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Axis Bank is one of the premier banks of India. Education Loan is amongst the many financial services offered by them. Axis Bank offers education loan to students to help them pursue higher education both domestically and internationally. The bank understands that tuition cost is not the only financial burden that customers want to ease; hence their education loan covers every need of the student including travel cost, books and hostel fees.
Axis Bank Education Loan Interest Rates
The interest rate charged by Axis Bank depends on the amount of money sought by the borrower. The rates of interest charged by Axis Bank on its education loan are given below:
| Loan Amount | Rate of Interest |
| Up to 4 Lakhs | 15.2% |
| Between 4 and 7.5 Lakhs | 14.7% |
| Greater than 7.5 Lakhs | 13.7% |
Do note that Axis Bank offers benefits to its female applicants. They get 25 Basis Points (BPS)* on the effective rates
*One Basis Point is a unit equivalent to 1/100th of a percent or 0.01%.
Axis Bank’s Marginal Cost Based Lending Rate (MCLR) is 8.7% and MCLR Reset frequency for Education Loans is Half Yearly.
Axis Bank Education Loan Charges
Under Axis Bank’s Study Power scheme, the charges levied on student loan are as follows:
| Charges | Amount |
| Loan Processing Charges | Nil |
| Prepayment Charges | Nil |
| No Due Certificate | NA |
| Solvency Certificate | NA |
| Penal Interest on delayed or overdue EMI | 24% per annum / 2% per month |
| Charges for changing from fixed to floating rates of interest | NA |
| Charges for changing from floating to fixed rates of interest | NA |
| Penalty on Return of Instrument / Repayment instruction | ₹500 plus GST |
Features and Benefits of Axis Bank Education Loan
Axis Bank’s Education Loan comes with a host of benefits such as:
- Education Loan starts from ₹ 50,000. This ensures that no matter what your background is you can avail Axis Bank’s education loan.
- ₹75,00,000 is the maximum amount that Axis Bank currently lends to its applicants. So you can be sure that your financial burden will be eased.
- Axis Bank’s education loan covers not just the tuition fees and hostel charges but also the cost of books, among other expenses.
- Attractive interest rate. The MCLR (Marginal Cost Based Lending Rate) is at 8.7%.
- No margin for education loans up to ₹ 4,00,000.
- 5% margin on education loans that are above ₹ 4,00,000 if you pursue your studies domestically.
- 15% margin on education loans that are above ₹ 4,00,000 if you plan to go overseas for your education.
Aside from the above mentioned perks and benefits applicants for education loan get quick responses. Axis Bank’s team works resolutely and efficiently ensuring that you get your loan disbursement in a timely manner.
Eligibility Criteria for Axis Bank Education Loan
Students can directly apply for a student loan however the bank requires co-applicant on education loans, that is, the co-applicant will be treated as primary debtor. The eligibility criteria for applicant and co-applicant are:
Eligibility Criteria for Student
- The applicant must have Indian Citizenship.
- The applicant must have secured at least 50% marks in High School (12th Standard) and in graduation.
- Candidate has applied for career-oriented courses like medicine, engineering, management, etc. either at a graduate or post-graduate level at institutes in India and abroad.
- Candidate must have secured admission either through entrance test/merit in India or Abroad.
- Candidate must share a copy of admission letter of the Institute along with the fees schedule.
- Candidate must provide Secondary School Certificate and High School Certificate.
Eligibility Criteria for Co-applicant
- KYC documents establishing address, salary, and identity. The table detailing the various means accepted is shared below.
- Guarantor Form – Optional
| Identity Proof | Passport, PAN Card, Aadhaar Card, Voter’s ID Card, Driving Licence, Photo Credit Card, Central and State Govt. issued Photo ID Proof, Defence ID Card, etc. |
|
Residence Proof |
Aadhaar Card, Ration Card, Passport, Bank Account Statement, Voter’s ID Card, Letter from any recognized public authority, Telephone Bill, Electricity Bill, Water Bill etc (not more than 3 months old), etc. |
| Income Proof | Bank statement/ Passbook of last 6 months. |
Do note that the education loan eligibility will be determined by Axis Bank as per the Bank’s policy prevailing at the time of loan application and disbursement.
Additionally Axis Bank requires additional documents at the time of loan disbursement, the documents are:
| Documents Required For First Disbursement | Documents Required For Second Disbursement |
| Demand letter from college or university | Demand letter from college or university |
| Loan agreement signed by applicant, co-applicants | Disbursement request form signed by applicant, co-applicants |
| Sanction letter signed by applicant, co-applicants | Receipts of margin money paid to the college / university along with bank statement reflecting the transaction |
| Disbursement request form signed by applicant, co-applicants | Exam progress report, mark sheet, bona fide certificate (Any one) |
| Documents for collateral security (if applicable) | Form A2 signed by applicant or co-applicants in case of overseas institute |
| Receipts of margin money paid to the college / university along with bank statement reflecting the transaction |
– |
| Form A2 signed by applicant or co-applicants in case of overseas institute | – |
How to Apply for Axis Bank Education Loan
You can apply for Axis Bank Loan through any of the two ways listed below:
Online
You can apply for Axis Bank’s student loan online, to do this go to Axis Bank’s online form.
Fill out the form and submit it. A representative from Axis Bank will get in touch with you and guide you through the necessary process. Applying online gives you the convenience to submit the necessary documents at your own set time.
Offline
Students seeking Axis Bank’s education loan can also visit the nearest Axis Bank branch. The bank officials at the branch will guide you through the process. You can locate the nearest Axis Bank’s branch by visiting this link and selecting your state.
Calculate EMI of Education Loan through Paisabazaar.com
Applicants who are comparing the various student loans available in the market would like to know the amount of Equated Monthly Installments (EMI) they would be required to pay. They can calculate it easily on Paisabazaar’s simple and easy to use Education Loan EMI Calculator. Follow the steps laid out below to use the tool:
- Go to Paisabazaar’s student loan EMI calculator.
- In Loan Amount enter the amount you borrowed from the bank.
- In Rate of Interest enter the interest that the bank is charging you.
- In Loan Tenure enter the time period under which you have to pay off the loan.
On the right side of the screen, you will see the EMI that you are liable to pay with the given combination of loan principal, tenure, and rate of interest. The EMI can vary if you change the contributing factors of the education loan EMI calculator.
The EMI calculator makes it really easy for the customer to understand how much EMI he will be required to pay under different situations.
Axis Bank Education Loan Frequently Asked Questions
Student loan like any other loan can prove to be quite confusing to understand, especially for first time applicants. You might have many questions and here at Paisabazaar.com we aim to answer few of the many questions you may have.
1 – What is the minimum amount of money I can borrow from Axis Bank?
Axis bank provides student loans for as little as ₹ 50,000.
2 – Does Axis Bank charge processing fee for the education loan?
No, Axis Bank does not charge any processing fee on education loan.
3 – Can I avail tax benefits on student loan?
Yes you can through section 80 E of Income Tax Act of India, 1961. You can claim the interest paid on the education loan as a deduction.
4 – How much of my expenses will be covered by Axis Bank’s student loan?
Axis Bank’s student loan covers expenses like tuition fees and hostel charges. However for student loans over ₹ 4,00,000 Axis Bank sets a margin of 5% when pursuing higher education domestically, if you plan to go abroad then the margin is 15%.
5 – Can I avail government of India’s Education Loan Subsidy Scheme?
If your parental income amounts to less than ₹ 4,50,000 annually then you can avail this scheme. The interest payable by the student, belonging to the Economically Weaker Section who satisfies the eligibility criteria of the scheme, will be borne by the Government of India.
6 – Does Axis Bank asks for certain qualification to process Education Loan?
Yes, Axis Bank requires that the candidate scores at least 50% marks in High School and graduation.
7 – What is the Marginal Cost Based Lending Rate (MCBLR) of Axis Bank?
The Marginal Cost Based Lending Rate of Axis Bank’s education loan is 8.7%
8 – Does Axis Bank require document for every disbursement?
Yes the documents required for first disbursement are:
- Demand letter from college or 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 college / 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 overseas institute.
Documents required for every subsequent disbursement are:
- Demand letter from college or university.
- Disbursement request form signed by applicant, co-applicants.
- Receipts of margin money paid to the college / university along with bank statement reflecting the transaction.
- Exam progress report, marksheet, bonafide certificate (Any one).
- Form A2 signed by applicant or co-applicants in case of overseas institute.
9 – How much time does Axis Bank take to convey whether they accept or reject your application for education loan?
Axis Bank takes about 15 days to process your application. The Bank will let you know whether you are eligible for the loan or not.
10 – What are the charges for late payment of EMI?
The charges are ₹ 500 + taxes per cheque bounce and a penal interest @24% per annum i.e. @ 2% per month on the overdue installment/s.