Andhra Bank Education Loan for Overseas

The Andhra Bank Education loan eligibility criteria are as follows - 

1. The student must be an Indian citizen. 
2. The student must be above the age of 17 but below the age of 35. 
3. The student must have secured admission to a recognized overseas university/college/school.
4. The student must have a valid admission confirmation letter from the concerned university. 
5. The student must have a valid passport and visa. 

To help maintain a level of quality, the bank has a list of colleges and programs for which it gives out educational loans to students. Students can turn to Andhra Bank overseas education loan for the following programs - 

• Graduation - job oriented professional and technical courses offered by reputed universities. 
• Post Graduation - MCA, MBA, MS, etc. 
• Courses conducted by CIMA - London, CMA in the USA, etc. 
• Graduate/Post Graduation in Arts, Science, Commerce, and Business Administration. 
• Graduate/ Post Graduate studies in Pharmacy.
• Graduate/Post Graduate studies in any professional or technical course 
• Ph.D. programs  

The expenses covered by an education loan from Andhra Bank are - 

• Tuition fees
• Examination fees
• Study tours, project work
• Cost of books, stationery
• Equipment essential for the course
• Caution Deposits/ Building Funds/ Refundable Deposits supported by institution bills/receipts.
• The cost of Hostel fees, air passage, and maintenance of health insurance are also included. 

There is no minimum amount that can be borrowed under this scheme. However, the maximum amount that a student can borrow for abroad studies is INR 20 lakhs. The student will have to pledge appropriate collateral to support the loan amount. 

The interest rate offered by the bank depends on the loan amount. If the quantum of finances is only up to INR 7.5 lakhs, the interest rate is 11.45% (RLLR + 2%). If the quantum of finance is above INR 7.5 lakhs, the interest rate is 11.15% (RLLR + 1.7%). There is a 0.50% concession to girl students and a further 0.20% concession for admission into premier institutes. 

The list of documents required for the Andhra Bank overseas education loan depends on a case-to-case basis. However, an indicative list of documents is as follows - 

• Loan application form
• Identity proof of the borrower, co-borrower
• Passport size photographs of the borrower and co-borrower
• Proof of date of birth
• Academic documents from 10th onwards 
• Bonafide certificate 
• Certificate of domicile 
• Rank card of the university 
• Proof of admission 
• Fee particulars from the university/school
• Letters informing the allotment of hostel/accommodation, if any. 
• Proof of availability of scholarship, if any
• Certified copies of a valid passport and Visa
• Estimate for travel and health insurance
• Proof and source of income of the co-applicant(s)
• Collateral documents - such as the certificate of the title deed, tax paid receipts, NIL encumbrance certificate, valuation report, etc. 
• Credit Information Report from CIBIL

The margin money for loan amount up to INR 4 lakhs is NIL, whereas for a loan amount above INR 4 lakhs is 15%. It means that the student’s contribution to the entire expenses incurred would be 15%. 

Public Sector banks offer unsecured education loans for a loan amount only up to INR 7.5 lakhs. If the quantum of finance is above this amount, the applicant will have to pledge collateral. For a loan amount up to INR 4 lakhs, there is no requirement for collateral. For a loan amount ranging from INR 4 lakhs to INR 7.5 lakhs, parents/guardians are required to become co-borrowers. For a loan amount above INR 7.5 lakhs, tangible security is required. Types of collateral accepted by the bank - 

• Immovable property - house, flat, apartment, or a plot with boundary.
• Liquid assets - LIC Policy, Fixed Deposit, government bonds, etc. 

The market value of the collateral is an important factor on which the loan amount is decided. As a safe measure, applicants should always pledge collateral with more value than the amount required. 

The disbursement of the loan amount happens only after the successful completion of the loan application process, including submission and verification of the required documents. Once the applicant and the co-applicant have signed the final loan agreement, the student can request the loan amount to be disbursed. The initial disbursement includes a loan amount equal to the cost of air passage and the payment of the semester fee and hostel expenses. The further loan amount is released on an annual basis according to the semester fee, hostel fee, etc. 

The bank offers a moratorium period of the study period, plus 1 year after course completion. However, if the student gets a job then the repayment starts 6 months after employment. Over and above the moratorium period, the bank has a loan repayment period of 5-7 years. 

Selecting and applying for an education loan is an enormous task, especially because a wrong loan product would become a huge liability for a considerable number of years. Whereas, the right loan product could end up helping you save more than INR 2 lakhs. 
At GyanDhan, we know the importance of the right loan product. To make the education loan journey simple for you, we discuss all the available options with you and your parents. Our executives go through your profile thoroughly to gauge the needs and requirements before suggesting a lender. You can apply for the loan on GyanDhan’s portal, as well as track the progress of the loan on the dashboard of your GyanDhan account. We have partnered with several lenders in the market, leading to a swift and early sanctioning of the loan. If a problem arises, we contact the concerned bank official to get the issue resolved at the earliest. The list of services does not end here, and best of all, GyanDhan offers all these services at zero cost to the students. 

To simplify your education loan process with minimal bumps, apply for the loan through GyanDhan. How to initiate the process? Just check your loan eligibility, and that’s it.