Andhra Bank offers loans to to 21 Century students

Andhra Bank today entered into an MoU with consortium of institutions for higher learning(CIHL) to extend educational loans to students who secure admission into '21 Century Gurukulam' here on Thursday.

The gurukulam, which teaches PGDIT & MSIT courses, is a new educational programme designed to provide enhanced opportunities for gifted rural youth of the state.

Under the MoU, which was exchanged in the presence of chief minister Y S Rajasekhara Reddy, the bank will extend educational loan to about 250 students of Gurukulam. The first entrance test for the admission into Gurukulam institutions will be held next month.

Students, who must have studied at least up to Std X in rural or semi urban areas are eligible for the test. The course fee ranges from Rs 3.90 lakh for a 3-year course and Rs 5.10 lakh for a 4-year course, according to a press release.

Andhra Bank will provide loans at a discounted rate of 10 per cent floating interest to these students. The bank has so far extended finance to 51,020 students with a sanction outlay of Rs 1130 crore.

The outstanding under this portfolio is Rs 771 crore, the press release said. During the current financial year, the bank extended educational loans to 4,326 students to the tune of Rs 118 crore.