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  • Karnataka Bank Education Loan

    Karnataka Bank Education Loan
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    KBL Vidyanidhi, an exclusive education loan offering from Karnataka Bank is a broad based scheme which covers a wide range of Undergraduate & Postgraduate courses, Master's, Professional courses and a whole lot more in both domestic, foreign institutions and universities. Funding for education is provided with additional benefits and affordable rates.

    Purpose of Loan:

    The primary objective of KBL Vidyanidhi is to provide financial support to aspiring students of Indian nationality for a variety of courses and degrees. Loans are available to both major (representing themselves) and minor students (represented by parents/guardians). The loan also covers a wide range of expenses and charges incurred by the student during his course at nominal interest charges and fees.

    Feature & Benefits of Education Loan from Karnataka Bank:

    Amount of Education Loan:

    The quantum of loan amount provided by Karnataka bank varies on the basis of place of study. For courses in India, the bank provides a loan amount up to Rs.10 lacs and for overseas studies, this doubles at Rs.20 lacs.

    The loan amount includes major expenses, charges and fees incurred under its ambit. Some of the inclusions are

    • Hostel & Tution fees
    • Boarding and Lodging fees
    • Expenses for purchase of books/study materials
    • Procurement of computer/gadgets
    • Travel expenses and Passage money for overseas studies

    The list above is not exhaustive. KBL covers all course related expenses under the scheme based on the expenses incurred during the course.

    Loan Margin:

    For loan amounts of up to Rs.4 lacs, no margin is required. The bank provides cent percent funding. For borrowings above this limit, the margin is 5% for studies undertaken in India and 15% for studies in foreign countries. (Scholarships can be included in the applicant’s margin)

    Interest Rates on Education Loan:

    The interest charges incurred on education loan differs on the basis of merit, gender of the applicant and the loan amount. The breakdown has been provided below for reference.

    • Normal Student
    • Meritorious Student
    • Normal Girl Student
    • Meritorious Girl Student

    Akin to its public sector counterparts, Karnataka bank follows the nomenclature of base rate linked system of computing the applicable interest rate on education loans. Therefore, there are two components, Base rate + Fixed Rate (Scheme).

    The applicable rates and fees are subject to periodic change based on market conditions and decision of the bank.

    Repayment Tenure:

    Karnataka bank offers a flexible tenures for loan repayment that starts at 5 years with an upper limit of 7 years. The conditions below apply on repayment.

    • Students who secure employment during the holiday term should immediately notify the bank representatives. The repayment term will be advanced to commence immediately owing to the income derived from the employment.
    • Interest charges for the repayment holiday will be accrued and added to the loan account to be paid later in the EMI (Equated Monthly Instalment) mode.
    • Students who do not complete the course within the stipulated period will be given a leverage of additional two years for completion. Further extension will be made available for reasons beyond the control of the student.

    Eligible Courses:

    In India

    Under Graduate Courses

    B.Com, B.A, B.Sc, Diploma, B.B.M & B.C.A.

    Professional Degrees

    Engineering, Medical, Agriculture, Nursing, Veterinary, Law, Dental, Management, Computer, Pharmacy, Physiotherapy, Hotel Management, ICWA, CA, CFA

    Professional Courses from Reputed Institutions

    IIT, IIM, XLRI, NIFT, reputed foreign universities offering courses in India.

    Programs offered by Private Universities

    All courses/degrees approved by UGC / GOVT. / AICTE /AIBMS / ICMR

    Overseas Studies


    Technical/professional courses by known universities


    MBA, MS, MCA & Courses by CIMA & CPA

    If the course you’ve opted for does not fall in the category above, do contact the nearest banking branch to check on your qualification.

    Loan Security:

    Loan amount up to Rs.4 Lacs

    No security required

    Amount from Rs.4 lacs to Rs.7.50 lacs

    Third party guarantee - collateral

    Borrowing over 7.50 lacs

    Collateral guarantee from third party with assignment of certain income from the student’s employment towards EMI repayment.

    Karnataka Bank Education Loan FAQs:

    1. I am looking forward to applying for an education loan for my son from Karnataka bank. What form of loan security is accepted?
    2. One can provide security in the form of immovable property like land, building etc. Securities such as public sector bonds, government bonds, life insurance policies, gold, shares and debentures can also be pledged.
    3. What kind of study related expenses does KBL Vidyanidhi cover?
    4. Tuition and hostel fees, lodging and boarding fees, library & examination fees, expenses incurred towards purchase of books, study materials, equipment and uniform, caution deposit ,building fund, refundable deposits, expenses relating to project work, study tours and all other charges are covered. Passage money for overseas studies and purchase of computer with valid proof of purchase will also be covered.
    5. Is the loan contract executed only in the student's name?
    6. No. The loan documents will be executed by both the student and parent/guardian as joint borrowers. All the borrowers are equally responsible for repayment of loan.
    7. Are minors eligible to apply for a study loan from Karnataka Bank?
    8. Yes. Minors aspiring for further studies can apply for a loan from the bank with legal representation from parent(s)/guardian.
    9. Should the student’s margin be paid upfront?
    10. The student’s margin share can be paid on a year-to-year footing on pro rata basis when the bank disburses the loan amount based on the requirement.
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