Axis Bank Education Loan
Eligibility and Documentation for Axis Bank Education Loan:
The eligibility conditions for Axis Bank Education Loans are as follows:
The applicant should be a resident of India.
The applicant should have been selected for an undergraduate or graduate, professional, job-oriented course such as medicine, engineering in a recognized university, college or institute.
The following documents will be required to be furnished to complete the loan application process.
Salaried Applicants:
Proof of Identity: Passport, Voter’s ID, driving license or PAN card.
Proof of Income: Latest salary slips showing all deductions, Form 16 and recent salary certificate.
Proof of Residence: Bank account statement, electricity bill, telephone bill or house lease agreement.
Last 6 months’ bank statement or passbook where salary or income is credited
Guarantor form might be asked for.
Education Documents: Copy of admission letter along with the fees schedule, mark sheets, certificates of S.S.C and H.S.C and degree courses.
Other Applicants:
Other classes of applicants must submit all the above documents. Instead of the latest salary slip, they can submit the Income Tax Returns statements for the last two years and computation of income by a certified CA for the last two years.
Subsidy Scheme:
The ministry of HRD, Government of India, has come up with a unique interest subsidy scheme to provide full interest subsidy during the course period plus one year or six months after getting a job, whichever is earlier. Specially designed for the students from economically weaker sections of the society where annual parental income is not more than Rs.4.5 lakhs, this scheme is available for borrowers pursuing any approved professional course from a recognized Indian institution.
Some of the points to keep in mind while availing this subsidy are as follows.
This interest subsidy scheme can be availed only once by eligible students for pursuing an undergraduate, postgraduate or an integrated course from an Indian institution.
The interest subsidy will not be considered for students who discontinue the course or who are expelled from the institution due to disciplinary or academic reasons. In case of discontinuation due to medical reasons, necessary documentation has to be submitted to avail this scheme.
Interest rates on the loan shall be in line with the interest rates applicable under the Education Loan Scheme.
Kindly make an enquiry with the bank about the list of accredited institutions and technical courses that are eligible for the Interest subsidy scheme
Loan and Interest
Rs. 10 lakhs is the highest loan amount that can be availed by students who took admission in Graduation/Post Graduation courses in India and Rs. 20 lakhs is the highest loan amount that could be approved for students studying abroad. However, loan amount can go higher depending on other conditions.
16.05% is the interest rate for loan amounting up to Rs. 4 lakhs.
17.05% is the interest rate for loan amounting more than Rs. 4 lakhs and up to Rs. 7.50 lakhs.
15.05% is the interest rate for loan amounting more than Rs. 7.50 lakhs.
Interest Rate for Girl students:-
16.00% is the interest rate for loan amounting up to Rs. 4 lakhs.
17.00% is the interest rate for loan amounting more than Rs. 4 lakhs and up to Rs. 7.50 lakhs.
15.00% is the interest rate for loan amounting more than Rs. 7.50 lakhs.
Margin:-
For loan amounting Rs. 4 lakhs, margin is NIL. In case the loan amount goes more than Rs. 4 lakhs, for students studying in India, margin will be 5%. Similarly, if loan amount goes above Rs. 4 lakhs for students studying abroad, margin will be 15%.
Security:-
Collateral Security will be required in cases wherever necessary.
Assignment of LIC Policy is required as additional security in favour of the bank for the sum assured being at least 100% of the loan amount. Moreover, in order to meet the EMI obligations, the student’s future income requires to be assigned as well.