Axis Bank Education Loan for Abroad
Securing funds for higher education is a crucial step in realizing one’s academic aspirations. Education loans serve as a financial lifeline for students looking to pursue under graduation, post-graduation, or specialized courses both in India and abroad. In this comprehensive guide, we will explore the nuances of education loans, focusing on the offerings provided by Axis Bank.
Established in 1994 under the name UTI Bank, Axis Bank is currently the third-largest private commercial bank in India. The bank extends education loans to students aspiring to pursue studies both within India and abroad. Axis Bank offers a range of education loan options, including both secured and unsecured loans for overseas education.
For unsecured education loans abroad, students can access amounts up to 50 Lakhs INR. In the case of secured education loans, the loan amount can reach up to 85% of the collateral pledged by the borrower.
Axis Bank Education Loan for Abroad categorizes educational institutions based on their target universities into three groups:
- Prime A: This category comprises primarily Master’s programs from top universities.
- Prime B: It includes a mix of Master’s and a few bachelor’s degree programs.
- Non-prime: This category encompasses courses and institutes not listed in Prime A or B.
Beyond meeting the financial needs of students studying abroad, Axis Bank’s education loans offer an additional advantage—a 100% tax benefit on the interest paid, as per Section 80(E) of the Income Tax Act. Moreover, being a scheduled commercial bank, Axis Bank provides access to government schemes like the Central Government Interest Subsidy Scheme (CSIS), particularly benefiting economically weaker sections with incomes up to Rs. 4.5 Lakhs.
Types of Axis Bank Education Loan for Abroad
- Undergraduate Education Loan:
- For students completing secondary education.
- Applicable for higher studies in India or abroad.
- Postgraduate Education Loan:
- Aimed at individuals pursuing post-graduation after completing undergraduate studies.
- Available for both domestic and international education.
- Parents Availing Education Loan:
- Unsecured loans for parents funding their children’s education.
- Can cover elementary, higher secondary, graduate, or post-graduate courses.
- Career Growth Education Loans:
- Designed for young professionals seeking career-enhancing courses, certifications, or training.
Features of Axis Bank Education Loan
- Objective: To provide term loans for Indian students pursuing higher education.
- Quantum of Loan: Ranges from INR 50,000 to INR 75 Lakhs, subject to eligibility and creditworthiness.
- Margin: No margin for loans up to INR 4 Lakhs; 5% for domestic studies above INR 4 Lakhs; 15% for overseas studies above INR 4 Lakhs.
- Security: Parents/guardians act as co-applicants and tangible collateral is accepted. Third-party guarantees and LIC policies are also considered.
- Processing Fees: No processing fees for availing of Axis Bank education loans.
Eligibility Criteria of Axis Bank Education Loan for Abroad
To be eligible for an unsecured Axis Bank education loan for studying abroad, several criteria must be met. These criteria are designed to ensure that the applicant and co-applicant meet certain financial and educational standards. Here are the key eligibility requirements:
- Indian Citizenship: Both the applicant and co-applicant must be Indian citizens.
- Academic Performance: The applicant should have secured a minimum of 60% in both Higher Secondary and Graduation.
- CIBIL Score: The co-applicant’s CIBIL score should be more than 600, indicating a satisfactory credit history.
- Monthly Income: The co-applicant must have a monthly salary of more than 35,000 INR, and they should not have any ongoing EMIs (Equated Monthly Installments).
- Income Proof: The co-applicant needs to provide either 3 years of Income Tax Returns (ITR) or 2 years of Form-16 as proof of financial stability.
- Co-applicant: Acceptable co-applicants include Father, Mother, Brother, Sister, or Spouse, and they must be from the immediate family.
- Admission Letter: The applicant must provide the admit letter for the approved Master of Science (MS) courses from the relevant educational authorities.
- University/College Selection: The university or college where the applicant plans to study must be included in Axis Bank’s categorical list of approved educational institutions.
Meeting these eligibility criteria ensures that the applicant and co-applicant are well-qualified and financially stable, increasing the likelihood of approval for an unsecured Axis Bank education loan for overseas studies.
How to apply for an Axis Bank Education Loan for Abroad?
To apply for an Axis Bank abroad education loan:
- Choose your course and university, ensuring it’s on Axis Bank’s approved list.
- Check eligibility criteria.
- Decide between unsecured or secured loans.
- Collect required documents.
- Visit a branch or apply online on the Axis Bank website.
- Submit the application form and documents.
- Await review and approval.
- Upon approval, the loan is sanctioned and disbursed.
- Understand repayment terms and utilize any additional benefits.
- Ensure timely document submission for a smooth application process.
Axis Bank not only offers unsecured loans for education but also provides secured loans for those willing to pledge collateral. When opting for a secured abroad education loan with Axis Bank, the co-applicant’s profile plays a crucial role. Depending on the type of collateral, the loan features vary. If a residential property is pledged as collateral and the co-applicant is salaried, the borrower can access up to 85% of the property value. For a residential property with a self-employed co-applicant, the loan amount can go up to 75% of the property value. Pledging a commercial property allows for a loan of up to 50% of the property value. The interest rates for secured loans range between 9.99% and 10.50%.
Notably, one significant advantage of a secured education loan is that it is not restricted by the course or university, providing flexibility for borrowers irrespective of their institution’s inclusion in the Axis Bank university list.