Education Loans by Andhra Bank | AB Dr. Pattabhi Vidya Jyothi Scheme | Andhra Bank Education Loan Details

Hyderabad: Hyderabad based Andhra Bank is household name for the people of Andhra Pradesh. As part of its retail loan offerings, Andhra Bank designed a unique education loan scheme “AB Dr. Pattabhi Vidya Jyothi”. The scheme name, prefixed with Andhra Bank founders Dr. Pattabhi, clearly indicates the Bank’s commitment towards education sector. Pattabhi Vidya Jyothi education loan scheme features are framed to suit all sections of the society.  Education  Andhra  takes privilege to present the details of the Andhra Bank education loan scheme AB Dr. Pattabhi Vidya Jyothi.

For Studies in India

* Student must be an Indian National
* Student seeking education loan must be over 12 years of age but within 30 years
* For any candidate seeking loan must have a secured admission in to professional or technical courses through any Entrance Test or any other selection process.
* There is no bar minimum qualifying marks to get education loan from Andhra Bank.
Eligible Courses for AB Dr. Pattabhi Vidya Jyothi:
One can take loan for School Education, Intermediate, Graduation Courses, Post Graduation Courses. Students looking to join in  Professional Courses like Engineering,  Medical,  Agricultural,  Veterinary, Dental,  Physiotherapy,  Nursing,  Law,  Management,  PGDRIM,  ICWA, CA, CFA, IIM,  IIT, IISC, XLRI, NIFT can apply for loan. Apart from the listed courses, other courses approved by State or Central Government also eligible for loan.
All other courses leading to diploma,  degree etc., conducted by colleges,  universities approved by University Grants Commission,  Government,  All India Council for Technical Education-AICTE,  AIBMS,  ICMR etc., and offered by National Institutes and other reputed private institutions.
Quantum of Finance through AB Dr. Pattabhi Vidya Jyothi Scheme:
Andhra Bank education loan scheme is primarily need based,  subject to repaying capacity of the parents,   students with a maximum of Rs. 10.00 lacs.
Margin to pay:
Upto Rs.4,00,000/-     –      NIL       ;  Above Rs. 4,00,000/-            –              5%

Mode of Disbursement:
The loan amount should be released in proportion to the number of years, depending upon the progress of the student. The scholar should produce a certificate from the competent authority for successful completion of academic year for further releases.
Loans for Studies in other countries:

Scope of the scheme:
The scheme will apply to deserving meritorious students who wish to pursue studies abroad.
Eligibility:
* Must be an Indian National
* Must be over 17 years of age but within 35 years.
* Must have secured admission in Overseas College/ University/ Institution in any of the following disciplines
* Must be in possession of Admission confirmation letter from the concerned University.
* Must be in possession of a valid Passport and Visa.
Courses Eligible for Finance
* Graduation – For job oriented profession/ technical courses offered by reputed universities.
* Post Graduation – MCA, MBA, MS etc
* Courses conducted by CIMA – London, CPA in USA etc.,
* Graduate/ Post Graduate studies in Arts, Science, Commerce and Business Administration.
* Graduate/ Post Graduate studies in Pharmacy
* Graduate/ Post Graduate studies in any Professional/ Technical courses.
* PhD ( Doctor of Philosophy)
Quantum of Finance:
Need based as informed in the admission/ confirmation letter of the University/ College, subject to a maximum of Rs. 20.00 lacs
Margin
Upto Rs. 4,00,000/-  :  NIL       ;              Above Rs. 4,00,000/- :   15%
Mode of Disbursement:
Initially an amount equal to the cost of air passage and Foreign Exchange towards the payment of semester fee and hostel expenses as per admission card of the college. Further amounts will be released proportionate to expenses towards semester fees, hostel fees etc. on annual basis

At any point of time there should not be more than two loans outstanding in the name of the student under the scheme.
OTHER ASPECTS COMMON TO INLAND AND ABROAD STUDIES:
Purpose:
Loan under the scheme should be considered towards:
* Tution Fees
* Examination Fees
* Study Tours, Project work
* Cost of Books, Stationary
* Equipment essential for courses
* Caution Deposits/ Building Funds/ Refundable Deposits supported by institution bills/receipts, subject to the condition that the amount does not exceed 10% of the total tution fees for the entire course
*  Hostel Fees:
* In case of studies abroad – Cost of Air Passage to the foreign country and maintenance including Health Insurance as per Foreign Exchange permit and correspondence from the college abroad
Mode of Charging Interest:
* The interest to be debited monthly on simple basis during the repayment- holiday / gestation period.
* The accrued interest during the repayment holiday period to be added to the principal and repayment in EMI fixed
* Penal Interest: For the loans above Rs. 2.00 lacs penal interest at 2% be charged on the overdue amount for the over due period
Co-obligation:
* Co-obligation of parents. Must be an Indian Citizen.
* Wherever parents are not there, Bank could consider grandparents as co-obligator to the loans taking into account their networth.
* In case of court appointed guardians, their co-obligation shall be obtained
* In case of married person, co-obligator can be spouse or the parents(s)/ Parents-in-law
Collateral Security for loan:
* Upto Rs.4.00 lacs – NIL
* Rs. 4.00 lacs to 7.5 lacs – Co-obligation of parent/guardian/third party
* Above Rs. 7.50 lacs – Tangible security of suitable value besides co-obligation of parent.Parent co-obligation and assignment of future income.
Holiday Period:
1 year after course period or 6 months after getting job, whichever is earlier.
Repayment Method:
The loan to be repaid in 5-7 years after commencement of repayment
Others Details:
Only one loan will be sanctioned for abroad studies subject to a maximum of Rs. 20.00 lacs.
Multiple Loans in the same family:
In case of receipt of application of more than one loan for student borrower from a family the family as a unit will be taken into account for considering the loan and security norms are applicable taking into account the total quantum of finance sanctioned to the family subject to margin, repaying capacity of the student / parent

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