Education Loan Interest Rates 2020405 views
- Axis Bank Education Loan interest rate starts from 13.70%
- Loan amount eligibility can be as high as INR 75 lakh
Axis Bank offers an Education Loan to bright students so that they can fulfill their ambition of higher studies without having to worry about the fees and expenses that are involved in it. Because that will be taken care of by the Axis Bank Education Loan. Whether the student is planning to study in India or abroad, the bank finances study expenses in all cases. All you need is to just focus on your studies and the loan will do the rest for you. The loan interest rate is based on the repo linked lending rate of Axis Bank. After adding the current repo rate of 4.40% with the spread that the bank charges over the same, the eventual rate comes as 13.70%-15.20% per annum. To get the education funding you have to visit the Axis Bank and apply for the loan.With zero pre-closure fees on your loan, the borrower can close the loan whenever they meet with a lump sum of funds. Your transferred loan is treated the same as a new Axis Bank education loan and provides the same low-interest rate benefit.
You can borrow from INR 50,000 to your required limit from Axis Bank. If education is limitless so why do you have to limit your knowledge, so with the help of Axis Bank, you must secure your education with the pre-admission disbursal feature.
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Axis Bank Education Loan Interest Rate
As per your borrowed loan Axis Bank offers the following interest rates. Look at the table below to find what your interest rate could be.
|Loan (INR)||Interest Rate|
|50,000 to 4 lakh||15.20%|
|>4 lakh to 7.5 lakh||14.70%|
Types of Education Loan at Axis Bank
From the range of Axis Bank education loan schemes, you can apply for the best scheme as per your requirements and course suitability. Look at the below schemes of Axis Bank Education Loan.
For abroad education for the Indian students, Axis Bank offers INR 40 lakh unsecured loan with a host of benefits and features. To get the full-time course education for Bachelors, Masters or Doctorate from the renowned university, you can apply for this scheme. You can pay the borrowed loan for a maximum of 15 years. The bank has a margin of 15% on your loan above INR 4 lakh which the student can manage with scholarships. Your limit of the loan is based on your admission fees including the travel expenses from India to overseas universities. In foreign education, you need to first secure your admission before applying for the loan. Because otherwise there are fewer chances for the loan to get approved.
You can provide security to your loan by having a co-applicant, whether your parents or guardian, as a primary debtor for the loan. And payment of the loan must be made within 15 years. The tangible collateral and 3rd party guarantor are valid if the borrower is incapable to pay the loan amount in the tenure as agreed.
The student can also have access to the Multi-currency Forex Card with their Prime Abroad loan. Using the card they can manage their day to day expenses in a foreign country by loading their card with cash. You need to pay INR 1,500+GST to Axis Bank to process the abroad education loan.
The reputed institutions and universities are open for your admission, and to collect funds for it, you can apply for Axis Bank education loan. The bank provides a margin of 5% on your loan above INR 4 lakh. And the interest rate to your loan is based on the borrowed amount. You can borrow the loan which meets all your education expenses and pay it in equated monthly installments (EMI). To know your EMI, you can take help of the online tool. Just enter your borrowed amount and the interest rate by setting the tenure.
Suppose, you borrowed INR 10 lakh from Axis Bank at an interest rate of 14.70% for 15 years of repayment period. Then your EMI is 12,947 as per the EMI calculator. So you can manage your payment schedule with the help of an EMI calculator. The following are the expenses you could manage with the Axis bank education loan.
- Hostel fee, semester fee, examination charge
- Books, equipments and instruments expense
- Personal computer purchase with the loan amount for the necessity of course.
- Laboratory, library and project or thesis work
Loan for Higher Study
Education loan is for pursuing higher education in India or abroad, and with no collateral security, you can borrow up to INR 7.5 lakh from the bank. To pre-close the loan before it reaches maturity, you can pay the outstanding loan amount without any additional fees payable. Using the doorstep services, you don’t need to go anywhere for the loan processing. The bank representative comes to your home and goes through the loan procedure by getting all the important KYC documents of the applicant along with the co-borrower details and income proof. You can use your property or fixed deposit to provide security to your loan. Once your loan is approved by the bank, it will take a maximum of 15 days to disburse the loan amount.
You need to meet the following criteria to apply for this loan
- You must be an Indian national
- Age should be apt for the course
- Submit the 10+2 certificate
- Clear the admission process
- Co-borrower must be either salaried or self-employed
For the processing of your application, you need to submit INR 500+GST if your loan is above INR 10 lakh. Otherwise, there is no processing fee on your Axis Bank education loan.
Loan for Working Professionals
Individuals who belong to the working class and have a regular income source can borrow funds for their further education up to INR 20 lakhs with zero collateral mortgage. There is no need for a co-applicant in this scheme as the individual himself can manage the loan payment with its income. You have a repayment period of 10 years to pay the entire loan amount with the interest rate that ranges from 1370%-15.20%. You can choose from various repayment methods shown below.
- Electronic Clearing Service (ECS): You can schedule an automatic payment service by which the EMI is debited from your account as on the due date. With the help of it, you can use any of your bank accounts to pay the EMI.
- Standing Instructions: If you are already an Axis customer, you can request for a Standing Instruction which debits the EMI from your Axis current or savings account.
- Paycheque: For customers who prefer the old method of payment, Axis offers them a post-dated cheque service. In this, the user just needs to visit the bank with the EMI cheque and deposit it to the branch so that you don’t miss your EMI payments.
Make a switch from your existing high-cost education loan if you see the Axis Bank Education Loan interest rates are lower. The switch, which is also called balance transfer, reduces your monthly EMI as well as the overall interest outgo. Just go to Axis Bank or request for a loan transfer online at Axis Bank portal to use this feature. Interest rate is based on your outstanding loan balance. So look at the below points to know your interest rate on loan transfer.
- Up to INR 4 lakh – 15.20%
- Above INR 4 lakh to INR 7.5 lakh – 14.70%
- Above INR 7.5 lakh – 13.70%
Central Government Interest Subsidy Scheme
Customers who find it hard to support their children’s education from their end can avail of this subsidy scheme. The schemecan from whom it is financially hard to support their child’s education. Axis Bank with the subsidy scheme offers them the support for education. If your annual income is up to and inclusive of INR 4.5 lakh, you can avail of the subsidy scheme. And, to prove it, you are required to submit the following documents to the bank.
- Bank statement
- Salary slip
- Income Tax Return (ITR) report
- Form 16
- Salary certificate
- TDS proof
After the loan approval from Axis Bank, the student needs to sign the declaration form to get interest subsidy on their loan payment. A lower rate of interest rate is provided to the customer as per the Education Loan subsidy scheme. You can secure admission for graduate or postgraduate courses in India with this scheme for management, technical, medical, etc.discipline.
Note: Interest subsidy under this scheme is not available for students who leave their course in the mid-term. Also, those who are expelled from the Institutions on disciplinary or academic basis, the same would be followed. Interest subsidy is permitted only if the student is unable to continue it further due to medical issues. In such a case, necessary papers are required to be submitted to the Head of the educational institution.
Apply for Axis Bank Education Loan
To get a step ahead towards education, visit Axis Bank and apply for the education loan by following the simple process.
- Fill up the loan form and submit it with 2 passport size photographs of a co-borrower or student.
- Provide KYC and income proof (Only for earning co-applicants) as per the bank norms
- Give the academic details of the student from whom the loan is being sanctioned
- Pay a processing fee if it is applicable
- Wait for the processing to complete
After 15 days of the loan processing, you get a notification on your registered number or mail regarding the loan approval. You can visit the bank branch and enter a few details about yourself to get in touch with bank representatives for an education loan.
And don’t forget to claim your tax benefits on your loan payments. Because as per the income tax act of 80(E), you can get full deductions on your interest payment for a financial year.