Once Benjamin Franklin aptly said, "An investment in knowledge pays the best interest" and he couldn't have been more right, for education empowers us to open up new opportunities, prepares us for the future, achieve new heights in our careers, elevate our standard of living, and much more! Since nowadays quality education doesn't come cheap, often students with caliber couldn't make it to their dream institutes.

Axis bank is one of India's leading private sector banks that helps students get to their dream universities in India and abroad with their not-so-labyrinthine education loan process. If you are planning to take an education loan from Axis bank then you should read this article till the end as we will be discussing every aspect of Axis bank's education loan for abroad and India.

Overview of Axis bank education loan

Axis Bank Education Loan Parameters

Values

Maximum Education Loan Amount

Rs. 75 Lakhs

Minimum Loan Amount*

Rs. 50,000

Education Loan Margin

Up to 4 Lakhs: Nil

> 4 Lakhs: 15%

Axis Bank Education Loan Interest Rate

13.7% to 15.2% 

Axis Bank education loan processing fees
  • For loans of up to Rs.20 Lakhs: Rs.15000 + GST (as applicable)
  • For loans above Rs.20 Lakhs: 0.75% of the differential loan amount above Rs.20 Lakhs, plus GST (as applicable)

Expenses Covered

Tuition Fees, hostel charges, cost of books, etc.

Axis bank can provide secured, unsecured, and partially secured loans as well. A brief about the three types of loans -

  • Secured loans- A secured loan is where you pledge collateral to a bank to take a loan against it. A collateral could be immovable property like a house, flat, non-agricultural land, and liquid security like Fixed deposits, Insurance policy(Term Insurance), and govt bonds.
  • Unsecured loan- An unsecured loan is a loan without needing any type of collateral. Instead of relying on applicants' collateral as security, lenders approve unsecured loans based on an applicant's financial co-applicant.
  • Partially secured loans- If the required loan amount is more than the Unsecured eligibility for a student then an additional amount can be taken by mortgaging Collateral.

Eligibility criteria for an Axis bank education loan

The eligibility criteria for education loan for Axis bank is different for Students/applicants and co-applicants.

1. For Students- 

  • The student should be an Indian national
  • The student should have scored a minimum of 50% marks during HSC & Graduation
  • The student should have obtained admission to career-oriented courses ( STEM category management-related courses) either at the graduate or post-graduate level
  • The students should have secured admission to any program in a recognized university through an entrance test or merit-based application process.
  • Student must possess their college admission letter at the time of applying for an Axis bank student loan.

2. For co-applicants - 

  • Co-applicant must be a citizen and a resident of India.
  • Co-applicant must have a stable source of income and it should be sufficient to pay simple interest during the moratorium period.
  • Co-applicant must have either 3 years of ITR or 2 years of Form-16
  • Co-applicant should have a CIBIL score of 700 and above.

Documents required for an Axis bank education loan

Axis bank education loan for abroad can cover your one-way flight fare, tuition fees, living expenses, study materials, etc. The Bank provides quick and hassle-free loans once you provide the application with the required documents. 

  1. KYC documents
  2. Filled in the Loan application form along with 2 passport-size photographs of the applicant and co-applicants
  3. Bank Statement / Pass Book of last 6 months
  4. Optional – Guarantor Form
  5. Copy of admission letter of the Institute along with fees schedule
  6. Mark sheets / passing certificates of S.S.C., H.S.C, Degree courses, National level entrance test
  7. Income proof of the guarantor or co-applicant/borrower (i.e. salary slips/ Form 16)

If you are opting for an axis bank education loan without collateral then the entire documentation process can be done online.

In addition to the above documents, candidates are required to submit a certain set of documents before receiving the first disbursement of their Axis bank education loan for higher studies.

Documents required for the education loan disbursement-

  1. A demand letter from the respective college/university.
  2. The loan agreement duly signed by the loan applicant and co-applicant.
  3. Loan sanction letter.
  4. A disbursement request form, duly filled and signed by applicants and co-applicants.
  5. Receipts of margin money paid to the college/university along with bank statements reflecting the transaction.
  6. Form A2 signed by the applicant or co-applicants in case of abroad studies.

Axis Bank education loan amount

Axis bank offer loan amount ranging from Rs 50,000 to Rs 75 lakh or more based upon the type of loan you opt for

  1. Axis bank education loan with collateral- By pledging collateral students can get up to 75 lakhs depending upon the value of the collateral and the total loan requirement of the student. Axis Bank considers a maximum of up to 85 % of the value of the Mortgaged Collateral.
  2. Axis bank education loan for abroad without collateral- Axis bank has divided the educational institutions into categories for an unsecured loan
    • Prime A: Universities falling under this list can get funded up to 40 lakhs for the Master's program and up to 25 lakhs for the UG program.
    • Prime B: Universities falling under this list can get funded up to 25 lakhs for both the Master's program and the UG program. 

But if you don't have collateral and neither is your university falling under prime A and prime B list then still you can get up to 40 lakhs from Axis bank through Income-based Funding based on co-applicant income. For this co-applicant income must be at least 75k per month. 

Education loan margin by Axis bank

This is the amount that students are required to pay from their side on every disbursement

  • No Margin up to Rs. 4 Lacs,
  • 5% Margin above Rs. 4 Lacs for studies in India
  • 15% Margin above Rs.4 Lacs for abroad studies

Axis bank education loan interest rate

Axis Bank offers a very competitive interest rate in the private banking sector. The Axis Bank student loan interest rate may vary based on the location/country of education as well as the required loan amount. The exact rates of the interest are as follows.

  • For loan amounts of up to Rs.4 Lakhs: 15.20%
  • For loan amounts greater than Rs.4 Lakhs and up to Rs. 7.5 Lakhs: 14.70%
  • For Loan amounts greater than Rs.7.5 Lakhs: 13.70%

This rate of interest fluctuates from time to time according to the changes made in the Bank’s education loan policies. Students' past academics, selected universities/colleges, nature of the program are some of the factors that are considered before granting any concession in the Axis bank education loan interest rate. 

Axis bank education loan repayment

Students get a moratorium period of course duration + 6 months (for Unsecured Loans) and course duration + 12 months (for Secured Loans). 

Students get a repayment period of 15 years including the moratorium period for a loan amount up to 40 lakhs axis bank education loan for abroad without collateral and for an amount above 40 lakhs, 20 years including the moratorium period.

Axis bank education loan -Processing time and fee

Axis Bank is a large organization & Education Loans are done through their Loan Centres. For a secured loan the average loan processing time is at least 7 working days and For an unsecured loan, it is a minimum of 4 working days once you submit all the required documents.

Axis Bank education loan processing fees are very economical

  • For Loan amount up to 20 Lakhs, Rs. 15,000 (refundable) + GST.
  • For Loan amount above 20 lakhs, 0.75% of (Loan Amount above 20 lakhs) + GST (Non-refundable).
    For eg, for a loan amount of 21 lakhs, 0.75 of 1 lakh i.e Rs 750 + GST

Salient features of the Axis bank education loan scheme

  1. Simple documentation procedure.
  2. Quick loan disbursal
  3. Avail income tax benefit under Section 80 E of the Income Tax Act.
  4. No prepayment charges were levied.
  5. Candidates who have borrowed loans under the Axis bank education loan scheme are eligible for a subsidy under the Central Sector Interest Subsidy scheme if they are deemed to be eligible for the same. Candidates will be required to submit relevant documents proving their eligibility for the same.

If you have collateral and are planning for a secured education loan from Axis bank then it is advisable to go with public banks instead, as there you will get a larger loan amount with a lower rate of interest. 

If you are someone thinking of taking an Axis bank education loan without collateral then before making up your mind you must first check with every lender in the market for the best deal possible. 

You can reach out to WeMakeScholars as we work digitally and can help you connect with the lenders based on your profile without you needing to visit a branch. And a financial officer assigned to you will assist you throughout your loan process.