Karur Vysya Bank IBA Model Education Loan

Karur Vysya Bank Education Loan for Higher Studies in India and Abroad

This Karur Vysya Bank study loan helps students finance their education and realise their dreams of pursuing higher education at recognised education institutions in India or abroad. The maximum loan amount you can get is Rs. 10 lakh for studying India and Rs. 20 lakh for studying abroad. Let’s look at its different features:

Features of Karur Vysya 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 Karur Vysya 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 is Rs. 10 lakh for studying India and Rs. 20 lakh for studying abroad

Interest

• As of November 2020, the interest rate for this loan ranges from 10.75% to 11.75%
• Foreclosure charges or part pre-payment penalties are not levied on the education loan under a floating rate of interest

Repayment

• The repayment period for this loan is 5-7 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 course duration and earlier of 12 months after completion or 6 months after getting a job

Security Needed

• Loans up to Rs. 4 Lakh: Parent or guardian must be a joint borrower. No security required
• Loans Above Rs. 4 Lakh: Parent or guardian must be a joint borrower. Tangible collateral more than or equal to the loan amount is required

Eligibility

• The applicant must be an Indian national
• The student should have gained admission into a recognised higher education course in a recognised institution in India or abroad through Entrance Test or Merit-based selection process

Eligible Courses

• Graduate or Postgraduate (PG) degree or PG diploma courses from colleges and universities approved by the government, UGC, AICTE, AIBMS, ICMR, etc.
• Job-oriented technical or professional courses from reputed universities in India or abroad
• Technical diploma courses of usually 3 years offered by approved polytechnic institutions after Class 10
• Degree and Diploma courses in aviation and shipping approved by the Director General of Civil Aviation or Director General of Shipping
• Courses in India from foreign universities
• MCA, MBA, MS, etc. or other approved postgraduate diploma courses abroad
• Professional courses from CIMA-London, CPA in the USA, etc.

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 studying in India need to pay 5% of total course expenses as margin money and students studying overseas need to pay 15% of total course expenses as margin money

Note: Margin money refers to the amount the borrower contributes to the overall amount required.

Processing and Other Charges

• No processing charges need to be paid to avail this loan

Uses of the Loan

• College, school and hostel fees
• Examination, library and laboratory fees
• Caution deposit, building fund or refundable deposit supported by institution bills or receipts
• Cost of books, equipment, instruments, uniforms
• Purchase of computer, if required for the course
• Travel expenses including passage money for foreign studies
• Insurance premium for the borrower student, if applicable
• Other expenses needed for completing the course such as study tours, project work, thesis, etc.

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)

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 and address proof and employment, business or 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

Reference Facts:

• Karur Vysya Bank Website: www.kvb.co.in
• Headquarters: Karur,Tamil Nadu
• Call Centre Number: 1860 258 1916 (Local charges apply)