Professional
courses: Engineering, Medical, Agriculture, Veterinary,
Law, Dental, Management, Computer etc.
Computer
certificate courses of reputed institutes accredited
to Dept. of Electronics or institutes affiliated to
university.
Courses
like ICWA, CA,CFA, etc.
Courses
like IIM, IIT, IISc, XLRI, NIFT, etc.
Courses
offered in India by reputed foreign universities.
Evening
courses of approved institutes.
Other
courses leading to diploma/degree etc. conducted by
colleges/universities approved by UGC/Govt./AICTE/AIBMS/ICMR
etc.
Courses
offered by National Institutes and other reputed private
institutions . Banks may have the system of appraising
other institution courses depending on future prospects/recognition
by user institutions.
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.
Student
Eligibility
Should
be an Indian National
Secured
admission to professional/technical courses through
Entrance Test/ Selection process.
Secured
admission to foreign university/Institutions.
No
minimum qualifying marks be insisted upon.
Expenses
considered for loan:
Fee
payable to college/ school/ hostel.
Examination/
Library/ Laboratory fee.
Purchase
of books/ equipment’s
/ instruments/ uniforms.
Caution
deposit/ building fund/ refundable deposit supported
by Institution bills/ receipt.
Travel
expenses/ passage money for
studies abroad.
Purchase
of computers-essential for completion of the course.
Any
other expenses required to complete the course- like
study tours, project work, thesis etc.
Quantum
of Finance
Need
based finance subject to repaying capacity of the parents/students
with following margin and ceilings.
Studies
in India - Maximum Rs.7.50 lacs
Studies
abroad - Maximum Rs.15.00 lacs
Margin
Upto
Rs.4.00 lacs
NIL
Above
Rs.4.00 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
Upto
Rs.4.00 lacs
No
security
Above
Rs.4.00 lacs
Collateral
security of suitable value or
Co-obligation of guarantee alongwith
In
case of loan upto 4 lacs, the documents should be executed
by the student. No additional security may be insisted upon.
However, in case of minor students , the documents are to
be executed by the guardian on behalf of the minor and also
on his own behalf. The Pronote and the money consideration
receipt are to be signed by the guardian in two capacities
i.e. (I) For self and (ii) On behalf of the minor. The following
documents should be obtained from the minor students.
Pronote
Money
Consideration
Agreement
of Term Loan
Guarantee
by the guardian
Deed
of ratification to be executed by a minor on attaining
majority
Letter
of waiving presentment of Pronote
Acknowledgement
of debt.
In
case of loan above 4 lacs, the documents should be executed
by the both the student and parent/guardian.
The
security can be in the form of land/building/Govt. Securities/Public
Sector Bonds/Units of UTI , NSC, KVP, LIC policy, gold
shares/debentures , bank deposit in the name of student/parent/guardian
or any other third party.
In
case the loan is given for purchase of computer the same
to be hypothecated to the Bank.
The
assignment of future income of the student for payment
of installments may also be obtained irrespective of loan
amount.
Rate
of Interest
Upto Rs.4.00
lacs
PLR* with
quarterly rest
Above Rs.4.00
lacs
PLR* + 1%
with quarterly rest
*
PLR is at present 12% (w.e.f. 1.7.2001)
All
the above rates will be treated as fixed
rate of interest.
Repayment
Repayment
holiday/Moratorium :
Course period +1 year or 6 months after getting job, whichever
is earlier.
The
loan to be repaid within a maximum period of 7 years after
commencement of repayment . If the student is not able to
complete the course within the scheduled time extension
of time for completion of course may be permitted for a
maximum period of 2 years. If the student is not able to
complete the course for reasons beyond his control, sanctioning
authority may at his discretion consider such extensions
as may be deemed necessary to complete the course.
Loan
together with accrued interest charged during the repayment
holiday period will be repaid in maximum 84 Equated Monthly
Instalments (EMI).
Concession
of 1.5% of the loan amount may be provided to the loanees
if the interest is serviced during the study period when
repayment holiday is specified for interest/repayment
under the scheme. Such concessions will be adjusted from
the last instalment/s.
Processing
Charges
No
processing/upfront charges may be collected on educational
loans.
Capability
Certificate
Some
of the foreign universities require the students to submit
a certificate from their bankers about the sponsors’ solvency/financial
capability , with a view to ensure that the sponsors of
the students going abroad for higher studies are capable
of meeting the expenses till completion of studies. Accordingly
branches can also issue the capability certificate for students
going abroad for higher studies. For this financial and
other supporting documents may be obtained from applicant,
if required.
Online
Sanction
Students
of IIM, IIT, Indian School of Mines(Dhanbad), Jamnalal Bajaj
Institute of Management(Mumbai), XLRI - Jamshedpur, Roorkee
Engineering
College, IIS(Bangalore).
Click here for Designated
Branches and Application
Form.
Other
Institutes
For
students of other institutes, loans are available from all
branches of Allahabadbank.
Click here for printable Application Form.
