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Kotak Mahindra Bank Education Loan

Last Modified : June 28, 2018

Kotak Mahindra extends loan for undergraduate, graduate and diploma courses in both India and Abroad. The basic scheme covers all aspects for Education Loans for India and Abroad

With Loan amount upto INR 10 Lacs for studies in India and INR 20 Lacs, Kotak Mahindra Bank Education Loan is offered with benefits such as no processing fee, no prepayment charges and zero margin for loan amount upto INR 4 Lacs.

Students can also avail for various other schemes such as National Skill Certification and Monetary Reward Scheme, Central Scheme of Interest Subsidy for Education Loan, and Skill Loan Scheme to ease their loan liability.

Why Kotak Mahindra Bank?

The bank has an easy loan disbursal and fast processing facility which makes it a sought after bank for education loan. Kotak Mahindra Bank also offers attractive rate of interest such as 10.75% for loan amount upto INR 7.50 Lacs and 12.95% for loan amount exceeding INR 7.50 Lacs.

How to apply for Kotak Mahindra Education Loan

Kotak Mahindra Bank provides both offline and online application to apply for the loan. For offline mode, you have to visit any nearest branch to collect your application form and fill it.

For Online mode:

  • You have to visit the official website
  • Navigate to ‘Apply Now’ option
  • Fill in your details like Name, Address, Contact Number, City of residence, Preferred Branch, etc.
  • Submit the application form

After the submission of application form, bank executive will call you to guide you through the further application process

What makes you eligible for Kotak Mahindra Education Loan?

  • Indian National
  • Graduation/ post-graduation/ diploma courses 
  • Entrance exam/ merit-based admission 
  • No age criteria for applicant
  • For co-applicant, the minimum age should be 21 years and maximum (at time of loan maturity) 70 years.

Key Points of Kotak Mahindra Education Loan

  • Quick Approval of Loan
  • Concession for girl students
  • Minimal documentation
  • No prepayment charges

Present Rate of Interest

For Loan upto INR 7.5 Lacs

11.50% to 24%

For girl students: 10.25%

For Loan above INR 7.5 Lacs


For girl students: 15.20%

Quick Facts about Kotak Mahindra Bank Education Loan




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


No collateral or security for loan upto INR 7.5 Lacs


Moratorium Period

Course Period + 1 year or 6 months after getting job

Repayment (Maximum)

Repayment will commence after 6 months of completion of course or one month after student starts earning (whichever is earlier)

Maximum repayment period is 5 to 7 years

Prepayment Charges


Courses covered under Kotak Mahindra Education Loan

For India

  • Graduation Courses viz. B.A., B.Com., B.Sc., etc.
  • Post-Graduation or Doctorate Courses
  • Professional Courses such as Engineering, Medical, Agriculture, Veterinary, Law, etc.
  • Courses offered by Institutes viz. IIM, IIT, IISc, XLRI, NIFT, etc.
  • Computer Certificate courses offered by institutes accredited to department of electronics or institutes affiliated to renowned universities.
  • Degree or Diploma courses like Aeronautical, Pilot Training, Shipping and alike approved by Director General of Civil Aviation/ Shipping
  • Courses that are offered by reputed foreign universities in India
  • Regular or Evening Courses conducted by colleges/ universities approved by UGC/ Government/ AICTE/ AIBMS/ ICMR etc.
  • Degree or Diploma courses in Teacher Training, Nursing, B.Ed 

For Abroad

  • Job oriented professional/ technical courses at graduation level 
  • Post-Graduation courses like MCA, MBA, MS, etc.
  • Course conducted by CIMA, London and CPA, USA, etc.
  • Pilot Training, Shipping, aeronautical etc. courses that lead to a diploma or degree

Expenses covered under Kotak Mahindra Education Loan

  • Tuition Fee
  • Cost of Books, Uniforms or Stationery
  • Cost of Laptop or computer (if required)
  • Examination Fee
  • Library/ Laboratory Fee
  • Hostel Fee 
  • Travel Expenses (for abroad)
  • Miscellaneous expenses

Documents required for Kotak Mahindra Education Loan

  • Identity Proof: Passport, Voter’s ID, Driving Licence or PAN Card
  • Mark sheet of recently qualified public exam for school, college in India
  • Admission Proof: Fee receipts, Transfer certificate, etc.
  • Schedule of expenses for the course
  • Two recent passport size photographs of applicant, co-applicant and guarantor
  • Educational Proof: copy of admission letter along with fee structure, mark sheets, SSC, HSC and degree course certificates
  • Salary Proof: Latest salary slip, Form 16 and recent salary certificate (if salaried)

For list of institutes or universities in India and Abroad Click Here


Q. What schemes does Kotak Mahindra Bank considers for its education loans?

Answer: There are multiple schemes offered by Kotak Mahindra Bank apart from the basic education loan. These are:

  • National Skill Certification and Monetary Reward Scheme
  • Skill Loan 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 Kotak Mahindra Bank?


  • For applicant: Age limit for applicant should be less than 18 years at time of applying for graduation course.
  • For Co-applicant: Minimum age limit for availing loan from Kotak Mahindra Bank is upto 21 years and maximum age limit is 70 years.

Q. Are minors eligible to apply for Kotak Mahindra 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 Kotak Mahindra 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. Is there any minimum aggregate marks to meet the eligibility criteria to avail Kotak Mahindra 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)

What is the discount/ rebate offered by Kotak Mahindra bank?


  • 0.50% concession is given to girl students
  • Eligibility criteria and margin on education loan is relaxed for SC/ST students

Q. What all is included in tangible collateral security?

Answer: Mostly Kotak Mahindra bank asks tangible security in lieu of the loan amount sanctioned along with assignment of future salaries in favour of Kotak Mahindra 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 Kotak Mahindra Bank is minimum 5 years and maximum of 7 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 Kotak Mahindra 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 Kotak Mahindra 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: Kotak Mahindra Bank provides no such provision or special benefit to the students who secure admission in top premier institutes

Q. What is the processing fee or prepayment charges?

Answer: The education loan offered by Kotak Mahindra Bank does not carry any prepayment charges. Processing fee charged is 2% of the loan amount + service tax and other applicable statutory levies

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 Kotak Mahindra Bank education Loan (both for India and Abroad)?

Answer: Yes diploma or certificate courses are eligible under Kotak Mahindra 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 Kotak Mahindra 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. What is the KYC requirement in education loan?

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 is 7 years

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 Kotak Mahindra 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 category. Refer the table below:

For Loan upto INR 7.5 Lacs

11.50% to 24%

For girl students: 10.25%

For Loan above INR 7.5 Lacs


For girl students: 15.20%

Q. What is interest subsidy on education loan?

Answer: Kotak Mahindra Bank offers CSIS for students belonging to economically weaker section of the society 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 Kotak Mahindra 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 Kotak Mahindra Bank?

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

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: 1860-266-0811/ 1860- 266-2666

Customers can add their respective state’s STD code with 66006022

Local rates apply on every call

Calls are answered only during business hours for corporate bank customers.