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  • Axis Bank Education Loan

    Axis Bank Education Loan
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    Overview:

    Axis Bank was founded in 1994 as UTI Bank. Axis Bank is India’s third largest private sector bank and provides a wide range of financial services that include personal loans, business loans and asset management. Axis Bank’s education loan is offered to students who have secured admissions to professional courses at graduate or post-graduate levels. A flexible loan scheme with affordable interest rates, Axis Bank Education Loans will provide the required monetary support to deserving students.

    Features and Benefits of Axis Bank Education Loan:

    Axis Bank Education Loan is offered to students who are admitted to career-oriented courses like medicine, engineering and management. The various benefits and features of the loan scheme are described below.

    • Expenses considered for Axis Bank Education Loan
    • The education loan will cover the tuition fees, hostel charges, cost of study materials and other education related expenses.
    • Amount of Education Loan
    • For studies in India, the maximum quantum of finance offered is Rs.10 lakhs. The maximum loan amount for studies abroad is Rs.20 lakhs. The minimum amount of education loan is fixed at Rs. 50,000.Interest Rates The interest rates depend on the loan amount and tenure. Also, if the education loan is availed by a woman, the interest rates are lower.
    • Interest Rates
    • Loan Type

      Loan Amount

      Interest Rates

      Education Loan

      Up to Rs.4 lakhs

      Base Rate + 7%

      Loans from Rs.4 lakh up to Rs.7.5 lakhs

      Base Rate + 8%

      Loans greater than Rs.7.5 lakhs

      Base Rate + 6%

      Education Loan for Girl Student

      Up to Rs.4 lakhs

      Base Rate + 6.50%

      Loans from Rs.4 lakhs to Rs.7.5 lakhs

      Base Rate + 7.50%

      Loans greater than 7.5 lakhs

      Base Rate + 5.50%

      Note: The base rate is currently fixed at 9.95%.
    • Processing Fees and Other Charges
    • There are no loan processing charges and prepayment charges for Axis Bank Education Loans. For the late payment of EMI, Rs.500 plus taxes per cheque bounce and a penal interest of 24% per annum on the overdue amount is charged.
    • Security
    • Third party guarantee and/or collateral security might be asked as security in certain cases. As additional security, assignment of a LIC policy in the bank’s favour for the sum assured being at least 100% of the education loan amount might be required. Also, the future income of the student needs to be assigned in favour of Axis Bank for meeting EMI obligations.
    • Margin
    • There is no margin for education loans amounting up to Rs.4 lakhs. For loans above Rs.4 lakhs, the margin is 5% for studies within India and 15% for studies abroad.

    Eligibility and Documentation for Axis Bank Education Loan:

    The eligibility conditions for Axis Bank Education Loans are as follows:

    • The applicant should be a resident of India.
    • The applicant should have been selected for an undergraduate or graduate, professional, job-oriented course such as medicine, engineering in a recognized university, college or institute.

    The following documents will be required to be furnished to complete the loan application process.

    Salaried Applicants:

    • Proof of Identity: Passport, Voter’s ID, driving license or PAN card.
    • Proof of Income: Latest salary slip showing all deductions, Form 16 and recent salary certificate.
    • Proof of Residence: Bank account statement, electricity bill, telephone bill or house lease agreement.
    • Last 6 months’ bank statement or passbook where salary or income is credited
    • Guarantor form might be asked for.
    • Education Documents: Copy of admission letter along with the fees schedule, mark sheets, certificates of S.S.C and H.S.C and degree courses.

    Other Applicants:

    Other classes of applicants must submit all the above documents. Instead of the latest salary slip, they can submit the Income Tax Returns statements for the last two years and computation of income by a certified CA for the last two years.

    Subsidy Scheme:

    The ministry of HRD, Government of India, has come up with a unique interest subsidy scheme to provide full interest subsidy during the course period plus one year or six months after getting a job, whichever is earlier. Specially designed for the students from economically weaker sections of the society where annual parental income is not more than Rs.4.5 lakhs, this scheme is available for borrowers pursuing any approved professional course from a recognized Indian institution.

    Some of the points to keep in mind while availing this subsidy are as follows.

    • This interest subsidy scheme can be availed only once by eligible students for pursuing an undergraduate, postgraduate or an integrated course from an Indian institution.
    • The interest subsidy will not be considered for students who discontinue the course or who are expelled from the institution due to disciplinary or academic reasons. In case of discontinuation due to medical reasons, necessary documentation has to be submitted to avail this scheme.
    • Interest rates on the loan shall be in line with the interest rates applicable under the Education Loan Scheme.

    Kindly make an enquiry with the bank about the list of accredited institutions and technical courses that are eligible for the Interest subsidy scheme.

    Axis Bank Education Loan FAQs:

    1. What documents do I have to submit to avail the interest subsidy scheme on education loan?

      The following documents need to be submitted at the time of loan sanctioning to avail the interest subsidy scheme.

      • Income certificates as issued by appropriate authorities
      • Bonifide student certificate
      • The interest subsidy agreement, letter of undertaking cum declaration signed by borrowers.
    2. I am planning to avail a loan of Rs.20 lakhs for doing my MS. Will I be able to avail the interest rate subsidy?

      No. The interest rate subsidy is offered only to loan amounts up to Rs.10 lakh and only to students pursuing further education in an Indian institution.

    3. How long will it take for the bank to process my application?

      After all necessary documents are submitted, the bank will convey its decision within 15 working days from the date of receipt.

    4. What is the role of the parents when applying for an education loan?

      The parents or guardian of the student applicant will be treated as a co-applicant and a primary debtor.

    5. How will the education loan be disbursed?

      The student loan will be disbursed in full or suitable instalments depending on the requirement of funds or fees. It will be directly disbursed to the educational institution or the vendor.

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