The Hindu Business Line : Andhra Bank in pact with ICFAI for education loans

CLOSE on the heels of emerging as the second leading Indian bank in educational loans, Andhra Bank has entered into another alliance with the ICFAI University for extending education loans to its students at concessional interest rates.

The bank had recently signed memoranda of understanding (MoUs) with the Indian School of Business (ISB) at Hyderabad and the Birla Institute of Technology and Science (BITS), Pilani.

Addressing a gathering of ICFAI University students and faculty members here on Wednesday, the Andhra Bank Chairman and Managing Director, Mr T.S. Narayanasami, said the bank has so far sanctioned educational loans to 35,690 students with the loans aggregating Rs 719.63 crore as at the end of December last year. The scheme, exclusively prepared for the students of ICFAI University, would help them achieve their goals without worrying about their financial inputs for the courses, he said.

The Executive Director, Mr R. Balakrishnan, said under the scheme, the bank offers the lowest and simple rate of interest at nine per cent during the study period, with 50 basis points concession for those who serve interest during the study period and another 50 basis points concession for prompt payment. Thus, the effective rate of interest comes to eight per cent, lowest in the banking industry for educational loans, he said.

Of the Rs 719.63-crore educational loans sanctioned so far, Rs 355.65 crore was given for post-graduation; Rs 277.97 crore for graduation; Rs 29.8 crore for software courses; Rs 28.5 crore for polytechnic; and Rs 25.85 crore for other courses.

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