Allahabad Bank | Kalvimalar - News

Allahabad Bank-

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Contact Number  : 044-28516194, 044-28585641, 044-28549262
WebLink  :

Rules and Regulations

Eligibility Criteria:

(a) Student eligibility:

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

(b) Courses Eligible:

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, Computeretc.

  • 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 recognised 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/Govt/AICTE/AIBMS/ICMR etc.

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 recognised by the competent local aviation/ shipping authority.

Quantum of Loan:

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.

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 does 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.


  • For loan upto 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.

Rate of Interest:

Loan Upto Rs. 4.00 lacs
For students of IIT / IIM/ ISB*  PLR-1.75%
For Others  PLR-0.75%
Loan above Rs. 4.00 lacs
For students of IIT / IIM/ ISB* PLR-1.75%
For Others PLR-1.00%

*ISB means Indian School of Business, Hyderabad
Girl students may be provided a special relief of 1.00% in all cases as above.

*PLR - Prime Lending Rate

Application of Interest:

Simple interest during moratorium period.
Service interest during moratorium period regularly and avail a special discount of 1.00% in interest rate.


Repayment Holiday / Moratorium is 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.



For loan upto 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 upto Rs 4.00 lacs: No collateral security is required. co-obligation* required For loan above Rs 4.00 lacs and upto 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, alongwith the assignment of future income of the student for payment of installments.

*(The loan documents would be executed by both 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 either spouse or the parent(s)/ parents-in-law.)

Processing Fee:

Processing Fees/ Documentation Charge:

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.

Mortgage Charges:

Actual expenses, if any, will be borne by the Student/Parent or Guardian.

Delivery Channel

From all of our branches (Presently more than 2150) spread throughout the country.On-line sanction for leading 250 institutions within 72 hours.

Value added Service

FREE Debit Card
-For SB account holders in networked branches.


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.


a. The parent / guardian would become co-borrower with the student and application for education loan will also be signed by the parent / guardian alongwith the student while availing loan under Educational Loan Scheme.

b. Education Loan would preferably be sanctioned through branches / RBBs nearest to the place of residence of parents.

c. Second time education loan is available for higher studies / escalation of cost.

Online Download from the website :

Online Application form for Students of IITs/ IIMs and other leading Institutions : http:>

Downloadable Application form for students of other institutions: http: edu_term_loan_form.htm??>

Group Life Insurance Plan (in tie-up with LICI): http: insurance-lici.asp??>

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