• Home >
• For Students >
• Student Loans >
• Axis Bank 

Axis Bank's Education Loan aims to provide the much needed financial support to deserving students for pursuing higher professional or technical education in India and abroad. The education loan would be provided to those students who have obtained admission to career-oriented courses e.g. medicine, engineering, management etc., either at the graduate or post-graduate level.
We believe, given the right tools and aid every child has the potential to be successful. Our education loans aim to be the very tool that will enable them to reach their goals in life. No more would a deserving student have to give away their pursuit of dreams due to lack of money. Our student loans will ensure that worthy students are empowered to take their destiny in to their own hands. Our endeavour is to help the future of our nation in education and prosperity.

The quantum of finance under the scheme is capped at Rs 10.00* lacs for studies in India and Rs 20.00* lacs for studies abroad, which would cover tuition fees, hostel charges (if any), cost of books, etc. The minimum amount of education loan would be Rs 50,000. *The Quantum of Loan can be Higher amounts above these caps subject to eligibility and cost, for case-to-case approval.

No margin for education loans upto Rs 4 lacs. For loans above Rs 4 lacs, 5% margin for studies within India and 15% for higher studies overseas.

Bank will convey its decision within 15 working days from the date of receipt of the application provided the application is complete in all respects. The computation of 15 days shall starts from the day on which all documents required for a proper appraisal of the application are provided by the Customer to bank.

The parent(s) or guardian of the student would be treated as a co-applicant of the student loan. His or her role would be, necessarily, like the primary debtor.

Third party guarantee and/or collateral security may be asked for in appropriate cases.

Assignment of LIC policy in favour of the Bank for the sum assured being at least 100% of the education loan amount. The policy is kept alive during the currency of the education loan. To ensure this, the annual premium may be included in the computation of the loan requirement, along with the tuition fees and other recurring charges. Further, the future income of the student needs to be assigned in favour of the Bank for meeting the installment obligations.

The student loan will be disbursed in full or in suitable installments taking into account the requirement of funds and/or fee schedule as assessed by the Bank directly to the educational institution or vendor of books or equipment or instruments.

Education is the inevitable right of every child and we at Axis bank ensure that it is not denied due to unaffordable education loan interest rates. Our education loans are designed in a manner that is highly affordable in terms of interest and the associated servicing charges. This will ensure that you do not have to stress too much for your child’s higher education and are able to provide for all their educational needs on time.

Marginal Cost Based Lending Rate (MCLR) – Value

Applicable MCLR - Fortnightly/Monthly/Quarterly/Half Yearly/Yearly

Customers who have availed disbursement/have received a sanction prior to March 31, 2016 will continue to operate on base rate. Existing customers can get in touch with our customer care, if they wish to switch to MCLR.

• It includes various categories like fixed rate, floating rate and is based on factors such as loan amount, customer relationships, etc.
• Mean rate = Sum of rate of interest of all loan accounts / Number of all loan accounts.
• Annual Percentage RateThe Annual Percentage Rate (APR) is a method to compute annualized credit cost which includes interest rate and loan origination fee.

• Bank reserves the right to reject any application / renewal without assigning reasons thereof. It shall be the sole right of the Bank to consider the proposal on case to case basis after taking into consideration, the credentials/credit worthiness of each of the customers.
• The applicant will undertake to inform the Bank as and when there is a change in address or employment.
• The terms and conditions mentioned above and elsewhere under the scheme are subject to modification from time to time solely at Bank's discretion.

As directed by the Reserve Bank of India, from time to time through its circulars, the Bank has adopted modified Fair Practice Code for Lenders as approved by the Board of Directors. The salient features of the same are:

Applications for Loan:

In the loan application form, the Bank shall provide comprehensive information including information about fees and charges if any payable for processing and amount of such fees refundable in case of non acceptance of application, prepayment options and other matter which affects the interest of the borrowers, of all categories of loans, irrespective of the amount of loan sought by them.

Processing:

• The Bank shall provide acknowledgement for receipt of all loan applications indicating the time frame within which the application will be disposed of.
• The Bank shall verify the loan application and if additional details / documents are required, these will be sought from the applicant.
• For all categories of loans and irrespective of any threshold limits, the Bank will be expected to process the application without delay. In case the application is turned down, the Bank will convey in writing to the applicant the reasons for rejection within one month.

Loan Appraisal and Terms and Conditions:

• The sanctioning authority will be expected to ensure proper assessment of the credit application as per the extant instructions and credit policy of the bank. The availability of adequate margin and security will not be a substitute for due diligence on the creditworthiness of the customer.
• All the terms and conditions and other caveats will be duly communicated by an authorized official of the Bank to the customer in writing.
• The acceptance of the customer will be obtained on the sanction letter with the customer's signature under the caption "I/WE ACCEPT ALL THE TERMS AND CONDITIONS WHICH HAVE BEEN READ AND UNDERSTOOD BY ME/US".
• A copy of the loan agreement along with all the enclosures quoted in the loan agreement will be furnished to the customer at the time of issue of the sanction letter.
• The sanction letter / loan agreement will clearly state that the credit facilities will be extended solely at the discretion of the Bank and that drawings under the following circumstances will be solely at the discretion of the Bank.
• Drawings beyond the drawing power / sanctioned limits.
• Honouring of cheques issued for the purpose other than specifically stipulated in the sanction.
• Drawings in an account once it is classified as NPA.
• No drawings will be allowed in case of non-compliance of the terms and conditions by the borrower.
• Meeting further requirements of the borrower on account of growth in business will be subject to proper review of the credit limits.

Disbursement of loans including changes in terms & conditions:

• The disbursement will be done immediately on compliance of all the terms and conditions of the sanction by the borrower and the branches need not refer to the sanctioning authority for disbursement.
• Any changes in the terms and conditions of the sanction such as interest and charges will be notified to the borrower before effecting the changes.
• Any changes in interest rate and charges will be effected only prospectively after giving due notice to the borrower.

Post disbursement supervision:

• The post disbursement supervision, such as submission of periodical reports and periodic inspection, will be stipulated at the time of issue of the sanction letter. The sanction letter would also mention whether the Bank or the borrower will bear the cost of inspection.
• The Bank will issue notices to the borrowers in advance in case the Bank decides to recall the advance / accelerate the payment / accelerate the performance under the loan agreement. Or seek additional securities.
• The Bank shall release all securities on receiving payment of loan. However, the Bank may decide to exercise the right to set off any legitimate right or lien for any other claim against borrower. In case the Bank decides to retain the security, the borrower will be notified about the remaining claims and the documents under which the Bank is entitled to retain the security till the relevant claim is paid / settled.

Others:

• The Bank will not interference in the affairs of the borrowers except where provided for in the terms and conditions of the loan sanction documents, such as periodic inspection, scrutiny of books of accounts, verification of stocks and book debts, and scrutiny of QIS statements.
• In case any information not disclosed earlier by the borrower has come to the notice of the Bank, the Bank will have the right to elicit the necessary information from the borrower and initiate action to protect its interest.
• While, the Bank may participate in credit-linked schemes framed for weaker sections of the society, the Bank shall not discriminate on grounds of sex, caste and religion in the matter of lending.
• In the matter of recovery of loans, the Bank shall not resort to undue harassment such as persistently bothering the borrowers at odd hours and use of muscle power.
• In the case of receipt of request for transfer of borrowal account, either from the borrower or from other banks / FIs which propose to take over the loan, the Banks' consent or objection, if any, shall be conveyed within 21 days from the date of receipt of request.

TOP