Abhyudaya Bank Education Loan Rate of Interest
Students from management quota are eligible for this.
- The maximum loan limit is INR 20 Lacs for Abroad.
- No security is required for a loan up to INR 4 Lacs.
- The maximum repayment time is 15 years.
The interest rates are in accordance with the guidelines of the RBI.
- For a loan up to INR 10 Lacs, the RoI is 11.75%.
- For a loan above INR 10 Lacs, the RoI is 12.75%.
- The girls get a concession of 0.5%.
CALCULATE YOUR EDUCATION LOAN EMI
1,000 per month
1,000
1,000
Looking for admission for India and Abroad?
Abhyudaya Bank Education Loan Eligibility
- Indian National. The student should be a citizen of India.
- Admission Basis. The admission should have been on the basis of an entrance exam or on merit basis.
- Eligible Courses. Graduate/ Postgraduate degree and PG Diplomas in professional, technical and career-oriented courses.
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| Bank / Financer |  Change bank |  Change bank |  Change bank |  Change bank |  Change bank |
| Applicable Rate of Interest | Up to INR 10 Lacs: 11.75% Above INR 10 Lacs: 12.75% | Up to INR 7.50 Lacs: 10.55% Above INR 7.50 Lacs: 10.80% | up to INR 7.5 Lacs: MCLR + 2.00% above INR 7.5 Lacs: 2.60% | Upto 4 Lacs- 16.50% Upto 7.5 Lacs- 17.50% Above 7.5 Lacs- 15.50% | |
| Max Loan with Collateral | For India: 10 Lacs For Abroad: 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs and beyond based requirement | |
| Max loan without collateral | For India: 10 Lacs For Abroad: 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs and beyond based requirement | |
| Processing Fee | Nil | Up to INR 4 Lacs: Nil Above INR 4 Lacs: INR 5000 | Nil | Nil | |
| Repayment Period | 15 Years | 15 years | 15 years | 7 years | |
| Loan for top institutions | No | Yes, SBI Scholar Loan Scheme | Yes, PNB Pratibha | No | |
| Margin | Up to INR 4 Lacs: Nil Above INR 4 lacs: For India: 5% For Abroad: 15% | For loan above INR 4 Lacs In India: 5% In abroad: 15% | Up to INR 4 Lacs - NIL Above INR 4 Lacs - 5% | Upto loan 4 Lacs: No margin Above 4 Lacs: for India: 5% for Abroad: 15% | |
| Age Limit | No age criteria | no age limit | No age limit | No | |
| Loan Security | Up to INR 4 Lacs: Nil From INR 4 to 7.5 Lacs: Third party guarantee, also parent's must execute the document as joint borrower. Above INR 7.5 Lacs: Collateral of tangible security equal to the amount of loan. | Upto 7.50 Lacs: Only Parent/ Guardian as co-borrower. No Collateral Security or third party guarantee Above INR 7.50 Lacs: Tangible security along with parents as co borrower | Upto INR 7.50 Lacs: Parent(s)/guardian be made joint borrower (s). No tangible Security and /or 3rd party guarantee is required. Above INR 7.50 Lacs: Parent(s)/guardian be joint borrower(s). Tangible collateral security of suitable value acceptable to bank. | Third party guarantee Collateral security Additionally, assignment of LIC policy in favor of bank amounting 100% of education loan amount Assignment of Future salaries in favor of Axis Bank | |
| Eligibility concession for SC/ST | No | No | 50% for SC/ST, and;60% for General category. | No | |
| Processing Time | N.A | 20 days | 15 days | 14 Days | |
| Prepayment charges | Nil | Nil | Nil | Nil | |
| Penal charges | Nil | Penal interest @ 2% to be charged for loans above Rs.4 lacs for the overdue amount and overdue period | Nil | @ 2% per month on the overdue installment/s | |
| Mandatory insurance cover | Yes | Yes | yes | yes | |
| Travel expeneses | Yes | yes | yes | yes | |
| Bank transfter allowance | No such clause mention | available | available | No such clause mentioned | |
| Top up loan availability | Unavailable | yes | available | unavailable | |
| Interest Subsidy Schemes | CSIS Skill Loan scheme Padho Pradesh | Padho Pardesh CSIS Skill Loan Scheme | Padho Pardesh CSIS Skill Loan Scheme | CSIS | |
| Tax benifit | Yes | yes | yes | yes | |
| Concession/benefits | Zero margin for loan up to INR 4 Lacs 0.50% rebate in the rate of interest for female applicants Zero processing fee (in India) Loan is sanctioned co-jointly to the applicants and their guardians | Concession to girl students 1% concession if interest is serviced during moratorium period including course period | 0.5% concession to girl students 0.5% concession if interest is serviced during moratorium period including course period Online application | There is no processing fee charged No pre- payment charges are applied No pre- closure charges are applied Loan Disbursal period is 15 working days from the date of final submission of documents |
How to apply for Abhyudaya Bank Education Loan ?
Abhyudaya Bank Education loan application form can be available online or offline at Bank branches.
Visit the official website for Abhyudaya Bank.
Select the scheme and click on Apply Now.
Fill out the form with your details.
Upload the mandatory documents required.
Submit the form and take out a print out of the application.
Visit the bank branch for further formalities.
Applicants can directly visit the nearest branch and ask for an application form. The bank representative will then guide them with all the necessary information regarding eligibility, documents required and also which loan is best suitable.
Abhyudaya Bank Education Loan Details
For Abroad: 20 Lacs
Above INR 4 lacs:
For India: 5%
For Abroad: 15%
From INR 4 to 7.5 Lacs: Third party guarantee needed as security. Also, parent(s) must execute the document as joint borrower(s).
Above INR 7.5 Lacs: Collateral of tangible security equal to the amount of loan.
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Expenses covered under Abhyudaya Bank Student Loan Scheme
- Tuition Fee
- Examination/ Library/ Laboratory Fee
- Passage money for Abroad
- Hostel Fee
- Cost of books, equipment required, instrument or uniforms
- Miscellaneous expenses such as study tours, project work, thesis etc
Courses Covered Under Abhyudaya Bank Student Loan Scheme
In India
Graduate/ postgraduate/ postgraduate diploma courses
Courses offered by institutions recognized by UGC, Government, AICTE, AIBMS or ICMR
Courses like ICWA, CA, CFA etc.
Courses offered by popular institutes such as IIMs, IITs, IISc, XLRI, NIFT, NID etc.
Regular Degree/ Diploma programs such as Aeronautical, pilot training, shipping etc. which are approved by Director General of Civil Aviation/ Shipping (in case if the course is pursued in India)
Approved courses offered by reputed foreign universities in India
Courses Covered Under Abhyudaya Bank Student Loan Scheme
In Abroad
Job oriented Professional and Technical Courses
Post graduation courses such as MCA, MBA, MS etc.
Courses which are conducted by CIMA, London and CPA, USA
Courses that lead to a Degree or Diploma such as Pilot Training, shipping, aeronautical etc.
Education Loan Documents Required ?
Admission letter along with fee structure, mark sheets, etc.
Attested copies of Id proof and Residence proof.
Two recent passport size photographs of applicant, co-applicant, and guarantor.
Mark sheet of qualified public exam for school, college in India.
Salary Proof including latest salary slip, Form 16 and recent salary certificate
Details of proof of admission
Schedule of expenses for the course.
Copy of passport and visa for abroad courses
Interest Subsidy Schemes
Central Scheme of Interest Subsidy (CSIS)
Formulated by the Govt. of India, a scheme to assist the students belonging to the economically weaker section.
Skill Loan Scheme
Skill Loan Scheme is launched to provide monetary support to students who wish to pursue courses to develop skills and prepare for job industry.
Padho Pradesh
Padho Pardesh scheme founded under the initiative of Prime Ministers new 15 point programme to benefit the minority community.
Frequently Asked Questions
What schemes does Abhyudaya bank considers for its education loans?
+ -The bank offers CSIS scheme apart from basic education loans.
In whose name is the loan granted?
+ -The loan is granted in the name of the student
What is the age limit for availing loan in Abhyudaya Bank?
+ -There is no restriction on age. Student must clear the other eligibility criteria's stated by the bank
What does margin on any loan mean?
+ -Margin amount is the amount that a borrower has to pay through his/ her own sources in form of a down payment as his/ her contribution towards the education.
Where can I avail Abhyudaya Bank Education Loan?
+ -You can either contact your nearest branch for the application form or details regarding the loan or apply online.
Is there any provision to apply for loan online?
+ -Yes, you can apply online through Vidyalakshmi portal to avail for this loan.
Is there any minimum aggregate marks to meet the eligibility criteria to avail Abhyudaya Bank education loan?
+ -No, there are no minimum aggregate marks to be secured for eligibility criteria of the bank.
What is the discount/ rebate offered by Abhyudaya bank?
+ -The bank offers:
- 0.5% concession to girl students
- 1% concession if interest is serviced during moratorium period
What all is included in tangible collateral security?
+ -Mostly Abhyudaya bank asks tangible security for loan amount above INR 4 Lacs. Tangible security includes documents related to land/ building/ government security/ public sector bonds/ units of UTI, NSC, Life insurance policy/ bank deposits/ shares or debentures.The value of the security should be equal to the education loan amount.
Is scholarship or assistantship included in the margin?
+ -Yes any scholarship or assistantship will be a part of margin charged on education loan.
What is Moratorium Period?
+ -Course Period plus one year, or six months after getting a job
What is tenure of an education loan?
+ -Tenure of education loan provided by Abhudaya Bank is 5 to 7 years
What does MCLR stands for?
+ -MCLR stands for Marginal Cost of funds based Lending Rate. It refers to the minimum interest rate of bank below which it cannot lend.
What all expenses are covered under this course?
+ -Expenses covered by Abhyudaya Bank education loan are:
- Tuition/ college/ hostel fee
- Examination/ lab/ library fee
- Books/ uniform/ instruments
- Caution deposit
- Passage money for studies abroad, etc.
Will my travel expense will be covered if I take loan from Abhyudaya Bank?
+ -Yes, travel expenses are covered under this loan
I have taken admission through management quota. Am I eligible?
+ -Yes, even if you have taken admission through management quota, you are eligible for education loan by ABHYUDAYA bank
What do you mean by reputed or recognized institutes?
+ -Institutes that are affiliated to state/ central universities and comes under UGC or AICTE are considered as recognized institutes. Reputed institutes are those which are well known and have standard course of repute. More often, banks provide the list of institutes they consider for loan. (You can contact nearest branch for the same)
Are there any special benefits if I have secured admission to one of the top premier institutes?
+ -There is a special variant of loan named as Abhyudaya Vidya Vardhini Education Loan scheme dedicated for students securing admission in premier institutes
What is the processing fee or prepayment charges?
+ -The education loan offered by Abhyudaya Bank does not carry any processing fee or any other charges
Will cost of my computer be covered under the loan sanctioned?
+ -Reasonable cost for the computer or laptop well be covered under the loan if it is required to complete the course.
Why is Pan Card necessary?
+ -Pan Card is one of the mandatory document required by banks these days. It is mandatory because:
- Easy to assess Income
- Easy to trace borrowers
Are diploma or certificate courses considered under Abhyudaya Bank education Loan (both for India and Abroad)?
+ -Yes diploma or certificate courses are eligible under ABHYUDAYA Bank Education Loan. Regular degree or diploma courses like, shipping, pilot training, and aeronautical that are approved by Director General of Civil Aviation or Shipping
Is a co-borrower necessary for loan?
+ -Yes, it is mandatory to have a co-borrower to avail loan from Abhyudaya bank.
Who can be my co-borrower?
+ -Your parent/ spouse/ guardian can be a co-borrower. A co-borrower should be your immediate family member, should have a steady source of income, and a good credit history.
What all documents are required from the co-borrower?
+ -Documents required from the co-borrower are:
- Attested copies of age proof, residence proof and birth date.
- Self-attested passport size photograph
- Income proof and/or copy of income tax return file
- Details of collateral security along with government approved valuation certificate (if any).
What is the KYC requirement in education loan?
+ -KYC requirements are the documents as a proof of personal identification and residence proof of the applicant as well as the co-borrower.
What are maximum term for repayment?
+ -Maximum term for repayment is 5-7 years
How can I repay the loan?
+ -You can repay the loan after the moratorium period by mode of EMI or through post- dated cheques.
What is EMI? How are they calculated?
+ -EMI stands for Equated Monthly Installments. It can be calculated by using the formula given below
EMI = [P x R x (1+R) ^n] / [(1+R)^ n-1]
Here, P is Amount of Education Loan, R is Rate of Interest, n is Tenure of the Loan.
Or simply you can use the EMI calculator provision available on ABHYUDAYA Bank’s official website.
Is the loan disbursed in name of individual applicant or to the institute/ university directly?
+ -The loan is disbursed directly to the institute/ university that you have taken admission to. Hence, an applicant is supposed to submit institute brochure with proper division of the fee
If I am unable to complete my course in given tenure, will my repayment term be extended?
+ -It is completely on the banks discretion to extend the moratorium period or not. You can contact your nearest branch for the same.
What is method of application of interest on education loan?
+ -The interest will be charged at simple rate from the date of disbursement till commencement of repayment of loan. After that, compound interest is charged on reducing balance.
What is interest rate of education loan?
+ -Interest rate charged by the bank is different for different variants offered by bank. Have a look at them below:
- Abhyudaya Bank Education Loan for Higher Studies
| Loan Type | Loan Amount | Interest Rates |
|---|---|---|
| Education Loan (Including Pilot Training) | Upto INR 10 Lacs | PLR – 0.50 = 11.50% |
| Above INR 10 Lacs and Upto INR 20 Lacs | PLR + 0.50 = 12.50% | |
| Education Loan for Girl Students | Upto INR 10 Lacs | PLR – 1.0 = 11% |
| Above INR 10 Lacs and Upto INR 20 Lacs | PLR = 12% |
- Abhyudaya Vidya Vardhini Education Loan
| For Girls Students | PLR | 12.00 |
| For Other Students | PLR+0.50 | 12.50 |
What is interest subsidy on education loan?
+ -Interest subsidy are offered as per IBA guidelines by Abhyudaya Bank
What is employment verification in an education loan?
+ -The bank takes the responsibility to cross verify all the employment details of the applicant and co-borrower. If the banks fails to cross verify every detail provided, it might reject the loan application.
Are there any tax benefits in education loans?
+ -Under Section 80E of Income Tax Act, loan borrowers can avail the tax benefits. This benefit is only available over and above INR 1,50,000. Tax benefits can be availed once the borrower starts paying interest on loan. The deduction is available until borrower pays off full interest amount on loan or for maximum of 8 years (whichever is earlier)
Is it necessary to have bank account with the bank while availing loan from that particular bank?
+ -It is not necessary to have a bank account while availing the loan but it makes it easier for the borrower to get loan application approved.
Can I repay my loan in foreign currency even if my bank is in India?
+ -Yes, you can pay the amount in foreign currency (Euro, Pound, Dollar, etc.) The bank might charge an additional currency conversion fee as per RBI regulations.
Why do banks require insurance policy as security?
+ -The banks require insurance policy as security in lieu of education loan provided. The insurance policy should be equal or more to the amount of loan sanctioned. In case of untimely demise of the borrower, the bank recovers the amount from the insurance policy
Are there any additional benefits on availing loan from Abhyudaya loan?
+ -Student applying for the loan can also avail Group Life Insurance Cover equal to the amount of loan
What is credit score? Is it important for education loan?
+ -Credit Score is inclusive of various factors such as credit history (Loan history or credit card). If a student does not have a credit score, banks calculate it by considering factors such as University, College and the Course of admission. Banks consider the academic background of student and credit history of co-borrower.
Are NRIs eligible for the education loan?
+ -NRIs are eligible for the loan if they have Indian citizenship and are Indian passport holder.
Is Visa a necessary document for studying abroad?
+ -Visa is needed as a document proof but it is not a sole requirement.
What all procedures do one have to go through while applying for abroad?
+ -A student who is applying for studying abroad have to give necessary documents required by the bank. One needs to have a thorough knowledge of the course they are applying for and in which institute as it can be asked on the airport by the foreign officials.
If a student have any query, where or whom to contact?
+ -Student can reach out to the nearest branch in case of any query.
- Customer Care Number: 022-24115047, 24105097
- Customer Care ID: secretarial@abhyudayabank.net
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