Allahabad Bank Education Loan

Eligibility

• Any individual who has secured admission in a course run by Industrial Training Institutes (it is), Polytechnics or in a School recognized by Central or State Education Boards or in a College affiliated to recognized University, Training Partners affiliated to National Skill Development Corporation (NSDC) / Sector Skill Councils, State Skill Mission, State Skill Corporation, preferably leading to a Certificate / Diploma / Degree issued by such Organization as per National Skill Qualification Framework (NSQF) is eligible for loan under the Scheme.
• The Government of India / State Governments may, from time to time, notify Institutes / Organizations for this purpose, which will be advised accordingly.
• Courses run by above mentioned Training Institutes aligned to National Skill Qualification Framework (NSQF) shall be covered by the “Skill Loan Scheme”.

Course Duration

There is no specific restriction with regard to the age of the student to be eligible for skilling loan.

Minimum Age

• There is no specific restriction with regard to the age of the student to be eligible for skilling loan.
• However, if the student is a minor, while the parent executes documents for the loan, the branches will obtain a letter of acceptance / ratification from him / her (student) upon attaining majority.

Purpose

• "Skill Loan Scheme" aims at providing a loan facility to individuals who intend to take up skill development courses as per the Skilling Loan Eligibility Criteria

Quantum of Finance

Minimum quantum of finance is Rs. 5,000/- and maximum Rs.150,000/-.

Margin

10% of loan amount (Maximum)

Rate of Interest*

BR+1.50% 1.00% interest concession, if interest is paid within the study & moratorium period

Processing Fee

Nil

Moratorium period

6 Months to 12 Months

Repayment Period

• Loans up to Rs.50000/- -- up to 3 years
• Loans above Rs.50000/- up to Rs.1.00 Lac -- up to 5 years
• Loans above Rs.1.00 Lac -- up to 7 years

Security

• The loan documents should be executed jointly by the student and the parent (s)/ guardian as joint-borrower.
• Up to Rs.4 Lac – no collateral security
• Above Rs.4 Lac – (depending on the Course / Institutes) security varies from third party guarantee, co-obligation of parents, full collateral security