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Dombivli Nagri Sahakari (DNS) Bank Limited

Last Modified : August 31, 2018

DNS Bank Education Loan is offered to students pursuing higher studies in India or abroad. The loan is extended with 10% margin on amount of loan sanctioned.

Education Loan for India and Abroad offered by DNS Bank covers various expenses such as tuition/ hostel/ examination fee along with other miscellaneous expenses. It also covers travel expenses and study tours for students opting to study abroad.

Why DNS bank?

Various concessions and benefits offered by the bank are major attractions. Also, attractive rate of interests play a major role. The bank charges 10.50% interest for loan amount upto INR 5 Lacs, 11.50% interest for loan amount ranging from INR 5 to 10 Lacs and 11.50% interest for loan above INR 10 Lacs.

Are you eligible for DNS Bank Education Loan?

  • Indian National. Student must be an Indian National or an NRI in possession of Indian passport
  • 10+2. You must have cleared 10+2 from a recognized board or institute
  • Co-signer. Applicant must have a co-signer to act as a co-borrower while applying for loan

How can you apply for DNS Bank Education Loan?

Students wishing to avail education loan from DNS Bank can either go through the official website or through Vidyalakshmi Portal. Applicants can also visit the nearest branch and fill the form.

For Online:

  • Visit the official website
  • Click on DNS Bank Education Loan
  • Now select the particular loan scheme you want to apply for
  • Click on Apply Online
  • Fill up the form with all the necessary details
  • Upload the signature, photograph other documents required
  • Submit the Form
  • Take the print out of application form
  • After that visit the nearby DNS Bank for the further proceedings

For Offline

Applicants can directly visit the nearest branch and ask for an application form. The bank representative will then guide you with all the necessary information regarding eligibility, documents required and also which loan is best suitable.

DNS Bank Education Loan

DNS Bank education loan is offered to students who secure admission in higher education course in a reputed or recognized institute in India or abroad.

What makes you eligible for DNS Bank Education Loan?

  • Indian National.
  • 10+2 pass.
  • Higher education course
  • Mandatory co-applicant

Present Rate of Interest

Interest rate charged by the bank is 10.50% to 12% on all amounts.

Quick Facts about DNS Bank Education Loan

Maximum Loan LimitFor studies in India: INR 10 Lacs For studies in Abroad: INR 20 Lacs
Moratorium PeriodCourse Period plus one year, or six months after getting a job
Repayment (Maximum)Repayment of the loan can be done after the moratorium period by mode of EMI Maximum repayment tenure is 7 years
Prepayment ChargesNil, if paid during the repayment period

Additional Facts about DNS Bank Education Loan

  • No security for loan amount upto INR 5 Lacs
  • Zero Processing Fee
  • Zero Prepayment Charges

Expenses Covered Under DNS Bank Education Loan for Higher Studies

  • Tuition Fee
  • Examination Fee
  • Library/ Laboratory Fee
  • Hostel Fee
  • Cost of books, equipment, instrument or uniforms
  • Miscellaneous expenses- study tours, project work, thesis, etc.
  • Reasonable cost of computer or laptop (if required)
  • Passage money (for abroad)

Courses Covered under DNS Bank Education Loan for Higher Studies

For India

  • Graduate/ postgraduate degree/ diploma courses conducted by renowned institutions/ universities recognized by UGC, Government, AICTE, AIBMS or ICMR.
  • Academic courses such as CA, CFA, and ICWAI.
  • Courses conducted by NIFT, IITs, IIMs, XLRI, IISc, and NID.
  • Regular degree or 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 for DNS Bank Education Loan for Higher Studies

  • Admission letter with all essential details
  • Attested copies of age proof, residence proof and birth date.
  • Self-attested passport size photograph of applicant, co-applicant, and guarantor.
  • Copies of qualifying courses.
  • Income proof and/or copy of income tax return file of co-applicant, parents, and guarantor (if any).
  • Details of collateral security along with government approved valuation certificate (if any)
  • Bank account statement of the applicant.
  • Copy of passport and visa for abroad courses


Q: What schemes does DNS bank considers for its education loans?

Answer: There are no schemes offered by DNS Bank apart from the basic education loan.

Q: In whose name is the loan granted?

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

Q: What is the age limit for availing loan in DNS Bank?

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

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: Where can I avail DNS Bank Education Loan?

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

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 DNS Bank education loan?

Answer: No, there are no minimum aggregate marks to be secured for eligibility criteria of the bank.

Q: What is the discount/ rebate offered by DNS bank?

Answer: No concessions or rebates mentioned by bank.

Q: What all is included intangible collateral security?

Answer: Mostly DNS bank asks tangible security for loan amount above INR 4 Lacs. 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 DNS Bank is 5 to 7 years.

Q: What does MCLR stand 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 DNS 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 DNS Bank?

Answer: Yes, travel expenses are covered under this loan.

Q: 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 DNS bank.

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: There are no special benefits mentioned for students securing admission to top premier institutes.

Q: What is the processing fee or prepayment charges?

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

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 DNS Bank education Loan (both for India and Abroad)?

Answer: Yes diploma or certificate courses are eligible under DNS 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 DNS 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?

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 is 5-7 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 DNS 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. You can contact your nearest branch for the same.

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: Interest rate charged by the bank is 10.50% to 12% on all amounts.

Q: What is interest subsidy on education loan?

Answer: Interest subsidy are offered as per IBA guidelines by DNS Bank.

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).

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 DNS loan?

Answer: Applicants can get a free debit card along with the loan amount. The can also avail an additional loan for higher studies. Student applying for the loan can also avail Group Life Insurance Cover equal to the amount of 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: 1800-233-1700, +91 (251) 2875000 to 2875010
  • Customer Care ID: