Andhra Bank to sanction educational loans worth Rs 1,000 cr

Andhra Bank (AB) is aiming to sanction Rs 1,000 crore worth educational loans by the end of March 2006. So far, the bank has sanctioned educational loans worth Rs 758 crore covering 37,000 students.

Addressing mediapersons on the sidelines of signing an MoU between Andhra Bank and the Institute of Public Enterprise (IPE), K Ramakrishnan, chairman and managing director of Andhra Bank, said that the banking system in India extended Rs 6,130 crore as educational loans to 4.32 lakh students and the banks in the state sanctioned Rs 1,425 crore of the same as on March 31, 2005.

"Andhra Bank sanctioned Rs 758 crore loans covering 37,000 students and we are aiming to achieve Rs 1,000 crore sanctions and Rs 760 crore outstanding by March 2006," he added.

"While we have entered into an MoU with a number of institutes like ISB, Bits Pilani and ICFAI, modalities are being worked out with some other institutes too," Ramakrishnan said.

Andhra Bank will now be providing loans up to a limit of Rs 3 lakh to students of IPE at an interest rate of nine per cent as per the 'AB Vidyajyothi' scheme.

"Women will get a discount of 0.5 per cent. Besides, students who pay promptly will also get a discount of another 0.5 per cent,"he added.

The business of Andhra Bank as on March 31, 2005 stood at Rs 45,461 crore with total deposits of Rs 27,551 crore and advances of Rs 17,910 crore.