The Allahabad Bank education loan (now under Indian Bank after the 2020 merger) offers up to ₹15 lakh for studies in India and ₹25 lakh for abroad. Interest rates start at 12.5% p.a., with a 0.5% concession for girls.
As of July 2024, banks’ outstanding education loans in India crossed ₹1.23 lakh crore, showing students’ growing reliance on loan finance. Understanding Allahabad Bank’s loan requirements can help you plan better and avoid last-minute financial stress. Read this blog to learn eligibility, application, and repayment details.
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Allahabad Bank Loan Interest Rate and Key Features
The Allahabad Bank education loan (now managed by Indian Bank) offers flexible interest rates depending on the loan amount and study location:
- Up to ₹20 lakh for India: 9% – 11%
- Up to ₹7.5 lakh for abroad: 8.5% – 10.3%
- Above ₹7.5 lakh for abroad: 8.5% – 10%
The rate is slightly lower for overseas study, making it attractive for students pursuing courses abroad.
Loan Amount & Security
The loan is categorised into secured and unsecured depending on the institution’s category and the loan size:
- Secured Loans
- ₹10–15 lakh: List A colleges (India)
- ₹7.5–10 lakh: List B colleges (India)
- ₹4–7.5 lakh: List C colleges (India)
- Unsecured Loans
- Up to ₹20 lakh: List AA colleges (India)
- Up to ₹10 lakh: List A colleges (India)
- Up to ₹7.5 lakh: List B colleges (India)
- Up to ₹4 lakh: List C colleges (India)
Top-tier colleges can access higher amounts without collateral, while mid- and lower-tier institutions usually require security.
Charges & Repayment
- Processing Fees: 0.10% – 0.15% of the sanctioned loan amount.
- Repayment Period: Up to 15 years.
- Moratorium Period: Course duration + 12 months.
To understand these things better after the merger, read our complete guide on Indian Bank Education Loan.
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Allahabad Bank Education Loan Eligibility Criteria
- Applicant must be an Indian citizen
- Must have secured admission to a recognised professional/technical course in India or abroad, via entrance exam or merit.
- If admission is purely based on marks (not entrance), a cutoff of 50–60% aggregate at 10+2 is required, depending on the source.
- Meritorious students under the management quota are also eligible.
Looking to explore more options? Our guide on 5 best loans for Indian students can help.
Allahabad Bank Education Loan Key Benefits & Coverage
Allahabad Bank education loan offers the following benefits:
Broad course coverage in India
Includes UGC/AICTE/ICMR-approved degrees, diplomas (including B.Ed., nursing, teacher training), and training (DCA, shipping, aviation).
Abroad studies
Allahabad Bank education loan for study abroad covers job-oriented professional/technical programs (e.g., MBA, MS, MCA) at accredited universities.
Concessions
- 0.5% interest rebate for female students.
- 1% rebate if interest is paid during the moratorium.
Expense coverage
Tuition, hostel, travel (for abroad), books, equipment (including laptops), lab/library fees, project costs, counseling fees (if within 60 days), etc.
Get an Education Loan with Higher Chances of Approval
How to Apply for an Allahabad Education Loan?
Applying for an Allahabad Bank education loan (processed by Indian Bank since 2020) involves a few key steps. Including these at the outset helps improve your approval chances:
Confirm Eligibility
- Be an Indian citizen with confirmed admission to a recognised professional or technical course in India or abroad.
- Meet minimum academic performance (generally 50–60% in qualifying exams; higher cut-offs for some programs).
Identify the Right Branch
- Applications are accepted at Indian Bank branches located in or near your place of permanent residence/domicile. This speeds up verification and co-applicant checks.
Prepare a Complete Document Set
Prepare these before applying to avoid delays:
- Admission letter/I-20, fee structure, and course details.
- Academic records (10th/12th marksheets, degree certificates).
- ID, address, and age proof (Aadhaar, passport, voter ID).
- Parent/guardian income proof (salary slips, ITR, pension certificate).
- Community certificate, if applicable.
- Collateral documents if seeking a secured loan (property papers, valuation, LIC policy, etc.).
- An affidavit stating no other education loan has been availed (if required).
Understand Security and Co-Applicant Rules
- Up to ₹4 lakh: No collateral; parents act as co-applicants.
- ₹4–7.5 lakh: Third-party co-applicant may be needed.
- Above ₹7.5 lakh: Tangible collateral required along with the parent/guardian as a co-applicant.
Apply Online or Offline
- Online: Use the Indian Bank education loan portal, upload documents, and track your application digitally.
- Offline: Visit your nearest branch, collect the form, submit documents, and complete in-person verification.
Sanction and Disbursement
Once documents are verified and collateral assessed, the bank issues a sanction letter. Funds are disbursed directly to the institution in tranches as per the fee schedule.
Repayment and Moratorium
- Repayment starts after the course ends or 12 months after securing a job, whichever is earlier.
- Tenure: Up to 10 years for loans ≤ ₹7.5 lakh; up to 15 years for higher amounts.
- Option to pay interest during the moratorium to earn a 1% rebate.
If you are exploring other education loan options, read our complete guide on how to apply for a instant student loan online.
Pursuing higher education is a big step, and the right education loan can make all the difference. While Allahabad Bank (now merged with Indian Bank) offers structured education loans with clear benefits, the process can still feel lengthy and document-heavy.
This is where Propelld steps in. With faster approvals, flexible repayment options, and lower barriers compared to traditional banks, Propelld helps students achieve their academic dreams without financial stress.
Ready to secure your education loan hassle-free? Apply with Propelld today and take your next big step toward success.
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