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Axis Bank Education Loan

Last Modified : June 26, 2018

Axis Bank is renowned for offering high value education loans for studies both in India and Abroad. The bank offers loan to students pursuing any graduate, postgraduate or certificate courses.

The Bank offers a distinctive Education Loan for India and Abroad with interest rates such as base rate +7% on loan amount upto INR 4 Lacs, base rate +8% on loan amount between INR 4 to 7.50 Lacs and base rate+6% on loan amount above INR 7.50 Lacs.

WHY AXIS BANK?

User friendly services offered by bank such as doorstep facility makes it a dominant in education loan market. The bank offers facility of no margin upto INR 4 Lacs. Also, the maximum loan amount for studies in India offered by bank is INR 10 Lacs and INR 20 Lacs for studies overseas.

Are you eligible for Axis Bank Education Loan?

  • Indian National. Applicant must be an Indian citizen
  • 10+2 Pass. Applicant must have cleared 10+2 with aggregate 60% marks
  • Premier Universities. Admission should be secured in recognized institute/ university in India or abroad.
  • Co-signer. Applicant must have a credit worthy co-signer/co-borrower to increase chances of getting a loan.

How can you apply for Axis Bank Education Loan?

One can simply apply through online mode of application or visit the branch to fill the form. Online mode of application form can be filled whether through Axis Bank’s official website or Vidyalakshmi Portal.

For Online

  • Visit the official website
  • Click on Axis Bank Education Loan
  • Click on Apply Online
  • Fill up the form with all the necessary details
  • Submit the Form

The bank representative will then call you and guide you with further documentation process.

For Offline:

For offline procedure, student can visit the bank and ask for application form for education loan. The bank representative will then be able to guide you with all necessary details and information about margin money, interest rates, and eligibility criteria about the suitable loan for you.

We have accumulated various aspects of Axis Bank Education Loan below. Have a look:

1. Axis Bank Education Loan

The loan is offered to students who have successfully secured admission to professional courses at graduation or post-graduation level in India or Abroad.

What makes you eligible for Axis Bank Education Loan?

  • Indian National
  • Graduate/ post-graduate courses
  • Professional, technical or career-oriented courses 
  • Minimum 50% marks in 10+2 or graduation level
  • Entrance test/ merit based selection process
  • Premier universities in India or Abroad

Interest Rates on Axis Bank Education Loan

Loan Type

Loan Amount

Interest Rates

Education Loan

Upto INR 4 Lacs

Base Rate +7%

Loan amount from INR 4 Lacs to 7.50 Lacs

Base Rate +8%

Above INR 7.50 Lacs

Base Rate +6%

Education Loan for Girl Student

Upto INR 4 Lacs

Base Rate +6.50%

Loan amount from INR 4 Lacs to 7.50 Lacs

Base Rate +7.50%

Above INR 7.50 Lacs

Base Rate +5.50%

Quick Facts about Axis Bank Education Loan

Margin

Upto loan 4 Lacs – No margin

Above 4 Lacs –

for India: 5%

for Abroad: 15%

Maximum Loan Limit

For India – INR 10 Lacs

For Abroad- INR 20 Lacs

Security

Third party guarantee

Collateral security

Additionally, assignment of LIC policy in favor of bank amounting 100% of education loan amount

Assignment of Future salaries in favor of Axis Bank

Moratorium Period

Course Period + 1 year or 6 months after getting job

Repayment (Maximum)

Maximum 7 years after commencement of repayment

Prepayment Charges

Nil

Additional Facts about Axis Bank Education Loan

  • No processing fee 
  • No pre-payment charges
  • No pre-closure charges
  • Loan Disbursed within 15 working days post final submission of documents

Courses Covered under Axis Bank Education Loan

For India

  • Graduate/ postgraduate/ postgraduate diploma courses
  • Courses offered by institutions/universities recognized by UGC, Government, AICTE, AIBMS or ICMR.
  • Academic courses- CA, CFA, and ICWAI.
  • Courses conducted by NIFT, IITs, IIMs, XLRI, IISc, and NID.
  • Regular degree/ diploma courses like, shipping, pilot training, and aeronautical that are approved by Director General of Civil Aviation or Shipping (only if it is pursued in India).
  • Courses for noble cause such as teaching training (like B.Ed.), nursing courses, and from other training institutions approved by Central Government or by State Government.
  • Reputed foreign universities offering approved courses offered in India.

For Abroad

  • Job Oriented Professional and technical courses
  • Post-graduation courses such as MBA/ MCA
  • Courses that are offered by CIMA, London and CPA, USA
  • Pilot Training, Shipping, aeronautical etc. courses that lead to a diploma or degree

Documents required of Axis Bank Education Loan

For Salaried Students

  • Identity Proof- Passport, Voter’s ID, Driving Licence or PAN Card
  • Salary Proof- Latest salary slip, Form 16 and recent salary certificate
  • Resident Proof- Bank account statement, electricity bill, telephone bill and/or house lease agreement
  • Bank statement of last 6 month
  • Guarantor form
  • Educational Proof- admission letter along with fee structure, mark sheets, SSC, HSC and degree course certificates

For other Students

  • Identity Proof- Passport, Voter’s ID, Driving Licence or PAN Card
  • Income tax return statement for last 2 years
  • Resident Proof- Bank account statement, electricity bill, telephone bill and/or house lease agreement
  • Bank statement of last 6 month
  • Guarantor form
  • Educational Proof such as copy of admission letter along with fee structure, mark sheets, SSC, HSC and degree course certificates

Expenses Covered under Axis Bank Education Loan

  • Cost of Books, Uniforms or Stationery
  • Cost of Laptop or computer (Reasonable rate and as per demand of the course)
  • Tuition/ Library/ Laboratory Fee 
  • Hostel Fee
  • Travel Expenses for studies abroad
  • Miscellaneous cost incurred while completion of the course

2. Axis Bank Education Loan Subsidy Scheme

Ministry of Human Resource Development has launched a distinct interest subsidy to provide 100% interest subsidy during the moratorium period. This scheme is specially formulated for economically weaker sections and to promote education amongst them. The scheme is available for students pursuing approved professional course from Institute or University in India

Key Points of the Scheme

  • Availed only once for pursuing an undergraduate/ postgraduate course
  • Interest subsidy is not for students who discontinue the course or are expelled from institution (Medical reasons will be exempted)
  • Interest rates applicable on loan will be in sync with interest rates applicable under the Educational Loan Scheme.

How is Axis Bank Education Loan Beneficial?

Fueling your dreams with financial assistance to pursue studies in India and Abroad, Axis Bank acclaimed itself to be the third largest private sector bank in India. Axis Bank Education Loan tags with itself various benefits that make it quite sought after.

Here are some benefits curated for you, have a look

  • High-Value Loan
  • Attractive Rate of Interest
  • Easy Loan Disbursal
  • No Pre-payment/ Pre-closure charges
  • Tax Benefits under section 80(E)

FAQs

  1. What schemes does Axis Bank consider for its education loans?

Answer: There is one scheme offered by Axis Bank apart from the basic education loan.

It is CSIS Scheme. The central government interest subsidy scheme is for economically weaker sections.

  1. In whose name is the loan granted?

Answer: The loan is granted in the name of the student

  1. What is the age limit for availing Education Loan from Axis Bank?

Answer: There is no restriction on age. Student must clear the other eligibility criteria’s stated by the bank

  1. What does margin on any loan mean?

Answer: Margin amount is the amount that a borrower has to pay through his/ her own sources in form of a down payment as his/ her contribution towards the education.

  1. Where can I avail Axis Bank Education Loan?

Answer: You can either contact your nearest branch for the application form or details regarding the loan or apply online.

  1. Is there any provision to apply for loan online?

Answer: : Yes, you can apply online through Vidyalakshmi portal to avail for this loan.

  1. Is there any minimum aggregate marks to meet the eligibility criteria to avail Axis Bank education loan?

Answer: Yes, a student must have secured a minimum aggregate of 50% marks in their last qualifying examination (10+2 or Graduation)

  1. What is the discount/ rebate offered by Axis bank?

Answer:

  • 0.50% concession is given to girl students
  • Eligibility criteria and margin on education loan is relaxed for SC/ST students
  1. What all is included in tangible collateral security?

Answer: Mostly Axis bank asks tangible security in lieu of the loan amount sanctioned along with assignment of future salaries in favour of Axis Bank. Tangible security includes documents related to land/ building/ government security/ public sector bonds/ units of UTI, NSC, Life insurance policy/ bank deposits/ shares or debentures. The value of the security should be equal to the education loan amount.

  1. Is scholarship or assistantship included in the margin?

Answer: Yes any scholarship or assistantship will be a part of margin charged on education loan.

  1. What is Moratorium Period?

Answer: Course Period plus one year, or six months after getting a job

  1. What is tenure of an education loan?

Answer: Tenure of education loan provided by Axis Bank is 7 years

  1. What does MCLR stands for?

Answer: MCLR stands for Marginal Cost of funds based Lending Rate. It refers to the minimum interest rate of bank below which it cannot lend.

  1. What all expenses are covered under this course?

Answer: Expenses covered by Axis Bank education loan are:

  • Tuition/ college/ hostel fee
  • Examination/ lab/ library fee
  • Books/ uniform/ instruments
  • Caution deposit
  • Passage money for studies abroad, etc.
  1. Will my travel expense will be covered if I take loan from Axis Bank?

Answer: Yes, travel expenses are covered under this loan

  1. I have taken admission through management quota. Am I eligible?

Answer: Yes, even if you have taken admission through management quota, you are eligible for education loan by Axis bank

  1. What do you mean by reputed or recognized institutes?

Answer: Institutes that are affiliated to state/ central universities and comes under UGC or AICTE are considered as recognized institutes. Reputed institutes are those which are well known and have standard course of repute. More often, banks provide the list of institutes they consider for loan. (You can contact nearest branch for the same)

  1. Are there any special benefits if I have secured admission to one of the top premier institutes?

Answer: Axis Bank provides no such provision or special benefit to the students who secure admission in top premier institutes

  1. What is the processing fee or prepayment charges?

Answer: The education loan offered by Axis Bank does not carry any processing fee or any other charges

  1. What are the charges for late payment of EMI?

Answer: Axis Bank charges INR 500 + taxes per cheque bounce and a penal interest @24% per annum, that is, @2% per month.

  1. Will cost of my computer be covered under the loan sanctioned?

Answer: Reasonable cost for the computer or laptop well be covered under the loan if it is required to complete the course. 

  1. Why is Pan Card necessary?

Answer: Pan Card is one of the mandatory document required by banks these days. It is mandatory because:

  • Easy to assess Income
  • Easy to trace borrowers
  1. Are diploma or certificate courses considered under Axis Bank education Loan (both for India and Abroad)?

Answer: Yes diploma or certificate courses are eligible under Axis Bank Education Loan. Regular degree or diploma courses like, shipping, pilot training, and aeronautical that are approved by Director General of Civil Aviation or Shipping

  1. Is a co-borrower necessary for loan?

Answer: Yes, it is mandatory to have a co-borrower to avail loan from Axis bank.

  1. Who can be my co-borrower?

Answer: Your parent/ spouse/ guardian can be a co-borrower. A co-borrower should be your immediate family member, should have a steady source of income, and a good credit history.

  1. What all documents are required from the co-borrower?

Answer: Documents required from the co-borrower are:

  • Attested copies of age proof, residence proof and birth date.
  • Self-attested passport size photograph
  • Income proof and/or copy of income tax return file
  • Details of collateral security along with government approved valuation certificate (if any).
  1. What is the KYC requirement in education loan?

Answer: KYC requirements are the documents as a proof of personal identification and residence proof of the applicant as well as the co-borrower.

  1. What are maximum term for repayment?

Answer: Maximum term for repayment is 7 years

  1. How can I repay the loan?

Answer: You can repay the loan after the moratorium period by mode of EMI or through post- dated cheques.

  1. What is EMI? How are they calculated?

Answer: EMI stands for Equated Monthly Installments. It can be calculated by using the formula given below

  • EMI = [P x R x (1+R) ^n] / [(1+R)^ n-1]
  • Here, P is Amount of Education Loan, R is Rate of Interest, n is Tenure of the Loan.
  • Or simply you can use the EMI calculator provision available on Axis Bank’s official website.
  1. Is the loan disbursed in name of individual applicant or to the institute/ university directly?

Answer: The loan is disbursed directly to the institute/ university that you have taken admission to. Hence, an applicant is supposed to submit institute brochure with proper division of the fee

  1. If I am unable to complete my course in given tenure, will my repayment term be extended?

Answer: It is completely on the banks discretion to extend the moratorium period or not. You can contact your nearest branch for the same.

  1. What is method of application of interest on education loan?

Answer: The interest will be charged at simple rate from the date of disbursement till commencement of repayment of loan. After that, compound interest is charged on reducing balance. 

  1. What is interest rate of education loan?

Answer: The interest rate is different for different category of Institutes. Refer the table below:

Loan Type

Loan Amount

Interest Rates

Education Loan

Upto INR 4 Lacs

Base Rate +7%

Loan amount from INR 4 Lacs to 7.50 Lacs

Base Rate +8%

Above INR 7.50 Lacs

Base Rate +6%

Education Loan for Girl Student

Upto INR 4 Lacs

Base Rate +6.50%

Loan amount from INR 4 Lacs to 7.50 Lacs

Base Rate +7.50%

Above INR 7.50 Lacs

Base Rate +5.50%

  1. What is interest subsidy on education loan?

Axis Bank offers CSIS Interest Subsidy Scheme initiated by government of India. The scheme is for Economically Weaker Sections (EWS) of the society, to promote education amongst them.

  1. What documents do I need to submit to avail interest subsidy scheme?

The documents that need to be submitted are:

  • Income certificate issued by authorised authorities
  • Bonafide student certificate
  • Letter of undertaking or declaration signed by borrower/ co-borrower
  1. If I am availing loan for overseas studies, can I also avail interest subsidy scheme?

Answer: No, the interest subsidy scheme is available only for studies applying for studies in India.

  1. What is employment verification in an education loan?

Answer: The bank takes the responsibility to cross verify all the employment details of the applicant and co-borrower. If the banks fails to cross verify every detail provided, it might reject the loan application.

  1. Are there any tax benefits in education loans?

Answer: Under Section 80E of Income Tax Act, loan borrowers can avail the tax benefits. This benefit is only available over and above INR 1,50,000. Tax benefits can be availed once the borrower starts paying interest on loan. The deduction is available until borrower pays off full interest amount on loan or for maximum of 8 years (whichever is earlier). You can visit the official website of Axis Bank to calculate your tax benefit through their tax benefit calculator.

  1. Is it necessary to have bank account with the bank while availing loan from that particular bank?

Answer: It is not necessary to have a bank account while availing the loan but it makes it easier for the borrower to get loan application approved.

  1. Can I repay my loan in foreign currency even if my bank is in India?

Answer: Yes, you can pay the amount in foreign currency (Euro, Pound, Dollar, etc.) The bank might charge an additional currency conversion fee as per RBI regulations.

  1. Why do banks require insurance policy as security?

Answer: The banks require insurance policy as security in lieu of education loan provided. The insurance policy should be equal or more to the amount of loan sanctioned. In case of untimely demise of the borrower, the bank recovers the amount from the insurance policy

  1. Are there any additional benefits on availing loan from Axis Bank?

Answer: There are no such additional benefits on availing loan from Axis Bank. Though, there are no processing or pre-payment charges applied by bank on education loan.

  1. What is credit score? Is it important for education loan?

Answer: Credit Score is inclusive of various factors such as credit history (Loan history or credit card). If a student does not have a credit score, banks calculate it by considering factors such as University, College and the Course of admission. Banks consider the academic background of student and credit history of co-borrower.

  1. Are NRIs eligible for the education loan?

Answer: NRIs are eligible for the loan if they have Indian citizenship and are Indian passport holder.

  1. Is Visa a necessary document for studying abroad?

Answer: Visa is needed as a document proof but it is not a sole requirement.

  1. What all procedures do one have to go through while applying for abroad?

Answer: A student who is applying for studying abroad have to give necessary documents required by the bank. One needs to have a thorough knowledge of the course they are applying for and in which institute as it can be asked on the airport by the foreign officials.

  1. If a student have any query, where or whom to contact?

Answer: student can reach out to the nearest branch in case of any query.

Customer Care Number:1 860 419 5555/ 1 860 500 5555