Allahabad Bank

Eligibility Criteria

  1. Courses Eligible
  1. Studies in India
  • School education including plus 2 stage.
  • Graduation courses: BA, B.Com., B.Sc., etc.
  • Post Graduation courses: Masters & Ph.D.
  • Professional courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer etc.
  • Computer certificate courses of reputed institutes accredited to Dept. of Electronics or institutes affiliated to university.
  • Courses like ICWA, CA,CFA, etc.
  • Courses like IIM, IIT, IISc, XLRI, NIFT, etc.
  • Courses offered in India by reputed foreign universities.
  • Evening courses of approved institutes.
  • Other courses leading to diploma/degree etc. conducted by colleges/universities approved by UGC/Govt./AICTE/AIBMS/ICMR etc.
  • Courses offered by National Institutes and other reputed private institutions . Banks may have the system of appraising other institution courses depending on future prospects/recognition by user institutions.
  1. Studies abroad
  • Graduation: For job oriented professional/technical courses offered by reputed universities.
  • Post Graduation: MCA, MBA,
    MS etc.
  • Courses conducted by CIMA-London, CPA in USA etc.
  1. Student Eligibility
  • Should be an Indian National
  • Secured admission to professional/technical courses through Entrance Test/ Selection process.
  • Secured admission to foreign university/Institutions.
  • No minimum qualifying marks be insisted upon.
  1. Expenses considered for loan:
  • Fee payable to college/ school/ hostel.
  • Examination/ Library/ Laboratory fee.
  • Purchase of books/ equipment’s
    / instruments/ uniforms.
  • Caution deposit/ building fund/ refundable deposit supported by Institution bills/ receipt.
  • Travel expenses/ passage money for
    studies abroad.
  • Purchase of computers-essential for completion of the course.
  • Any other expenses required to complete the course- like study tours, project work, thesis etc.

Quantum of Finance

Need based finance subject to repaying capacity of the parents/students with following margin and ceilings.

Studies in India - Maximum Rs.7.50 lacs

Studies abroad - Maximum Rs.15.00 lacs


Upto Rs.4.00 lacs NIL  
Above Rs.4.00 lacs Studies in India 5%
  Studies Abroad 15%

Scholarship/assistantship to be included in margin.

Margin may be brought-in on year to year basis as and when disbursements are made on a pro-rata basis.


Upto Rs.4.00 lacs No security
Above Rs.4.00 lacs Collateral security of suitable value or
Co-obligation of guarantee alongwith

In case of loan upto 4 lacs, the documents should be executed by the student. No additional security may be insisted upon. However, in case of minor students , the documents are to be executed by the guardian on behalf of the minor and also on his own behalf. The Pronote and the money consideration receipt are to be signed by the guardian in two capacities i.e. (I) For self and (ii) On behalf of the minor. The following documents should be obtained from the minor students.

  1. Pronote
  2. Money Consideration
  3. Agreement of Term Loan
  4. Guarantee by the guardian
  5. Deed of ratification to be executed by a minor on attaining majority
  6. Letter of waiving presentment of Pronote
  7. Acknowledgement of debt.

In case of loan above 4 lacs, the documents should be executed by the both the student and parent/guardian.

  1. The security can be in the form of land/building/Govt. Securities/Public Sector Bonds/Units of UTI , NSC, KVP, LIC policy, gold shares/debentures , bank deposit in the name of student/parent/guardian or any other third party.
  2. In case the loan is given for purchase of computer the same to be hypothecated to the Bank.
  3. The assignment of future income of the student for payment of installments may also be obtained irrespective of loan amount.

Rate of Interest

Upto Rs.4.00 lacs PLR* with quarterly rest
Above Rs.4.00 lacs PLR* + 1% with quarterly rest
* PLR is at present 12% (w.e.f. 1.7.2001)

All the above rates will be treated as fixed
rate of interest.


Repayment holiday/Moratorium :
Course period +1 year or 6 months after getting job, whichever is earlier.

The loan to be repaid within a maximum period of 7 years after commencement of repayment . If the student is not able to complete the course within the scheduled time extension of time for completion of course may be permitted for a maximum period of 2 years. If the student is not able to complete the course for reasons beyond his control, sanctioning authority may at his discretion consider such extensions as may be deemed necessary to complete the course.

  • Loan together with accrued interest charged during the repayment holiday period will be repaid in maximum 84 Equated Monthly Instalments (EMI).
  • Concession of 1.5% of the loan amount may be provided to the loanees if the interest is serviced during the study period when repayment holiday is specified for interest/repayment under the scheme. Such concessions will be adjusted from the last instalment/s.

Processing Charges

No processing/upfront charges may be collected on educational loans.

Capability Certificate

Some of the foreign universities require the students to submit a certificate from their bankers about the sponsors’ solvency/financial capability , with a view to ensure that the sponsors of the students going abroad for higher studies are capable of meeting the expenses till completion of studies. Accordingly branches can also issue the capability certificate for students going abroad for higher studies. For this financial and other supporting documents may be obtained from applicant, if required.

Online Sanction

Students of IIM, IIT, Indian School of Mines(Dhanbad), Jamnalal Bajaj Institute of Management(Mumbai), XLRI - Jamshedpur, Roorkee Engineering College, IIS(Bangalore).
Click here for Designated Branches and Application Form.

Other Institutes

For students of other institutes, loans are available from all branches of Allahabadbank.
Click here for printable Application Form.

Comments (6)

Said this on 6-2-2008 At 09:05 pm
i want education loan for medical studies in india i want loan as soon as possible
Said this on 6-10-2008 At 09:59 pm
the most faltoo stupid news ever heard
Said this on 3-2-2009 At 12:40 pm
i want sample paper of allahabad bank paper
Said this on 3-2-2009 At 12:46 pm
i m
Said this on 1-19-2010 At 03:57 pm

Find out more Allahabad Bank question papers to success in next comming exams.

gautam kumar
Said this on 6-1-2010 At 05:42 pm
i want education loan(above 4 lacs) for engeneering studies in india i want loan as soon as possible

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