Education and Career Forum

Hi, I want to get an education loan of about 20 lacs to study in Germany. I want to study my MS program there. I have searched and know well about loan rates but I am unable to know the margin given by many banks to get loan amount from Andhra Bank. So, I want to know in what margin of loan scheme I get 20 lacs? Also I want to know about the repayment of education loan.

Margin money is the amount to be paid by the student with each disbursement made by the bank. It is usually done by depositing the required amount in a bank account on a year to year basis as and when disbursements are made on the basis of pro-rata. The margin money requirements for different categories of Andhra Bank abroad education loan are as follows.

Studies Abroad 15%
Up to Rs. 4 lakhs - Nil
Above Rs. 4 lakhs: 15%

Scholarship/ assistantship will be included in margin.

If you or your parents paid before the given time then there will be no penalty and the duration of repayment would be shifted to 6 months if you will get immediate job after the completion of course. Repayment term will vary for each loan on the basis of quantum of loan as mentioned below.

Loan upto Rs. 50,000: Repayment term 2 years

Loan upto Rs. 1 lakhs: 2 to 5 years

Loan above 1 lakhs: 3 to 7 years.