Looking for a Suitable Education Loan from RBL Bank for Higher Education in India and Abroad?

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RBL Bank Education Loan for Higher Studies in India and Abroad

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

Features of RBL 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 RBL 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.
  • Students can avail a collateral-free loan of up to Rs. 4 lakh

Loan Amount

  • The maximum loan amount you can get is Rs. 10 lakh for studying in India and Rs. 20 lakh for studying abroad

Interest

  • Loans up to Rs. 4 Lakh: The interest rate for this quantum of education loan is the sum of RBL Linked Repo Rate (RLRR) and a spread of 5.85%. As of November 2020, the RLRR used is the one announced by RBL Bank in June 2020 of 9.10%, making the effective interest rate for this education loan 14.95%
  • Loans from Rs. 4 Lakh to Rs. 7.5 Lakh: The interest rate is the sum of the RLRR (9.10%) and 6.85%, making the interest rate for this quantum of loan 15.95% as of November 2020
  • Loans Above Rs. 7.5 Lakh: The interest rate is the sum of the RLRR (9.10%) and 4.85%, making the interest rate for this quantum of loan 13.95% as of November 2020
  • RBL Bank charges lower interest rates for top ranking institutions and universities
  • It charges a penal interest of 2% on overdue EMI amounts

Repayment

  • The repayment period for this loan is not mentioned on the RBL Bank website. Please get in touch with the bank for more information
  • The moratorium period for this loan is course duration and earlier of 12 months after course completion or 6 months after landing a job

Security Needed

  • Loans up to Rs. 4 lakh do not need any collateral
  • Co-applicants are mandatory for this education loan irrespective of the loan amount

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
  • The applicant or co-applicant must have a minimum net income of Rs. 1.5 lakh per annum

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.

Margin

  • As of November 2020, the bank does not publicly mention on its website the margin needed for loan applications. Please get in touch with the nearest bank branch for details

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

Processing and Other Charges

  • RBL Bank does not charge any processing fees for its education loans
  • There are no foreclosure charges also if the applicant(s) decide to pre-pay the loan
  • It has cheque bounce and cheque swapping charges of Rs. 250 each for every such instance

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, bookseller 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, address and employment, business or income proofs are required. Income proof for salaried includes last 3 months salary slips and salary account statement with salary credits and Form 16 issued by employers. Self-employed borrowers need to show audited financial statements for the last 2 years and bank statements for the last 2 months. Self-employed professionals also need to show their professional qualification certificate and degree certificate
  • 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 secured loans, all collateral related documents will be needed

Reference Facts:

  • RBL Bank Website: www.rblbank.com
  • Headquarters: Mumbai, Maharashtra
  • Phone Number: +91 22 6115 6300