Axis Bank Education Loan
Overview of Axis Bank Education Loan:
Axis Bank was founded in 1994 as UTI Bank.
Axis Bank is India's third largest private sector bank and gives a wide range of financial services which include private loans, company loans and asset management. Axis Bank's education loan is offered to pupils who have secured admissions to professional courses at graduate or post-graduate levels. A flexible loan strategy with cheap interest rates, Axis Bank Education Loans will provide the essential monetary support to deserving students. Features and Advantages of Axis Bank Education Loan:
Axis Bank Education Loan is provided to students that are admitted to career-oriented classes like medicine, engineering and management. The various advantages and features of the loan scheme are described below.
Expenses considered for Axis Bank Education Loan
The education loan will pay for the tuition fees, hostel charges, cost of research materials and other education related expenditures.
Amount of Education Loan
For research from India, the maximum quantum of finance provided is Rs.10 lakhs. The maximum loan amount for studies overseas is Rs.20 lakhs. The minimum quantity of education loan is fixed in Rs. 50,000. Interest Rates The interest rates are based on the loan amount and tenure. Also, if the education loan has been availed by a female, the interest rates are lower.
Up to Rs.4 lakhs
Base Rate + 7%
Loans from Rs.4 lakh up to Rs.7.5 lakhs
Base Rate + 8%
Loans greater than Rs.7.5 lakhs
Base Rate + 6%
Education Loan for Girl Student
Up to Rs.4 lakhs
Base Rate + 6.50%
Loans from Rs.4 lakhs to Rs.7.5 lakhs
Base Rate + 7.50%
Loans greater than 7.5 lakhs
Base Rate + 5.50%
Note: The base rate is now fixed at 9.95%.
Processing Charges and Additional Charges
There are no loan processing fees and prepayment charges for Axis Bank Education Loans. For the overdue payment of EMI, Rs.500 plus taxes per cheque bounce and also a penal interest of 24% per annum on the late amount is billed.
Third party guarantee and/or collateral security might be asked as collateral in some specific scenarios. As further security, assignment of a LIC coverage in the bank's favour for the sum assured being at least 100% of their education loan amount might be required. Additionally, the future income of the student has to be assigned in favour of Axis Bank for fulfilling EMI obligations.
There is no allowance for education loans payable around Rs.4 lakhs. For loans above Rs.4 lakhs, the margin is 5% for studies within India and 15 percent for research overseas.
Eligibility and Documentation for Axis Bank Education Loan:
The eligibility conditions for Axis Bank Education Loans are as follows:
The offender must be a resident of India.
The applicant must have been selected for an undergraduate or graduate, professional, job-oriented class like medicine, engineering in a recognized university, institute or college.
These documents will be required to be furnished to complete the loan application procedure.
Proof of Identity: Passport, Voter's ID, driving license or PAN card.
Proof of Income: Latest salary slip showing all deductions, Type 16 and recent salary certificate.
Proof of Residence: Bank account statement, power bill, phone bill or house lease agreement.
Measure 6 months' bank statement or passbook at which wages or income is credited
Guarantor kind might be asked for.
Education Documents: Copy of entry correspondence along with the fees schedule, mark sheets, certificates of S.S.C and H.S.C and diploma courses.
Other types of applicants must submit all the aforementioned documents. Instead of the latest salary slip, they can submit the Income Tax Returns statements for its previous two decades and computation of income by a certified CA for the previous two decades.
The ministry of HRD, Government of India, has produced a unique interest subsidy scheme to provide full interest subsidy during the course period plus one year or six months after obtaining a job, whichever is sooner. Specially designed for the students from economically weaker sections of this society in which annual parental income is not greater than Rs.4.5 lakhs, this scheme is available for borrowers pursuing some accepted professional course from a recognized Indian institution.
Some of the things to keep in mind whilst availing this subsidy are as follows.
This interest subsidy scheme can be availed only once by eligible students for pursuing an undergraduate, postgraduate or an incorporated course from an Indian establishment.
The interest subsidy won't be considered for students who discontinue the class or who are expelled from the institution due to academic or disciplinary reasons. In case of discontinuation because of medical reasons, mandatory documentation has to be filed to avail this strategy.
Interest rates on the loan shall be in line with the interest rates applicable under the Education Loan Scheme.
Constantly make an enquiry with the lender about the listing of accredited institutions and technical classes that are eligible for the Interest subsidy scheme.
Axis Bank Education Loan FAQs:
1. What files do I have to submit to avail the interest subsidy scheme on education loan?
The following documents need to be submitted in the time of loan sanctioning to avail the interest subsidy scheme.
Income certificates as issued by appropriate authorities
Bonifide student certification
The interest subsidy arrangement, letter of job cum statement signed by debtors.
2. I'm planning to avail a loan of Rs.20 lakhs for doing my MS. Will I be able to avail the interest rate subsidy?
No. The rate of interest subsidy is offered only to loan amounts up to Rs.10 lakh and just to students pursuing additional education in an Indian institution.
3. How long can it take to your lender to process my application?
After all necessary documents are filed, the bank will convey its decision in 15 working days from the date of receipt.
4. What's the use of the parents if applying to get an education loan?
The parents or guardian of this pupil candidate will be treated as a co-applicant along with a primary debtor.
5. How can the education loan be disbursed?
The student loan will be disbursed in full or appropriate instalments based upon the need for funds or fees. It'll be directly given to the educational institution or the vendor.