroad for the purpose of employment in India/abroad.

Reference to other courses approved for financing are as indicated in 

Diploma courses and certificate courses have not been included as eligible courses for the scheme. Post graduate studies leading to PG degrees and PG diplomas offered by reputed institutes/universities only will be covered by the scheme. Assessment of employment potential or future prospects is very important criterion considering the higher cost of studies involved. 

Expenses considered for loan

Fee payable to college/ school/ hostel*

Examination/ Library/ Laboratory fee 

Travel expenses/ passage money for studies abroad 

Insurance premium for student borrower, if applicable 

Caution deposit, Building fund/refundable deposit supported by Institution bills/receipts. ** 

Purchase of books/ equipments/ instruments/ uniforms*** 

Purchase of computer at reasonable cost, if required for completion of the course***

Any other expense required to complete the course - like study tours, project work, thesis, etc*** 

In respect of Degree level courses in Non Technical and Non Professional courses the aggregate of all expenses considered for finance should not exceed Rs.1 Lakh for the total course . 


Lodging and boarding charges will be considered for financing not exceeding Rs. 50,000/- per year in case the student chooses / required to opt for outside accommodation.

These expenses could be considered subject to the condition that the amount does not exceed 10% of the total tuition fees for the entire course.

It is likely that expenditure under Item Nos. f,g&h above may not be available in the schedule of fees and charges prescribed by the college authorities. Therefore, a realistic assessment may be made of the requirement under these heads. However, the maximum expenses included under f,g & h may be capped at 20% of the total tuition fees payable for completion of the course.

Andhra Bank Education Loan 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. Loans allowed with the following ceilings for finance will be classified under Priority Sector.

Studies in India - Maximum upto Rs.10 lakhs

Studies Abroad - Maximum upto Rs.20 lakhs

However for loans at degree level courses in non technical and non professional courses the maximum finance may be pegged at Rs.1 Lakh keeping in view the lower future income potential for these courses. 

For Nursing Courses the quantum of finance is restricted to fee structure as approved by the State Government or regulatory body. It is to be ensured that the student has financial resources to meet the funding gap. 

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. 

Andhra Bank Education Loan Margin:

Upto Rs..4 lacs



Above Rs. 4 lacs

Studies in India



Studies Abroad


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.

Andhra Bank Education Loan Security:

Up to Rs. 4 lakh

Parents to be joint borrower(s).
No security. Collateral free limit of Rs.4 lakh is student specific and not family specific. More than one loan can be considered for other siblings in the same family even when one of the siblings has already availed a collateral free loan.

Above Rs.4 lakh & upto Rs.7.5 lakh

Besides the parent(s) executing the documents as joint borrower(s), collateral security in the form of suitable third party guarantee will be taken. The bank may, at its discretion, in exceptional cases, waive third party guarantee if satisfied with the net-worth / means of parent/s who would be executing the document as joint borrower(s).

Above Rs.7.5 lakhs

Parent(s) to be joint borrower(s) Tangible collateral security of suitable value acceptable to bank along with the assignment of future income of the student for payment of installments.

Andhra Bank Education Loan Interest Rate

Up to Rs. 7.50 lakhs : MCLR(one year) + 2.00 %

Above Rs. 7.50 lakhs : MCLR(one year) + 1.55 % 

 (0.50% concession for girl Students) and concessional interest rates to students in premier institutions @ MCLR (One year) +0.05.