Karnataka Bank Education Loan


  • Karnataka Bank Education Loan interest rate ranges from 9.49% - 12.39% per annum
  • Read this page below to know about the details of the Karnataka Bank Education Loan

For higher studies, Karnataka Bank provides education loans with which students can pay the admission fee, buy books, manage travel expenses, pay hostel fees, etc. You can apply for an education loan at Karnataka Bank for any regular or part-time course in India or overseas. But before applying for the loan, you need to secure admission to the college or university. Look further in the page below to know about the Karnataka Bank Education Loan and its features and eligibility.

Loan AmountUpto INR 20 lakh
Interest Rate9.49% - 12.39%
Tenure3-15 years
Processing FeeAs applicable by the bank


Any student who has secured admission to a professional, technical or any other course in India or abroad are eligible for the Karnataka Bank education loan. There is no age limit for the educational loan. A major or a minor who is represented by a parent or guardian can apply for this loan. Using the loan amount, you can pursue the following educational courses.

  • Graduate courses like B.A., B.Sc., B.Com., B.C.A., B.B.M., etc.
  • For Engineering, Medical, Agriculture, Nursing, Veterinary, Law, Dental, Management, Computer, Pharmacy, Physiotherapy, Hotel Management, ICWA, CA, CFA.
  • Post-graduate courses such as Masters or Ph.D.
  • Courses conducted by IIM, IIT, XLRI, NIFT approved by the state or central govt.
  • Courses from foreign universities
  • Evening courses of the reputed approved educational Institutes.
  • Job-oriented professional and technical courses offered by the reputed overseas universities
  • Post-graduation courses like MCA, MBA, MS in India and abroad
  • Courses conducted by CIMA and CPA in London or the US.
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You can borrow up to INR 10 lakh from Karnataka Bank for your higher studies in India and INR 20 lakh for overseas education. The loan can be paid after the course completion which includes internship or apprenticeship if compulsory. After that, you have a repayment holiday of 12 months to find a job to pay the borrowed loan. Karnataka Bank provides you a tenure of 15 years after the repayment holiday to pay the borrowed amount in Equated Monthly Installments (EMI).

Karnataka Bank Central Sector Interest Subsidy Scheme (CSISS)

Under this scheme, students belonging to economically weaker sections of the society can get an interest subsidy over the borrowed loan amount. With annual family income up to INR 4.5 lakh, students can apply for an education loan under this scheme and can borrow up to INR 7.5 lakh from Karnataka Bank with an interest subsidy.

The interest subsidy is provided to the student for the moratorium period which is course period + 1-year after the course completion. You can secure admission to the National Assessment and Accreditation Council (NAAC) institutes, National Board of Accreditation (NBA) institute, Institution of National Importance (INI), or Centrally Funded Technical Institute ( CFTI).

You can avail of the interest subsidy only once for a UG, PG, or integrated educational course.

Karnataka Bank Skill Loan

A student who secured admission to the Industrial Training Institutes (ITIs), Polytechnics or in a recognized school or college affiliated to National Skill Development Corporation (NSDC ) for a certificate, diploma or degree course issued by National Skill Qualification Framework (NSQF) is eligible for the Karnataka Bank Skill Loan.

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Under the skill loan, you can borrow from INR 5,000 to INR 1.5 lakh based on the course tuition fee and other charges. And you can pay the borrowed amount in 3-7 years. Choose the tenure that suits your repayment capacity.

The bank doesn’t require collateral for this loan and provides funds to the needy students who have dreamt of pursuing higher studies. Courses run by the mentioned institutes that are aligned to the National Skill Qualification Framework (NSQF) are covered under the Skill Loan. There is no minimum duration for your course and can pay for the loan after the course completion.


Karnataka Bank puts a margin on your education loan if it is above INR 4 lakh. You can borrow only 95% of the loan amount from Karnataka Bank and the 5% margin money needs to be paid by yourself for the educational course in India. Whereas for your overseas studies, Karnataka Bank applies a margin of 15% on your borrowed loan which reduces the loan value to 85% of the applied amount. The rest of the 15% of your loan is to be managed by the student itself for which they can use assistantship or scholarship.


You can borrow an education loan in both a secured or unsecured type. If you borrow up to INR 4 lakh then there is no need to provide a guarantee or collateral. And if the loan is above INR 4 lakh or up to INR 7.5 lakh then you need to add a 3rd party guarantee. Above INR 7.5 lakh along with the guarantee, you need to provide a tangible asset such as land, property, FD, insurance, etc.

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To apply for the loan, you need to submit a few documents that are as follows-

Documents for Students

  • Aadhaar Card
  • Voter ID card
  • Passport
  • Visa
  • Admission letter
  • 10+2 mark sheet or certificate

Documents for Co-borrowers

  • PAN card
  • Aadhaar card
  • Voter ID card
  • Driving Licence
  • Passport
  • Salary slip
  • Bank statement
  • ITR report
  • Form 16

Documents for the Third-party Guarantor

  • PAN card
  • Aadhaar card
  • Voter ID card
  • Driving Licence
  • Passport
  • Salary slip
  • Bank statement
  • ITR report
  • Form 16

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