Axis Bank Education Loan

Axis Bank was established in the year 1994 as a UTI bank. It is one of the most profitable banks in India. It offers a wide range of financial services to its customers. The education loan scheme is designed for students who want to complete a graduation or a post-graduation course but have a shortage of funds. Their loan schemes have affordable interest rates and are very helpful for deserving students. They provide loans for students who have chosen career-oriented courses like medicine, management, or engineering. They also provide interest subsidy on selected loans for courses in India.

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Title 

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Eligibility Criteria


Eligibility Criteria for Axis Bank Education Loan

  • Axis Bank loans are given to students who have chosen to study a career-oriented course such as medicine, management, or engineering.

  • The students should have completed 10+2 with an aggregate of at least 55% while applying for loans at graduation level.

  • For students who are applying for loans at the Post-Graduate level, you should have completed graduation and HSC with securing at least 55%.

  • Only the students who have already secured a loan in a university abroad can apply for loans for abroad studies.


 Documents Required for Axis Bank Education Loan

Documents Required for Education Loan for Salaried Induvial

  • Identity Proof- Government Department ID Card/ PAN Card/ Driving License/ Passport

  • The latest paycheck or the Form 16 supported by the recent salary certificate is a must.

  • Address Proof- Permanent Residence Lease agreement if any of the recent utility bills such as electricity bill and telephone bill or a bank account statement.

  • The PassBook or the Bank Statement from the past 6 months.

  • A guarantor form is optional.

  • The applicant should produce the admission of the Institute accompanied by the schedule of the fees.

  • If the applicant has done a degree in HSC or SSC, then the mark sheet and pass certificate should be produced.

 Documents Required for Education Loan for Other Induvial

  • Identity Proof- Government Department ID Card/ PAN Card/ Driving License/ Passport

  • A certificate of computation of income from a Chartered Accountant and the Income Tax returns of the past 2 years should be produced.

  • Address Proof- Permanent Residence Lease agreement if any of the recent utility bills such as electricity bill and telephone bill or a bank account statement.

  • The PassBook or the Bank Statement from the past 6 months.

  • A guarantor form is optional.

  • The applicant should produce the admission of the Institute accompanied by the schedule of the fees.

  • If the applicant has done a degree in HSC or SSC, then the mark sheet and pass certificate should be produced.

 Documents Required for the first disbursement of the loan

  • The Demand Letter with a seal from the college or university.

  • The Loan agreement which is to be signed by the applicant and the Co-applicants.

  • The Sanction Letter which is signed by the applicant and the Co-applicants.

  • A Disbursement request form that has been signed by the applicant and the Co-applicants.

  • The Receipts of Margin money paid to the college or the university along with bank statement reflecting the transaction should be produced.

  • The documents that contain the details of collateral security should also be produced.

  • In the case of abroad studies, Form A2 signed by applicant or Co-applicants should be given as well.

 Documents Required for the subsequent disbursement

  • Demand Letter from college or university

  • Disbursement request form signed by the applicant, Co-applicants.

  • Receipts of Margin money paid to the college/university along with bank statement reflecting the transaction

  • Exam Progress Report/Marksheet/Bonafide Certificate

  • Form A2 signed by applicant or Co-applicants in case abroad Institute cases.


Interest Rates and Charges

  • The maximum amount of loan that can be borrowed is Rs. 75 Lacs.

  • The interest Rate Slabs for the Loans are as follows:

Loan Type

Loan Amount (Rs)

Effective ROI

Education Loan

Up to 4 lacs

15.2%

Loans greater than Rs.4 lacs and up to Rs. 7.5 lacs

14.7%

Loans greater than 7.5 lacs

13.7%

 

 Charges Applicable on the loans

Title

Charges Applicable

Prepayment Charges

Nil

Default Interest Rate

@24% per annum, in other words. 2% will be charged every month that is defaulted

Repayment Instruction/ Instrument Return Penalty

Rs. 500 + GST Per Instance

Cheque/ Instrument Swap Charges

Rs. 500 + GST Per Instance

Duplicate Statement Issuance Charges

Rs. 250 + GST Per Instance

Duplicate Amortization Schedule Issuance Charges

Rs. 250 + GST Per Instance

Duplicate Interest Certificate (provisional/ actual) Issuance Charges

Rs. 250 + GST Per Instance

Out of Pocket Expenses

Up to 1% of the Loan amount + GST

 


Central Scheme for Subsidy

This is a Government formulated scheme under which a full subsidy on the interest will be given during the moratorium period that is inclusive of the Course Period plus one year or six months after getting a job, whichever is earlier. The main aim of the scheme is to support the students belonging to the Economic Weaker Section (EWS) so that they will be able to complete their higher studies.

Features of this Scheme

  • The interest subsidy will be available for the eligible students only once. Graduation level courses and Post-Graduation Courses which are career-oriented and are from recognized institutions will be considered eligible. Integrated courses where the graduation and post-graduation will be done simultaneously will also be considered.

  • Under the following conditions, the interest subsidy will be discontinued:

    • Applicants who discontinue the course mid-stream

    • The students who are expelled based on their academic performance or disciplinary grounds.

    • In the case of a medical emergency, the records and receipts should be produced otherwise subsidy on interest will not be given.

  • State Government has designated appropriate authority or authorities who are competent to issue Income certificate, based on the economic index and not social background, for the purpose of this scheme

  • The interest charged on these loans will be according to Education Loan Scheme of the bank.

 Documents Required

  • Income Certificate issued by appropriate authority/authorities designated by respective State Government

  • Bonafide Certificate or the study certificate of the student.

  • If the student is qualifying for the subsidy scheme, the Interest Subsidy Agreement, Letter of undertaking cum Declaration needs to be signed by the borrowers. 



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