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Education Loan

Education is a crucial tool which can empower the country’s youth and help the nation rise and flourish. And education loans are a key component in this rise. These loans are specifically designed to help the students pursuing higher studies to opt for the career of their choice without having to curtail their dreams due to lack of funds. Our country has realised the importance of education in empowering the nation’s future and therefore the government has mandated both public and private sector banks to provide a scheme for education loans to needy and deserving students.

Kotak Mahindra is one of the leading private sector banks in our country and has a vast network of branches and an ever-growing customer base. The bank provides Kotak Mahindra education loans which aim to finance exemplary students who choose to pursue higher studies in India or abroad. Kotak Mahindra provides education loans to students so that they can pursue higher studies from recognized educational institutions either in India or abroad without having to look for funding requirement. The loan offered by the bank helps students to continue with their studies by providing them with the necessary finance required for the same.
 

Features of the Kotak Mahindra Education Loan:

The following are the features of Kotak Mahindra student scheme offered to students:

  • The maximum amount of loan that can be availed for studying in India is Rs. 10 lakh. However, for students wishing to study abroad, the maximum available amount of loan is Rs. 20 lakh. The maximum amount of loan available to an individual will also depend on the bank’s discretion and will depend on the income of the individual and the capacity to repay the loan amount in full within the stipulated time.
  • The loan offered by the bank is quickly approved so that the individual does not have to wait for a long time to access the funds required to start the relevant course. After completing all the necessary formalities required for the loan processing stage like filling up the application form, submitting the required documents, etc., the loan is quickly disbursed.
  • The loan process is very easy and which requires very less documents easily available with every individual.
  • A joint applicant or a co-borrower or a guarantor is required along with the student to apply for a Kotak Mahindra education loan. This person undertakes to repay the loan amount in due time or guarantees the repayment of the loan amount within the specified tenure.
  • Loan for courses is also available which means now pursuing professional courses study in India from good educational institutions is no longer a dream for any student.
  • Tenure of loan is longer which means your monthly instalments will be less.
  • Bank has introduced a new scheme for vocational education and training under the name Kotak Mahindra Vocational Education and Training Loan which provides the amount of education loan to students who pursue vocational courses from educational institutions.

Kotak Mahindra Loan for Vocational Education and Training:

The loan for vocational education and vocational training loan aims to provide financial support to those eligible and deserving candidates who have the minimum educational qualification as required by educational institutions running vocational education and training programmes. These courses help the students to prepare for specific careers and trades and become experts in their fields when they finish their education. In a liberal sense, these types of loans will include finance for pursuing medicine, engineering, law, accountancy, etc. as well as more hands-on training in subjects such as handicrafts, pottery, fine arts, electricity repair, etc.

Vocational education and training courses: These courses are given at industrial training centres (ITCs) and industrial training institutes (ITIs), polytechnic institutes and various other technical institutions. Some of the educational institutions in India also offer evening courses which qualify under vocational courses. These are operated by government agencies or by private institutions.

  • Eligibility: In order to obtain a Kotak Mahindra loan for vocational education and training you need to meet the following eligibility criteria:
  • You should obtain admission in a course which is recognized by the State or Central Government and your chosen programme should pave the way for a certificate, diploma or degree. In addition, the courses must ensure an employment opportunity for you after you complete it.
  • An Indian citizen who has passed matriculation.
  • Tenure of the loan may vary from 2-3 months to 3 years.
  • Candidates must also produce educational documents as mentioned by the bank.
     
  • Loan Amount: The amount of loan sanctioned to you under the heading of loan for vocational education varies from course to course and bank to bank. However, the standard amount for vocational education loan is usually between Rs. 50,000 and Rs. 1,50,000.
  • Courses up to 3 months will get Rs. 20,000
  • Courses ranging from 3 to 6 months will receive Rs. 50,000
  • Courses from 6 months to a year are liable to get Rs. 75,000
  • Courses above 1 year duration will get Rs. 1,50,000
     
  • Security: When you opt for a vocational education and training loan from Kotak Mahindra Bank, you need to provide a guarantor or collateral security to the bank. Parents and guardians are mostly preferred by the bank as co-borrower.
     
  • Repayment of loan amount: The loan for vocational education and training has multiple repayment options available with them. However, the majority of banks prefer to provide this student loan scheme on the basis of repayment being made in monthly instalments as EMI. For courses of 1 year or above, the repayment needs to be made with a maximum of 5-7 years.
  • Age limit: There is no age restriction as such for these student loan schemes. In case the student is below 18 years, then he / she is considered as a minor by the bank and documentation of loan has to be executed by the parents / guardian. A letter of ratification is needed by the bank once the student who has applied for and got the loan attains majority

Student Loan Eligibility

The following criteria have to be met before anyone applies for the student loan:

  • A student of any age will be eligible for availing the student loan scheme. If the student is a minor, i.e., his age is less than 18 years at the time of applying for the loan when the joint applicant or the co-borrower or the guarantor who has completed the documentation formality  is required under the loan processing stage, a letter of ratification will have to be submitted by the student after he or she attains majority, i.e. reaches the age of 18 years.
  • The age of the joint applicant or the co-borrower or the guarantor should be a minimum of 21 years and above at the time of loan application. The maximum age of the said individuals at the time of maturity of the loan should not be over 70 years.
  • The student should be an Indian National.
  • The student should have secured admission in the university or institution in India or abroad through an entrance test or through the merit based selection process.

Eligible courses covered under the Kotak Mahindra Education Loans:

The following courses are covered under the Kotak Mahindra Student Loan Scheme:

In India:

  • P.G Courses like Masters and PhD from select institutions
  • Professional Courses like Medical, Agriculture, Law, Engineering, Veterinary, Computer Sciences, Dental and Management.
  • CA, ICWA, CS and CFA along with other professional courses.
  • Management Program including masters and diploma.
  • Regular Degree or Diploma courses.
  • Any other course which shall be declared from time-to-time

Studies Abroad

  • Graduation from reputed Universities
  • Post-Graduation like MCA, MBA, MS and other courses which shall be declared from time-to-time
  • Other courses like CIMA from London, CPA in USA, CFA, CISA and other approved courses as shall be declared from time-to-time.
  • Degree or Diploma courses.

Interest rates:

  • Interest on educational loans generally varies between 11.5% and 24%. The bank has recently lowered its minimum rate for girl students to 10.25% for loans up to Rs. 7.5 lakhs. The rates for loans above that amount has also been reduced to 15.5% from 15.75%
  • The interest rate for Kotak Mahindra student education loan for vocational courses may be different for one course to another. Most of the banks charge interest rate from 12% to 13.5%.

Documents required

The following documents are required to be submitted at the time of loan application for a Kotak Mahindra education loan:

By the Student

  • Completed Application Form
  • 2 photographs
  • Proof of Identity
  • Proof of Residence
  • Signature Verification from Bank
  • Proof of Relationship with the co-applicant or co-borrower and the guarantor
  • Confirmed Admission Letter
  • Letter from College stating the details of the course and the fee structure to be paid
  • Academic Pass-out Mark-sheet or Certificate

By the Co-applicant or the Co-borrower

  • Completed Application Form
  • 2 photographs
  • Proof of Identity
  • Proof of Residence
  • Signature Verification from Bank
  • Income Details which shall be the latest Pay-slip or Form 16 in case of salaried individuals or the last 2 years’ IT Returns for self-employed individuals
  • Proof of Ownership
  • Proof of Relationship with the student

By the Guarantor

  • Completed Application Form
  • 2 photographs
  • Proof of Identity
  • Proof of Residence
  • Signature Verification from Bank
  • Income Details which shall be the latest Pay-slip or Form 16 in case of salaried individuals or the last 2 years’ IT Returns for self-employed individuals
  • Proof of Ownership
  • Proof of Relationship with the student

However, there are certain things for you to remember before you apply for a Kotak Mahindra education loan:

  • Keep the family’s repayment abilities in mind: Remember the financial capabilities and liabilities of your family before you opt for a student loan scheme. If you want to pursue an education that is costing more, you should also look at scholarship options as well as grants given by institutions, in addition to choosing an education loan.
     
  • Information is power: It is important for you to know all details about the education loan. For instance, when you decide to buy a new mobile phone, you do a lot of research on its features, pros and cons, the credibility of the brand and so on. You take such initiatives for a phone that like all other modern technology will become obsolete and will be replaced by another one in a few years. The same level of focus, if not more, is required while choosing an education loan. An education loan is an investment for a lifetime. Therefore, do your research earnestly and thoroughly, take your time and select the most favourable loan.
     
  • Read the fine print: There is a very famous aphorism which says that the devil lies in the details. Ensure that you read all the fine print and get clarity on the details mentioned by the bank such as rate of interest levied by the bank, tenure of the loan, and repayment method. Also, find out if the bank has any kind of pre-payment charges. Do not forget to check if the bank has any provision for extension of the loan tenure in case of any unforeseen delay in getting a secure job or completion of the course.
     
  • Benefits for girls and economically weaker sections: All good banks offer some benefits in the form of interest subsidy for students coming from economically weaker sections of the society and to female students pursuing higher education.

Applying for Education loan from Kotak Mahindra

An individual can apply for Kotak Mahindra student Education Loan in various ways like online or by visiting the branch or through a 24*7 phone service provided by the bank.

  • Applying Online

The bank offers Education Loan application form online through its website and also through the Paisabazaar portal. The process is simple:

Visit the Paisabazaar website, use the eligibility calculator tool to check your eligibility and then fill up the necessary details.

After providing the necessary details like name, address, contact number, city of residence, preferred branch, etc., the application form will be submitted and the bank’s executive will call the customer to guide him or her through the application process. So, the customer does not have to indulge in unnecessary hassles while applying for a loan as it can be done anywhere and at any time through the online application feature. The paisabazaar portal and the bank comes to the aid of the customer to complete the loan application and subsequently loan sanction process.

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