Dhanlaxmi Bank Higher Studies in India and Abroad

Dhanlaxmi Bank Education Loan for Higher Studies in India and Abroad

This Dhanlaxmi Bank study loan helps students finance their education and realise their dreams of pursuing higher education at recognised educational institutions in India or abroad. It is based on the Indian Bank’s Association (IBA) Model Education Loan Scheme. Let’s look at its different features:

Features of Dhanlaxmi Bank IBA Model Education Loan

Why this Loan?

  • The loan is meant to help students who have secured admission into a higher education course in a recognised institution in India or abroad through Entrance Test or Merit-based Selection Process
  • This Dhanlaxmi Bank Education 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.

Loan Amount

  • The maximum loan amount you can get for this loan is not mentioned on the Dhanlaxmi Bank website. However, for most IBA Model Education Loan schemes, students can avail a loan of up to Rs. 20 lakh for studying in India and Rs. 30 lakh for studying abroad. Please check with the bank for the loan amount you can avail


  • Loans with Subsidy: The effective interest rate for this loan with subsidy is 14.05% (unrated)
  • Loans without Subsidy: The effective interest rate for this loan without subsidy is 15.40% (unrated)


  • As of October 2020, the repayment period for this loan is not mentioned on the bank’s website. For most IBA model loans, the repayment period is 15 years after the end of moratorium period
  • The moratorium period for this loan is course duration + 6 months

Security Needed

  • Loans upto Rs. 4 lakh: No security required
  • Loans Above Rs. 4 lakh: A tangible collateral equivalent to the loan amount is required


  • The applicant must be an Indian national
  • Should produce a copy of the result of qualifying or mandatory examination such as TOEFL, SAT, GRE, AGRE, GMAT, etc. together with a copy of valid passport, proof of admission to the college or university and a copy of the Visa or Form I-20

Eligible Courses & Course Duration in India

  • Graduate and Post Graduate Degree or Diploma courses in Computer Science, Engineering, Medicine, Pharmacy, Dentistry, Agricultural and Veterinary Science
  • Post Graduate courses in Arts, Science, Commerce and Management from recognised institutes in India
  • Post Graduate Diploma in Computer Applications from reputed institutes such as APTECH, NIIT, etc.
  • Duration of programme can be upto 5 years

Eligible Courses & Course Duration Abroad

  • Graduate courses in Biological and Natural Science, Computer Science and Engineering disciplines
  • Post Graduate courses in Biological and Natural Science, Computer Science, Engineering and Business Administration
  • Duration of programme can be of 3 years

Borrower Contribution to Total Cost (Margin Money)

  • Not mentioned on the bank’ website. Please check with the bank for details

Note: Margin money refers to the amount the borrower contributes to the overall amount required. Suppose a house costs Rs. 40 lakh in which case the borrower usually has to provide a margin money percentage of 15-25% of the total house value while the lender bank offers the rest.

Processing and Other Charges

  • No processing charges need to be paid for this loan
  • But there are fees of Rs. 250 for no-dues or no-objection certificates
  • The bank charges 24% pa on outstanding amount from date of default for late payment of EMI

Uses of the Loan

  • Admission and tuition fees
  • Hostel fees and boarding charges
  • Cost of books, study material, equipment and instruments
  • Covers other related expenses such as examination, library and laboratory fees, uniforms, caution deposit, building fund or refundable deposits. These need to be supported by institution bills and receipts, and should not be more than 10% of the total tuition fees for the entire course
  • Cost of computers needed for the course
  • Insurance premium for the student borrower
  • Any other expense in relation to the course such as study tours, project work, thesis, etc.
  • For studies abroad, the loan covers expenses of air travel, incidental charges and even cost of clothing and other equipment

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
  • 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
  • For studying abroad, a self-attested copy of the passport is also required along with a self-attested form issued by the institute for visa purposes
  • For studying abroad, a copy of result of qualifying exam such as SAT, TOEFL, GRE, GMAT, AGRE, etc. must be submitted
  • In case of foreign courses, a copy of the Visa or Form I-20 is needed

Reference Facts:

  • Dhanlaxmi Bank Website: www.dhanbank.com
  • Headquarters: Thrissur, Kerala
  • Call Centre Number: +91 – 487 6613000