Axis Bank Education Loan

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Introduction

Axis bank was founded on December 3, 1993 in Ahmedabad. The bank has 130000 employees. It is the third largest private sector bank offering a broad range of financial products including loan for education.

Axis bank offers “study power scheme” in which education loans are offered to students who want to pursue higher education in India or abroad. Loan amount can range from 50,000 to 75lakhs.

Name

Study Power Scheme

Details

Axis bank offers “Study Power Scheme” for students who want to pursue higher education in India or abroad. The individual should have an Indian citizenship and should have scored at least 50% in 12th grade. Maximum amount for higher education in India or abroad is ₹75lakhs and minimum amount is ₹50,000.

Study Power scheme

Axis bank education loan gives a 0.50% concession in interest to girl students. The scheme provides a preapproved loan based on an assessment of their potential. For prime institutes axis bank provides unsecured funding up-to 30lakhs.

Eligibility

This scheme is eligible for anyone who is above 18years of age and has an Indian citizenship. The individual should have a confirmed admission in a recognised graduate or post -graduate educational institutes in India or abroad. Candidate should have secured at least 50% marks in 12th grade. The guardians should have a regular source of income.

Rate of Interest

Loan Amount Rate of interest
50,000 to 4lakh 15.2%
4Lakh to 7.5lakh 14.7%
Above 7.5lakh 13.7%

Expense Cover

This scheme covers all requirements of the candidate like tuition fees, examination, travel, living, and hostel expenses required for the student to complete the course.

Max loan Amount

Maximum loan amount for an education in India or abroad is ₹75lakh.

Margin Amount

No margin for education loans up-to ₹4lakhs

For education loans above ₹4lakhs margin amount is 5% if the candidate pursues his/her studies in India

For education loans above ₹4lakhs margin amount is 15% if the candidate pursues his/her studies abroad.

Processing fee

If the candidate pursues his/her studies abroad, for an education loans up-to ₹20lakhs processing fee is 15000 +GST (Refundable fee), for an education loans above ₹20lakhs processing fee is 0.75% of differential loan amount above 20lakhs + GST (Non–Refundable fee).

If the candidate pursues his/her studies in India, for an education loans up-to ₹10lakhs processing fee is not applicable, for education loans above ₹10lakhs processing fee is ₹5000 + GST (Non- Refundable fee).

Collateral security

Collateral such as immovable property, Liquid assets like life insurance policy in the banks favour, Govt bonds, FD’s, etc are accepted by the bank. Future paycheques of candidate should be assigned in favour of Axis Bank. Unsecured loans are available for an amount below 4lakhs. For loans ranging from 4lakh- 7.5lakh a third-party guarantor is required and for loans above 7.5lakh a tangible collateral is required.

Repayment period

For working professionals, income-based funding and GRE based funding loan repayment tenure is up-to 10yr.

For Prime domestic and Prime abroad loan tenure is up-to 15years.

Moratorium Period

Moratorium on repayment available is 6 Months after completion of course (Unsecured Loans) & 1Year after completion of course or securing a job whichever is earlier (Secured Loans).

Central Government Interest Subsidy Scheme

Axis bank offers Central Government Interest Subsidy Scheme for Economically Weaker Sections. Any candidates whose parental income is less than ₹4.5lakhs annually can avail this scheme. Eligible candidates can pursue any of the approved courses from recognized institutions only in India for an education loan up-to 7.5lakhs. The Scheme is applicable to all candidates satisfying the eligibility criteria of IBA approved Model Educational Loan Scheme. In this scheme interest payable on the Educational Loan for moratorium period will be borne by the Government of India. After which interest on outstanding loan amount shall be paid by candidate.

Following documents need to be submitted:

  • Income Certificate issued by appropriate authorities designated by respective State Government.
  • Bonafide Student Certificate – If applicant qualifies for the subsidy scheme, Interest Subsidy Agreement, Letter of undertaking cum Declaration needs to be signed by the borrowers.

Loan without collateral

Loans without collateral are available for an amount below 4lakhs, unsecured loans are also available for prime institutes up-to 30lakhs.

How to apply for Education Loan

Students who have successfully applied for an institution can apply online and offline for the education loan.

  • Online Application
  • Visit official website “https://www.axisbank.com/retail/loans/education-loan/
  • Click on Axis Bank Education Loan
  • Click on ‘Apply Online’
  • Fill up the form with all the required information and submit it.
  • After submitting the form, applicant will be contacted either by SMS/email/phone call to confirm the details, after which the loan officer will visit the candidate personally and complete the necessities.
  • Offline Application
  • Applicant can either download the form ‘Study Power by Axis Bank’ online or they can visit the bank and ask for the application form.
  • Applicant will then fill up the form with appropriate personal, academic, and financial details of both applicant and guardian. After which the loan officer will inform and find a suitable education loan plan for the candidate and

complete the documentation process.

Rate of Interest

Interest loan is calculated on RBI repo rate of 4.40%, this is added to the spread (decided on case to case bases). For loans on MCLR– 7.75%. Current base lending rate is 9.30% and rate of interest is floating in nature. Simple interest is charged during course and moratorium period after which interest is compounded.

Loan Amount Repo Rate Spread Effective Interest Rate
Up-to ₹4lakhs 4.40% 10.55 15.2%
Loans from ₹4lakhs to ₹7.5lakhs 4.40% 9.55 14.7%
Loans above ₹7.5lakhs 4.40% 8.55 13.7%

Eligibility Criteria

  • Applicant should have Indian Citizenship. An NRI is eligible if his/her co-applicant has an Indian citizenship.
  • Applicant must be of 18years of age. He/she should have secured at least 50% marks during 12th grade and graduation.
  • Admit letter from recognised education institution for the approved courses, either at graduate/post-graduate level
  • Secured admission after clearance of appropriate entrance exams or merit-based selection process post completion of 12th grade.
  • Guardian should have a regular income.

Types of Institutes

  • Prime A: This list includes master’s programmes from top universities. No collateral up-to ₹40lakhs
  • Prime B: Besides Masters programmes, it includes bachelor’s degrees as well. No collateral up-to ₹15lakhs
  • Non-prime: Courses and institutes which are not included Prime A & B lists are included in this category. 65% of total loan amount is required as collateral.

Expense covered

This scheme covers requirements of the candidate like tuition and examination fees, travel, living and hostel expenses, library subscription fee, cost of books, lab tools, laptop, passage money for studies abroad and additional cost which is necessary for completion of the course.

Education Loan Documents

Along with the education loan application form, following documents need to be submitted by the student and co-applicant.

Documents required to study in India
  • Proof of Identity
  • Passport
  • Driving licence
  • PAN card
  • Aadhar Card
  • Residence Proof
  • Bank account statement
  • Latest Telephone, electricity bill
  • Aadhaar Card
  • Passport
  • Bank Account Statement,
  • Academic record
  • Marksheets or passing certificates of S.S.C., H.S.C., Degree courses
  • Copy of admission letter of the Institute
  • Academic fees schedule
  • Age Proof
  • Voter ID Card
  • PAN Card
  • Driving License
  • Income Proof
  • Salaried individuals: Latest salary slips showing all deductions, Form 16 with a recent salary certificate
  • Other Individuals Last 2years Income Tax returns and computation of last 2years income certified by a CA
  • Photo identification proofs
  • Aadhaar,
  • PAN card,
  • Passport,
  • Driving license
  • Collateral security (if applicable)
  • Loans against immovable assets

Property deed, Allotment letter by Municipal Corporation or NOC from builder.

  • Loans against deposits

Original FD/RD receipts,

  • Loans against securities

PAN card and DEMAT account statement.

  • Declaration/affidavit
An affidavit or declaration that no loan has been availed from any other bank.
Additional Documents required to study abroad
  • Mandatory passport for the applicant
  • Form A2 duly signed by the applicant/co-applicants in case of abroad studies
  • Candidate must have secured admission through an entrance test.
Documents Required for First Disbursement Documents Required for Second Disbursement
  • Demand letter from college/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 university and bank statement reflecting the transaction
  • Documents for collateral security (if applicable)
  • Form A2 signed by applicant/co-applicants for abroad institutes.
  • Demand letter from college or university
  • Disbursement request form signed by applicant, co-applicants
  • Receipts of margin money paid to the university and bank statement reflecting the transaction
  • Exam progress report, marksheet, bonafide certificate
  • Form A2 signed by applicant/co-applicants for abroad institutes.

Axis bank insurance

Axis bank offers insurance cover as collateral to minimize default risk. The insurance policy is often of the value of loan availed and it is assigned in favour of the bank. Cost of insurance cover with education loan is 2-3% of the loan size.

Following are Insurance policies used as collateral securities

  • LIC policy in favour of Bank with sum assured being at least 100% of the education loan amount
  • Mutual Fund – Loan will be provided on 50% of fixed deposit amount

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