Eligibility for Education Loan

• Must be an Indian National and age should be above 12 and below 30 years.
• Secured admission to Professional/ Technical courses through Entrance Test/ Selection Process. No minimum qualifying marks
• Eligible Courses for Education Loan
• Professional job oriented courses like Medical/Engineering/Management etc.

Quantum of Finance

• Need based finance upto a maximum of Rs. 10.00 lacs.

Margin

• Upto Rs.4,00,000/- — NIL
• Above Rs.4,00,000/- — 5%

Security

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

Additional Security

Mode of Disbursement

• The loan will be disbursed in full or in suitable installments 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.

Income Tax benefits: Under section 80(e) of the Indian Income tax act, a person can exempt the amount paid against the interest of the education loan – either for self or for his/her spouse or children – for eight years from the year (s)he starts to repay the loan or for the duration the loan is in effect, whichever is lesser.

The scope of education has widened both in India and abroad covering new courses in diversified areas. Development of human capital is a national priority and common enterprise should be that no deserving student is denied opportunity to pursue higher education for want of financial support. Loans for education should be seen as an investment for economic development and prosperity. Knowledge and information would be the driving force for economic growth in the coming years

Objectives of the Scheme

The main emphasis of the Educational Loan Scheme is that every meritorious student though poor is provided with an opportunity to pursue education with the financial support from the banking system with affordable terms and conditions. No deserving student is denied an opportunity to pursue higher education for want of financial support.

In short, the scheme aims at providing financial assistance on reasonable terms:

• to the poor and needy to undertake basic education.
• to the meritorious students to pursue higher/professional/technical education.

The scheme could be adopted by all Commercial Banks. The scheme provides broad guidelines to the banks for operationalising the educational loan scheme and the implementing bank will have the discretion to make changes suiting to the convenience of the students/parents to make it more customer friendly.

Items eligible for Finance:-

1. Admission fee/Monthly fee/Examination fee, Books, Stationery & equipments,
2. Air fare for joining the course abroad, Boarding & lodging expenses of hostel/boarding houses, where charges are standardised and paid to the Management of the Boarding House. Any other expenses required to complete the course like study tours, project work, thesis etc.

Eligibility:

Indian nationals not above 45 years of age those who secured admission in a recognized course of an approved university (AICTE approved institutions) OR institutes recognized by a statutory body.

Amount of Loan:

• Education in India – Max. Rs.10.00 lacs.
• Education Abroad – Max. Rs.20.00 lacs.

Security:

For Loans upto Rs.4.00 lac

• No Collateral Security
• Co-obligation of parents/guardian is must.

For Loans above 4 lacs and upto Rs.7.50 lacs

• No Collateral Security required,
• Co-obligation of parents/guardian is must
• One satisfactory third party guarantee

Above Rs.7.50 lacs

• Co-obligation of parents/guardian is obligatory.
• Mortgage of immovable property or any other tangible security like pledge of NSC/UTI/LIC (Surrender Value)/Bonds/
• Banks deposits (Except under tax saving scheme) etc. . having value at least equal to 100% of loan. Extension of charge on property already mortgaged with our Bank, subject to adequate residual value of security.

Margin:

• Upto 4 lacs – NIL
• Above 4 lacs for education in India – 5%
• Education Abroad – 15%

Concession on Rate of Interest:

Simple Interest shall be charged during study and moratorium period. The concession of 1% in rate of interest to be allowed, if interest is serviced regularly during the study and moratorium period. This concession shall be allowed after expiry of moratorium.

Special Rate:

• 0.50% concession to women beneficiaries, SC/STs and disabled students.

Process Fee:

• Upto 4 lacs – Rs. 100/-.
• Above 4 lacs for education in India – Rs. 500/-
• Education Abroad – Rs. 1000/-

Repayment:

• Within 84 EMIs commencing 12 months after course or 6 months after getting the job, whichever is earlier.

Insurance:

• Free Personal Accident Insurance upto Rs.20 lac.

Quantum of Loan: The quantum of finance under the scheme is capped at Rs 10.00 lacs for studies in India and Rs 20.00 lacs for studies abroad, which would cover tuition fees, hostel charges (if any), cost of books, etc. The minimum amount of loan would be Rs 50,000.

Margin: No margin for loans upto Rs 4 lacs. For loans above Rs 4 lacs, 5% margin for studies within India and 15% for higher studies overseas.

Role of the Guardian: The parent(s) or guardian of the student would be treated as a co-applicant of the loan. His or her role would be, necessarily, like the primary debtor.

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

Additional Security: Assignment of LIC policy in favour of the Bank for the sum assured being at least 100% of the loan amount. The policy is kept alive during the currency of the loan. To ensure this, the annual premium may be included in the computation of the loan requirement, along with the tuition fees and other recurring charges. Further, the future income of the student needs to be assigned in favour of the Bank for meeting the installment obligations.

Disbursement: The loan will be disbursed in full or in suitable installments 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.

Courses offered - An installment based loan for all courses mentioned below:

1) Studies in India:

• Graduation courses: BA, B.Com., B.Sc., etc
• Post Graduation courses: Masters & Phd
• Professional courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer etc
• Computer certificate courses of reputed institutes accredited to Dept. of Electronics or institutes affiliated to university
• Courses like ICWA, CA, CFA etc
• Courses conducted by IIM, IIT, IISc, XLRI. NIFT etc
• Courses offered in India by reputed foreign universities
• Evening courses of approved institutes
• Other courses leading to diploma / degree etc. conducted by colleges / universities approved by UGC / Govt. / AICTE/ AIBMS / ICMR etc
• Courses offered by National Institutes and other reputed private institutions. Banks may have the system of appraising other institution courses depending on future prospects/ recognition by user institutions.

2) Studies abroad:

• Graduation: For job oriented professional / technical courses offered by reputed universities. Post graduation: MCA, MBA, MS, etc. Courses conducted by CIMA- London, CPA in USA etc.

3) Special Courses:

• Regular Degree/Diploma courses like Aeronautical, pilot training, shipping etc., approved by Director General of Civil Aviation/Shipping. In case the course is pursued abroad, the competent local aviation/shipping authority should recognize the Institute.

Loan Amount -

• Study in India-Rs.10 lakhs
• Study Abroad -Rs.20 lakhs

Expenses Covered under Loan -

• Fee payable to college / school/ hostel
• Examination / Library / Laboratory fee
• Purchase of books / equipments / instruments / uniforms
• Caution deposit / building fund / refundable deposit supported by Institution bills / receipts
• Travel expenses / passage money for studies abroad
• Purchase of computers – essential for completion of the course
• Any other expense required to complete the course – like study tours, project work, thesis, etc.
• Insurance premium for student borrower

Repayment terms - The repayment of loan to begin after the course period + 1 year or 6 months after getting a job, whichever is earlier. The loan to be repaid within 5-7 years (maximum tenor 84 months) after commencement of repayment.

Purpose: To meet tuition, admission and other fees, maintenance cost, cost of books and equipment for higher studies. Caution deposits and other refundable deposits can also be financed under the scheme.

Amount of Loan:

• For studies in India : Rs.10 lakhs
• For studies abroad : Rs.20 lakhs

Persons Eligible:

1. Indian National
2. Students who have passed the entrance test and have secured admission for technical/professional courses.

Eligible Courses:

1. All technical /professional courses including certificate courses, diplomas; graduate/ Post graduate and/ or doctorate degree studies in recognised schools / colleges / Institutions. (Courses in Medicine, Surgery, Dental Science, Architecture, Veterinary Science, Agri Sciences and in various branches of Engineering , Technology, Computer Science, Industrial Management, Business Administration and other Management Sciences)
2. Computer Courses which are conducted by institutes given due accreditation by the Department of electronics, Govt of India.
3. Any other specialised course in Computer Science.

Borrower: Student and Parent or Guardian jointly. This means if an NRI wishes to educate his/her nephew /niece any other such relative the student and the supporting NRI as guardian may avail the loan jointly.

Repayment: To be repayed iIn 60 monthly installments, One can repay the loan in 12 months after completion of course or 6 months after getting job whichever is earlier.

Security: Collateral security equal to Loan amount plus interest payable up to one year after completion of course. When the loan amount exceeds Rs 4 lakhs, such Collateral security may be any one or more of : Govt Securities, UNITS of UTI, Surrender value of a LIC policy, National Savings Certificates, KVPs, IVPs, Bank Deposit Receipts after effecting necessary lien /assignment in favour of State Bank of Travancore and / or mortgage of immovable properties or other tangible assets acceptable to the bank.

Documents to be submitted:

1. Application (Student and Parent or Guardian jointly)
2. Two Copies of Passport Size Photos.
3. Testimonials in original from head of institution and from one or two other respectable persons not related to the student.
4. Proof of Admission to Course.
5. Schedule of Expenses for the course.
6. Copy of Salary certificate / statement (other proof) of Income of parent / Guardian
7. Copy of Passport of parent / guardian and student (if applicable)

You are eligible if:

• You are an Indian national and have secured admission to a professional or technical course in an Indian or Foreign university.
• Simply walk in with the marksheet of the qualifying exam. and proof of admission.

Course Eligibility:

Study in India: Graduation courses, Post-Graduation courses, Masters & PhD, Professional courses.

Study Abroad: Graduation for professional/ technical courses offered by reputed universities; Post Graduation (MCA, MBA, MS)

Loan Amount

• Upto Rs.10 lakhs for studies in India.
• Upto- Rs. 20 lakhs for studies abroad.

Loan takes care of :

• Fee payable to colleges/ schools/ hostels
• Examination/ Library/ Laboratory fees.
• Purchase of books, equipment, instruments and uniforms.
• Passage fare for travel abroad.
• Purchase of computers needed to complete the course.
• Any other expense to complete the course like study tours, project work, thesis etc.

Margin:

• Upto Rs. 4 lakhs- NIL for study in India and abroad.
• Above Rs. 4 lakhs- 5% for study in India and 15% for study abroad.

Repayment: 

• Moratorium- Course period + 1 year or 6 months after getting a job, whichever is earlier.
• Repayment period- 5-7 years after start of repayment.

The Axis Bank education loans comes with many extra benfits, Following are few notable benfits:

• Easy to Apply
• Instant Approval
• Low Interest Rates
• Less Documentation
• No Security
• Less Processing Fee
• Easy Repayment Options

To apply for Axis Bank education loan the indian students needs to visit their nearest Axis Bank branch office, As there are several branches it made very easy to apply.

1. ICICI Bank
2. AXIS Bank
3. HDFC Bank
4. Canara Bank
5. Indian Overseas Bank

The students can get education loans from private banks for studying both in india and abroad, The private banks are lending education loans upto an amount of 15 lakh rupees for studying in india and upto 25 lakh rupees for studying abroad.