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RBL Bank Education Loan

Last Modified : August 31, 2018

Ratnakar Bank Limited or RBL Bank offers education loan for studies in India or abroad. The loan is extended to students securing admission to any graduate/post graduate course in renowned institute in India or overseas.

The bank extends education loan for India and abroad at INR 10 Lacs for studies in India and INR 20 Lacs for studying abroad.

Why RBL Bank?

The bank extends education loan schemes at zero margin, that is, 100% finance of tuition fee and other expenses. Zero collateral required for loan amount upto INR 4 Lacs. The bank aims at promoting hassle-free loan sanction and disbursal procedure.

Are you eligible for RBL 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 RBL Bank Education Loan?

Students wishing to avail loan from RBL Bank can either do it 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 RBL Bank Education Loan
  • 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 RBL Bank branch 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.

Here are various aspects of student loan offered by RBL Bank. We have curated all the vital information to help you decide.

RBL Bank Education Loan

The education loan scheme extended by RBL Bank is offered with 100% finance facility and other benefits and concessions.

What makes you eligible for RBL Bank Education Loan?

  • Indian National
  • 10+2 qualified
  • Co-applicant/co-borrower is a must
  • Co-applicants minimum salary should be more than INR 1.5 Lacs per annum

Present Rate of Interest

Loan amountBase rate + spreadEffective Rate of Interest
Upto INR 4 Lacs1 year MCLR + 5.40%15.15%
Above INR 4 to 7.50 Lacs1 year MCLR + 6.40%16.15%
Above INR 7.50 Lacs1 year MCLR + 4.40%14.15%

Quick Facts about RBL Bank Education Loan Scheme

MarginNil. 100% finance
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 5-7 years
Prepayment ChargesNil, if paid during the repayment period

Additional Facts about RBL Bank Education Loan Scheme

  • 100% finance facility
  • Zero processing fee
  • Zero penal charges
  • Bank transfer facility available

Expenses covered underRBL Bank Education Loan Scheme

  • 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 RBL Bank Education Loan

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 RBL Bank Education Loan

  • 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
  • I-20 Form if applying for US. Also, Scholarship certificates (if any)
  • Mark sheets/ Certificate of English proficiency test such as GRE, GMAT, SAT, TOEFL etc.

FAQs for RBL Bank

Q: What schemes does RBL Bank considers for its education loans?

Answer: There are no schemes offered by RBL 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 RBL 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 RBL 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 RBL Bank education loan?

Answer: No. There is no minimum aggregate marks stated by the bank.

Q: What is the discount/ rebate offered by RBL Bank?

Answer: There are no discount/rebate mentioned by the banks

Q: What all is included in tangible collateral security?

Answer: Mostly RBL 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 RBL Bank is 5 to 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 RBL 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 RBL Bank?

Answer: Yes, travel expenses are covered under this loan

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

Answer: It depends on bank’s discretion.

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 lower interest rates for admission to top premier institutes.

Q: What is the processing fee or prepayment charges?

Answer: The education loan offered by RBL 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 RBL Bank education Loan (both for India and Abroad)?

Answer: Yes diploma or certificate courses are eligible under RBL 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 RBL 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 to 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 RBL 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?

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

Loan amountBase rate + spreadEffective Rate of Interest
Upto INR 4 Lacs1 year MCLR + 5.40%15.15%
Above INR 4 to 7.50 Lacs1 year MCLR + 6.40%16.15%
Above INR 7.50 Lacs1 year MCLR + 4.40%14.15%

Q: What is interest subsidy on education loan?

Answer: There is no Interest subsidy mentioned on the official website to be applied on Education Loan offered by RBL 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 RBL Bank loan?

Answer: There are no additional benefits stated by RBL Bank.

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: +91 22 61156300 to 99 1800 123 8040
  • Customer Care ID: customercare@rblbank.com