Established in 1994 as UTI Bank, Axis Bank provides education loans to students who want to study in India or abroad. Axis Bank is the third largest commercial private bank in India. Axis Bank provides both secured and unsecured abroad education loans. In the case of an education loan abroad without collateral, the amount can go upto 50 Lakhs INR while in the case of a secured education loan, the amount can go upto 85% of the collateral pledged.
Based on the target university, Axis Bank has divided the educational institutions into three categories:
1.Prime A: This list contains mostly Master's programs from top universities.
2.Prime B: Besides Master's programs, it includes a few bachelor's degrees as well.
3.Non-prime: Courses and institutes which do not form a part of Prime A & B lists are included in this category.
Axis education loan does not just help students to realize the financial requirements of studying abroad but also offers a 100% tax benefit to them on the interest paid under Section 80(E) of the IT Act. Other than these features, as a scheduled commercial bank, government schemes such as Central Government Interest Subsidy Scheme (CSIS) for Economically Weaker sections (income up to Rs. 4.5 Lakhs) are available at Axis Bank.
There are many benefits that you are going to enjoy if you pursue your education loan abroad without collateral from Axis Bank. Axis Bank is one of the best options if you do not have collateral to pledge and want to take an unsecured education loan. Axis Bank has approved a list of abroad universities that they have divided based on STEM and non-STEM courses that categorize the university into prime and non-prime categories. The features presented below differ for each of these categories.
| Features | Detail |
|---|---|
| Loan amount | Prime A - upto 50 Lakhs Prime B - upto 40 Lakhs Non-Prime - On an immediate EMI basis |
| Interest rate | 9.99% - 12.5% |
| Interest rate type | Floating Interest rate |
| Minimum Income (Co-Applicant) | 35,000 INR (without obligations) |
| Repayment | Need to pay S.I. only during course + 1 year grace period |
| Processing fees | 0.75% on sanctioned amount + GST |
| Other charges | Nil |
| Margin Money | 5% (on all categories, need to show proof prior) |
| Loan Tenure | Upto 15 years |
| Processing time | 5 - 7 days after document submission |
| Prepayment penalty | No Penalty |
| Tax Benefit | Yes |
Below are some criteria that you need to ensure so that you can be eligible for taking a loan from Axis Bank
• The applicant and co-applicant have to be Indian citizens.
• Must have secured at least 60% in Higher Secondary and Graduation.
• Co-applicant's CIBIL score should be more than 600.
• Co-applicant's salary should be more than 35,000 INR without any obligations i.e. the co-applicant should not have any other EMI going on.
• Co-applicant must have either 3 years of ITR or 2 years of Form-16.
• Co-applicant needs to be from immediate family. Accepted Co-applicant: Father, Mother, Brother, Sister, or Spouse.
• Only applicable to master's courses.
• Admit letter for the approved MS courses from the relevant authorities.
• University or college should be in the bank's categorical list of educational institutions.
There are three different times at which you will need some documents. The initial set of documents will be required when the loan application is in process, the second set of documents will be required during the first disbursement, and the last set of documents for the subsequent disbursement.
Documents required during the initial phase of the loan process
• KYC documents
• Bank Statement / Pass Book of last 6 months
• Optional – Guarantor Form
• Copy of admission letter of the Institute along with fees schedule
• Mark sheets / passing certificates of S.S.C. (Secondary School Certificate), H.S.C (Higher Secondary School Certificate), and Degree courses.
• KYC documents
• Bank Statement / Pass Book of last 6 months
• Optional – Guarantor Form
• Copy of admission letter of the Institute along with fees schedule
• Mark sheets / passing certificates of S.S.C. (Secondary School Certificate), H.S.C (Higher Secondary School Certificate), and Degree courses.
• Demand letter from college or university
• Loan agreement signed by applicant and co-applicants
• Sanction letter signed by applicant and co-applicants
• Disbursement request form signed by applicant and co-applicants
• Receipts of margin money paid to the college/university along with bank statement reflecting the transaction
• Documents for collateral security (if applicable)
• Form A2 signed by applicant or co-applicants in case of overseas institute
• Demand letter from college or university
• Disbursement request form signed by applicant and co-applicants
• Receipts of margin money paid to the college/university along with bank statement reflecting the transaction
• Exam progress report, marksheet, bonafide certificate (anyone)
• Form A2 signed by applicant or co-applicants in case of overseas institute
Apart from providing unsecured loans, Axis Bank can also provide you with secured loans in case you are ready to pledge some collateral with the bank. In case of collateral as well the co-applicant profile is considered. Different features that are associated with a secured abroad education loan with Axis Bank are -
• If you have pledged a residential property as collateral and your co-applicant is salaried, then you can get up to 85% of the property value.
• If you have pledged a residential property as collateral and your co-applicant is self-employed, then you can get up to 75% of the property value.
• In case you have pledged a commercial property, then you can get up to 50% of the property value.
• You can get a rate of interest between 9.99% - 10.50% for secured loans.
• The main benefit of a secured education loan is that the course and university list are not considered. That is, you can be from any university and course no matter whether it is listed in the Axis Bank university list or not.
The process of starting a loan application with Axis Bank is quite simple. All you need to do is follow the below-mentioned steps.
Check loan eligibility
The first step is to check your loan eligibility with Students Channel which will require you to fill out some details like personal details, target university, loan amount, and more.
After checking your loan eligibility, an education loan counselor (ELC) from Students Channel will contact you and provide a personalized document checklist. You'll need to arrange the documents while the ELC pushes your details to Axis Bank.
Free doorstep document collection
Once you arrange all documents, an Axis Bank relationship officer (RO) will collect and verify them. Missing documents will be notified by Students Channel's ELC and Axis Bank's RO within 1 day.
Loan approval and sanction
After all the verification is done, a loan approval mail (with loan amount and other details) is sent to the applicant that needs to be signed so that the same can be sanctioned.
There are several benefits that you would get by proceeding with your loan from Axis Bank through Students Channel. Some of the benefits have been listed out below -
Guaranteed best loan
Students Channel is committed to providing you with the most advantageous education loan available. Our team ensures that we secure the best possible deal for you. If you come across a better offer, we will compensate for the variance in interest rates throughout the entire period of your education loan.
Higher chances of approval
Students Channel ensures Axis Bank only receives your application after meeting all eligibility requirements.
Customized document checklist
Students Channel provides a tailored list of required documents, including alternative options which helps in quick document submission.
Low turnaround time
Students Channel can complete the loan process in 5-7 days (after document submission), compared to Axis Bank's 15-day procedure if an applicant goes directly to the Bank.
100% Free of cost services
When you proceed with Students Channel, an education loan counsellor will guide you throughout the process, without any added cost.
We want to create a platform where every student can find information about Abroad Education easily and thereby steer clear of any career fraud or fake promises by temporary education agencies that look to make profit in short time.
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