Axis Bank Education Loan
Team Careers, 09 Jul 2018

Axis Bank Education Loan Recent years have seen a positive trend of Indian students aspiring to study abroad, which is an expensive task because of the tuition fee, accommodation, food and traveling costs. With a limited number of scholarships on offer, it is important for Indian students to carefully research and apply for an education loan. This has also led to a proliferation of student loan schemes offered by almost all of the major banks, public and private, in India. Along with fulfilling the financial requirements necessary to study abroad, an education loan also provides 100% tax benefits under the Rule 80E of the Income Tax act. However, this benefit can be claimed only on the interest part of the education loan.

For students aspiring to study abroad, axis bank education loan is an option for funding. Axis bank is one of the few private banks that offer in-house financing to Indian students aspiring to study abroad or in India.

All the colleges and courses have been categorised into 3 categories for the purpose of providing education loan from axis bank:

  • Prime A – mostly includes Masters programmes

  • Prime B – also includes some Bachelors programmes

  • Non prime – Colleges and courses not included in the first two categories come under non prime

This categorization has been done on the basis of post course work opportunities and merit of the course and college of the student. Axis bank education loan interest rate and collateral for each category is different. However, this list is not public and candidates must contact the nearest Axis Bank branch to inquire the category of their specific college and course.

 

Interest Rate of Axis Bank Education Loan

Categories

 Rate of Interest*

Collateral

Prime A

9.50-11.50%

no collateral up to 40 lakhs

Prime B

10.5-12.50%

no collateral up to 15 lakhs

Non - prime

13-16%

65% of the loan amount

* this is the rate of interest, not the effective rate of interest and may vary from case to case

Axis Bank Education Loan Eligibility Criteria

The education 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 post-graduate level. Below is the criteria students need to fulfill to be eligible for Axis bank education loan:

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

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

Axis Bank Education loan: Documents Required

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

  • 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

    f)       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

  • 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 programme

  • If applicable, score card of the entrance exam given to get accepted in the university (GRE, GMAT, TOEFL, IELTS)

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

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

  • 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, Bona fide Certificate (Any one)

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

Axis Bank Education Loan: Sanction Letter

After getting their education loan form Axis bank approved, candidates will be issued a loan sanction letter 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 an approximate based on fee structure and tentative costs, and is liable to change. Students can also take less amount then the one stated in the sanction letter since rate of interest and equated monthly installments (EMI) will be calculated on the actual amounts disbursed to the student. However, sanction letter is just an approval and loan will be activated after the first payment made by the bank. Students must note that sanction letter is valid only for a certain period in which loan must be activated. Otherwise, candidates will have to apply for the axis bank education loan again.

 

Axis Bank Education Loan Interest Rate

Interest rate of education loan from Axis Bank depends upon the category of the applicant’s college and course.

 

Axis Bank Effective Interest Rates

Amount

Rate of Interest

Up to 4 lakhs

15.20%

Between 4 lakhs and 7.5 lakhs

14.70%

Greater than 7.5 lakhs

13.70%

Simple rate of interest will apply only on the amount disbursed to the student. Co-applicant must pay the interest rate on a monthly basis after the first disbursement. Simple interest rate will apply for the duration of the course and an additional 6 months, called moratorium period, after which 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

Education loan from axis bank can be given up to 85% of the total cost. This includes tuition fees, living hostel/accommodation costs, traveling cost and other expenditures (stationary, laptop) related to student’s education. For Indian students aspiring to study in India, loan can be provided on 95% of the amount. The remaining 15% or 5%, called margin money, has to be furnished by the student for each installment. This is done by transferring the amount to the bank account which will be directly paid by the bank to the educational institution. For other expenditures, receipts must be provided to be included in the loan amount of Axis bank education loan.

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

 

Axis Bank Education Loan Disbursement

Disbursement of Axis bank education loan will happen in full or suitable installments depending on the requirement of funds and/or fee schedule of the university as assessed by the bank. Loan will be disbursed directly to the educational institution or vendor of books or equipment or instrument. The first disbursement will activate the axis bank education loan, after which 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.

 

Axis Bank Education Loan: Collateral

Collateral or security for axis bank education loan is depended upon the applicant’s college and course. Below are the collaterals for each category needed to take an education loan from axis bank:

  • Prime A – no collateral up to 40 lakhs

  • Prime B – no collateral up to 15 lakhs

  • Non prime – collateral is mandatory

Collateral for axis bank education loan must be 65% of the amount in case of non-prime and 65% of the amount over and above 40 lakhs and 15 lakhs for prime A and B respectively. Third party guarantee and/or collateral security may be asked for in appropriate cases:

  • 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

For large amounts of axis bank education loan, particularly Bachelors, applicant must show proof of payment for the remaining amount. Application for Axis bank education loan can be rejected if the income of co-applicant is not deemed satisfactory by the Credit manager. In such cases, loan for a lesser amount should be applied by the student. Another factor for Axis bank education loan rejection could be the verification of property which has been offered as collateral.

 

Axis Bank Education Loan Procedure

Loan approval for education loan from Axis bank takes 7-10 days but might get extended in case documents furnished are not correct or additional documents are required. Indian students aspiring to study abroad are recommended to apply at least 15 days prior to the date of payment of fee or visa application. Credit team is the final authority and decision maker for Axis Bank education loan approval. Verification of all the documents is conducted along with background credit checks and, technical and legal checks in case of property being used as a collateral. A candidate can be rejected for Axis bank education loan based on his/her academic background as that would affect the job opportunities offered after completion of the course.

There are no processing charges for Axis bank education loan application. However, a demand draft for 10,000+taxes has to be submitted at the time of applying for 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.

Indian students living abroad can apply for Axis bank education loan by giving power of attorney to the co-applicant. The process becomes much easier if the student is present in India during document verification. Otherwise, the process is longer as the student is required to visit the Indian embassy and get all the documents attested before sending them to India. The co-applicant, upon receiving the documents, will have to get the documents verified by the foreign country's embassy and notarized by the relevant local authority for Axis Bank education loan approval.

 

Axis Bank Education Loan: Co-applicant

For the loan application process, student is the applicant, and is required to have a co-applicant and another co-applicant to apply for the Axis bank education loan. The role of co-applicant is that of a primary debtor and only one, salaried or self employed, co-applicant is mandatory for loan application. Co-applicant for education loan can only be a real relative or bona fide guardian and in case of a sister, unmarried. Income statement and KYC documents of the co-applicant will be required since Axis bank education loan interest rate for the duration of the course will be paid by him/her.

In some cases, student can be the co-applicant if he/she is earning and has the necessary income documents. This is suitable for candidates doing their Masters after work experience. 

 

Axis Bank Education Loan Customer Care

For further assistance, aspirants interested in Axis bank education loan can locate the nearest Axis bank branch or visit the website for more information. They can also contact the corporate office in Mumbai at +91-22-24252525 or 43252525.

 

Also read,

Syndicate bank Education Loan

Education Loan from SBI

Top Education Loan Providers in India to study abroad

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