Axis Bank Education Loans Overview
AxisBank is one of India’s largest private bank, and has a robust education loan division. While the loan amounts are large, Axis Bank’s rates are quite high.
Education loans of up to 20 lakhs loans can be issued without collateral
No processing fee
Extremely high interest rates - lower rates are available elsewhere
Short loan tenure
Eligibility for Axis Bank Education Loan
To be eligible for an Axis Bank education loan, you must:
- Be an Indian citizen, including your co-borrower
- Have obtained at least 50% of marks during HSC and graduation
- Show proof of admission in a university
Enjoy unlimited no fee ATM withdrawals with a student account
Axis Bank Education Loan Interest Rates
As we’ve mentioned before, interest rates are the main factor for all education loans. Here, Axis Bank doesn't fare well - it has extremely high interest rates. Axis Bank education loan has a floating rate of interest that is the sum of Axis’ CBLR plus Spread. Axis charges the spread depending on your creditworthiness, resulting in varying rates for different people. It currently varies between 13.7% to 15.2%. As of the moment, Axis Bank has a lending rate of 15% per year (on average).
One thing to note is that Axis Bank has education loans for 7 years, which is about half the tenure of other banks. This means that you will have higher monthly installments to pay.
Axis Bank Education Loan Processing Fee
Axis Bank requires no margin for any loan up to Rs. 4 lakh. After that, you are required to provide 15% of the loan amount if you are getting the loan to study abroad. There is no processing fee on education loans of Axis Bank, which is great and can save you upwards of Rs. 50,000 compared to other banks and lenders.
Which expenses are covered by education loan
Axis Bank Education Loan covers 100% of your expenses including tuition fees, any living expenses, and your travel expenses.
Axis Bank Education Loan Lending Limits
The smallest loan available is for Rs. 50,000, and the maximum amount isRs. 75 lakhs. Of course, this depends on both your financing requirement as well as your creditworthiness.
Axis Bank Education Loan Collateral Requirements
Axis Bank can provide (depending on your creditworthiness) an education loan up to Rs. 20 lakhs without collateral. If the loan is higher, you or your co-applicant may be asked to pledge collateral as security for your loan (e.g. a house or a fixed deposit).
Education Loan Co-applicant Requirements
If you are applying for a loan with a co-borrower (e.g. your father), they must be an Indian resident with an income. They will have to show proof of income, as well as any assets or liabilities.
How to apply for Axis Bank education loan
To start off the application process, you will need to go to Axis Bank’s website and fill in their online application form for education loans. After you submit the form, you will be contacted by their support team asking for a variety of documents (below). After you provide these documents, Axis Bank will review your application and make a decision on whether to approve or deny. If your application is approved, they will disburse the funds after you sign the education loan agreement. You can also visit an Axis Bank branch and talk to their education loans representative.
Documents required– Axis Bank education loan
You will need to provide the following following documents to apply for an education loan at Axis Bank:
- Completed and Signed Application Form
- 2 Passport Photos – Applicant and Co-Borrower
- Photo ID (Applicant and Co-Applicant)- Provide any one of the following: PAN card, Aadhaar card, Driving license, Passport or Voting ID
- Proof of Address (Driving Licence/Passport/Electricity bill/Telephone bill)
- Proof of Admission
- PAN Card of the student and Parent/ Guardian
- Statement on the cost of study
- Student/Co-borrower/Guarantor's bank account statement for the last 6 months
- Co-Applicant’s Income Proof
- Brief statement of assets & liabilities of Parent/ Guardian/Co-borrower
- AADHAR Card of the student and Parent/ Guardian
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