Make college memories that last a lot longer than your student loan payments.

Karnataka Bank Education Loan

Karnataka Bank offers education loans for courses ranging from graduation to doctoral levels, for professional courses as well as evening courses, for studies in India and abroad. It also offers skill loan schemes for certificate, diploma, or degree courses. These loans offer competitive interest rates with flexible repayment tenures that make education accessible for all.

Karnataka Bank Education Loan Interest Rates

The interest rates for education loans from Karnataka Bank are as follows:

Schemes Maximum Loan Amount Interest Rates (p.a.)
KBL Vidya Nidhi Domestic courses: Rs.10 lakh Overseas courses: Rs.20 lakh 9.85% to 12.25% p.a.
Skill Loan Rs.1.5 lakh 9.35% p.a.

These interest rates are effective from 1 March 2021

Compare Karnataka Bank Education Loan Schemes for Students

1. KBL Vidya Nidhi

  • Interest rate: 9.85% to 12.25% p.a.
  • Collateral: None for loans up to Rs.7.5 lakh
  • Loan Tenure: 15 years including course duration and moratorium period
  • Eligibility: Indian nationals who have secured admission into recognised technical, professional, or other courses in India or abroad

2. Skill Loan

  • Interest rate: 9.35% p.a.
  • Collateral: None
  • Loan Tenure: Up to 7 years
  • Eligibility: Indian nationals who have secured admission into polytechnics, Industrial Training Institutes (ITIs), or other institutes recognised by the National Skill Development Corporation (NSDC) and other government bodies.

Karnataka Bank Education Loan EMI Calculator

The Karnataka Bank education loan EMI calculator is a free online tool that is easy to use. It gives you an accurate amoritisation table that gives you a detailed picture of what your Equated Monthly Instalment (EMI) will be over the years. This helps in planning your finances so that you can ensure that your EMIs are paid on time.

All you have to do is enter the required details such as your loan amount, repayment tenure, and interest rate. Once you click on the ''Calculate'' button the details will be generated and displayed instantly on the screen.

Here's an example to illustrate this better:

Let's say you have been approved for an education loan from Karnataka Bank for Rs.10 lakh at an interest rate of 9.85% for a tenure of 15 years. These are the details you will get:

  • Equated Monthly Instalment (EMI): Rs.10,654
  • Total interest due: Rs.9,17,805
  • Total amount payable: Rs.19,17,805

The amortisation table for the loan will be:

Principal Paid(A)1 Interest Paid(B) Total Payment (A+B) Outstanding Loan Balance
22,750 73,137 95,887 9,77,248
33,061 94,794 1,27,855 9,44,187
36,468 91,384 1,27,852 9,07,719
40,227 87,625 1,27,852 8,67,491
44,374 83,481 1,27,855 8,23,118
48,948 78,906 1,27,854 7,74,170
53,992 73,860 1,27,852 7,20,178
59,557 68,296 1,27,853 6,60,621
65,696 62,158 1,27,854 5,94,925
72,466 55,386 1,27,852 5,22,458
79,937 47,917 1,27,854 4,42,522
88,176 39,678 1,27,854 3,54,346
97,263 30,589 1,27,852 2,57,082
1,07,288 20,564 1,27,852 1,49,793
1,18,347 9,507 1,27,854 31,446
31,446 518 31,964 0

How to Apply for Karnataka Bank Education Loan

You can apply for the education loan from Karnataka Bank in two ways:

Offline: Visit your nearest branch with the required documents. Request for the application form and after filling it up accurately, submit it along with the documents to the concerned official.

Online: To apply online, follow the steps given below:

Step 1: Visit the official website of Karnataka Bank

Step 2: Click on ''Menu''

Step 3: In the dropdown menu, click on ''Loans''

Step 4: Select ''Education Loans''

Step 5: On the loan page, click on ''Read More'' under the loan you wish to apply for

Step 6: Click on ''Apply Online'' on that page

Step 7: On the pop-up page, click on ''Accept'' after reading the terms and conditions

Step 8: You will be redirected to the Vidya Lakshmi page where you can complete your loan application

Subsidy Schemes for Karnataka Bank Education Loan

Central Sector Interest Subsidy (CSIS) Scheme

The Central Scheme for Interest Subsidy (CSIS) is under the aegis of the Government of India's Scheme on Education Loans. This scheme provides subsidy on the interest component of an education loan during the moratorium period. It is applicable for loans for technical and professional courses. Students whose annual family income does not exceed Rs.4.5 lakh can avail this scheme for an education loan of up to Rs.7.5 lakh.

Padho Pardesh Scheme: This scheme is sponsored by the Central Government and provides subsidy on the interest component of an education loan for students belonging to minority communities who wish to pursue studies abroad.


  1. I am looking forward to applying for an education loan for my son from Karnataka bank. What form of loan security is accepted?

    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.

  2. What kind of study related expenses does KBL Vidyanidhi cover?

    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.

  3. Is the loan contract executed only in the student's name?

    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.

  4. Are minors eligible to apply for a study loan from Karnataka Bank?

    Yes. Minors aspiring for further studies can apply for a loan from the bank with legal representation from parent(s)/guardian.

  5. Should the student’s margin be paid upfront?

    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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