Andhra Pradesh is one of India’s leading education hubs, with cities like Vijayawada, Visakhapatnam, and Tirupati producing thousands of graduates every year, aspiring for higher studies both in India and abroad. According to RBI data (2024), Andhra Pradesh accounts for nearly₹8,101 croreworth of education loans disbursed annually, ranking among the top five states in India for educational financing.
With increasing tuition fees and cost of living, education loans are no longer an option but a necessity for students in AP. Finding the top education loan in Andhra Pradesh means balancing between low interest, quick processing, and flexible repayment.
This blog compares banks, government schemes, and interest rates, helping you make an informed decision.
Key Takeaways
Loan amounts in Andhra Pradesh range from ₹10 lakh (domestic) to ₹1.5 crore (abroad).
Interest rates range from 8.3% to 13%, depending on the lender and collateral.
Andhra Pradesh students can access state and central subsidy schemes for low-interest funding.
NBFCs and private banks provide faster approvals and collateral-free loans.
Propelld helps AP students compare lenders and get pre-Visa sanction letters within 72 hours.
Education Loan Andhra Pradesh Banks
Andhra Pradesh has a strong banking infrastructure with both public and private sector lenders offering specialised education loans. Here’s a comparative look at leading options:
NBFCs like Avanse, InCred, Auxilo, and HDFC Credila also operate widely in Andhra Pradesh, offering collateral-free loans up to ₹75–₹80 lakh for overseas education.
A guide to Andhra Pradesh’s government and central student loan schemes.
Andhra Pradesh Social Welfare Department Education Loan
This scheme supports students from SC, ST, BC, and minority communities pursuing higher studies in India or abroad.
Covers tuition fees, travel, and living expenses.
Interest subsidies apply during the study period.
Preference given to students from families with an annual income below ₹8 lakh.
Central Sector Interest Subsidy (CSIS) Scheme
100% interest subsidy during moratorium for students with family income ≤ ₹4.5 lakh.
Applies to education loans up to ₹7.5 lakh taken under the IBA Model scheme.
Padho Pardesh (for Minority Students)
Subsidy on interest for students pursuing postgraduation abroad.
Applicable for family income ≤ ₹6 lakh per annum.
Vidya Lakshmi Portal (Unified Access)
A central platform where Andhra Pradesh students can apply to 40+ banks with one application.
Dr B.R. Ambedkar Overseas Vidya Nidhi (AP Govt)
For SC, ST, and BC students pursuing postgraduate courses abroad.
Grants & loans up to ₹20 lakh for tuition and living costs.
Propelld assists students in determining eligibility and aligning with these schemes while applying for loans through partner banks.
Education Loan Interest AP
A detailed look at education loan interest rates in Andhra Pradesh.
Interest rates depend on the lender, the applicant’s profile, and collateral. Below are typical rates for 2025:
Most lenders offer an interest subsidy during the moratorium period for eligible applicants. Propelld negotiates with partner banks to help Andhra Pradesh students access the lowest possible rate.
Eligibility Criteria for Education Loans in Andhra Pradesh
An overview of the requirements for applying for a student loan in Andhra Pradesh.
To be eligible for education loans under Andhra Pradesh government and bank-linked schemes, applicants must meet specific academic, financial, and residency requirements. These criteria help ensure responsible borrowing and timely repayment.
The applicant must:
Be an Indian national and a resident of Andhra Pradesh.
Have secured at least 60% in the qualifying exam (50% for BC/SC/ST categories).
Hold confirmed admission in a recognised institution in India or abroad.
Have a parent or guardian as a co-applicant with steady income or property.
Meet the income cap of ₹10 lakh or below (for most government-backed schemes).
Provide collateral such as residential/commercial property or financial securities, if required.
Documents Required for Education Loan in Andhra Pradesh
The necessary documentation depends on the type of loan (secured or unsecured).
For Students
Aadhaar, PAN, and passport
Admission letter
Academic mark sheets (10th to latest degree)
Scorecards (GRE/GMAT/IELTS/TOEFL)
Visa and I-20/CAS (for international students)
For Co-applicants
Salary slips / ITR / bank statements (6 months)
Business proof (if self-employed)
For Collateral
Property title deed
Encumbrance certificate (30 years)
Latest tax receipts and building plan approval
Collateral Options for Education Loans in Andhra Pradesh
Acceptable collateral assets for education loans in the state include:
Residential or commercial properties
NA-certified land plots (non-agricultural)
Fixed deposits, insurance policies, or government bonds
Agricultural land is rarely accepted unless reclassified. Propelld helps coordinate property valuation and legal verification.
Repayment and Moratorium Details
Repayment terms in Andhra Pradesh typically include:
Tenure: 10–15 years
Moratorium: Course duration + 6 to 12 months
Interest: Simple during moratorium, compounded post-course
Prepayment: Allowed with no penalty for most banks
How to Apply for an Education Loan in Andhra Pradesh
Applying through Propelld simplifies and accelerates the process:
Check eligibility
Enter your course, country, and academic details.
Compare lenders
Get personalised loan offers from top banks & NBFCs.
Upload documents
Complete your profile digitally.
Get a sanction letter
Within 72 hours for select partners.
Loan disbursal
Funds are sent directly to the institution.
For students in Andhra Pradesh, education loans have become an essential tool to pursue higher studies in India or abroad. While several public and private banks offer funding, finding the top education loan in Andhra Pradesh means comparing rates, eligibility, and collateral flexibility.
With Propelld, you can explore all options, from SBI and BoB to NBFCs like Avanse and HDFC Credila, in one place. Propelld’s digital platform ensures faster approvals, minimal documentation, and customised rate offers for Andhra Pradesh students.
Apply now with Propelld and secure your education loan in just 72 hours, without the stress of traditional banking queues.
A banker turned content marketer with expertise in growth-focused content strategies for the finance and digital sectors. She currently drives data-backed content initiatives at Propelld, through high-impact storytelling.
Before moving into content marketing, Vaishali spent nearly a decade in banking, across their asset and lending divisions and spent almost a decade in finance. An MBA in Marketing and a writer at heart, she finally took up content marketing and now simplifies money talks for the readers.
She is also a certified digital marketer (MICA), combining data-driven insights with creative storytelling to deliver measurable business growth.
Beyond work, Vaishali is a handcrafted brand founder, avid reader, and travel & food blogger, blending creativity and strategy in everything she does.
Victor Senapaty is the Co-Founder of Propelld, a pioneering fintech platform revolutionizing education financing in India. An IIT Madras and FMS Delhi alumnus, Victor brings a rare blend of investment banking expertise, startup leadership, and financial innovation to the education lending space.
He is a serial entrepreneur with ventures spanning edtech, hyperlocal commerce, and consumer experiences, and an ex-Deutsche Bank investment banker with deep expertise in financial modeling, valuation, and strategic growth. At Propelld, Victor focuses on unlocking financial access for students by creating future-potential-based lending models, helping thousands pursue higher education without traditional credit barriers.
A National Maths Olympiad gold medalist, FRM Level 1 certified professional, an avid traveler and football enthusiast, Victor is passionate about building products that meaningfully impact lives and transform access to education in India.
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