Allahabad Bank Education Loans: Interest Rates, Features & Eligibility Criteria

Founded in 1865, Allahabad Bank was one of the oldest public sector banks in India & in 2020, Allahabad Bank got merged with Indian Bank.

All the customers of the bank were transferred to Indian Bank and Allahabad Bank effectively ceased its independent operations on 01 April 2020.

Allahabad Bank education loan as an independent product was also closed. If you want to apply to Allahabad Bank study loans, you can check the Indian Bank education loans.

To make it easy for you, let's explore all the features and details of the current education loan product.

Overview of Allahabad Bank Student Education Loan

Interest Rate of Allahabad Bank Student Education Loan

Applicants can get an education loan at a floating rate of interest of 12.5% p.a. Females can also get a concession of 0.50% p.a. on the interest rate.

Margin Money on the Allahabad Bank Student Loan

There is no margin money required for the study loans up to INR 4 Lakhs. For more than INR 4 Lakhs, the margin money that the applicant has to pay from his/her side is up to 15% for abroad education and 5% for study in Indian colleges.

What is the maximum loan amount that can be taken in the Allahabad Bank education loan?

The bank can provide up to INR 15 Lakhs for studies in India and up to INR 25 Lakhs for studying abroad.

What is the repayment period of the Allahabad Bank education loan?

Repayment of Allahabad Bank education loan can be started either after the completion of course or a year after the student gets a permanent job. If the disbursed loan amount is up to INR 7.5 Lakhs, the repayment period can be up to 10 years, while the loan amount above INR 7.5 Lakhs, the loan repayment period can be up to 15 years.

What is the security required to be pledged for the Allahabad Bank education loan?

• If the required loan amount is below INR 4 Lakhs, students do not have to mortgage any form of collateral. Parents have to sign as a co-applicant and it would be enough.
• For loan amount between INR 4 Lakhs and INR 7.5 Lakhs, a third-party co-applicant is required along with the parents.
• For a loan amount of more than INR 7.5 Lakhs, parents can be co-applicant along with collateral of suitable value is required to assure the repayment of the loan.

Read More About: Education Loan Without Collateral for Abroad Studies

What are the documents required for an Allahabad Bank education loan?

• Address proof: Voter ID, passport, aadhar card, etc.
• Academic record: 10th/12th mark sheet for undergrad students and graduation degree & mark sheet for PG students.
• Age proof
• Family income proof: salary certificate, ITR, pension certificate of the guardian.
• Community certificate
• Admission certificate or I20 
• Fee details proof
• Collateral documents (if applicable): valuation certificate, registry documents, LIC policy, etc.
• An affidavit declaring that no education loan is taken from any other bank by the student and parent.

At what locations in India can a student avail of an Allahabad Bank education loan?

Students can apply for an Allahabad Bank loan for abroad education at any branch in or in proximity to his/her place of domicile.

Is the Allahabad Bank education loan available for all types of degrees and disciplines?

Allahabad Bank offers education loans for diploma courses, undergraduate courses, and postgraduate courses which provide professional and technical degrees in India and abroad.

How can GyanDhan help?

If you are looking for an abroad education loan to study abroad, get in touch with GyanDhan. We have a tie-up with top financial lenders in India, including government banks- SBI & BOB, private banks- Axis Bank & ICICI Bank, and NBFCs- HDFC Credila, to provide the best deal on education loans. You can check your loan eligibility and see if you are qualified for an abroad education loan. Our education loan counselor will call you and understand your requirements and will suggest the best loan options for you!