An education loan is a money a person borrows to pay for their higher education in India or abroad. This loan helps cover the costs of tuition fees, accommodation, books, and other expenses related to education. After completing their studies, the student has to repay the loan to the bank or financial institution that provided the loan. There is usually a grace period of 6 months given to the student to find a job or start earning before they have to begin repaying the loan.

When you take an education loan, the amount you have to repay will depend on your chosen interest rate. It would be best if you decided whether to start paying back the loan during the moratorium or after it ends. The moratorium period is when you are studying plus six months or one year was given to find a job. You are not expected to pay the loan during this time.

However, it is important to note that the interest on the loan starts accumulating from the time the funds are disbursed. So, you could have much to repay by the time you graduate.

One way to reduce the loan amount at graduation is for your parents or guardian to start paying the loan during the moratorium period. This is calculated as simple interest, which means you only pay interest on the principal amount borrowed. Doing this can significantly reduce the amount you owe at graduation.

Different education loans are available to students who wish to pursue higher education in India. There are generally four types of education loans in India, which cater to the diverse needs of students. These types of education loans include:

Undergraduate Education Loan: This type of education loan is for students who have completed their high school education and wish to pursue higher studies in undergraduate courses. The loan can be taken for studying in India or abroad.

Postgraduate Education Loan: Postgraduate education loans are for individuals who want to pursue higher studies after completing their undergraduate courses at a reputed university or college. These loans can be taken for studying in India or abroad.

Parent-Availing Education Loan: This is a type of education loan where parents take the loan on behalf of their children for educational purposes. The loan is unsecured and can be taken for elementary and higher secondary courses and graduate and postgraduate courses.

Career Growth Education Loans: These loans are provided to young individuals who want to pursue courses, certifications, or training programs to help their career growth. These courses can be related to their current profession or for acquiring new skills to advance their career.

About Andhra Bank

Andhra Bank is a public-sector bank headquartered in Hyderabad, India. It is a medium-sized bank that provides its customers with a wide range of financial services. The bank has a vast network of 2803 branches, four extension counters, and 38 satellite offices nationwide. It also has over 3700 ATMs to serve its customers conveniently.

Andhra Bank operates in 25 countries and three union territories in India, making it a significant player in the banking sector. The bank offers a range of financial products and services, including personal loans, home loans, education loans, car loans, savings accounts, current accounts, and fixed deposits.

One of the notable achievements of Andhra Bank is that it introduced credit cards in the country in 1981, making it a pioneer in this field. The bank has always been at the forefront of innovation and has been introducing new products and services to cater to the changing needs of its customers. With its customer-centric approach and commitment to providing quality services, Andhra Bank has become a trusted name in the banking industry in India.

Andhra Bank Education Loans

Education is a crucial aspect of life and often requires a significant financial investment. Andhra Bank recognizes the importance of education and provides education loans to students who wish to pursue higher studies in India or abroad. The bank offers highly competitive education loans with better interest rates to help students achieve their dreams.

Andhra Bank education loans are designed to meet the needs of students who aspire to study in top universities and colleges worldwide. The bank provides education loans for various levels of education, including undergraduate and postgraduate courses and doctoral studies. Additionally, the loans can finance other expenses, such as tuition fees, accommodation costs, and other related expenses.

Andhra Bank education loans have flexible repayment options, allowing students to choose the repayment tenure that suits them the best. The loans can be repaid over an extended period, starting after the completion of the course or after a moratorium period. Moreover, the bank also provides a grace period of up to six months to allow students to secure a job after completing their studies.

With its customer-centric approach and wide range of financial products, Andhra Bank has emerged as one of India's significant education loan providers. Students can avail of these loans to pursue their higher education dreams without worrying about the financial burden that comes with it.

Eligibility Criteria: Who Can Apply?

The eligibility criteria for abroad education loans from Andhra Bank are listed below:

• Must be an Indian resident
• Should have secured admission to a recognized educational institution
• The institution could be in India or abroad
• The course should lead to a graduate or postgraduate degree or diploma
• The eligibility criteria may vary among different lenders, so it is essential to check with the specific lender

Key Highlights of Andhra Bank Education Loan

FAQs About Abroad Education Loans From Andhra Bank

What is the interest charged during the moratorium period?

During the moratorium period, only simple interest is charged. The actual interest rate mentioned will be charged after the moratorium period.

Can I apply for an education loan without a co-borrower?

No, a co-borrower is required to apply for an education loan. The loan is a joint loan in collaboration with your parent/guardian or spouse.

Can I apply for an education loan to study abroad?

Yes, Andhra Bank offers education loans for studies pursued abroad, including travel expenses and study tours. Eligibility and creditworthiness will determine the loan amount.

Is there a processing fee for an education loan from Andhra Bank?

No, Andhra Bank does not charge processing fees for education loans.

How can I reduce the interest paid on my education loan?

The Central Government provides special subsidies for education loans, which can help reduce the interest paid. Additionally, Andhra Bank offers special interest rates for premier institutions. Another option to reduce the loan amount to be repaid is to have your parent/guardian or spouse pay during the moratorium period.