Apply for Education Loan or Study Loan in Axis Bank

Education Loan  Updated date : December 20, 2017 82

Fuel your dreams with financial assistance for professional or technical education in India or abroad.

✔ Prime Institute (India) & (Abroad)
✔ Special Rate of Interest ranging from 10.5% - 12.5%
✔ Offer valid till Dec 30, 2017
✔ Loan Amount
✔ Minimum - Rs. 50,000; Maximum - upto Rs. 75 lakhs*
✔ Key Benefits
✔ No Processing Fees
✔ No Pre-Payment Charges
✔ No Pre-Closure Charges

Loan Features and Benefits

Avail high value loans

    • Minimum - Rs. 50,000
    • Maximum upto Rs. 75 lakhs* for studies in India or Abroad
    • The loan will cover tuition fees, hostel charges (if any), cost of books, etc.

*The quantum of Loan can be determined, subject to eligibility and cost, for case-to-case approval.

Attractive Rates of Interest
Marginal Cost Based Lending Rate (MCLR) – 8.15%

Benefits from No margins - can be articulated better from a consumer perspective
No margin on loans upto Rs. 4,00,000
5% margin on loans above Rs. 4,00,000 for studies within India
15% margin on loans above Rs. 4,00,000 for studies overseas

Avail Loans for a variety of courses
Loans are given to worthy students who have obtained admission to career-oriented courses like medicine, engineering, management, etc. either at a graduate or post-graduate level

Easy Loan Disbursal
Within 15 working days from the date of receipt of the complete application along with all documents required by the bank for a proper appraisal

Apply for an Education Loan with a Guardian
The parent(s) or guardian will be treated as a co-applicant on the loan are his or her role would be like that of the primary debtor

Secure your loan

Third party guarantee and/or collateral security may be asked for in appropriate cases

  • Additional security in the form of an LIC Policy in favour of the Bank with the sum assured being at least 100% of the education loan amount may be required.
  • Annual premium for the same may be included while computing the loan requirement and future income of the student needs to be assigned in favour of the Bank to meet instalment obligations
  • Tangible collateral security of suitable value acceptable to bank alongwith the assignment of future income of the student for payment of installments.

Enjoy easy disbursal of the loan

Loan will be disbursed in full or in suitable instalments taking into account the requirement of funds and/or fee schedule as assessed by the Bank directly to the educational institution or vendor of books or equipment or instruments

*The quantum of Loan can be higher amounts, above these caps, subject to eligibility and cost, for case-to-case approval.

Terms and conditions

As directed by the Reserve Bank of India, from time to time through its circulars, the Bank has adopted modified Fair Practice Code for Lenders as approved by the Board of Directors. The salient features of the same are:

  • Applications for Loan
    1. In the loan application form, the Bank shall provide comprehensive information including information about fees and charges if any payable for processing and amount of such fees refundable in case of non-acceptance of application, prepayment options and other matter which affects the interest of the borrowers, of all categories of loans, irrespective of the amount of loan sought by them.
  • Processing
      • The Bank shall provide acknowledgement for receipt of all loan applications indicating the time frame within which the application will be disposed of.
      • The Bank shall verify the loan application and if additional details / documents are required, these will be sought from the applicant.
      • For all categories of loans and irrespective of any threshold limits, the Bank will be expected to process the application without delay. In case the application is turned down, the Bank will convey in writing to the applicant the reasons for rejection within one month.
  • Loan Appraisal and Terms and Conditions
      • The sanctioning authority will be expected to ensure proper assessment of the credit application as per the extant instructions and credit policy of the bank. The availability of adequate margin and security will not be a substitute for due diligence on the creditworthiness of the customer.
      • All the terms and conditions and other caveats will be duly communicated by an authorised official of the Bank to the customer in writing.
      • The acceptance of the customer will be obtained on the sanction letter with the customer's signature under the caption "I/WE ACCEPT ALL THE TERMS AND CONDITIONS WHICH HAVE BEEN READ AND UNDERSTOOD BY ME/US".
      • A copy of the loan agreement along with all the enclosures quoted in the loan agreement will be furnished to the customer at the time of issue of the sanction letter.
      • The sanction letter / loan agreement will clearly state that the credit facilities will be extended solely at the discretion of the Bank and that drawings under the following circumstances will be solely at the discretion of the Bank.
      • Drawings beyond the drawing power / sanctioned limits.
      • Honouring of cheques issued for the purpose other than specifically stipulated in the sanction.
      • Drawings in an account once it is classified as NPA.
      • No drawings will be allowed in case of non-compliance of the terms and conditions by the borrower.
      • Meeting further requirements of the borrower on account of growth in business will be subject to proper review of the credit limits.
  • Disbursement of loans including changes in terms and conditions
      • The disbursement will be done immediately on compliance of all the terms and conditions of the sanction by the borrower and the branches need not refer to the sanctioning authority for disbursement.
      • Any changes in the terms and conditions of the sanction such as interest and charges will be notified to the borrower before effecting the changes.
      • Any changes in interest rate and charges will be effected only prospectively after giving due notice to the borrower
  • Post disbursement supervision
      • The post disbursement supervision, such as submission of periodical reports and periodic inspection, will be stipulated at the time of issue of the sanction letter. The sanction letter would also mention whether the Bank or the borrower will bear the cost of inspection.
      • The Bank will issue notices to the borrowers in advance in case the Bank decides to recall the advance / accelerate the payment / accelerate the performance under the loan agreement. Or seek additional securities.
      • The Bank shall release all securities on receiving payment of loan. However, the Bank may decide to exercise the right to set off any legitimate right or lien for any other claim against borrower. In case the Bank decides to retain the security, the borrower will be notified about the remaining claims and the documents under which the Bank is entitled to retain the security till the relevant claim is paid / settled.
  • Others
    • The Bank will not interference in the affairs of the borrowers except where provided for in the terms and conditions of the loan sanction documents, such as periodic inspection, scrutiny of books of accounts, verification of stocks and book debts, and scrutiny of QIS statements.
    • In case any information not disclosed earlier by the borrower has come to the notice of the Bank, the Bank will have the right to elicit the necessary information from the borrower and initiate action to protect its interest.
    • While, the Bank may participate in credit-linked schemes framed for weaker sections of the society, the Bank shall not discriminate on grounds of sex, caste and religion in the matter of lending.
    • In the matter of recovery of loans, the Bank shall not resort to undue harassment such as persistently bothering the borrowers at odd hours and use of muscle power.
    • In the case of receipt of request for transfer of borrowal account, either from the borrower or from other banks / FIs which propose to take over the loan, the Banks' consent or objection, if any, shall be conveyed within 21 days from the date of receipt of request.

*Income Tax rebate under Section 80(E) in respect of interest paid

Loan Eligibility & Documentation

Documents for Education Loan for salaried individuals

  • Proof of identity (any one of the following):
    • Passport
    • Voter ID card
    • Driving license
    • PAN card
    • Government department ID card
  • Latest salary slip showing all deductions or Form 16 along with recent salary certificate
  • Proof of residence (any one of the following):
    • Bank account statement
    • Latest electricity bill
    • Latest mobile/telephone bill
    • Existing house lease agreement
  • Bank Statement/Pass Book of last 6 months
  • Optional – Guarantor Form
  • Copy of admission letter or the Institute along with Fees schedule
  • Mark sheets/pass certificates of S.S.C., H.S.C, Degree courses

Documents for Education Loan for all other Individuals

  • Proof of identity (any one of the following):
    • Passport
    • Voter ID card
    • Driving license
    • PAN card
  • IT returns of the last 2 years and computation of income of last 2 years certified by a Chartered Accountant
  • Proof of residence (any one of the following):
    • Bank account statement
    • Latest electricity bill
    • Latest mobile/telephone bill
    • Existing house lease agreement
  • Bank Statement/Pass Book of last 6 months
  • Optional – Guarantor Form
  • Copy of admission letter or the Institute along with Fees schedule
  • Mark sheets/pass certificates of S.S.C., H.S.C, Degree courses

Documents required for first disbursement

  • Demand Letter from college or university.
  • Loan agreement signed by applicant, Co-applicants.
  • Sanction Letter signed by applicant, Co-applicants.
  • Disbursement request form signed by applicant, Co-applicants.
  • Receipts of Margin money paid to the college / university alongwith bank statement reflecting the transaction.
  • Documents for collateral security ( if applicable )
  • Form A2 signed by applicant or Co-applicants in case abroad Institute cases.

Documents required for subsequent disbursement

  • Demand Letter from college or university
  • Disbursement request form signed by applicant, Co-applicants.
  • Receipts of Margin money paid to the college / university alongwith bank statement reflecting the transaction
  • Exam Progress Report, Marksheet, Bonafide Certificate (Any one)
  • Form A2 signed by applicant or Co-applicants in case abroad Institute cases.

Eligibility

The education loan would be provided to those students who have obtained admission to career-oriented courses e.g. medicine, engineering, management etc., either at the graduate or post-graduate level.

  • Secured at least 50% marks during HSC & Graduation
  • Secured admission in India or Abroad through entrance test / Merit based selection process post completion of HSC (10+2)

Loan Interest Rates and Charges

Loan TypeLoan Amount (Rs)Effective ROI
Education LoanUpto 4 lacs15.00%
Loans greater than Rs.4 lacs and upto Rs. 7.5 lacs14.50%
Loans greater than 7.5 lacs13.50%

** Special Pricing - For female applicants , an additional benefit of 25bps shall be applicable on the effective rates as mentioned in the grid above.

Marginal Cost Based Lending Rate (MCLR) – 8.15%

MCLR Reset frequency for Education Loans - Half Yearly

Customers who have availed disbursement/have received a sanction prior to March 31, 2016 will continue to operate on base rate. Existing customers can get in touch with our customer care, if they wish to switch to MCLR.

Schedule of Charges
SchemeStudy Power
Loan Processing ChargesNil
Prepayment ChargesNil
No Due CertificateNA
Solvency CertificateNA
Penal Interest on delayed / overdue EMI@24% per annum i.e. @ 2% per month on the overdue installment/s
Charges for changing from fixed to floating rates of interestNA
Charges for changing from floating to fixed rates of interestNA
Other Charges
Sr. NoTypeCharges
1
Penalty on Return of Instrument / Repayment instructionRs.500 plus GST as applicable per instance

W.E.F 1st July 2017

Goods and Services tax (GST) will be charged extra as per the applicable rates, on all the charges and fees (wherever GST is applicable).

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