Axis Bank Education Loan

Axis bank is first private bank to start operations post liberalization, in 1994. With 1281 branches, the bank is disbursing education loans with an aim of fulfilling the higher education needs of deserving candidates. Let’s check here and find out how cost-effective the education loans of Axis Bank are…

Interest Rates

Charges

Flexibility

• Eligibility: Loan would be provided to students, who have obtained admission to medicine, engineering, management, etc., either at graduate or post-graduate level. The course should necessarily be career-oriented.

• Loan Amount: The minimum loan amount available is Rs 50,000 and the maximum is Rs 10 lakh for studying in India, and Rs 20 lakh for studying abroad.

• Margin: Margin is a percentage of study cost that borrower has to pay. No margin is applicable for educational loans up to Rs 4 lakh. However, for amount above Rs 4 lakh, 5% margin would be applicable for studying in India, and 15% margin would be applicable for studying abroad.

• Repayment options

1. Repayment Holiday/ Moratorium = Course Period + 1 year, or 6 months after getting job, whichever is earlier.
2. The tenure can be extended up to 12 years.

• Security

1. The parent or guardian would be taken as co-applicant, and would be treated as primary loan taker.
2. Third-party guarantee or collateral security may be asked in certain cases, which will depend at the discretion of bank.
3. The bank requires an LIC policy, whose sum assures equals 100% of the loan amount. If an individual does not have a LIC policy, the bank will buy it for him and include the premium of the policy in the loan amount. The policy will remain valid till the loan term.

• Time taken for processing: The website cites that the turn-around time for the bank to process loans is 1 month.

• Special options: In case of loan to a girl child, special interest rates, and different terms & conditions will be applicable.

Example

Other Details

• Pre-Sales Information: The website contains all information including the interest rates and the allied charges applicable in a precise format. In addition to this, it also contains application form and education loan agreement for applicants to go through. The sales staff and the customer care service members are also well equipped with all information required by existing and new applicants.
• Customer Support: The good customer support is in question as complaints registered online deal with mis-selling, though such complaints are less in number. There are also complaints regarding wrongly deducted charges and various other operations issues.

Documents Required

Ratings