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Dena Bank Education Loan

Last Modified : February 07, 2019

Dena bank offers student’s educational loan under three types of schemes like Dena Vidya Laxmi Scheme, Padho Pardesh Scheme and IB Model Skill Loan Scheme/Kaushal Wrin Yojana.

The bank offers Education Loan for India and Abroad with maximum benefits such as low interest rates, flexible repayment terms and easy loan disbursal.

Why Dena Bank?

User friendly service and low interest rates plays a major role for Dena Bank Education Loan. The bank charges 9.30% interest for admission to bank approved institutes and for List A rated and other institutes, the interest rate charged is 9.85%. Dena bank Education Loan covers full-course fee subject to margin.

What makes you eligible for Dena Bank Education Loan?

  • Indian Citizen. You must be an Indian resident or an Indian passport holder.
  • 10+2. You must have qualified 10+2 examination with 60% marks.
  • Age Limit. There is no age limit defined by the bank to be eligible for this loan.

How to apply for Dena Bank Education Loan?

Dena Bank is registered with Vidyalakshmi Portal, hence, you can apply online through the portal or visit the branch for the same.

In both cases, the bank representative will assist you with the application form and guide you about the interest rate and terms and conditions of an education loan.

1. Dena Vidya Laxmi Educational Loan Scheme

Education is one of the primary concern in India and to support the education of students, Dena Bank offers Dena Vidya Laxmi Education Loan to deserving students. The loan is extended to students who wish to pursue their studies in India and Abroad but fail to afford it.

What makes you eligible for Dena Bank Educational Loan for Higher Studies?

  • Indian National
  • Higher education course in well-known Institution

Present Rate of Interest



Effective Rate of Interest

Dena Vidya Laxmi Education Loan

Bank’s approved Ed Institutes


List A rated Ed Institutes


Other Institutes


Quick Facts about Dena Vidya Laxmi Education Loan Scheme


Up to 4 lakh- Nil for studying in India and abroad

Above INR 4 Lacs:

For India: 5% for courses

 For Abroad: 15% for courses abroad

Maximum Loan Limit

For ‘A’ rated institutions

  • In India – INR 15 Lacs
  • In Abroad – INR 25 Lacs

For other institutions

  • India- INR 10 Lacs
  • Abroad- INR 20 Lacs


Moratorium Period

Course Period + one year after getting a job


Maximum up to 15 years for all loans



Processing Charge

INR 1000 for abroad study

Additional Facts about Dena Bank Education Loan for Higher Studies

  • The educational loan covers full-course fee subject to margin
  • No margin for amount upto INR 4 Lacs
  • Processing charges are refundable

Expenses Covered Under Dena Bank Education Loan for Higher Studies

  • Tuition Fee
  • Examination/Library/Laboratory Fee
  • Cost of books, equipment, instruments, and uniforms.
  • Travel Expenses (for abroad)
  • Cost of computer/laptop during a course of time.
  • Miscellaneous expenses

Courses covered under Dena Bank Education Loan for Higher Studies

For India

  • Graduation courses
  • Post-Graduation Courses
  • Masters and Ph.D.
  • Professional Courses

For Abroad

  • Graduation:  For Job oriented professionals/ technical courses offered by reputed universities.
  • Post-Graduation courses like MCA, MBA, MS etc.
  • Courses conducted by CIMA – London, CPA in USA, etc.

Documents Required for Dena Bank Education Loan for Higher Studies

  • Proof of identity
  • Admission Letter of college /institute
  • Details of fee charged by Institute (brochure or letter from the institute)
  • Loan Application with personal information.
  • Copy letter mentioning scholarship details
  • Proof of residence
  • Proof of assets and liabilities of the applicant and co-borrower
  • Mark sheet of the qualifying examination
  • Financial Details of the guarantor or collateral securities. This also includes clearance report, latest valuation report/bonds, NSCs, share certificate, LIC policies etc.

2. Padho Pradesh Scheme

Under this student’s loan scheme, the bank provides interest subsidy for the educational loan. This loan is provided to students from the minority communities for pursuing Masters, Ph.D., and M.Phil. abroad. A student can apply for the loan if parental income for this particular category is within INR 4.5 Lacs per year.

3. IBA Model Skill Loan Scheme /Kaushal Wrin Yojana

Dena Bank student’s loan is not only limited to masters and graduation courses, but also for the vocational courses. In this IBA Model Skill Loan Scheme, the bank provides loan for vocational education and training.  The Skill loan was introduced by the prime minister on 15/7/2015 with a vision to support youths who wish pursue skill training and vocational education.  After the launch of IBA Model Skill Loan scheme, many banks have been associated and providing a loan under this scheme.

Eligibility Criteria IBA Model Skill Loan Scheme under Dena Bank

  • Indian National
  • Course offered by Industrial Training Institutes (ITIs), Polytechnics school recognized by State/ Central Boards or any other recognized college or organization
  • Entrance exam/ Merit based admission
  • No age limit
  • The student has to provide the letter of ratification to the bank branch after attaining majority.

Present rate of Interest



Effective Rate of Interest

IBA Model Skill Loan Scheme

Loan repayable within 3 years


Loan repayable beyond 3 years


Quick Facts about IBA Model Skill Loan Scheme


  • Nominal Margin is considered in the form of down payment from the student, to keep the students responsible regarding course.
  • The down payment and the interest amount should not exceed 10% of the total course amount

Loan Limit

 From INR 5,000 to 1,50,000

Moratorium Period

Course duration up to 1 year- 6months of the completion of the course

Course duration above one year- 12 months from the completion of the course.


Up to INR 50,000- Up to 3 years

Between INR 50,000 to 1 Lac– Up to 5 years

Above INR 1 Lac – Up to 7 years



Processing Charge


Additional Facts about IBA Model Skill Loan Scheme

  • No processing charges
  • All loans under this scheme come under Credit Guaranteed Scheme operated by National Credit Guarantee Trust Company Limited.
  • The guarantee fee at the rate of 0.50 % of the outstanding amount will be paid by the bank.
  • A student can take insurance if required (as per the need).
  • No prepayment charge.

Expenses Covered Under the IBA Model Skill Loan Scheme

  • Tuition Fee/ Course fee
  • Examination Fee/Library Charges, Laboratory fee
  • Caution deposit
  • Cost of books, equipment’s and instruments.
  • Miscellaneous expenses such as tours, project work thesis etc.

Courses Covered Under IBA Model Skill Loan Scheme

  • Courses recognized by:
  • Industrial Training Institutes (ITIs)
  • Polytechnics Institutes
  • School recognized by Central or State Education Boards
  • College affiliated to recognized university
  • Training partners affiliated to National Skill Development Corporation (NSDC), Sector Skill Councils, State Skill Mission, and State Skill Corporation
  • Courses leading to a certificate / diploma/degree issued by such organization as per National Skill Qualification Framework (NSQF)

Documents Required for IBA Model Skill Loan

  • Proof of identity
  • Admission Letter of college /institute
  • Fee details charged by the institute
  • Loan Application with personal information
  • Proof of residence
  • Mark sheet of the qualifying examination


​​Q.  What schemes does Dena Bank considers for its education loans?

Answer: There are multiple schemes offered by Dena Bank apart from the basic education loans. These are:

  • Padho Pardesh
  • IBA Model Skill Loan Scheme
  • Interest Subsidy Scheme

Q.  In whose name is the loan granted?

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

Q.  Is the loan contract executed only in student’s name?

Answer: No, the loan can be executed both in name of student and co-borrower as both are equally responsible for repayment of loan.

Q. What is the age limit for availing loan in Dena Bank?

Answer: There is no age restriction for the applicant applying for education loan from Dena Bank. He/ she should only meet the other stated eligibility criteria’s.

Q. Are minors eligible to apply for Dena Bank Education Loan?

Answer: Yes, Minors aspiring for further studies can apply for education loan with help of legal representation from parents/ guardians.

Q. 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.

Q. Should the student’s margin be paid upfront in the starting?

Answer: Margin can be paid on a year to year pro rata basis whenever bank disburses loan amount as per requirement.

Q. Where can I avail Dena Bank Education Loan?

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

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

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

Q. Can I view my loan statement online if I am an existing education loan borrower?

Answer: Yes, by creating a login on Dena Bank web portal, you can view all details related to education loan online.

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

Answer: Yes, a student must have secured a minimum aggregate marks in their last qualifying examination (10+2 or Graduation). Relaxation in the marks is given to SC/ ST students

Q. What is the discount/ rebate offered by Dena Bank?


  • 0.50% concession is given to girl students
  • 1% concession if interest is serviced during the moratorium period.
  • Eligibility criteria and margin on education loan is relaxed for SC/ST students

Q. What all is included in tangible collateral security?

Answer: Mostly Dena Bank asks tangible security in lieu of the loan amount sanctioned along with assignment of future salaries in favour of Dena 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.

Q. Is scholarship or assistantship included in the margin?

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

Q. What is Moratorium Period?

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

Q. What is tenure of an education loan?

Answer: Tenure of education loan provided by Dena Bank is maximum 15 years

Q. 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.

Q. What all expenses are covered under this course?

Answer: Expenses covered by Dena Bank education loan are:

  • Tuition/ college/ hostel fee
  • Examination/ lab/ library fee
  • Books/ uniform/ instruments
  • Caution deposit
  • Passage money for studies abroad, etc.

Q. Will my travel expense will be covered if I take loan from Dena Bank?

Answer: Yes, travel expenses are covered under this loan

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

Answer: This depends totally on bank’s discretion as whether a student meets other eligibility criteria or not.

Q. 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)

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

Answer: Dena Bank does not provides any additional concession to students who have secured admission in top rated institutes

Q. What is the processing fee or prepayment charges?

Answer: The education loan offered by Dena Bank does not carry any prepayment charges or processing charges for studies in India. For studies abroad INR 1,000 (refundable) is charged as processing fee.

Q. 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. 

Q. 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

Q. Are diploma or certificate courses considered under Dena Bank education Loan (both for India and Abroad)?

Answer: Diploma courses are eligible under Dena 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.

Q. Is a co-borrower necessary for loan?

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

Q. 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.

Q. 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).

Q. How many guarantors do I need to borrow loan from Dena Bank?

Answer: You need at least 2 guarantors to avail loan from Dena Bank.

Q. 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.

Q. What are maximum term for repayment?

Answer: Maximum Term for repayment for Loan amount upto INR 7.50 Lacs is 10 years and maximum term for repayment is 15 years for loan amount above INR 7.50 Lacs

Q. 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.

Q. 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 Dena Bank’s official website.

Q. 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

Q. 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. It can be extended for maximum 2 years based on student’s reason. You can contact your nearest branch for more details.  

Q. 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. 

Q. What is interest rate of education loan?

Answer: The interest rate is different for different loan offered. Refer the tables below:

For Dena Bank Education Loan



Effective Rate of Interest

Dena Vidya Laxmi Education Loan

Bank’s approved Ed Institutes


List A rated Ed Institutes


Other Institutes


             For Dena Bank Skill loan Scheme



Effective Rate of Interest

IBA Model Skill Loan Scheme

Loan repayable within 3 years


Loan repayable beyond 3 years


  1. What is interest subsidy on education loan?

Answer: Dena Bank offers

  • IBA Model Skill Loan Scheme for students who wish to pursue skill based courses to enhance their knowledge and skills for better career prospects.
  • Padho Pardesh Scheme for minority sector students who wish to pursue their studies abroad.
  • Interest Subsidy scheme for economically weaker sections and to promote education amongst them

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

Answer: 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

Q. 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.

Q. 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.

Q.  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 Dena Bank to calculate your tax benefit through their tax benefit calculator.

Q. 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.

Q. 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.

Q. 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

Q. Are there any additional benefits on availing loan from Dena Bank?

Answer: There are no additional benefits offered by Dena Bank mentioned on the official website. Borrowers can contact the nearest branch for the same.

Q. 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.

Q. Are NRIs eligible for the education loan?

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

Q. Is Visa a necessary document for studying abroad?

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

Q. 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.

Q. 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: 022- 26545607

Customer Care Id:

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