Education Loan in Andhra Pradesh 2025: ROI & How to Apply

Education Loan in Andhra Pradesh

If you're a student wondering how to get an education loan in AP to study in India or abroad, this is the perfect blog for you.

You might need up to Rs. 15 lakhs for colleges within India and up to Rs. 45 lakhs for colleges abroad. Most education loans in Andhra Pradesh have interest rates from 8.5% to 13%.

Keep Reading to know more.

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Best Banks for Education Loan in Andhra Pradesh for Studies in India

Bank Name	Scheme Name	Loan amount- Collateral Required	Processing fee
SBI	SBI Scholar loan scheme	Up to 1.5 Crores with collateral	10K + GST
BOB	Baroda Education Loan to Students of Premier Institutions	Depends on the university	10K + GST
Karur Vysya Bank	Education Loan Scheme	Up to 1.5 Crores with collateral	10K + GST
Union Bank	Union Bank India Education Loan	Up to 2 Crores with collateral	1-2% of the loan amount
Axis Bank	Education loan for study in India	Up to 40 Lakhs unsecured	1-2% of the loan amount
ICICI Bank	Education loan for study in India	Up to 50 Lakhs unsecured	1-2% of the loan amount
IDFC First Bank	Education loan for study in India	Up to 50 Lakhs unsecured	1-2% of the loan amount
Avanse	Education loan for studying in India	Up to 60 Lakhs	1-2% of the loan amount
Incred	Education loan for studying in India	Up to 60 Lakhs	1-2% of the loan amount
Auxilo	Auxilo education loan for studying in India	Up to 60 Lakhs	1-2% of the loan amount
Credila	Credila education loan for studying in India	Up to 60 Lakhs	1-2% of the loan amount

Students from Andhra Pradesh can explore top banks offering education loans, similar to those available in neighboring states. A detailed comparison is available in our guide to getting an education loan in Karnataka, which shares similar lending patterns and criteria.

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Best Banks for Education Loan in Andhra Pradesh for Studies Abroad

Bank Name	Scheme Name	Loan amount- Collateral Required	Processing fee
SBI	SBI Scholar Loan Scheme	Up to 1.5 Crores with collateral	10K + GST
BOB	Baroda Scholar	Up to 1.5 Crores with collateral	10K + GST
Karur Vysya Bank	Education Loan Scheme	Up to 1.5 Crores with collateral	10K + GST
Union Bank	Union Bank Abroad Education Loan	Up to 1.5 Crores with collateral	1-2% of loan amount
Axis Bank	Education loan for studying abroad	Up to 40 Lakhs unsecured	1-2% of loan amount
ICICI Bank	Education loan for studying abroad	Up to 50 Lakhs unsecured	1-2% of loan amount
IDFC First Bank	Education loan for studying abroad	Up to 40 Lakhs unsecured	1-2% of loan amount
Avanse	Education loan for studying abroad	Up to 75 Lakhs for studying abroad	1-2% of loan amount
Incred	Education loan for studying abroad	Up to 75 Lakhs for studying abroad	1-2% of loan amount
Auxilo	Education loan for studying abroad	Up to 75 Lakhs for studying abroad	1-2% of loan amount
Credila	Credila education loan for studying abroad	Up to 75 Lakhs for studying abroad	1-2% of loan amount

For students planning to study abroad from Andhra Pradesh, it's important to compare top banks offering overseas education loans. Our education loan for MS abroad blog provides insights into suitable financing options and eligibility.

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Interest Rate for Education Loan in Andhra Pradesh for Studies in India

Bank Name	Starting Interest Rate (%)	Interest Rate Concession
SBI	Starting from 8.35%	0.50% for female students, 0.50% Rinn Raksha
BOB	Starting from 10.60%	Discounts up to 2%
Karur Vysya Bank	Starting from 10%	Up to 2%
Union Bank	Starting from 11.15%	0.5% for female students, 1% if SI paid in total
Axis Bank	Starting from 11%	Up to 2%
ICICI Bank	Starting from 10.5%	Up to 2%
IDFC First Bank	Starting from 8.5%	Up to 2%
Avanse	Starting from 11%	Up to 2%
Incred	Starting from 11%	Up to 2%
Auxilo	Starting from 11%	Up to 2%
Credila	Starting from 11%	Up to 2%
Bank Name	Starting Interest Rate (%)	Interest Rate Concession
SBI	Starting from 8.35%	0.50% for female students, 0.50% Rinn Raksha
BOB	Starting from 10.60%	Discounts up to 2%

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Interest Rate for Education Loan in Andhra Pradesh for Studies Abroad

Bank Name	Interest Rate (Starting %)	Interest Rate Concession
SBI	Starts from 8.30%	0.50% for female students, 0.50% Rinn Raksha
BOB	Starting from 10.60%	Up to 2%
Karur Vysya Bank	Starting from 10%	Up to 2%
Union Bank	Starting from 11.15%	0.50% for female students, 1% on full SI payment
Axis Bank	Starting from 11%	Up to 2%
ICICI Bank	Starting from 10.5%	Up to 2%
IDFC First Bank	Starting from 8.5%	Up to 2%
Avanse	Starting from 11%	Up to 2%
Incred	Starting from 11%	Up to 2%
Auxilo	Starting from 11%	Up to 2%

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Education Loan In Andhra Pradesh: Eligibility Criteria

Here are the various eligibility criteria to be fulfilled by the applicant and the co-applicant while filling out an education loan in Andhra Pradesh:

Eligibility Criteria for Applicants	Eligibility Criteria for Co-applicants
The applicant must be an Indian citizen The university should be recognised The applicant must have been selected through a merit-based process or by qualifying in an entrance exam The applicant must hold a valid Indian passport	The co-applicant must be an Indian citizen Only the applicant's parents can serve as co-applicants If the parents are deceased, guardians are eligible to be co-applicants If the applicant is married, spouses or parents-in-law can serve as co-applicants

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Education Loan in Andhra Pradesh: Documents Required

Here is a list of all documents required while taking an education loan in Andhra Pradesh:

1. For Unsecured Loan

To apply for the loan, you must complete an application form that includes two photographs, your signature, and basic personal information.

Category	Documents Required
Student Documents	Identification Documents: Aadhar card, PAN card, and passport Admission Letter: A letter confirming admission to a university Utility Bills: Recent electricity bills or house tax receipts Academic Records: 10th, 12th, and degree/diploma certificates Competitive Exam Scores: Scores from exams like IELTS, TOEFL, GRE, or GMAT (if applicable) Gap Certificate: Required for any gap between degrees Work Experience: A letter detailing work experience (if relevant)
Co-applicant Documents	For Salaried Individuals: Last 3 months of salary slips 6 months of bank statements Company ID Previous 2 years of Form 16 Last 2 years of Income Tax Returns (ITRs) For Self-Employed Individuals: Last 3 years of ITRs 6 months of bank statements Balance sheet and profit & loss account for the previous 3 years Proof of business address
Other Documents	A letter from the co-applicant accepting responsibility for any costs not covered by the loan (format provided by the financial officer) Bank statement detailing financial transactions of both student and co-applicant Invoice for any expenses like travel or a laptop Receipts for any advance payments made Loan statements from the previous year (if relevant) A letter explaining any gaps in education or employment on Rs. 100 stamp paper A letter explaining the absence of the co-applicant's income tax return (if applicable)

2. Additional Documents Required for a Secured Loan

Banks require additional documents while you get a secured loan. You will need ITR filings or income certificates. Moreover, the following documents are essential to verify the collateral being pledged:

Document/Requirement	Details
Property Title Deed	The title deed of the property serving as collateral must be submitted.
Registered Agreements	Includes the registered sale agreement, gift deed, or will related to the property.
Original Receipt	The original receipt for the above-mentioned agreement is required.
Allotment Letter	An allotment letter from a government authority, such as VGTM-UDA (Vijayawada Guntur Tenali Mangalagiri - Urban Development Authority), is needed.
Ownership Transfer Documents	Documents showing the transfer of property ownership for the last 30 years or an earlier chain of sale deeds, including an extract of the EC.
Property Tax and Utility Bills	Latest property tax and electricity bills, showing the same address as the collateral property, must be submitted.
Building Plan or Plot Layout	A municipality-approved building plan or plot layout for the property is required.

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Repayment Plan for Education Loans in Andhra Pradesh

Students must repay the loan in monthly instalments once the moratorium is completed.

For example, if a student borrows 30 lakh rupees at an interest rate of 10.25% over 10 years, here is how the repayment plan will look:

Repayment Year	EMI (Yearly) (In INR)	Interest Portion (Yearly) (In INR)	Principal Portion (Yearly) (In INR)	Loan Outstanding (Year End) (In INR)
1	480,740.4	290,509.3	190,231.1	2,818,385
2	480,740.4	270,068	210,672.4	2,617,254
3	480,740.4	247,430.2	233,310.2	2,394,510
4	480,740.4	222,359.8	258,380.6	2,147,832
5	480,740.4	194,595.5	286,144.9	1,874,647
6	480,740.4	163,847.7	316,892.7	1,572,107
7	480,740.4	129,796	350,944.4	1,237,057
8	480,740.4	92,085.2	388,655.2	866,004.2
9	480,740.4	50,322.2	430,418.2	455,080.1
10	480,740.4	4,071.55	476,668.9	0

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Interest Subsidy Schemes Applicable To Students From Andhra Pradesh

If you are wondering how to get an education loan in Andhra Pradesh through government schemes, then keep reading:

Scheme	Eligibility	Interest Subsidy	Income Limit	Application Process
Vidya Lakshmi Portal	Students from economically weaker sections who are residents of Andhra Pradesh	State government subsidised interest during the moratorium period	Annual family income limit around INR 6 lakh	Apply through the Vidya Lakshmi portal or banks offering the loan
Dr Ambedkar Interest Subsidy Scheme	OBC and EBC students admitted to master’s, M.Phil, or Ph.D. programs abroad	Rebate on interest payments during the moratorium period	Annual family income must not exceed INR 8 lakh	Provide a caste certificate (for OBC) and apply for loans from scheduled banks as per Indian Banking Association guidelines
Padho Pardesh Scheme	Students from EWS communities accepted into master’s, M.Phil, or Ph.D. courses abroad	Interest subsidy on education loans from scheduled banks	Annual family income must be less than INR 6 lakh	Provide a government-approved income certificate
Central Scheme for Interest Subsidy	EWS students enrolled in recognised education programs within India	Waiver of interest payments during the moratorium period	Annual family income must not exceed INR 4.5 lakh	Submit documentation proving EWS status; the scheme applies to loans for studies within India

Students from Andhra Pradesh aiming to study abroad can benefit from government-funded interest subsidy programs like the ‍ which helps reduce the financial burden of international education.

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Higher Education in Andhra Pradesh

Planning an education loan for engineering students in Andhra Pradesh is very easy.

Andhra Pradesh is home to several prestigious institutions offering diverse courses, including engineering, medical, and degree programs. Early planning for an education plan for engineering students in Andhra Pradesh is an intelligent choice.

Here are some of the top universities in the state:

Vignan's Foundation for Science, Technology & Research (Deemed to be University)
Sri Padmavati Mahila Visvavidyalayam
Dr. YSR University of Health Sciences
Andhra University
K L Deemed to be University
Acharya Nagarjuna University
Sri Venkateswara University
JNTUA College of Engineering, Anantapur
Jawaharlal Nehru Technological University
Gandhi Institute of Technology and Management

Propelld offers some great education loan options for engineering students in Andhra Pradesh. Click here to learn more!

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How To Get Education Loan in Andhra Pradesh?

Keep reading to learn how to get education loan in Andhra Pradesh.

For online applications, follow these steps:

Visit the bank’s official website.
Complete the online application form and upload the required documents as specified by the bank.
After ensuring that you have entered all details, submit the application form. You may then need to visit the branch to finalise any additional formalities and discuss the loan's terms and conditions.

Get an instant education loan with Propelld. Visit our website to know more!

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What Students Are Asking About Education Loan Interest Rates: Queries and Insights

Students exploring education loans in India often seek clarity on the applicable interest rates and the factors that influence them. Below is one such query that reflects these concerns:

A Quora user asked:
“What is the interest rate on education loans in India?”

Insights: This query highlights the need for clarity among students and parents about how education loan interest rates vary across banks, how government initiatives affect them, and what concessions are available for premier institutions.

What Do We Infer?

Variation Across Banks: Interest rates are not uniform and differ based on the bank, loan amount, and student profile. For instance, one borrower reported his loan rate dropping from 13.2% to 10% after SBI shifted to the MCLR-based system.
Institution Advantage: Admission to top institutions like AIIMS, IITs, IIMs, NITs, NIFTs, BITS, and other reputed colleges often ensures lower interest rates and relaxed collateral requirements.
Loan Schemes: Different schemes within the same bank may have distinct rates depending on eligibility criteria.
Bank Tie-ups: Some colleges with direct tie-ups offer concessional rates or even collateral-free loans.
Government Support: The Vidya Lakshmi Portal, managed by NSDL e-Governance, provides a one-stop solution for viewing, applying, and tracking education loans across multiple banks.

Tip

If you’re targeting top institutions, make sure to explore bank schemes that provide preferential rates and reduced collateral requirements. Always compare across banks and check for government-supported schemes before finalizing your loan.

Education loan interest rates in India are becoming more student-friendly, especially with reforms like MCLR and the Vidya Lakshmi Portal. By leveraging these options, students can significantly reduce their financial burden.

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Education Loan in Andhra Pradesh: Key Features

Understanding what an education loan in Andhra Pradesh from NBFCs typically covers is essential. Typical expenses covered through NBFC education loans include tuition fees, living costs, examination fees, the purchase of books, transportation, and insurance for overseas studies.

Here are some other essential parts of an education loan from an NBFC that you should know about:

1. Moratorium Period

One key aspect to consider is the moratorium period, which typically extends from the course duration to an additional 6 months to a year. Public banks generally charge only simple interest during this time, while private banks often apply compound interest. On the other hand, NBFCs usually require Equated Monthly Instalments (EMIs) during this period.

2. Loan Margin

Another crucial factor is the loan margin. For loans from public banks, you can expect a loan margin of about 10%, whereas private banks may require a margin ranging from 5% to 10%.

Understanding the loan margin is also vital. The loan margin is the percentage of the total amount you must pay out of your pocket. For instance, if the loan margin is 5%, you must contribute 5% of the total loan amount, with the lender covering the remaining 95%. Lenders often use this margin to mitigate their risk if you're unable to make the loan repayments.

3. Expenses covered

Students can avail education loans in Andhra Pradesh to cover various expenses, including tuition fees, examination fees, hostel fees, and necessary supplies like books and equipment. Some lenders can extend the costs to cover living expenses such as accommodation and food. Lenders may have specific requirements or restrictions on how you can use the loan. Hence, it is better to carefully review the loan terms to understand the costs the loan can cover.

4. Collateral Margin

Similarly, the collateral margin represents the portion of the loan secured by an asset pledged as collateral. If you cannot repay your loan, the lender can seize the collateral to recover their losses. It's essential to fully understand the terms related to the collateral margin, as these conditions will impact your financial obligations.

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Education Loan in Andhra Pradesh 2025: Interest Rate & Application

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