Andhra Bank


"Andhra Bank, a banking behemoth that commenced operations from 28th November 1923, has always been much admired for its customer-first approach and a progressive outlook towards improving the standards of personal and commercial banking in India. In this vein, the Andhra Bank Education Loan is a comprehensive, scalable, customer centric product that has been a big hit since its initial launch. Loaded with attractive features, including the very competitive Andhra Bank Education Loan interest rate, and benefits that are immensely attractive to students who are looking to pursue further education in India and abroad."

Loan Interest Rates:

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

Base Rates Are:

Loan Eligibility:

Courses Eligible For Loan:
  • ICWA, CA, CFA etc.
  • Courses conducted by IIMs, IITs, IISc, XLRI. NIFT,NID etc.
  • Degree/Diploma courses like Aeronautical, pilot training, shipping, etc.
  • Aircraft Maintenance Engg, Pre-Sea Training courses and the like.
  • Nursing and Para Medical courses (includes admission via management quota).
  • Courses offered by reputed institutes that assure employment and are Govt. certified.
  • Courses offered in India by reputed foreign universities. Ensure 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 offered by coaching classes will not be funded.
  • MCA, MBA, MS and other post-graduation courses.
  • Job oriented courses, technical courses offered by reputed universities as part of their graduation programs.
  • Courses conducted by CIMA- London, CPA in USA etc.
  • Degree or Diploma courses in aeronautical, pilot training, shipping etc.
  • Job oriented Diploma and Certificate courses that succeed a graduation course in India.
  • Finance is approved for courses listed under
  • Post graduate courses that result in PG degrees/diplomas.
  • 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 funded as per the Andhra Bank Education Loan terms and conditions.

Documents Required:

Candidate Education Loan Eligibility:
"The student/applicant must have gained admission into a course that is certified/conducted by any Department/Affiliate/Organization/Ministry of the government or National Skill Development Corporation approved Organization or Society. At the end of the course, the certificate/diploma/degree issued by the said organization must be fully certified and authorized by the Government (State or Central)."
Processing Fees:
Condtion Processing Fees
Study in India No processing or upfront charges.
Study Abroad Applicable fees collected initially, refunded when student avails the loan.

Expenses Covered under Education Loan:

  • Fees payable to School/College/Hostel.
  • Fees applicable for Examination, Library and Laboratories.
  • Variables like Building fund, Refundable deposits, Insurance premium for student (if applicable) etc.
  • Purchase of uniforms, books, equipment's and instruments, computer at a reasonable cost.
  • Expenses 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 vocational courses, the applicable fees must be fixed by either the Government or authorities appointed by the Government. Again, with respect to course fee of Private Institutions, the expenses will be limited to 125% of the fees prescribed by the Govt.
  • Note- for Degree level courses in non-technical and/or non-professional courses, the expenses that may be considered for finance by Andhra Bank Education Loan must not exceed Rs.1 lakh.

Loan Repayment:

Condition Loan type Repayment Period
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 upto 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.

Security Required:

Condition Security Required
Loans upto 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 loan.
Loans above Rs.4 lakhs and upto 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 required. Also, future income of the student must be earmarked for payment of loan installments. Parent(s) must sign-in as joint borrower(s).


1.Is it true that admission into certain 'premier educational institutions' allots the student concessional interest rates? Which are these institutions?
Yes. Admission into certain elite educational institutions automatically qualify the student for concessional interest rates and other discounts. The complete list of these 'premier institutions' is as follows-
		-Indian Institute of Technology(I.I.T.)
		-Birla Institute of Technology and Science (BITS)
		-Indian Institute of Management (IIM)
		-Xavier Labour Relations Institute (XLRI) Jamshedpur.
		-Management Dev. Institute (MDI)-Gurgaon
		-SP Jain Institute of Management and Research (SPJJMR)- Mumbai
		-Institute of Mgt. Technology (IMT) - Ghaziabad
		-Jaman Lal Bajaj Instt. of Mgt. Studies (JBIMS)- Mumbai
		-Somaiya Instt. of Mgt. Studies and Research. Mumbai
		-Netaji Subash Inst. of Technology ( formerly Delhi University of Technology) N.S.I.T New Delhi
		-International Institute of Information Technology (IIIT)- Hyderabad
		-Indian School of Business (ISB), Hyderabad and Mohali
2.Is life/liability insurance mandatory for students subscribing to the Andhra Bank Education Loan?
No, this is not mandatory. However, the bank, with the consent of the student, may arrange for the same.

3.What is the minimum and maximum eligibility age to qualify for this loan?
There is no specific restriction in this regard. Anybody, with a will to study and compliant with the Andhra Bank Education Loan terms and conditions can apply.

4.What about boarding and lodging? Is this covered per the education loan?
Yes. Boarding and lodging charges to a maximum of Rs. 50,000 per year is provided for in the loan, if the student isn't allotted in-campus hostel accommodation or opts for outside accommodation.

5.What type of concession is accorded to girl students as per the Andhra Bank Educational Loan?
On the applicable interest rate, girl students are accorded a 0.50% concession.