Andhra Pradesh education loans are a top preference among students because the loan is structured in a way which makes repayment of loans quicker and easier for the students. Many public banks that provide education loans in Andhra Pradesh offer secured education loans of up to 2 crores and unsecured education loans of up to 50 lakhs (figures may vary depending on the lenders). The interest rates vary between 8.5% to 13% depending on the loan amount and the lender.
In this blog, we will discuss the important details about the Andhra Pradesh education loan including the eligibility criteria, eligible courses, expenses covered, how to apply, and interest rates.
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Also Read: Check all about the Delhi Government education loan for abroad studies- who can apply, eligibility criteria, and list of documents required.
Andhra Pradesh Education Loan
Students can easily avail education loans in Andhra Pradesh based on their requirements, with no maximum cap (applicable for secured loans). This means that there is no upper limit as tuition fees, living expenses, and other related expenses vary from country to country. Different financial institutions have different limits set for providing unsecured education loans.
However, for NRIs, the maximum amount of education loan in Andhra Pradesh is 20-30 lakhs for premier educational institutions. The interest rates start from 8.5% for some banks and go up to 13% which depends on factors like loan amount, lender (provider is a public bank or private bank) and the loan tenure. Banks provide both types of loans- secured and unsecured education loans.
Let’s have a look at the table below for a better understanding-
| Basis | Details |
| Quantum of Loan Sanctioned | Need-based (India and Abroad) For NRIs- 20-30 lakhs |
| Rate of Interest | 8.5% to 13% (Concession offered to female candidates) |
| Security | Both secured and unsecured education loans provided |
| Repayment Tenure | 15 years(excluding course duration and moratorium period) |
| Eligible Courses for Abroad Studies | UG and PG courses at recognised university Certified degree courses like CIMA, London and CPA, USA and other reputed institutes Doctorate programs offered by top universities |
Eligibility Criteria for Education Loan in Andhra Pradesh
Aspiring students must meet the eligibility criteria for education loans in Andhra Pradesh to study abroad. Not just the students, but the co-applicants must also meet certain requirements so that the banks and NBFCs providing education loans can ascertain if the borrowers can be trusted for their ability to repay the education loan. The following are the requirements that need to be fulfilled by the applicants and co-applicants-
| Eligibility Criteria for Applicants | Eligibility Criteria for Co-applicants |
| The student must be an Indian citizen | The co-applicant must be an Indian citizen |
| The student must have enrolled in a reputed and recognized university abroad | Only the parents of the applicant can become co-applicants |
| The student must be selected through an appropriate selection process (based on merit/ qualifying for the entrance exam) | Guardians are eligible to become co-applicants in case the parents are not alive |
| The student must have a valid Indian passport | Spouses/ parents-in-law can become co-applicants if the applicant is married |
Documents Required to Avail Education Loan in Andhra Pradesh
To avail education loans in Andhra Pradesh, students must keep all the documents handy with them. Banks require these documents for education loans to verify your educational qualifications, identity, address, and income and check if they have secured admission to a recognized university. The most important document to provide the lender is the complete application form with 3 passport-size photographs.
Here’s the list of documents required to avail secured and unsecured education loans in Andhra Pradesh-
| Documents required for Unsecured Education Loan in Andhra Pradesh | Documents required for Secured Education Loan in Andhra Pradesh |
| Identification documents: Aadhar card, PAN card, and passport of the applicant | Identification documents: Aadhar card, PAN card, and passport of the applicant |
| Admission letter from the university | Admission letter from the university |
| Utility bills: electricity bill, house tax | Utility bills: electricity bill, house tax |
| Academic documents: 10th, 12th, degree/diploma | Academic documents: 10th, 12th, degree/diploma |
| Scores from competitive exams: IELTS, TOEFL, GRE, GMAT | Scores from competitive exams: IELTS, TOEFL, GRE, GMAT |
| For salaried individuals: last 3 months of salary slips, 6 months of bank statements, company ID, last 2 years of Form 16, last 2 years of ITRs | The income certificate of the co-applicant, if they do not have ITRs |
| For self-employed individuals: last 3 years of ITRs, 6 months of bank statements, balance sheet, profit and loss account for last 3 years, proof of business address | Allotment letter from a government authority such as VGTM – UDA (Vijayawada Guntur Tenali Mangalagiri – Urban Development Authority) |
| A bank statement that is issued by a bank and shows the financial transactions of both the student and co-applicant. | Title deed for the property being used as collateral |
| Loan statements from the previous year, if applicable | The latest property tax bill and latest electricity bill with the same address as the property |
Also Read: Did you know that you can get an income tax rebate on education loans? Check out how to avail, calculate, and claim tax deductions.
How to Apply for an Andhra Pradesh Education Loan?
To apply for an education loan in Andhra Pradesh, candidates can apply online or visit the bank branch. Once you visit the branch of the bank you wish to avail of an education loan from, connect with the bank personnel. Fill out the application form and provide the necessary documents.
To apply online follow these steps-
Step#1- Visit the official website of the bank.
Step#2- Fill out the application form online and upload the required documents as asked by the bank.
Step#3- Submit the application form after ensuring that all the details are correctly filled in. Visit the branch for further formalities and discuss the terms and conditions.
Note: Applicants must opt for education loan insurance in Andhra Pradesh. This makes it easier for you as well as the lender to cover the education loan amount in case of unforeseen circumstances.
FAQs on Education Loans in Andhra Pradesh
Students can easily avail education loans in Andhra Pradesh based on their needs, with no maximum cap (in case applying for secured loans). This means that there is no upper limit as tuition fees, living abroad expenses, and other related expenses vary from country to country. Different financial institutions have different limits set for providing unsecured education loans.
An Indian citizen who has secured admission to a recognized university and is selected through an appropriate selection process (based on merit/ qualifying for the entrance exam) is eligible for an education loan in Andhra Pradesh. The student must also have a valid Indian passport.
The interest rates vary between 8.5% to 13% depending on the loan amount and the lender.
You must submit the complete application form with self-attested copies of the Adhaar Card, PAN Card, Voter ID, and all educational documents- class 10, 12 and marksheet of highest educational qualification. ITR and Salary Proof Form 16, Salary Slip and recent salary certificate, Bonafide certificate from College/Institution, and Updated Passbook/ Bank Statement of last 3 months with your photo on it are also required.
To get an education loan in Andhra Pradesh, visit the bank branch or apply online to complete the application form. Attach the required documents and submit the form after ensuring that the details are correct. Visit the branch to further discuss the terms and conditions.
This was all about Education Loan in Andhra Pradesh. You can easily avail education these loans to finance your study abroad dreams based on your needs, with no maximum cap. The interest rates are also comparatively less which makes it a top preference among students because the education loan debt is structured in a way which makes repayment of loans quicker and easier for the students.
To know more about international scholarships, the loan application process, the best international bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.
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