Looking for a Suitable Education Loan from Axis Bank for Higher Education at Premier Institutes in India?

Look no further. This page summarises the information you may need on Prime Domestic Education Loan by Axis Bank.

Axis Bank Prime Domestic Education Loan for Studying at Premier Institutes in India

This Axis Bank study loan helps students finance their higher studies and realise their dreams of pursuing higher education at premier educational institutions in India. The maximum unsecured loan amount one can get is Rs. 40 lakh for the Prime Domestic Loan. Let’s look at its different features:

Features of Axis Bank Prime Domestic Education Loan Scheme

Why this Loan?

  • The loan is meant to help students who have secured admission into a higher education course in a premier educational institute in India through Entrance Test or Merit-based Selection Process
  • This Axis Bank Study loan is disbursed as a series of payments over the required number of years and not as a lump sum
  • The loan can be taken for all expenses directly related to the course including for fees, purchase of books, laptops, hostel fees, lab fees, examination fees, etc.
  • Students can get a loan sanction letter before admission based on their profile. The bank conveys its decision about the education loan within 15 days of receiving the complete loan application with necessary documents

Loan Amount

  • The maximum loan amount you can get depends on the cost of the course and related expenses. As of November 2020, the ceiling for this loan is Rs. 75 lakh
  • The maximum unsecured loan amount offered by Axis Bank for this loan is Rs. 40 lakh

Interest

  • The interest rate for this loan is defined by Axis Bank as their Repo Rate + “Spread” where Spread is a variable factor that bank can change during the tenure of the loan. The Repo Rate is reset every 3 months. As of November 2020, the Repo Rate of Axis Bank is 4.00%
  • Loans up to Rs. 4 lakh: The interest rate for loans up to Rs. 4 lakh is the sum of Repo Rate of Axis Bank + a Spread of 11.20%. As of November 2020, the Repo Rate of Axis Bank is 4.00% which brings the effective interest rate for this loan at 15.20%
  • Loans from Rs. 4 lakh up to Rs. 7.5 lakh: The interest rate for loans from Rs. 4 lakh up to Rs. 7.5 lakh is the sum of Repo Rate of Axis Bank + a Spread of 10.70%. As of November 2020, the Repo Rate of Axis Bank is 4.00% which brings the effective interest rate for this loan at 14.70%
  • Loans Above Rs. 7.5 lakh: The interest rate for loans above Rs. 7.5 lakh is the sum of Repo Rate of Axis Bank + a Spread of 9.70%. As of November 2020, the Repo Rate of Axis Bank is 4.00% which brings the effective interest rate for this loan at 13.70%
  • The bank charges a penal interest of 2% per month on overdue loan instalments

Repayment

  • The repayment period for this loan is 15 years
  • The loan amount for each year is repayable in 12 equated monthly instalments, with the first instalment becoming due after the end of moratorium period
  • The moratorium period for this loan is not clearly mentioned in the bank’s website. Please get in touch with the bank for details

Security Needed

  • Loans upto Rs. 40 lakh do not need any collateral security
  • Parents or guardians must be joint borrowers
  • Depending on the loan application, the bank may ask for one or more of these as security: a tangible collateral equivalent to the loan amount, assignment of future income of the student or third-party guarantee

Eligibility

  • The applicant must be an Indian national. NRIs can also apply
  • The student and the co-applicant must be over 18 years of age
  • Must have gained admission into a career-oriented course in a recognised institution in India through Entrance Test or Merit-based selection process
  • The student must have scored at least 50% marks in Class 10 and Class 12 and Graduation if the student is applying for a loan for a Postgraduate course

Eligible Courses

  • Full-time graduate and postgraduate level career-oriented courses in streams such as Engineering, Management, Medicine, etc. at select Premier Institutes in India are eligible. The list of these “select” Premier institutes is not available on the bank’s website as of November 2020

Borrower Contribution to Total Cost (Margin Money)

  • Loan up to Rs. 4 lakh: Students do not have to pay margin money
  • Loans above Rs. 4 lakh: Students need to pay 5% of the total course expenses as margin money

Note: Margin money refers to the amount the borrower contributes to the overall amount required. Suppose a course costs Rs. 20 lakh in which case if the borrower has to provide a margin percentage of 5%, then she will have to provide Rs. 1 lakh, while Axis Bank offers the rest.

Processing and Other Charges

  • Loans up to Rs. 10 lakh: No processing charges
  • Loans Above Rs. 10 lakh: Students need to pay Rs. 5,000 plus applicable GST as processing charges for this loan

Other Features to Know

  • The bank may ask for the student’s progress report to be submitted with the bank at regular intervals
  • The loan is disbursed directly to the school, book seller or publisher, computer seller, and so on and not to the applicant(s)
  • There are no pre-payment charges for the loan

Documents Needed

  • Application Form duly filled and signed by applicant and/or guarantor along with details of applicant and/or guarantor and family
  • A declaration/ affidavit from the borrower confirming that, no educational loans have been availed from other banks
  • Two Passport Size Photographs of student, applicant and/or guarantor
  • Photocopy of PAN Card of the student that needs to be submitted at the time of application or during the course period
  • Personal Identification Proofs (Any One): Electoral I-Card, Passport, Driving License, PAN Card or Aadhaar Card
  • Residential Address Proof (Any One): Electricity Bill, Landline Telephone Bill, Electoral or Voter ID Card or Passport
  • Admission Letter, Course Details and Prospectus as proof of admission
  • Fee Details with Demand of Fee by the Institution
  • All Proofs of Past Academic Record including Mark Sheets and Certificates
  • For the co-borrower, documents as age, ID, signature, address, employment/business/income proofs are required

Reference Facts

  • Axis Bank Website: www.axisbank.com
  • Headquarters: Mumbai, Maharashtra
  • Call Centre Number: 1860 419 5555, 1860 500 5555