Axis Bank Education Loan for abroad - Interest Rate, Eligibility, Document

Axis Bank Education Loan – Recent years have seen more Indian students aspiring to study abroad, but this is an expensive affair because of the high tuition fees, accommodation, food and travel costs. This makes many students think twice before studying abroad. With a limited number of scholarships on offer, the alternative option is to apply for a study abroad education loan. Students can apply for an Axis Bank education loan for abroad to fulfil their dreams of studying abroad. Axis Bank offers in-house financing to Indian students aspiring to study abroad. Read this article for more information on the Axis Bank education loan.

This Story also Contains

1. Features Axis Bank Education Loan
2. Axis Bank Education Loan Interest Rate
3. Axis Bank Education Loan Amount
4. Eligibility Criteria of Axis Bank Education Loan
5. Application process
6. Security Required for Axis Bank Education Loan Abroad
7. Sanction Letter of Axis Bank Education Loan
8. Disbursement of Axis Bank Education Loan
9. Repayment of Axis Bank Education Loan
10. Axis Bank Education Loan for Abroad without Collateral

Features Axis Bank Education Loan

Axis Bank provides both secured and unsecured loans to study abroad. The maximum loan amount that can be sanctioned for unsecured loans can go up to 50 lakhs while in the case of a secured education loan, the maximum amount will be 85% of the collateral that is being offered.

1. Prime A: This list contains mostly Master's programs from top universities.

2. Prime B: Apart from master’s programs, this category includes a few bachelor's degrees as well.

3. Non-prime: This list has courses and institutes which are not part of Prime A & B lists.

Here is a list of the essential features of the Axis Bank education loan:

Advantages of the Axis Bank Education Loan

• Multiple loan options are one of the biggest advantages of Axis bank education loan for abroad studies.

• Comparable Axis bank student loan interest rates.

• Students can choose a loan option which suits their profile.

• The limit of Axis bank education loan for abroad without collateral is up to INR 50 lakhs.

• Axis Bank education loans offer a 100% tax benefit to students on the interest paid under Section 80(E) of the IT Act.

• Government schemes such as Central Government Interest Subsidy Scheme (CSIS) for Economically Weaker sections (income up to Rs. 4.5 Lakhs) are also available as part of the Axis Bank education loan for abroad.

Axis Bank Education Loan Interest Rate

Interest rate of an education loan from Axis Bank depends upon the category of the applicant’s college and course. Axis bank education loan interest rate for abroad studies varies from 13.70%-15.20%. A simple rate of interest will apply only to the amount disbursed to the student. Co-applicant must pay the Axis bank student loan interest rate on a monthly basis after the first disbursement. A simple interest rate will apply for the duration of the course and an additional 6 months, which is the moratorium period, after which the candidate must make the first payment. This is called EMI which will include the interest and part of the principal amount.

Axis Bank Education Loan Amount

Students can check the Axis Bank abroad education loan calculator from the official website of the bank. Education loans from Axis Bank can be given up to 85% of the total cost. This includes tuition fees, living hostel/accommodation costs, travelling costs and other expenditures (stationary, laptop) related to the student’s education.

It is possible for the candidate to get an education loan from Axis Bank after the start of the course. In that case, any payment made to a college in the last 6 months can also be refunded/reimbursed by the bank after additional proof is made available in the form of a bank statement. The margin money will be paid by the bank since the student has already made a payment.

Eligibility Criteria of Axis Bank Education Loan

The education loan from Axis Bank will be provided to those students who have obtained admission to career-oriented courses like medicine, engineering, management etc., either at the graduate or postgraduate level. Here are more details of the eligibility criteria:

• Students must be a citizen of India.

• Secured at least 50% marks during Higher Secondary School and Graduation, if applicable.

• Secured admission in a graduate or postgraduate course abroad through an entrance test or merit-based selection process.

• Students must have a co-signer or co-borrower who is credit-worthy for better chances of getting a loan.

Documents Required for Axis Bank Education Loan

Following documents are required for getting Axis Bank education loan abroad approval:

Student applicant:

• Know Your Customer documents of applicant
  1. Pan card (if there is no Pan card in case of minors, form 60 has to be filled)
  2. Aadhar card
  3. Passport

• Copy of the admission letter from the Institute

• Detailed fee structure for the entire program

• If applicable, score card of the entrance exam given to get accepted in the university such as GRE, GMAT, IELTS or TOEFL.

• Mark sheets/pass certificates of Senior Secondary and High School Examination along with Degree courses

• In case the co-applicant is salaried
  1. 3 months salary slip
  2. 6 months' bank statement in the salary account (must match with the salary slip)
  3. Form 16 for 2 years including Tax Deducted at Source
  4. Proof of identity (any one of the following)
  a) Passport
  b) Voter ID card
  c) Driving license
  d) PAN card
  e) Government department ID card
  4. Latest salary slip showing all deductions or Form 16 along with recent salary certificate
  5. Proof of residence (any one of the following):
  a) Bank account statement
  b) Latest electricity bill or mobile/telephone bill
  c) Existing house lease agreement
  d) Bank Statement/Pass Book of last 6 months

• In case the applicant is self-employed
  1. Proof of Identity (similar to salaried individual)
  2. Proof of Residence (similar to salaried individuals)
  3. IT returns of the last 2 years certified by a Chartered Accountant
  4. Computation of income of last 2 years certified by a Chartered Accountant

Students are required to furnish additional documents for first disbursement of Axis Bank education loan:

• Demand Letter from college or university.

• Loan agreement signed by applicant and co-applicants.

• Sanction Letter signed by applicant and co-applicants.

• Visa

• Disbursement request form duly signed by applicant and co-applicants.

• Receipts of Margin money paid to the university along with bank statement reflecting the transaction.

• Documents for collateral security (if applicable)

• Form A2 signed by applicant or co-applicants in case of foreign institutes where payment is to be made in foreign currency

• In case the offer letter is conditional, absolute offer letter is required

• In case of USA, form I-20 is also required from the candidates

For subsequent disbursement of Axis bank education loan, following documents are to be submitted:

• Demand Letter from college or university guarantees Axis bank education loan abroad.

• Disbursement request form signed by applicant and co-applicants.

• Receipts of Margin money paid to the college/university along with bank statement reflecting the transaction.

• Exam Progress Report, Mark sheet, Bonafide Certificate (Any one of these).

• Form A2 signed by applicant or co-applicants in case of abroad institutes where payment is to be made in foreign currency.

Application process

The application process for the Axis Bank education loan involves the following steps:

• Students must visit the website of the bank to make an online application for the loan.

• They must then click on the loan scheme they are applying for and download the application form.

• The next step is to fill out the form with the required information.

• Applicants must then upload the required documents.

• They should then submit the application and take a printout of the form.

• The bank will then reach out to the applicant for further processing of the loan.

There are no processing charges for Axis Bank education loan applications. However, a demand draft for INR 10,000+ taxes has to be submitted at the time of applying for an education loan. This money will be returned at the activation of the loan i.e. first disbursement. If the student does not activate the education loan from Axis Bank, this amount will be forfeited.

Security Required for Axis Bank Education Loan Abroad

Collateral or security for Axis Bank education loan is dependent upon the applicant’s college and course. Third-party guarantee and/or collateral security may be asked for in appropriate cases. Collaterals include:

• Property

• Fixed Deposit – Loan will be provided on 90% of fixed deposit amount

• Insurance – LIC policy in favour of the Bank with the sum assured being at least 100% of the education loan amount

• Mutual Fund – Loan will be provided on 50% of fixed deposit amount

Axis bank education loan for abroad without collateral is possible. However, students can contact their nearest bank branch for further information.

Sanction Letter of Axis Bank Education Loan

After getting their education loan from Axis Bank approved, candidates will be issued a loan sanction letter and an Axis Bank education loan interest certificate from the bank. Many universities and all visa applications require proof of funding from the student; the sanction letter can be used as proof. The loan amount in the sanction letter is approximate based on fee structure and tentative costs and is liable to change. Students can also take less amount than the one stated in the sanction letter since the rate of interest and equated monthly instalments (EMI) will be calculated on the actual amounts disbursed to the student.

However, the sanction letter is just an approval and the loan will be activated after the first payment made by the bank. Students must note that the sanction letter is valid only for a certain period in which the loan must be activated. Otherwise, candidates will have to apply for the Axis Bank education loan again.

Disbursement of Axis Bank Education Loan

Disbursement of Axis Bank education loan will happen in full or suitable instalments depending on the requirement of funds and/or fee schedule of the university as assessed by the bank. The loan will be disbursed directly to the educational institution or vendor of books or equipment or instruments. The first disbursement will activate the Axis Bank education loan, after which the rate of interest must be paid monthly. The rate of exchange at the time of each disbursement will be applied. Students must apply for each disbursement by furnishing the required documents and paying the margin money. Axis Bank education loan disbursal will take 15 working days from the date of submitting the complete application along with documents.

Repayment of Axis Bank Education Loan

Students will have to repay the loan after the moratorium period whose duration is the course tenure and an additional six months. Once the moratorium period ends students will have to pay the principal amount and the interest on the loan in monthly installments. The tenure of the Axis Bank education loan can be between 10 to 15 years based on the loan type. However, students can repay the loan earlier as there is no prepayment penalty.

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