Education Loan In Andhra Bank

I. Educational Loans for Higher Studies in India and Abroad.

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.) 

.For the purpose of this scheme higher education is defined as studies taken up after completion of higher secondary school i.e. Ten plus two stage 

.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).

 .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.

 .The cut-off of 65% marks in aggregate in the qualifying academic examination is also applicable to all courses offered by deemed universities and also to non-professional and non-technical courses, irrespective of the common entrance test. 

.The revised Model Educational Loan Scheme (2011) covers only merit channel seats for the courses. Admissions through management quota are outside the purview of IBA Model Scheme on Educational Loans for Higher Studies. However we may consider sanction of loans to students securing admissions under management quota with a suitable collateral security of not less than 150% value of the sanctioned limit irrespective of quantum of loan whether it is below Rs. 4 lakhs or above Rs. 4 lakhs.

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  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 .   Margin Upto Rs..4 lacs Nil Above Rs. 4 lacs Studies in India 5% Studies Abroad 15% 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.  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. Note :- The loan documents should be executed by both the student and the parent/ guardian as joint-borrower. The security can be in the form of land/ building/ Govt. securities/ Public Sector Bonds/Units of UTI, NSC, KVP, life policy, gold, shares/mutual fund units/debentures, bank deposit in the name of student/ parent/ guardian / any other third party or any other tangible security acceptable to the bank with suitable margin.Wherever the land/ building is already mortgaged, the unencumbered portion can be taken as security on second charge basis provided it covers the required loan amount