Eligibility Criteria:

Student eligibility:

  • Student be an Indian National
  • Secured admission to professional/ technical courses in India or Abroad through Entrance Test / Merit based Selection process.

Courses eligible
a. Studies in India:

  • Graduation Courses- B.A, B.COM, B.Sc. etc.
  • Post Graduation Courses: Masters Courses, Ph D, etc.
  • Professional Courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer etc.,
  • Computer Certificate Courses of reputed Institutes accredited to Department of Electronics or Institutes affiliated to University.
  • Courses like- ICWA, CA, CFA etc.
  • Courses conducted by IIM, IIT, IISc, XLRI, NIFT etc.
  • Regular Degree/ Diploma courses like Aeronautical, pilot training, shipping etc., approved by Director General of Civil Aviation/ Shipping, if the course pursued abroad, the Institute should be recognized by the competent local aviation/ shipping authority.
  • Courses offered in India by reputed foreign universities.
  • Evening Courses of approved Institutes.
  • Other Courses leading to diploma/degree etc conducted by the Colleges/ Universities approved by UGC/Government/AICTE/AIBMS/ICMR etc.

b. 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.
  • Regular Degree/ Diploma courses like Aeronautical, pilot training, shipping etc., the Institute should be recognized by the competent local aviation/ shipping authority.

Expenses considered for loan:

  • Fee payable to College / School /Hostel
  • Examination/Library/Laboratory Fee
  • Purchase of Books / Equipments/ Instruments/ Uniforms.
  • Caution Deposit/ Building Fund/ Refundable Deposit supported by Bills/Receipts of the Institution, subject to the conditions that amount do not exceed 10% of the total tuition fees for the entire course.
  • Travel Expenses/Passage Money for studies abroad.
  • Purchase of Computers essential for completion of the course.
  • Insurance premium for student borrower.
  • Any other expenses required to complete the course, such as- Study Tours, Project Work, and Thesis etc.


Need based finance subject to repaying capacity of the parents / students with following ceilings:
Studies in India: Maximum Rs 10.00 lacs
Studies abroad: Maximum Rs. 20.00 lacs.


  • For loan up to Rs 4.00 lacs: NIL
  • For loan above Rs 4.00 lacs:
    (i) Studies in India: 5%
    (ii) Studies abroad: 15%
  • Scholarship / Assistantship to be included in Margin.
  • Margin Money to be brought on year-to-year basis and disbursements are made on a pro-rata basis.



For loan up to Rs 10.00 lacs- No collateral security is required. Co-obligation* of parents/ guardian required

*ISB means Indian School Business, Hyderabad

For others

For loan up to Rs 4.00 lacs: No collateral security is required.

Co-obligation* required for loan above Rs 4.00 lacs and up to Rs 7.50 lacs: Satisfactory third party guarantee & Co-obligation* required.

For loan above Rs 7.50 lacs: (a) Co-obligation * of parents/ guardian together with tangible collateral security of suitable value covering full loan amount, along with the assignment of future income of the student for payment of installments.

*(The loan documents would be executed by the student and the parent/ guardian as joint-borrower i.e. co-obligator. The co-obligation should be parent / guardian of the student borrower. In case of married person, co-obligator can be spouse or the parent(s)/ parents-in-law.)


I.            For IIT/ IIM/ ISB (loan up to 10.00 Lacs) – BR+2.25%

II.            For Others:
Loan up to 4.00 Lacs – BR+3.25%
Loan above Rs.4.00 Lacs – BR+3.00%

NOTE: For girl students, rebate @1% will be allowed under each slab.

Repayment Holiday / Moratorium are Course Period + 1 year or 6 months after getting job, whichever is earlier.

Loan to be repaid within a maximum period of 7 years after commencement of repayment.


Group Life Insurance Cover
-For entire loan liability in tie-up with LICI
(One time upfront premium, can also be financed by adding into project cost.), Prospective borrowers, who are not covered under the group insurance scheme, will be allowed to take a single premium term insurance cover equal to the loan amount, individually on their own or premium being a component of project cost for financing.


For studies in India – Nil

For studies abroad-Rs.500/-upfront subject to the conditions that this amount would be adjusted against the loan amount once the loan is availed from us.


  • The parent / guardian would become co-borrower with the student and application for education loan will also be signed by the parent / guardian along with the student while availing loan under Educational Loan Scheme.
  • Education Loan would preferably be sanctioned through branches / RBBs nearest to the place of residence of parents.
  • Second time education loan is available for higher studies / escalation of cost.

Courtesy: http://www.allahabadbank.com



One Comment

  1. June 28, 2012 at 9:08 AM #

    plz,giv me information about bank loan…

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