Axis Bank Education Loan
Axis Bank, one of the private sector lenders in India, allows citizens to avail themselves of education loan at affordable rates and at minimum paperwork. The bank also ensures faster disbursal of funds and does not impose any prepayment charges. The interest rate ranges from 3.50% p.a. to 13.00% p.a.
Borrower must secure admission to become eligible for the loan. Here are more details about the scheme, interest rates, eligibility, documents required, and other details related to Axis Bank education loan.
Axis Bank Education Loan Interest Rates
The following is the list of applicable interest rates for specific loan amount for Axis Bank education loan (average rate of interest):
Educational Loans | Up to Rs.4.00 lakhs | Greater than Rs.4.00 lakhs |
For studies in India | 10.71% | 12.29% |
For Studies Abroad | 10.85% | 10.93% |
Features and Benefits of Axis Bank Education Loan
The main features and benefits of the education loan offered by Axis Bank are mentioned below:
- High value loans can be availed
- Attractive interest rates
- Depending on your profile, a sanction letter may be provided before admission
- In the case of loans up to Rs.4 lakh, no margin needs to be provided
- Education loans can be used for various courses
- The disbursal time is fast
- The co-applicant can be a guardian
- You may need to provide security
- The education loan may be provided in installments or in full
Axis Bank Education Loan EMI Calculator
You can use Axis Bank's or BankBazaar's education loan EMI calculator to determine your monthly payments. The calculators require basic information such as the loan amount, term, interest rate, and processing fee. The answers are more precise and take less time to compute than manual computations.
How to Apply for an Axis Bank Education Loan
Online
The procedure to apply for the education loan online is mentioned below:
Step 1: Visit the official website of Axis bank
Step 2: Enter details such as your name, mobile number, email ID, state, city, whether you are an existing customer, and captcha
Step 3: Agree to the terms and conditions and click on 'Submit'
Step 4: An Axis Bank representative will contact you to process the request
Offline
You can pick up an application form at your nearest Axis Bank location. The bank will process the application once the application form and supporting documentation have been submitted.
Eligibility Criteria for Axis Bank Education Loan
The following are the eligibility criteria that borrower must fulfil to avail themselves of Axis Bank education loan:
- The borrower must be an Indian citizen
- Pursued career-oriented courses for graduation and post-graduate level, such as Management, Engineering, Medicine, etc
- Must secure 50% in HSC and graduation
- Regular income document for co-applicant, such as sibling, guarantor, or parents
- Completion of HSC followed by admission in Indian or Abroad through merit or entrance test
Axis Bank Education Loan Documents Required
Education Loan for Salaried Professionals
- KYC documents
- Mark sheets
- Admission letter and the fees schedule
- Guarantor form if required
- Bank statement for the last six months
Other Individuals
- KYC documents
- Mark sheets
- Admission letter and the fees schedule
- Guarantor form if required
- Bank statement for the last six months
First Disbursement Process for Axis Education Loan
- In the case of an institute abroad, the signed A2 form must be submitted
- Collateral documents if required
- Receipts of the margin money that has been paid to the college
- Disbursement request form that has been signed by the applicant and co-applicant
- Sanction letter
- The loan agreement that has been signed by the applicant and the co-applicant
- Demand letter that has been provided by the university or college
Disbursement Schedule of Axis Bank Education Loan
- In the case of an institute abroad, the signed A2 form must be submitted
- Exam reports
- Receipts of the margin money that has been paid to the college
- Disbursement request form that has been signed by the applicant and co-applicant
- Demand letter that has been provided by the university or college
Education loan offered by other banks in India
- Bank of Baroda Education Loan
- Bank of India Education Loan
- Bank of Maharashtra Education Loan
- Canara Bank Education Loan
- Central Bank of India Education Loan
- City Union Bank Education Loan
- Dhanalakshmi Bank Education Loan
- Federal Bank Education Loan
- HDFC Bank Education Loan
- IDBI Bank Education Loan
- Indian Bank Education Loan
- Indian Overseas Bank Education Loan
- Jammu and Kashmir Bank Education Loan
- Karnataka Bank Education Loan
- South Indian Bank Education Loan
- Saraswat Bank Education Loan
- SBI Education Loan
- TMB Education Loan
Sub-Variants of Axis Bank Education Loan
The following are the sub-variants of Axis Bank education loan:
PRIME ABROAD
- Applicable for full-time Premier Courses Abroad offering multi-currency forex card
- Unsecured loan up to an amount of Rs.75 lakh
- Tenure of loan is up to 15 years
- Offers instant service at your doorstep
PRIME DOMESTIC
- Applicable for selecting leading full-time course in India offering loan amount up to Rs.75 lakh
- Tenure of loan is up to 15 years
- Offers instant service at your doorstep
Income-Based Funding
- Based on income of the co-applicant, the unsecured loan amount is up to Rs.50 lakh
- All full-time courses abroad and domestic
- Tenure of the loan is up to 10 years
GRE-Based Funding
- This is an unsecured loan that is applicable for universities abroad on the basis of GRE score
- Loan amount offered up to Rs.50 lakh
- Tenure of the loan is up to 10 years
Working professionals
- Offers loan repayment tenure of up to 10 years
- No co-applicant required
- Unsecured loan that offers loan amount of up to Rs.40 lakh to working professional
Higher Studies
- Applicable for pursuing higher study in the country or abroad
- Does not impose pre-closure charges
- Up to Rs.75 lakh no collateral security required
Balance transfer
- No pre-closure charges involved
- Enables borrower to reduce the monthly EMI by switching high-cost education loan
Payment Options for Education Loan EMIs
The following are the payment method for Axis Bank education loan EMI:
- Post-Dated Cheques (PDCs): Borrowers can submit post-dated cheques from non-Axis Bank account in a timely manner at nearest loan centers and the cheques will be collected non-ECS locations only
- Standing Instruction (SI): Standing instruction is one of the suitable payment modes for repayment of loan, which is for the existing Axis Bank accountholder. Through this method the EMI amount gets auto debited from the Axis Bank account
- Electronic Clearing Service (ECS): The EMI amount gets auto debited at the end of the month and is for non-Axis Bank accountholders
Subsidy Schemes on Axis Bank Education Loan
Under the Central Government Interest Subsidy Scheme, Axis Bank provides education loans to students from economically disadvantaged backgrounds. The government would pay a full interest subsidy under the scheme during the moratorium period.
The annual income of the parents must be at least Rs.4.5 lakh. The program is open to students who want to pursue professional or technical degrees at authorized colleges.
Some of the main features of the scheme are mentioned below:
- The interest will be paid by the Government of India during the moratorium period
- The maximum loan amount that will be provided is Rs.7.5 lakh
- The subsidy scheme will be provided only once
- The interest subsidy will not be available in case the student discontinues the course
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FAQs on Axis Bank Education Loan
- What is the Axis Bank charge for late payment of an EMI for the education loan?
The charges for late payment of the Equated Monthly Instalment of Axis Bank education loan are Rs.500 plus taxes for each bounced cheque along with a penal interest that amounts to 2% per month towards the overdue EMIs or 24% per annum.
- What are the different variants of the Axis Bank education loan?
The different variants of the Axis Bank education loan are Prime Domestic, Prime Abroad, GRE-based Funding, Income-based Funding, Loan for Higher Study, Loan for Working Professionals, and Balance Transfer.
- Does Axis Bank charge processing fees for education loans?
No, Axis Bank does not charge any processing fees on education loans.
- How can I contact Axis Bank for queries related to my education loan?
You can reach Axis Bank through their customer care number, visit the nearest branch, or contact them via the official website’s education loan support section.
- Who can be taken as a co-applicant in an Axis Bank education loan?
The co-applicant for an Axis Bank education loan can be the parents, legal guardian, or the spouse, who will be the primary debtor if necessary.
- How does the change in the repo rate affect my Axis Bank education loan interest rate?
The impact of the repo rate will first be reflected in your loan tenure. If the maximum loan repayment tenure has already been completed, then only will it be reflect in your Equated Monthly Instalments. This can be either a decrease or an increase, depending on the repo rate changes.
- Can the student avail tax exemption under Section 80E of the Income Tax Act for an educational loan taken from Axis Bank?
Yes, the student is eligible for a tax exemption under Section 80E of the Income Tax Act for an education loan obtained from Axis Bank. However, the tax exemption is available to the student's parents, legal guardian, or spouse as well.
- I am planning to avail myself of a loan of Rs.20 lakhs for doing my MS. Will I be able to avail myself of the interest rate subsidy?
No. The interest rate subsidy is offered only to loan amounts up to Rs.10 lakh and only to students pursuing further education in an Indian institution.
- What documents do I have to submit to avail myself of the interest subsidy scheme on education loans?
Income certificates as issued by appropriate authorities, Bonafide student certificate, The interest subsidy agreement, letter of undertaking cum declaration signed by borrowers.
- How long will it take for the bank to process my application?
After all necessary documents are submitted, the bank will convey its decision within 15 working days from the date of receipt.
- What is the role of the parents when applying for an education loan?
The parents or guardian of the student applicant will be treated as a co-applicant and a primary debtor.
- How will the education loan be disbursed?
The student loan will be disbursed in full or suitable instalments depending on the requirement of funds or fees. It will be directly disbursed to the educational institution or the vendor.
- Is it possible to change my type of interest rate from the repo rate the MCLR?
No, there is no option to change from the repo rate to the MCLR as the interest rates for education loans offered by Axis Bank are linked to the repo rate.
- Is the repo rate changed on a frequent basis and if so, how often will it be reset?
Yes, the repo rate is changed on a regular basis. It is reset every three months. This is announced on a pre-fixed date by the bank and will be available on the official website of the bank. The interest rate paid on the education loan will be calculated based on the repo rate of the prevailing month.
- Is there a way I can reduce the interest paid?
You can avail yourself of special subsidies offered by the Central Government to reduce loan interest or pay the money during moratorium period. Axis Bank also offers special interest on avail premier courses from specific institutions.
- Am I eligible to apply for an Education Loan for pursuing a course abroad?
Yes, you are eligible to apply for an education loan for pursuing a course abroad in which the bank offers up to Rs.75 lakh including the study tours and travel expenses.
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