*Please note quotes shown will be from Our Partners

Education Loan

Axis Bank is a private bank which offers a wide range of financial services to cater different requirements of its customers. It has 3,062 branches across India with 12,922 ATMs. It has 9 branches outside India.


Axis Bank came into existence in 1994. Since that time, it has shown tremendous growth and today it is the third largest private sector bank of our country. Dr Sanjiv Mishra is the Chairman and Smt. Shikha Sharma is the CEO and MD of Axis bank. Axis Bank has its headquarters in Mumbai. It has 9 subsidiaries as well.


Axis Bank provides education loans to well-deserved students who wants to go for higher education within India and abroad. This loan can help students in achieving their goals in life. Students who have taken admission in Graduation or Post Graduation courses in India and abroad can avail this loan.

Axis Bank Education Loan Eligibility

  • The applicant should be a citizen of India.
  • The applicant must have secured admission in Graduation or Post Graduation course from a recognized Institution/University.


Quantum of Loan:-

Rs. 10 lakhs is the highest loan amount that can be availed by students who took admission in Graduation/Post Graduation courses in India and Rs. 20 lakhs is the highest loan amount that could be approved for students studying abroad. However, loan amount can go higher depending on other conditions.


Margin:-

For loan amounting Rs. 4 lakhs, margin is NIL. In case the loan amount goes more than Rs. 4 lakhs, for students studying in India, margin will be 5%. Similarly, if loan amount goes above Rs. 4 lakhs for students studying abroad, margin will be 15%.


Timeline:-

Once all the required documents for loan approval are submitted to the bank, it will take 15 days in order to process the loan after proper verification by the bank.


Parent/Guardian’s Role:-

The parent/guardian of the student who will apply for the loan will be the co applicant of the loan.


Security:-

Collateral Security will be required in cases wherever necessary.

Assignment of LIC Policy is required as additional security in favour of the bank for the sum assured being at least 100% of the loan amount.  Moreover, in order to meet the EMI obligations, the student’s future income requires to be assigned as well.


Disbursement:-

Disbursement of educations loan will be done in installments or in full depending on the amount requirement. It will be done after assessment by the bank.

Axis Bank Education Loan Interest Rate

Axis Bank has designed education loan interest rates in such a way that can be easily afforded.
 

  • 16.05% is the interest rate for loan amounting up to Rs. 4 lakhs.
  • 17.05% is the interest rate for loan amounting more than Rs. 4 lakhs and up to Rs. 7.50 lakhs.
  • 15.05% is the interest rate for loan amounting more than Rs. 7.50 lakhs.


Interest Rate for Girl students:-
 

  • 16.00% is the interest rate for loan amounting up to Rs. 4 lakhs.
  • 17.00% is the interest rate for loan amounting more than Rs. 4 lakhs and up to Rs. 7.50 lakhs.
  • 15.00% is the interest rate for loan amounting more than Rs. 7.50 lakhs.

Axis Bank Education Loan Fees & Charges

  • Processing Charge:- Processing charge is NIL.
  • Prepayment Charge:- Prepayment charge is NIL.
  • No Dues Certificate:- No dues certificate is not required for availing the loan.
  • Solvency Certificate:- Solvency certificate is not required as well for availing the loan.
  • Late Payment Charges:- In case there is a cheque bounce, Rs. 500 plus taxes per cheque along with penal interest of    24% per annum would be charged.
  • There is no charge for switching interest rate from fixed to floating and vice versa.
  • Repayment Instruction or Instrument Return will attract charge of Rs. 500 plus tax per instance.

Axis Bank Education Loan EMI Calculator

The bank provides the facility of EMI Calculator to calculate the EMI. Let’s understand this with the help of an example:
 

  • Sanjay got admitted to Post Graduation in an university in Kolkata for which he seeks a loan of Rs. 6 lakhs. He visits paisabazaar website and enters the necessary details like loan amount, rate of interest charged and loan tenure to calculate the EMI.

Axis Bank Education Loan Documentation

  • Identity Proof: - Voter Card, Passport, PAN Card can be used as proof of identity.
  • Proof of Address: - Electricity Bill, Passport, Aadhar Card can be used as proof of address.
  • Date of Birth Proof: - SLC, Birth Certificate can be used as proof of birth.
  • Educational Documents: - Mark Sheets, Passing Certificate, Degree Certificate etc.  Can be used.
  • Admission proof: - Receipt of admission of the course for which loan is required.
  • 2 passport sized photographs.
  • Signature Verification.


Documentation for co-applicant:-
 

  • Identity Proof: - Voter Card, Passport, PAN Card, can be used as proof of identity.
  • Proof of Address: - Electricity Bill, Passport, Aadhar Card can be used as proof of address.
  • Date of Birth Proof: - SLC, Birth Certificate can be used as proof of birth.
  • Proof of Income: -

For salaried persons, salary slips, Form 16 and IT Returns statement can be used as proof of income.

For non salaried persons, Business Proof and IT Returns statement can be used as proof of income.
 

  • Bank statements of previous 6 months.
  • 2 passport sized photographs.
  • Collateral Documents.
  • Relationship Proof.
  • Signature Verification.


Documentation for Guarantor:-
 

  • Identity Proof: - Voter Card, Passport, PAN Card, can be used as proof of identity.
  • Proof of Address: - Electricity Bill, Passport, Aadhar Card can be used as proof of address.
  • Date of Birth Proof: SLC, Birth Certificate can be used as proof of birth.
  • Proof of Income: -

For salaried persons, salary slips, Form 16 and IT Returns statement can be used as proof of income.

For non salaried persons, Business Proof and IT Returns statement can be used as proof of income.
 

  • 2 passport sized photographs.
  • Collateral Documents.
  • Signature Verification.


Education related information that is required by the bank are:-
 

  • Examination Passed till date.
  • Institution and University from which examination has been passed.
  • Passing Year.
  • Percentage scored in the examination.
  • Grade/Class scored in the examination.
  • Prizes/Scholarships won (if any).
  • Contact person from the university.
  • Course for which loan is applied.
  • Merit test through which selection has been done.
  • Center/Authority from which course is approved.
  • Category of course.
  • Duration of course.
  • All the expenses related to course.
  • Expected future income.


Income Details of the co-applicant is required as well like:-


Salaried-
 

  • Gross monthly salary
  • Net monthly salary
  • Other sources of income
  • Information about investment like fixed deposits, shares etc. are required.
  • Salary slips, IT Returns.


Self Employed-
 

  • Gross monthly income
  • Net monthly income
  • Other sources of income
  • Information about investment like fixed deposits, shares etc. are required
  • Business Proof, IT Returns.

Special Scheme

Subsidized Interest Rate in Education Loans for Weaker Sections in Society:-

Government of India has come up with a policy to provide subsidized interest rate in education loans for students belonging to economically weaker sections of society.  This policy is applicable for students during their moratorium period.


Important Features of this scheme:
 

  • Government will bear the interest of students belonging to EWS those who are eligible in their moratorium period.
  • Students can get this facility only once i.e. either doing Under graduation or Post Graduation. The students who are doing combined Graduation and Post Graduation are also covered under this scheme.
  • If any student discontinues his/her study in the middle of the course or if they are expelled from the Institution because of any disciplinary action, they would not be entitled to get the benefit from this scheme.
  • Economic Index is the only decisive factor for getting this facility. No other factors will be considered.
  • Students studying in recognized Universities/Institutions are eligible for getting this facility.


The applicant requires to submit the following documents for availing this facility:-
 

  • Bonafide Student Certificate.
  • Certificate of Income from concerned authorities of State Government.
  • Interest Subsidy Agreement is required if a student becomes eligible to get this loan.
  • The borrower requires to sign on the Letter of Declaration cum Undertaking.

Most Important Terms & Conditions

As per RBI’s direction, Axis Bank has initiated a policy known as Fair Practice for Lenders approved by Board of Directors. The important aspects of this policy are:-
 

  • Applications for loan:

No matter how much the loan amount is, the bank will provide all information related to fees and charges or any refundable amount in the application form. It is applicable for all kind of loan. This certainly adds transparency and boosts customer’s confidence for the bank.
 

  • Processing:
     
  • If any customer applies for a loan, he would get the receipt with time frame as well.
  • Verification of the loan application will be done by the bank and if any further document is needed, he will be informed about it and he requires to produce the same.
  • The loan application will be processed without delay for any kind of loan and amount. If the loan application is rejected due to any reason, the customer will be communicated in written by the bank.
     
  • Loan Appraisal and Terms and Conditions:-
     
  • The credit application will go through complete assessment by the concerned person as per the credit policy of the bank. Irrespective of sufficient security and margin, it has to go through complete verification.
  • The applicant will be communicated about all the terms and conditions in written by the concerned authority. 
  • The applicant requires to sign on a letter in which it will be mentioned that he has agreed to all the terms and conditions after going through it and after having complete understanding.
  • Copy of loan agreement with all the related documents will be sent to the customer.  It will be clearly mentioned that the bank can only extend the credit facilities upon its own discretion.
  • All the following drawings would be on the sole discretion of the bank:
  • If the account becomes NPA, any further drawings could be done only with bank’s permission.
  • For any further drawing more the capability associated with the account.
  • If cheque honoring done for any other reason other than what is mentioned.
  • If terms and conditions are not followed by the applicant, no drawings will be allowed.
  • In case of requirement rising from business growth of the customer, assessment requires to be done by the bank.
     
  • Disbursement of loans including changes in terms and conditions:-
     
  • Loan will be disbursed on immediate basis once the applicant complies with the terms and conditions. It will not be referred to any other official or department.
  • In case of any modification in charge or interest, the same will be communicated to the customer before implementation.
  • The changes will come into effect once the applicant is notified by notice.
     
  • Post Disbursement Supervision:-
     
  • Post disbursement supervision which includes inspection on periodic basic or periodical report submission will be specified at the time of Issuing sanction letter. It will also be mentioned that the inspection cost will either be paid by the customer or the bank itself.
  • Customers will receive notice from the bank in advance if the bank makes up its mind for speeding up the payment, recalling advance etc.
  • Once the payment has been made by the customer, all the securities must be released by the bank. In case, because of some remaining dues that requires to be settled by the customer, the bank can keep the securities but that requires to be notified to the customers.
     
  • Others:-
     
  • The customers won’t be interfered by the bank unless and until it is related to something that is mentioned under the terms and conditions specified by the bank for example inspection, stock and book verification etc.
  • If a customer didn’t disclose any information which is in interest of the bank, then the bank can sought information about it and also can take action regarding that.
  • No discrimination would be made by the bank on any factors like gender, age, sex etc.
  • Bank will not involve in any wrong practices to recover loan from the customer.
  • For transfer request of loan account from the customer or any financial institution will be notified to the customers irrespective of the matter that there is an approval or disapproval from the bank.
Axis Bank Education Loan
(4/5 ) 7 Reviews
Education LoanEducation Loan
4/5

Good

I applied for Axis bank education loan and it got instantly approved. I am very happy with the loan scheme as it has the lowest interest rate possible without any hidden charges. I am waiting to receive my loan amount and pay my first installment fee..Read more...

Male Profile Pic
Posted on: Jan 12 , 2017
Education LoanEducation Loan
4/5

Very low interest rates

The bank has very good loan schemes that can be borrowed as per requirements. All the loan schemes are of very low interest rates. I took Axis education loan for my son and it got approved instantly without any additional charges. This is a very good..Read more...

Male Profile Pic
Posted on: Jan 12 , 2017
Education LoanEducation Loan
5/5

Highly professional

I am very impressed by the bank's system of processing loan applications. The bank has highly skilled professionals. My experience of applying for my education loan was really good. The bank personnel helped me a lot to quickly apply for my educ..Read more...

Male Profile Pic
Posted on: Jan 10 , 2017
Education LoanEducation Loan
4/5

Good education loan scheme

I borrowed money for my daughter’s education from Axis bank which got approved at a very low interest rate. The bank has very quick and easy process of application. The bank agents helped me really well to clear the documentation without any h..Read more...

Male Profile Pic
Posted on: Jan 10 , 2017
Get Free Credit Report