IAFBA provides education loan to personnel for higher education of their wards and spouse. These loans are provided on fulfilling the following eligibility conditions. -
Eligibility Conditions
(i) Minimum qualifying service is 3 years except in case of airmen where minimum service is 3 years 6 months. AC / LAC who have not cleared CPE are not eligible.
(ii) For applicants having length of service between minimum qualifying service and 5 years, the quantum of loan and number of installments shall be half of otherwise entitled.
(iii) Minimum qualifying service is 5 years for availing full admissible amount of loan.
(iv) Re-employed Officers are not eligible
Education Loan @ 7%(for NCs(E) 5%)
Courses Rates for all Categories
04 yr above Degree/ Integrated PG courses or 02 yr
PG / PG (Prof) courses
All other coureses 15,00,000/-
Total Loan eligible to one (same) child would not be more than Rs. 20 Lakh for both Graduation and PG, if done separately.
(i) All post-graduation diploma/degree courses.
(ii) All professional degree courses in field of medicine (all streams), engineering (all streams), CA, ICWA, CFA, Law etc
(iii) All degree courses of four years duration like hotel management, tourism, journalism, food technology, Marine and Merchant Navy etc.
(iv) All integrated post graduation courses of 4 years or more duration.
(v) Professional software courses conducted by C DAC and NIIT.
(vi) The loan will be granted for the above degree/diploma courses provided the course and institute is recognized by UGC/concerned University or any Govt body authorized by Govt of India for this purpose. Foreign courses and institute must be recognized by concerned body of their country.
Sanction of Welfare and Education Loan Simultaneously
Sanction of education and welfare Loan is delinked and both can be availed simultaneously subject to repaying capacity. The education loan can also be availed simultaneously for a maximum of two children.
Frequently Asked Questions
Q. What are the reasons for which Education loan can be availed?
A. This loan is provided to meet expenses on Higher Education for wards / spouse of AF Personnel for professional and vocational courses. An attested copy of letter from the educational institution indicating admission fee and other charges required to be deposited at the time of admission is to be attached with the application.
Q. What are the documents which are to be attached with the application Form?
A. The following documents are to be attached with the application and same to be filled in all respects. Each page of agreement is to be signed by the applicants at the bottom of the page.
(a) Declaration
(b) Letter of Authorisation to AOC, AFCAO / PD AFGIS / PD AV
c) Promissory Note
d) Agreement Form. Page No. 7 (Agreement) is a sample only. It is to be reproduced on a Non-judicial Stamp Paper of ` 100/-. Adjutant has to be the First Witness. Each page of agreement is to be signed by the applicants at the bottom of the page.
(e) Latest self attested e-pay slip (F 1517 for Officers / F 1523 for Airmen / NCs(E)).
(f) Relevant documents in proof of the financial commitments for which loan is sought.
(g) Mandatory to attach cancelled cheque having IFSC Details/First page of Bank Pass Book having IFSC details/ Certificate from Bank Manager having IFSC details.
(h) Application should be forwarded to IAFBA under a covering letter from the applicant's unit.

Q. What are the things to understand before the Application Form is submitted?


A. Following should be ascertained before submitting the application form:-
1.Total deduction including anticipated EMI of the loan applied can not exceed 80% of the Gross emoluments.
2.Purpose for which the loan is applied with brief details and relevant documents duly signed by the borrower is to be attached.
3.Application is pre-receipted by the applicant on Rs.1 revenue stamp on page no.8.
4.The processing fees of Rs. 200/- would be deducted from the sanctioned loan amount itself.
5.Fresh loan will be sanctioned only 06 months after liquidation of previous loan if any, as reflected in (F) 1517 / 1523.
6.Concurrent loan is admissible up to the specified limit of loan.
7.EMI commences from the month in which the loan amount is remitted.
8.Income of spouse or other private income are not to be included for determination of repaying capacity.
9.Compulsory payment of Loans through NEFT / RTGS.

Q. What do I do if I no longer want the loan I applied for ?
A. If you decide not to avail the loan, before the amount has been transferred to your account, you can inform us through an application that the loan is not required. But if the amount has already been transferred, you will be required to pay interest for the period.

Q. How can I pay back my balance loan in one lumpsum.
A. You can pay through a Demand Draft in the name of IAFBA payable at New Delhi. You can also make payment through RTGS / NEFT. Bank details for the same are given in CONTACT US link at the Home Page. It is mandatory to fill and send Form for Partial Payment / Final Settlement of IAFBA Loan, available in the DOWNLOAD FORMS link at the Home Page. It is to be noted that no penalty is charged by this office for early cessation of loan.

Q. Can I make partial payment and How?
A. A partial repayment is made in the same way as a final payment. You have to specify in the form that amount pertains to partial refund of loan. Your EMI will be re-fixed and will be effective from the following month.