Karur Vysya Bank Education Loan

Last Updated : June 29, 2020, 4:33 p.m.

Karur Vysya Bank provides custom fit education loans to help students complete their higher studies. You can apply for its education loan and borrow the required amount for your college admission. It is the most convenient way to get funds for admission without any trouble. Karur Vysya Bank has made it easy for you to pursue higher studies.

Karur Vysya Bank Education Loan Details

Loan Amount

You can borrow a loan from Karur Vysya Bank for your higher studies as per the academic performance and co-borrower’s repayment capacity. Students can pursue under-graduate, post-graduate and diploma programs. And to apply for the loan, you should have secured admission via a merit-based selection or entrance examination. Karur Vysya Bank lends you up to INR 10 lakh to study in India and INR 20 lakh for overseas studies.

The student can borrow a loan up to INR 4 to INR 7.5 lakh without any collateral security. And the loan can be borrowed jointly with a student parent or guardian security.

Karur Vysya Bank Education Loan Interest Rate

Karur Vysya Bank Education Loan comes at an attractive rate of interest of 10.75% - 11.75% per annum. And the interest levied on your loan depends on the future income prospects after the course completion. A student is a primary borrower in an education loan, and the co-borrower or parent acts as a security to pay the loan amount if the student isn’t able to secure a job.

And your interest rate also depends on the parent’s repayment capacity and credit history. So, look for all these factors while you apply for an education loan at Karur Vysya Bank.

Tenure

The repayment period of Karur Vysya Bank education loan is 60 months to 84 months based on the borrowed amount. And before the repayment commences, you get a holiday period of 6 to 12 months in which you have to find a job to pay for the borrowed loan amount. Your moratorium will reduce to 6 months if you get a job after the course completion which lowers your interest burden and makes it easy to pay.

Security

You need to provide security for your Karur Vysya Bank education loan if the borrowed amount is above INR 7.5 lakh. And for its security, you can add a suitable third-party guarantee. The bank may, at its discretion, waive the third-party guarantee if they are satisfied with the net monthly income of parents who would be the Joint Borrower in the education loan.

Margin

Karur Vysya Bank puts a margin on your borrowed education loan if it crosses the limit of INR 4 lakh. The margin on your Karur Vysya Bank education loan ranges from 5%-15% of the borrowed amount and it depends where you study. If you borrow money for higher education in India, the margin is 5%. Whereas, it is 15% for overseas studies.

Documents

To apply for the loan, you need to submit a few documents to the bank which are as follows.

Documents for Students

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

Documents for Co-borrowers

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

Documents for a Third-party Guarantor

• Aadhaar Card
• PAN card
• Voter ID card
• Passport
• ITR report
• Salary slip/certificate
• Form 16

Apply for Karur Vysya Bank Education Loan

To apply for the loan, you need to go to the bank branch and follow the instructions below.

• Ask for an education loan and know about it in detail with the bank representative
• Fill up the loan application form with 2 passport size photographs
• Submit the above-mentioned documents
• And wait for the bank approval

The bank will check the details thoroughly before approving the loan. You can also apply for the loan on the official website of Karur Vysya Bank. Post application, the bank will send executives to pick documents from you. The bank will authenticate the details and approve the loan only upon successful verification.