Axis Bank Education Loan

Features of Axis Bank Education Loan

The main features and benefits of the education loan offered by Axis Bank are mentioned below:

• To give Indian students term loans so they can attend institutions both domestically and abroad 

• The loan amount is based on eligibility and creditworthiness, with a minimum of Rs.50,000 and a maximum of Rs.75 lakhs 

• Loans up to Rs.4 lakhs require no margin; loans beyond Rs.4 lakhs for studies in India demands a 5% margin; loans over Rs.4 lakhs for studies abroad require a 15% margin 

• The primary debtor and co-applicant for the loan will be the parents or guardian. The bank will accept tangible collaterals with a third-party guarantee as security. At least 100% of the education loan is required as additional security in the form of a LIC policy in the bank's favor 

• When applying for an education loan from Axis Bank, there are no processing fees. 

Axis Bank Education Loan EMI Calculator

You can use Axis Bank's or BankBazaar's education loan EMI calculator to determine your monthly payments. The calculators require basic information such as the loan amount, term, interest rate, and processing fee. The answers are more precise and take less time to compute than manual computations.

How to Apply for an Axis Bank Education Loan

Online

The procedure to apply for the education loan online is mentioned below:

Step 1: Visit the official website of Axis bank

Step 2: Enter details such as your name, mobile number, email ID, state, city, whether you are an existing customer, and captcha

Step 3: Agree to the terms and conditions and click on 'Submit'

Step 4: An Axis Bank representative will contact you to process the request

Offline

You can pick up an application form at your nearest Axis Bank location. The bank will process the application once the application form and supporting documentation have been submitted.

Eligibility Criteria for Axis Bank Education Loan

The following are the eligibility criteria that borrower must fulfil to avail themselves of Axis Bank education loan:

• To give Indian students term loans so they can attend institutions both domestically and abroad

• The loan amount is based on eligibility and creditworthiness, with a minimum of Rs.50,000 and a maximum of Rs.1.5 crore without collateral and as per the security value with collateral

• Loans up to Rs.4 lakhs require no margin; loans beyond Rs.4 lakhs for studies in India demand a 5% margin; loans over Rs.4 lakhs for studies abroad require a 15% margin

• The primary debtor and co-applicant for the loan will be the parents or guardian. Axis Bank may ask for collateral security, such as property or Axis Bank fixed deposits, in appropriate cases

• Axis Bank charges a processing fee of up to 2% of the loan amount plus GST.

• The loan tenure is up to 15 years, and the maximum tenure including the moratorium period cannot exceed 20 years.

Documents Required for Axis Bank Education Loan

To get Axis Bank education loan, you must submit the following documents: 

• Admission letter 

• Complete the loan application 

• Two passport-sized photos 

• Statement of study expenses 

• The student's PAN card and the parent or guardian's 

• The student's and parent/guardian's Aadhaar card 

• Identity verification (passport, driver's license, Aadhaar, or any photo identity) 

• Evidence of residency (passport, driver's license, electricity bill, phone bill) 

• Bank account statement for the previous six months for the student, co-borrower, and guarantor 

• Parent, guardian, or other co-borrower's IT return or IT assessment order from the preceding two years (if IT Payee) 

• A succinct list of the parent, guardian, or other co-borrower's assets and obligations 

• Evidence of income (such as Form 16 or wage slips) Parent, guardian, or additional co-borrower 
• Mark sheets or passing certificates of S.S.C., H.S.C. and degree courses 

First Disbursement Process for Axis Bank Education Loan

• In the case of an institute abroad, the signed A2 form must be submitted
• Collateral documents if required
• Receipts of the margin money that has been paid to the college
• Disbursement request form that has been signed by the applicant and co-applicant
• Sanction letter
• The loan agreement that has been signed by the applicant and the co-applicant
• Demand letter that has been provided by the university or college

Disbursement Schedule of Axis Bank Education Loan

• In the case of an institute abroad, the signed A2 form must be submitted
• Exam reports
• Receipts of the margin money that has been paid to the college
• Disbursement request form that has been signed by the applicant and co-applicant
• Demand letter that has been provided by the university or college

Sub-Variants of Axis Bank Education Loan

The following are the sub-variants of Axis Bank education loan:

PRIME ABROAD

• Applicable for full-time Premier Courses Abroad offering multi-currency forex card
• Unsecured loan up to an amount of Rs.1 crore
• Tenure of loan is up to 15 years
• Offers instant service at your doorstep
  

PRIME DOMESTIC

• Applicable for selecting leading full-time course in India offering loan amount up to Rs.75 lakh
• Tenure of loan is up to 15 years
• Offers instant service at your doorstep

Income-Based Funding

• Based on income of the co-applicant, the unsecured loan amount is up to Rs.50 lakh
• All full-time courses abroad and domestic
• Tenure of the loan is up to 10 years

Working professionals

• Offers loan repayment tenure of up to 10 years
• No co-applicant required
• Unsecured loan that offers loan amount of up to Rs.40 lakh to working professional

Higher Studies

• Applicable for pursuing higher study in the country or abroad
• Does not impose pre-closure charges
• Up to Rs.7.5 lakh no collateral security required

Balance transfer

• No pre-closure charges involved
• Enables borrower to reduce the monthly EMI by switching high-cost education loan

Payment Options for Education Loan EMIs

The following are the payment method for Axis Bank education loan EMI:

• Post-Dated Cheques (PDCs): Borrowers can submit post-dated cheques from non-Axis Bank account in a timely manner at nearest loan centers and the cheques will be collected non-ECS locations only
• Standing Instruction (SI): Standing instruction is one of the suitable payment modes for repayment of loan, which is for the existing Axis Bank accountholder. Through this method the EMI amount gets auto debited from the Axis Bank account
• Electronic Clearing Service (ECS): The EMI amount gets auto debited at the end of the month and is for non-Axis Bank accountholders

Methods of EMI Payment

There are three ways to repay an education loan from Axis Bank: 

• Standing Instruction (SI): This is the ideal method of repayment if you already have an Axis Bank account. At the conclusion of each month, your specified Axis Bank account will automatically be debited for your EMI 

• Electronic Clearing Service (ECS): If you want your EMIs to be automatically deducted from your non-Axis Bank account at the conclusion of each month, you can use this approach 

• Post-Dated Cheques (PDCs): At the closest Axis Bank Loan Center, you can present post-dated EMI cheques from a non-Axis Bank account. It will be necessary to promptly submit a new set of PDCs. Note that only non-ECS establishments will be able to pick up postdated cheques.
  A penal charge of 8% p.a. on the overdue amount applies on late payment of an EMI, in addition to the regular interest on the overdue amount, and a charge of Rs.500 plus GST applies for each cheque or instrument returned.

Subsidy Schemes on Axis Bank Education Loan

Under the Central Government Interest Subsidy Scheme, Axis Bank provides education loans to students from economically disadvantaged backgrounds. The government would pay a full interest subsidy under the scheme during the moratorium period.

The annual income of the parents must be not more than Rs.4.5 lakh. The programme is open to students who want to pursue professional or technical degrees at authorized colleges.

Some of the main features of the scheme are mentioned below:

• The interest will be paid by the Government of India during the moratorium period
• The maximum loan amount that will be provided is Rs.10 lakh
• The subsidy scheme will be provided only once
• The interest subsidy will not be available in case the student discontinues the course

Advantages of Axis Bank Education Loan

Here are a few benefits of applying to Axis Bank for an educational loan: 

• Minimal interest rate 

• Reduced documentation 

• Quicker Disbursement 

• No prepayment fees 

• No fees prior to closing 

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Summary

The Axis Bank education loan offers collateral-free funding for graduate and postgraduate studies in India and abroad, with Repo Rate-linked interest rates, no margin on smaller loans and flexible EMI payment options. Eligible students can also claim the central government interest subsidy during the moratorium period. Compare the loan variants, check your eligibility and apply online or at your nearest Axis Bank branch.

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