Andhra Bank Indian and Foreign Education Loan

Andhra Bank Indian and Foreign Education Loan – Andhra Bank, a banking behemoth that inaugurated operations from 28th November 1923, has always been much appreciated for its customer-first approach and enlightened outlook towards improving the standards of personal and commercial banking in India. In this vein, the Andhra Bank Education Loan is a wide-ranging, scalable, customer centric product that has been a big hit since its initial launch. Laden with attractive features, including the very competitive Andhra Bank Education Loan interest rate, and benefits that are massively attractive to students who are looking to pursue further education in India and abroad.

“Education is not planning for life, edification is life itself”, this quotation from the well-known American educational reformer, John Dewey, represents the crucial role that proper education plays in our lives. However, in these times of increasing prices and continuous competition, getting a right education could exclusively depend on its affordability and the easy obtainability of timely funding. This is where education mortgages come in- a sizable arrival of funds, offered by the banks to suitable students (to their parents/guardians, practically) in order to help them pursue their higher education goals, both in India and/or abroad.

Features & Benefits

Essentially, the ensuing reasons form the crux of what prompts one to subscribe to an education loan in general, and the Andhra Bank Education Mortgage scheme in particular,

Education, the title of this mortgage type was a clear hint. Today, quality education is still the requirement towards a successful and rewarding life. However, quality education is expensive; especially the higher level courses and studies abroad. Ergo, the need for a wide-ranging and streamlined education mortgage.

Andhra Bank offers loans towards education in two distinct formats:

  • Educational Mortgages for Higher Studies in India and Abroad.
  • Educational Loans for seeking Job-related Courses.

Expenses considered for the Andhra Bank Education Loan are as follows:

  • Fees owed to School/College/Hostel.
  • Fees appropriate for Examination, Library and Laboratories.
  • Variables like Building fund, Refundable deposits, Insurance premium for student (if appropriate) etc.
  • Purchase of uniforms, books, equipment’s and instruments, computer at a reasonable cost.
  • Expenditures incurred in Travel, also inclusive of passage money for studies abroad.
  • Spends that are crucial to the successful completion of the course- Study tours, Projects, Thesis, etc.
  • For job-related courses, the appropriate fees must be fixed by either the Government or authorities chosen by the Government. Again, with respect to course fee of Private Associations, the expenditures will be limited to 125% of the fees prescribed by the Government.

Age Restrictions

There is no age restriction which is necessary.

Anybody with the will to study is entitled.

Maximum Loan Limit

The following table illustrates the maximum loan amounts that can be disbursed under the Andhra Bank Educational Loan scheme.

Condition Loan Amount
Higher Studies in India and Abroad No Upper Limit.


Vocational Courses- Duration Upto 3 months Rs.20,000
Vocational Courses- Duration Upto 3 – 6 months Rs.50,000
Vocational Courses- Duration Upto 6 months – 1 year Rs.75,000
Vocational Courses- Duration Above 1 year Rs.1,50,000 – Rs.2 lakhs

Repayment Tenure

The following table illustrates the repayment tenures and other details that apply to the various types of educational loans from Andhra Bank.

Condition Loan Type Tenure
Repayment Holiday or Moratorium Higher Studies in India & Abroad Course period + 1 year or 6 months after getting job, whichever comes first.
Student applies for higher studies immediately after completion of current course. Higher Studies in India & Abroad Shifted by 6 months from employment or 1 year from the completion of the second course, whichever comes first
Loans up to Rs.50000/- Vocational Courses 2 years.
Loans from Rs.50, 000 to Rs.1 lakh Vocational Courses 2 to 5 years.
Loans above Rs.1 lakh Vocational Courses 3 to 7 years.
Student prepays loan Any Can be done at any time without penalty.

Andhra Bank Indian and Foreign Education Loan Interest Rates

The following table illustrates the applicable Andhra Bank Education Loan interest rate.

Condition Rate of Interest
Up To Rs. 7.50 Lakhs Base Rate+2.75%
Above Rs. 7.50 Lakhs Base Rate+1.50%

Kindly note the ensuing situations, appropriate to all educational mortgages from Andhra Bank

  • 50% concession for girl students.
  • Concessional interest rates also apply for students who are seeking their education at premier institutes. This applies on the base rate of 10.25%.
  • Simple interest will be charged through the study period and up to the commencement of reimbursement.
  • Accumulated interest will be compounded at the start of reimbursement tenancy and the appropriate EMI will be fixed accordingly.

Processing Fees

The table illustrates the applicable charges for processing of the student’s application

Condition Processing Fee
Study in India No processing or upfront charges.
Study Abroad Applicable fees collected initially, refunded when student avails the loan.


The following table illustrates the applicable security that applies to the educational loans from Andhra Bank

Condition Security
Loans up to Rs.4 lakhs No security required. Parents must be joint borrower(s). The limit of Rs.4 lakhs applies to the student and not the family. Other siblings can apply for the loan irrespective of the fact that a sibling has already availed the security free mortgage.
Loans above Rs.4 lakhs and up to Rs.7.5 lakhs Third party guarantee needed as security. Also, parent(s) must execute the document as joint borrower(s).
Loans above Rs.7.5 lakhs Collateral security of suitable value is compulsory. Also, upcoming income of the student must be reserved for imbursement of mortgage installments. Parent(s) must sign-in as joint borrower(s).

Herein, note that, the applicable collateral/security can be government securities, building, units of UTI, land, KVP, public sector bonds, gold, NSC, shares or mutual funds, life insurance policies, bank deposits in the name of the student/parent/guardian/third party, or any other tangible security that is deemed acceptable to the bank and provides the latter with an appropriate margin.


The following table describes the margin that applies to Andhra Bank educational loans

Condition Sub-Condition Margin Notes
Loans up to Rs.4 lakhs Studies in India or Abroad 0% Scholarship/assistantship included in margin.
Loans above Rs.4 lakhs Studies in India 5% Scholarship/assistantship included in margin.
Loans above Rs.4 lakhs Studies Abroad 15% Scholarship/assistantship included in margin.

Note- Margin applies on a year-to-year basis as and when disbursements are made on a pro-rata basis.

Eligible Courses

The following is a thorough list of courses (in India and abroad) that are considered eligible to be sponsored by the Andhra Bank Education Mortgage scheme. Herein, note that, all courses that are conducted in India must be suitably certified by the government or any regulating body (UGC/ Govt./AICTE/ AIBMS/ ICMR etc.) that has been properly sanctioned by the government. The course list is as follows-

  • CFA, ICWA, CA, etc.
  • Courses conducted by IISc, IIMs, IITs, NIFT, XLRI. NID etc.
  • Degree/Diploma courses like Aeronautical, pilot training, shipping, etc.,
  • Aircraft Maintenance Eng., Pre-Sea Training courses and the like.
  • Nursing and Para Medical courses (includes admission via management quota).
  • Courses accessible by reputed institutions that guarantee employment and are Government certified.
  • Courses accessible in India by reputed foreign universities. Guarantee that these courses are properly certified.
  • All courses listed here-, and
  • Education loan for Research work, applied for by a student with Master’s Degree.
  • Exceptions- Off campus courses, onsite/partnership programs, home study programs, correspondence courses, courses accessible by coaching classes will not be sponsored.

Studies Abroad

The following courses, conducted abroad, will be considered for the Andhra Bank Education Mortgage process and provided the same are conducted by reputed, sanctioned educational institutes with the course having employment value abroad and in India.

  • Job oriented courses, technical courses accessible by reputed universities as part of their graduation programs.
  • Courses conducted by CIMA- London, CPA in USA etc.
  • Job oriented Diploma and Certificate courses that succeed a graduation course in India.
  • Finance is sanctioned for courses registered under
  • Post graduate courses that result in PG degrees/diplomas.
  • Degree or Diploma courses in aeronautical, pilot training, shipping etc.
  • Exception- Exclusive Diploma and/or Certificate courses that are not preceded by any graduation course in India or abroad. These Diplomas or Certificate courses, when standalone, aren’t sponsored as per the Andhra Bank Education Loan terms and conditions.
  • MCA, MS, MBA and other post-graduation courses.

Vocational Courses

Herein, the subscribed course must be correctly documented by the Central/ State Government, properly sanctioned Statutory/ Technical body or Training Department of Government. Also, the appropriate course must not be lesser than 6 months in period and over 3 years.


The following conditions set the primary Andhra Bank Education Loan eligibility for Indian students.

  • The student must be of an Indian Nationality.
  • If the student is a Non-Resident Indian (NRI), he/she should hold a valid Indian Passport.
  • The candidate must provide a collateral/security that is enforceable in India.
  • The student must have secured admission into the higher education course, in a documented Indian or foreign institute, through an entrance examination, after completing his/her 10+2 or corresponding qualification.
  • In case point 4 is based only on the marks secured in the qualifying examination, then a minimum of 65% in aggregate is required to qualify for the educational mortgage from Andhra Bank.
  • Mortgages are allowed for merit students, who qualify in the entrance examination and yet choose to seek the course under the management quota for whatever appropriate personal reasons.


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