Established in 1994 as UTI Bank, Axis Bank is the third-largest private commercial bank in India, offering education loans for both domestic and international studies. The bank provides secured and unsecured abroad education loans, with the unsecured option allowing for amounts up to 50 Lakhs INR, and the secured option allowing for up to 85% of the collateral pledged.
Axis Bank categorizes educational institutions based on the target university into three groups: Prime A, which primarily includes Master’s programs from top universities; Prime B, which includes both Master’s and some bachelor’s degrees; and Non-prime, encompassing courses and institutes not included in Prime A & B lists.
Apart from meeting financial needs for studying abroad, Axis education loans offer a 100% tax benefit to students on the interest paid under Section 80(E) of the IT Act. Additionally, being a scheduled commercial bank, Axis Bank provides access to government schemes like the Central Government Interest Subsidy Scheme (CSIS) for Economically Weaker sections (income up to Rs. 4.5 Lakhs).
Overview of Axis Bank Education Loan for Abroad without Collateral
Opting for an education loan abroad without collateral from Axis Bank comes with numerous advantages, particularly if you lack collateral for a secured loan. Axis Bank Education Loan for Abroad without Collateral stands out as an excellent choice. The bank has meticulously curated a list of overseas universities, classifying them into STEM and non-STEM courses, further categorized as prime and non-prime universities. The features associated with these categories vary, providing tailored benefits for students pursuing different types of courses.
- Loan Amount
- Prime A: This category allows students to borrow a maximum amount of 50 Lakhs for their education.
- Prime B: Students under this category can secure a loan amount of up to 40 Lakhs.
- Non-Prime: For this category, the loan is granted on an immediate Equated Monthly Installment (EMI) basis.
- Interest Rate
- The interest rate is variable, ranging from 9.99% to 12.5%.
- The interest rate is of the floating type, implying that it may change based on market conditions.
- Minimum Income (Co-Applicant)
- A minimum income of 35,000 INR is required for the co-applicant, and this income should not have additional obligations.
- During the course, only Simple Interest (S.I.) needs to be paid.
- There is a grace period of 1 year post-completion of the course before the full repayment begins.
- Processing Fees
- A processing fee of 0.75% is applied to the sanctioned loan amount.
- Goods and Services Tax (GST) is applicable on top of the processing fee.
- Margin Money
- All categories require a 5% margin money contribution.
- Proof of this contribution needs to be provided before loan approval.
- Loan Tenure
- The maximum loan tenure is up to 15 years, providing a flexible repayment period.
- Processing Time
- The bank aims to process and approve the loan within 5 to 7 days after the submission of required documents.
- Prepayment Penalty
- There is no penalty imposed for prepayment, allowing borrowers to settle the loan ahead of schedule without incurring extra charges.
- Tax Benefit
- The education loan offers tax benefits as per the provisions of the Income Tax Act, allowing students to enjoy deductions on the interest paid.
Eligibility Criteria of Axis Bank Education Loan for Abroad without Collateral
To qualify for an Axis Bank education loan for abroad without collateral, certain eligibility criteria must be met. Here are the detailed conditions:
- Nationality – Both the applicant and co-applicant must be Indian citizens.
- Academic Performance – The applicant should have achieved a minimum of 60% in both Higher Secondary and Graduation.
- CIBIL Score – The co-applicant is required to have a CIBIL score exceeding 600, reflecting a favorable credit history.
- Income Criteria – The co-applicant’s monthly salary must surpass 35,000 INR, and they should not have any existing financial obligations, such as ongoing EMIs.
- Financial Documentation – The co-applicant needs to furnish either 3 years of Income Tax Returns (ITR) or 2 years of Form-16, demonstrating their financial stability.
- Co-applicant – The co-applicant should belong to the immediate family, with acceptable relationships being Father, Mother, Brother, Sister, or Spouse.
- Course Eligibility – The loan is applicable exclusively to master’s courses.
- Admission Confirmation – Submission of the admit letter for approved Master’s courses from relevant educational authorities is mandatory.
- Institutional Recognition – The university or college chosen by the student must be included in Axis Bank’s categorized list of educational institutions.
Ensuring compliance with these eligibility criteria enhances the likelihood of approval for an education loan from Axis Bank. Prospective applicants should thoroughly review and satisfy each requirement to streamline the loan application process.
Documents required for Axis Bank Education Loan for Abroad without Collateral
Axis Bank typically asks for a set of standard documents when processing an Education Loan for Abroad without collateral. Here is a general list of documents that applicants are often required to submit for an Axis Bank education loan for abroad without collateral.
- Application Form – Complete and signed application form for the education loan.
- Proof of Admission – Document confirming admission to the respective course in the foreign institution.
- Mark Sheets and Certificates – Academic records including mark sheets and certificates of the qualifying examinations.
- Proof of Identity – Government-issued photo identification such as a passport, Aadhar card, PAN card, or driver’s license.
- Proof of Residence – Utility bills, rental agreement, or any other document confirming the applicant’s residential address.
- Passport Size Photographs – Recent passport-sized photographs of the applicant.
- Co-Borrower’s Documents – If there is a co-borrower, such as parents, their proof of identity, residence, and income documents may be required.
- Income Proof of Co-Borrower – Income tax returns, salary slips, or any other document demonstrating the co-borrower’s ability to repay the loan.
Axis Bank’s Education Loan for Abroad without collateral emerges as a beacon of hope for aspiring students seeking international education. By providing a financial bridge to cover various expenses associated with studying abroad, Axis Bank is empowering the next generation of global professionals. As the world becomes more interconnected, such financial support systems play a crucial role in shaping the future of talented individuals eager to contribute to the global knowledge economy.