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Education Loan in Andhra Pradesh

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Education Loan in Andhra Pradesh

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Brinda Khurana
Brinda Khurana

Study Abroad Expert

Updated on:  05 Nov 2024 | 
Reviewed By:  Aman  
| 414 | 56  min read

If you are a student in Andhra Pradesh planning to fund your education through a loan, here's what you need to know. Students in the state typically require about INR 15 lakhs for studies within India and around INR 50 lakhs for courses abroad. Education loan interest rates in Andhra Pradesh can range from 8.5% to 13%, influenced by the type of loan and the lender. These loans are essential for covering tuition, accommodation, and other significant educational expenses.

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Which Bank is Best for an Education Loan in Andhra Pradesh?

Andhra Pradesh stands out for its substantial allocation of education loans by public sector banks, reflecting the state's commitment to supporting students' educational aspirations. If you're seeking an education loan in Andhra Pradesh, it's crucial to compare offerings from different banks. Key factors to consider include the interest rates, loan terms, and the ease of the application process. Leading banks in the region provide a range of competitive loan options designed to accommodate the varied needs of students pursuing studies both in India and internationally.

 

Leading Banks for Education Loan in Andhra Pradesh For Studies in India 

Bank Name  Loan Amount  Processing Fee

State Bank of India 

Up to INR 50 lakh

Nil - INR 10,000+Tax 

Axis Bank 

Up to INR 75 lakh (unsecured) 

Up to 2% of the amount+GST 

ICICI Bank 

Up to INR 1 crore 

Up to 2% of the amount +GST

IDFC First 

Up to INR 30 lakh (unsecured) 

Up to 1.5% of the amount 

UBI 

Up to INR 1.5 cr (secured) 

Up to INR 40 lakh (unsecured)

INR 5000 (refundable) 

HDFC Credila 

Up to INR 40 lakh 

1% + GST 

Auxilo 

Up to INR 65 lakh 

Up to 2% of the sanctioned loan amount 

InCred 

Up to INR 60 lakh

0.75% - 1% of the sanctioned loan amount

BOB 

INR 7.5 lakh - INR 1.5 cr 

1% (max. INR 10,000) 

Check Your Education Loan Eligibility

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Leading Banks for Education Loan in Andhra Pradesh for Abroad Studies

Bank Name  Loan Amount  Processing Fee

State Bank of India

Up to INR 1.5 cr with collateral 

INR 10,000

Axis Bank

Prime A - INR 1 cr

Prime B - INR 40 lakh 

0.75% on the sanctioned loan amount 

ICICI Bank 

Up to INR 2 cr (secured) 

Up to INR 1 cr (unsecured) 

Up to 0.75% TO 1% + GST 

IDFC First Bank

Up to INR 75 lakh without collateral 

Up to 1.5% of the sanctioned loan amount 

Union Bank of India 

Up to INR 2 cr (secured) 

Up to INR 40 lakh (unsecured) 

INR 5000

HDFC Credila 

Up to INR 75 lakh 

0.5% - 1% 

Avanse 

Up to INR 75 lakh 

1% - 1.5% 

Auxilo 

Up to INR 65 lakh 

0.5% - 1.5% 

InCred 

Up to INR 80 lakh 

1% - 2% 

MPower Financing

Up to 100,000 USD 

5% (adjusted in the loan amount) 

Prodigy Finance 

Up to 100% cost to study 

Up to 5%, added to loan amount*

Bank of Baroda 

Up to 1.5 cr with collateral 

INR 10,000 + GST 

*Note: Upon loan approval, students are required to pay an upfront fee of $100 to receive their sanction letter. 

 

Explore Best Banks for Education Loans!

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What are the Documents Required for an Education Loan in Andhra Pradesh ?

Documents Required for an Unsecured Loan in Andhra Pradesh 

For issuing unsecured education loans in Andhra Pradesh, the necessary documents include:
 

1. Application Form: Must include two photographs, the applicant's signature, and basic personal information.
 

2. Student Documents:

  • list items Identification: Aadhar card, PAN card, and passport.
  • list items Admission Letter: From the university.
  • list items Utility Bills: Such as electricity or house tax.
  • list items Academic Records: From 10th, 12th, and any degrees/diplomas.
  • list items Competitive Exam Scores: IELTS, TOEFL, GRE, GMAT.
  • list items Gap Certificate: If there are any educational gaps.
  • list items Work Experience Letter: If applicable.

    •  

    3. Co-applicant Documents:

  • list items For salaried Co-applicants: Recent salary slips, bank statements, company ID, Form 16, and ITRs.
  • list items For self-employed: ITRs, bank statements, balance sheets, P&L accounts, and business address proof.

    •  

    4. Other Documents:

  • list items Financial Responsibility Letter: Stating the co-applicant’s responsibility for any uncovered costs.
  • list items Bank Statement: Showing transactions of both the student and co-applicant.
  • list items Invoice for Specific Expenses: Like travel or laptop if applicable.
  • list items Receipts for Advance Payments: And previous year’s loan statements.
  • list items Explanation Letters: For any gaps in education or missing co-applicant's ITR, on Rs. 100 stamp paper.  

    •  

    Find the Complete List of Documents Required for Education Loan 

     

    Documents Required for a Secured Loan in Andhra Pradesh 

    For secured education loans in Andhra Pradesh, additional documentation required to prove collateral includes:
     

    1. Title Deed: Establishes ownership of the property being used as collateral.
     

    2. Legal Documents: Such as a registered sale agreement, gift deed, or will.
     

    3. Original Receipt: For the registration of the aforementioned agreements.
     

    4. Allotment Letter: Issued by a local authority like VGTM - UDA.
     

    5. Ownership History: 30 years of documents detailing the property's transfer of ownership or earlier sale deeds, along with an extract of the controlled document (Encumbrance Certificate).
     

    6. Recent Bills: The latest property tax and electricity bills matching the property's address.
     

    7. Building Approval: A copy of the municipality-approved building plan or plot layout.

    Check Your Education Loan Eligibility

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    What Collaterals are Acceptable in Andhra Pradesh for Education Loans?

    For securing education loans in Andhra Pradesh, various types of collaterals are accepted with specific conditions:
     

    1. Residential Properties: Houses, flats, and land are commonly accepted. However, restrictions apply to D-form patta lands, which cannot be sold within a specified time after allotment—10 years for ex-servicemen and 30 years for other individuals.
     

    2. Commercial Properties: These are accepted by private banks, though the collateral margin is usually lower than for residential properties.
     

    3. Agricultural Lands: These can be mortgaged for education loans in exceptional cases. Applicants must provide a patta passbook and title deeds when creating the mortgage.
     

    4. Financial Securities: Fixed Deposits (FDs), insurance policies, and government bonds are also accepted. The principal value of FDs, the surrender value of insurance policies, and the face value of government bonds are considered, typically requiring a higher collateral margin.
     

    Avoid Loan Letdowns: Know What Knocks Your Education Loan Off Track!

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    Education Loan Interest Rate in Andhra Pradesh for Studies in India?

    Bank Name  Interest Rate  Interest Rate Concession 

    State Bank of India 

    Starts from 8.30% 

    0.60% Business strategy discount 0.50% - for female students 

    0.50% - Rinn Raksha 

    Axis Bank 

    Starts from 11.5% 

    0.5% - 2% 

    ICICI Bank 

    Starts from 10.5% -11% 

    0.5% - 2% 

    IDFC First 

    Starts from 8.5% - 10% 

    0.5% - 2% 

    UBI 

    Starts from 11.15% 

    0.5% for female students

    1% if the SI is paid in full 

    HDFC Credila 

    Starts from 10.25% - 12.75% 

    		 -

    Auxilo 

    Starts from 11% - 13.5% 

    0.5% - 2% 

    InCred 

    Starts from 11% - 13.5% 

    0.5% - 2% 

    BOB 

    Starts from 8.85% 

    0.5% 
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    Education Loan Interest Rate in Andhra Pradesh for Studies in Abroad

    Bank Name  Interest Rate  Interest Rate Concession 

    State Bank of India 

    Starts from 10.15% 

    0.5% concession in interest for female students 

    0.5% - Rinn Raksha 

    Axis 

    9.99% - 12.5% 

    		 -

    ICICI 

    10.25% - 12.5% 

    		 -

    IDFC First 

    9.5%-11% (secured) 

    11%-13% (unsecured) 

    		 -

    UBI 

    9.25% - 9.75% 

    		 -

    HDFC Credila 

    10.25% - 12.75% 

    		 -

    Avanse 

    10.75% - 13% 

    		 -

    Auxilo 

    11.5% - 13% 

    		 -

    InCred 

    11.85% - 13.25% 

    		 -

    MPower 

    12.99% - 15.99% 

    -

    Prodigy 

    11.5% - 13.5% 

    -

    BOB 

    9.7% (fixed) 

    0.20% concession in interest for female applicants of non-premier institutes

    Verify your eligibility for an education loan with GyanDhan today! Simply visit the GyanDhan website, use loan eligibility tool, and receive instant loan options. 

    Calculate your Education Loan EMI

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    What is the Eligibility Criteria to Avail an Education Loan in Andhra Pradesh?

    To qualify for education loan, applicants must meet specific eligibility requirements:
     

    1. Parental or Guardian Representation: A parent or guardian must act as the co-borrower for students who are minors, ensuring legal and financial responsibility.
     

    2. Joint Loan Agreement: The loan will be issued in the names of both the student and the parent/guardian, linking both parties to the financial commitment.
     

    3. Admission Through Merit: The student must have secured admission to a recognized institution either in India or abroad, based on merit through a competitive selection process.

    These criteria are designed to ensure that the loan is used for legitimate educational purposes and that there is adequate financial backing to support the student's academic journey.

    Top Benefits of Education Loans—Learn How They Can Empower Your Academic Journey! 

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    Conclusion

    In Andhra Pradesh, students seeking education loans can access a variety of options tailored for both domestic and international studies. To effectively navigate this process, it's essential to evaluate banks based on their loan terms, interest rates, and ease of application. Prospective borrowers should prepare key documents and understand the specifics of loan margins and collateral requirements. Awareness of common obstacles, such as insufficient income documentation or ineligible collateral, can significantly enhance the likelihood of loan approval, helping students to successfully finance their educational ambitions.

     

    In Andhra Pradesh and exploring education loan options? GyanDhan is your go-to platform, offering a pathway to secure financing for your higher studies in India or abroad. Our education loan experts help you in securing high loan amounts under favorable terms with a track record of higher loan approval rates. We also assist with pre-visa loan disbursement, crucial for your visa application. Best of all? Our expert, end-to-end service comes at absolutely no extra cost to you. Check your loan eligibility on GyanDhan now and take the first step towards realizing your academic dreams.

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    Frequently Asked Questions 

    What is the maximum loan amount I can get for studying in India and abroad from banks in Andhra Pradesh?

    The maximum loan amount varies by bank. For studies in India, loans can go up to INR 75 lakh (unsecured) and for studies abroad, up to INR 1.5 crore with collateral. Some banks offer higher amounts based on the applicant's profile and the course pursued.

    Are there any interest rate concessions available on education loans in Andhra Pradesh?

    Yes, banks offer various concessions. For instance, female students can receive a discount, and additional reductions may be available for securing admission through merit or purchasing insurance products like Rinn Raksha, offered by State Bank of India.

    What are the typical repayment terms for an education loan in Andhra Pradesh?

    Repayment terms can vary, but typically, banks offer a repayment period of up to 10-15 years after the completion of a moratorium period, which usually lasts until six months after course completion or when the borrower secures a job, whichever is earlier.

    What collaterals are accepted for securing an education loan in Andhra Pradesh?

    Banks accept various forms of collateral, including residential properties, commercial properties, agricultural lands, fixed deposits, insurance policies, and government bonds. Each type of collateral may have specific conditions regarding its acceptance.

    Can I get an education loan in Andhra Pradesh without collateral?

    Yes, unsecured loans are available, especially for higher studies abroad or at premier institutions in India. The amount may vary by bank, and the applicant’s academic profile and potential future earnings are considered.

    Calculate your Education Loan EMI

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