Abroad Education Loans From Andhra Bank

An abroad education loan helps students in getting the requisite finance to students for studying overseas. Different lenders provide abroad education loans at affordable rates of interest and reasonable terms of repayment. But Andhra Bank education loan is way beyond an education loan, and it factors in several other aspects that make it a top preference for students. Andhra Bank education loan for study abroad structures the debt in such a way that it makes the repayment quick and easy for students. If you wish to study abroad and don’t have the financial means to pay hefty tuition fees, and expensive cost of living, an education loan from Andhra Bank will help you at every stage of your overseas studies.

Let’s see the Andhra Bank education loan details, and understand how its abroad education loan is different from other lenders.

Eligibility Criteria For Taking Abroad Education Loans 

The first step towards getting an abroad education loan is to meet the eligibility criteria set by the bank. It’s important to ascertain that you are eligible to get a loan for studying abroad.

Andhra Bank has the following eligibility criteria for taking an abroad education loan:

• The student must be an Indian citizen. 
• The student must have cleared the qualifying exam or been selected through an appropriate selection process in a reputed educational institution abroad. 
• The student should have a letter of acceptance or any other confirmation from the university. 
• The student must have a valid Indian passport. 
• There is no restriction on the age limit to apply for an abroad education loan. 

Eligibility Criteria For Co-applicants

The co-applicants are guarantors and will have to repay the debt if the applicant fails to repay the education loan. The co-applicants have stable finances, and banks can trust them for their ability to repay the education loan.

Andhra bank has the following set of criteria for co-applicants:

• The co-applicant must be an Indian citizen. 
• The parents have to mandatorily become the co-applicant for abroad education loans. 
• If a person is married, then the spouse/parents/ parents(s)-in-law can act as co-applicant. 
• If the loan applicant’s (the student) parents aren’t alive then a close family relative or guardian can act as co-applicant. 

Eligible Courses For Abroad Education Loan

One important factor that comes into the picture while filling out the Andhra Bank education loan application is the eligibility course for which you are applying. Not all the courses are applicable for abroad education loans, and one must check the list of eligible courses.

Students wanting to pursue the following courses are eligible to get a loan from Andhra bank:

• Students enrolled for graduation or post-graduation courses at a recognised university abroad. 
• Certified degree courses are offered by various institutions abroad like CIMA, London, CPA, USA and other such institutes that are known for their global repute. 
• Doctorate programs are offered by top universities of the world. 
• Diploma courses from universities abroad aren’t eligible for education loans.  

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Quantum of Loan Sanctioned for Abroad Education

The abroad education loans from Andhra banks come with no cap, and the bank believes in need-based lending. Since the tuition fee, cost of living, and other expenses vary from one country to another, the bank doesn’t have an upper limit on lending for education abroad. One thing you must note is that Andhra bank is a Public Sector Bank, so it only gives secured loans. If you have collateral to pledge then the bank will give you the loan. However, for NRIs, there is a cap on the loan amount under the education loan scheme. The maximum amount that can be sanctioned under an education loan is INR 20 Lakhs and INR 30 Lakhs for premier educational institutions. 



Expenses Covered Under the Abroad Education Loan

Unlike India, the cost of living amounts to a considerable part of the total expense of studying abroad. The tuition fee varies from one country to another and also from one university to another but the cost of living is pretty high at almost all the favoured locations for higher studies. You need to check if all the expenses are covered or not in your loan package since any unforeseen expense will have a direct effect on your finances.

 

So, let’s have a look at the expenses which are covered under the abroad education loan by Andhra bank:

• Tuition Fee payable to the college or the university.
• Hostel or the mess charges if a student is living in the college or university premises or in some rented space outside the campus. 
• Expenses related to academics like the library fee/ examination fee/ laboratory fee. 
• The premium of the insurance for the student borrower. 
• Travel expenses from the university to home or for any other study-related travel. 
• Expenses like study tours, projects, thesis, or any other relevant expense related to studies. 
• Students living outside the premises of the campus can submit the Caution deposit, Building fund/ refundable deposit supported by Institution bills/ receipts. 
• The expenses at the time of admissions like admission fees or any other charge that the university or the college might include.
• Purchase of computer, laptop, tablet or any other electronic item which is necessary for the students to pursue the course. 

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Rate of Interest for Education Loan

Loan Amount	Effective Rate Of Interest for Male students	Effective Rate of Interest for Female students
Up to INR 4.0 Lakh	10.05%	9.55%
INR 4.0- 7.5 Lakh	9.80%	9.30%
More than INR 7.5 Lakh	8.90%	8.40%

 

One of the most important things about an education loan is the rate of interest. In the case of an abroad education loan, the amount is pretty high which makes the interest more vital. In this aspect, the Andhra Bank education loan interest rate is quite reasonable. The education loan rates are also kept low for female students to ensure equal participation of all. If you are paying the interest rate regularly during the course, then at the time of commencement of repayment, the bank will give you a rebate on the interest rates. At the time of the course, and at the time of the moratorium, a simple interest rate is charged. While once the repayment starts, the bank charges interest rates compounded annually. 



Collateral for the Abroad Education Loan 

Andhra Bank is a public sector bank, and thus it only gives secured loans to students. The valuation of collateral decides the loan amount that will be sanctioned by the bank. For abroad education loans the value of the collateral must be equivalent to loan amount + interest accumulation during the course and moratorium period. Andhra Bank allows immovable assets like land (non-agricultural), flats, apartments, houses, etc. On the other hand, it also allows assets with higher liquidity like gold, Fixed Deposits, government bonds, gold bonds, etc. The more liquid the asset, the higher will be the loan amount as it assures banks of recovering the entire loan in case the applicant fails to repay the loan. 



How to Apply for an Education Loan in Andhra Bank?

Once you understand Andhra Bank’s education loan requirements and have all the documents ready then it’s pretty simple to apply for the loan. You can easily apply for the abroad education loan by visiting the official website or to the nearest Andhra Bank branch. The bank representatives will help you in applying for the loan. If you wish to know more details about it, fintech companies are working in this space which helps students understand the complex terms and conditions of the loan. They also help you in getting concessions if you have a compelling case. 



Disbursal of Education Loan by Andhra Bank

As soon as the documents are verified, collateral value is assessed, and other formalities are done, the loan is disbursed directly to the university. The applicant and co-applicants have to sign all the documents before the payment is initiated. Andhra Bank also does early disbursal of the loan in cases wherein the fee payment has to be done before the issuance of the visa. The whole process takes around a month. But it can be done more quickly if you take help from companies working in the abroad education loan space. They have direct tie-ups with banks which help them in getting the paperwork done on a priority basis, and the chances of loan application rejection are very low.

 

Read Also:

• Know the Reasons Why Your Education Loan Application Got Rejected
• Moratorium Period In Education Loan
• Education Loan EMI Calculator
• Floating Interest Rates: A Complete Overview
• Documents Required for Education Loan



Repayment Tenure of the Education Loan

The maximum time period for the repayment of the loan is 15 years, and it is calculated by excluding the course duration, and moratorium period. The repayment tenure is independent of the loan amount. For any loan amount, the maximum tenure can’t be more than the threshold of 15 years. If you haven’t paid the interest rate during the moratorium period then the bank will add that amount to the principal loan amount at the time of calculating the EMI. So, it’s advised to start the interest repayment right at the time of the moratorium period. The moratorium period is as per the mandate of the RBI. Like all the Public Sector Banks, Andhra Bank also gives a one-year moratorium post completion of the course. 



Insurance Policy for Abroad Loan

Andhra Bank makes it compulsory for the borrowers to take a life insurance policy which is equivalent to the loan amount. It helps both borrower and lender in case of an unforeseen event. 

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