Axis Bank Education Loans

Axis Bank happens to be the third-largest private bank in India. It offers a wide range of financial services to various demographic segments and various economic entities, such as small and large corporations, agriculture-centered organizations, MSMEs, and retail businesses. The bank has 4050 domestic branches, 11801 ATMs, and 9701 cash recyclers around the country. It also has nine international offices situated in Singapore, Colombo, Honk Kong, Shanghai, Abu Dhabi, Dhaka, Dubai, and London.

Axis Bank is known for its reliable loan-providing services, one of which is education loans.

Axis Bank provides you education loans for your studies in India as well as abroad. Axis Bank education loans start from a minimum of Rs. 50,000, and are characterized by their attractive interest rates. There are several benefits to availing loans from Axis Bank. For example, the documentation process is simple, the loan disbursal process is fast, and there are chances to get a tax benefit and an extended payment tenure on the loan, among much more.

Here is the full list of features and benefits provided by Axis Bank.

Features and Benefits of Axis Bank Education Loans

High-Value Loans

• The minimum loan amount is Rs. 50,000

• The loan shall cover components such as tuition costs, hostel rent or charges, cost of books and equipment, etc.

Attractive Interest Rates

You can get Marginal Cost Based Lending Rate (MCLR) at 8.65%.

No Margin on Loans

• There is no margin on education loans amounting up to Rs. 4 lakhs.

• For education loans beyond Rs. 4 lakhs, there is a 5% margin for studies within the country

• For education loans beyond Rs. 4 lakhs, there is a 15% margin for studies abroad.

Wide Variety of Courses Covered
The bank loans are provided to promising students who have gained admittance to career-oriented training courses like engineering, medicine, engineering, and more. Loans are made available to pursue both graduate courses and post-graduate courses. 

Easy Loan Disbursal Process

• The loan is disbursed within 15 days after the loan application documents are received for proper appraisal at the bank.

• The loan shall be given as a lump sum or in installments as decided by the bank.

Choice of Applying for a Loan with a Guardian

The main applicant or student can have parents or guardians as co-applicants, who can become the primary debtors of the education loan.

 

Loan Security

• Collateral security and third party guarantee can be asked for in some cases. 

• Choice of using one’s LIC policy in favor of Axis Bank for more security.

  • Annual premium for the above and and student’s future income can be included or used for the calculation of the loan requirement.

• You can use a tangible collateral security of suitable value along with the student’s future income for installment payments.

Axis Bank Education Loan Interest Rates

In this section, you will learn about the interest rates on offer for various education loans of Axis Bank.
Rates According to the Total Amount

Loan type	Loan Amount	ROI	Other information
Education loan	Total amount up to Rs. 4 lakhs	15.2%	MCLR is 8.65% MCLR frequency is half-yearly
	Total amount up to Rs. 7.5 lakhs	14.7%
	Total amount more than Rs. 7.5 lakhs	13.7%

Education Loan Interest Rates According to Country of Study

Country of Study	Loan amount	Flat Fees
Abroad	Upto Rs. 20 lakhs     More than Rs. 20 lakh	Rs 15000+GST (Refundable)     0.75% of the loan amount above Rs. 20 lakh
India	Upto Rs. 10 lakhs     Above Rs. 10 lakhs	No fees     Rs. 5000+GST (Non-refundable)

Axis Bank Education Loan Schemes

Study Power

Let’s have a thorough run-through of the features and charges of the Study Power education loan scheme.

Name of scheme	Charges
Study Power	No prepayment charges No certificate due charges No solvency certificate charges Penal interest of overdue and delayed EMIs is 2% per month No charges on changing from fixed to floating interest rates and vise versa

Eligibility

• Must be an Indian citizen

• Must have secured at least 50% in Higher Secondary and Graduation exams

• Must have already gained admission in a career-oriented course

• Must have gained admission to a course in India or abroad through an exam

• The co-applicant must display proof of regular income

Documents Needed
For Salaried Individuals

• Proof of identity (any one)- driving license, passport, Voter ID, PAN card, latest salary slips, etc.

• Proof of residence (any one): bank account statement, mobile or telephone bill, electricity bill, land or house lease agreement etc.

• Bank statement

• Guarantor form (optional)

• Copy of education institute’s admission letter with fees schedule

• All mark sheets and passing certificates

For Everyone Else

• Proof of identity (any one) - driving license, passport, voter ID, PAN card, latest salary slips, etc.

• Proof of residence (any one): bank account statement, mobile or telephone bill, electricity bill, land or house lease agreement, etc.

• Bank statement

• Guarantor form (optional)

• Copy of educational institute’s admission letter, along with fees schedule

• All mark sheets and passing certificates

Documents Needed for the First Loan Disbursement

• Demand letter from the educational institution

• Loan agreement that is signed by the co-applicant and the applicant

• Sanction letter that is signed by the co-applicant and the applicant

• Loan disbursement request letter that is signed by the co-applicant and the applicant

• The receipt of margin money already paid to the educational institution

• Documents for collateral security, if applicable

• Form A2 signed by co-applicant and the applicant (for an overseas course)

Documents Needed for the Subsequent Loan Disbursement

• Demand letter from the educational institution

• Loan disbursement request letter that is signed by the co-applicant and the applicant

• The receipt of margin money already paid to the educational institution

• Marksheet, exam progress report, or certificates

• Form A2 sign by co-applicant and the applicant (for an overseas course)

Central Government Interest Subsidy Scheme for Economically Weaker Section for Education Loans for studying in India

Features

• The interest payable during the period of moratorium for an education loan taken by a student from an Economically Weaker Section shall be borne by the Government of India.

• The interest subsidy shall be available just once per student.

• The interest subsidy scheme is not granted or continued for students who discontinue the course mid-way or are expelled from the institution for any reason.

• The interest subsidy is granted and is continued for students who have to discontinue the course on medical grounds, provided the necessary documentation is provided for the satisfaction of the Head of the educational institution.

• For the purposes of this scheme, the income certificate shall be developed by the authorities designated by the Government of India, based on the economic index and not on the social class.

• Interest rate for the loan shall be according to Axis Bank’s education loan subsidy scheme.

• The list of institutions and recognized courses administered by the Ministry of Tourism shall be considered for this scheme.

• List of professional and technical courses recognized by the UGC and the AICTE are considered for this scheme.

Documents Needed

• Income certificate

• Bonafide student certificate

• The Letter of Undertaking and Declaration and the Interest Subsidy Agreement needs to be signed by the concerned borrowers.

How to Apply for Axis Bank Education Loans

Applying for an Axis Bank education loan is very easy. All you need to do is to go to the Education Loan page of the bank’s official website. Near the top banner on the left, you can see the ’Apply Now’ button. Click on it. You shall be redirected to an online form. Fill in the form and submit it. A representative from the bank shall then contact you shortly.
You can also visit the nearest Axis Bank branch and apply directly from there.

FAQs

Q. What is the maximum loan amount one can avail as an Axis Bank Education Loan?

A. The maximum amount an applicant can get is Rs. 75 lakhs.
Q. Within how many days shall the bank decide on whether to sanction the loan or not?

A. This takes 15 days from the receipt of all the necessary documents.
Q. Are there any margins for these education loans?

A. There is no margin for loan amounts of up to Rs. 4 lakhs. For loans beyond that amount, the margin is 5% for courses within the country and 15% for overseas courses.

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