Axis Bank Education Loan for Study Abroad: Complete Guide

The popular retail bank, Axis Bank, offers education loans for Indian students looking to study overseas. One of the main benefits of an Axis Bank Education Loan is that it offers multiple loan options, and loans up to INR 40 lakhs are collateral-free for specific high-ranking courses abroad. Learn more about education loans at Axis Bank and how to apply for one if you're heading abroad to study.¹

Axis Bank Education Loan for Study Abroad

A unique feature of Axis Bank Education Loans is that you can choose the type of loan that best fits your profile. Here is a guide to the different study-abroad loan variants offered by Axis Bank.²

PRIME Abroad

The PRIME Abroad loan is offered to qualifying students who pursue a full-time course abroad at one of the premier universities recognized by Axis Bank. The benefits of a PRIME Abroad loan are that you can get up to INR 50 lakhs without collateral with a repayment term of up to 15 years.

Students approved for this loan will also receive a multi-currency forex card they can use overseas and doorstep service from Axis Bank at their home in India.

GRE-based Funding

The GRE-based funding loan is offered to students who qualify based on their GRE scores. The GRE is an admission test often required by universities abroad for graduate and professional degrees.

Students who have performed well on their GRE can apply for this loan and receive concessions on collateral depending on their score:

The repayment term for this loan is available for up to 10 years after completing the course program.

Income-based Funding

This loan is based on the income of a co-applicant. Depending on the co-applicant's income, this loan is available for up to INR 40 lakhs without collateral. Beyond INR 40 lakhs, Axis Bank may ask for collateral. The repayment term for this loan is available for up to 10 years after the course is complete.

Loan for Higher Studies

Similar to a general higher education loan, this loan is for post-secondary studies abroad. No collateral is required for loans up to INR 7.50 lakhs, but it can be requested above this amount. You can get doorstep service when working with Axis Bank, and there are no charges if you pay off the loan and close the account early.

Loan for Working Professionals

Under this scheme, working professionals can apply for an education loan to fund their higher studies. This type of loan does not require a co-applicant, and collateral is not required for loans up to INR 40 lakhs. Loan tenure is available for up to 10 years, and you will need to show evidence of your income.

Balance Transfer Facility

If you are currently repaying an education loan, considering the Axis Bank Balance Transfer facility may be worth considering. Refinancing your existing loan with Axis Bank can reduce your interest charges and monthly payments. And if you are able to pay the loan off before the end of the term, there are no charges or fees.

Requirements for Axis Bank Study Abroad Loan

While Axis Bank Study Abroad loans come with multiple options, students and their families should ensure they meet the eligibility requirements before applying.³

Student Eligibility Criteria

A student is required to meet the following eligibility requirement for any of the Axis Bank education loans:

• The student should be an Indian citizen.
• A co-applicant must be on the application and show proof of income. The co-applicant must be a family member, like a parent, siblings over 18 years old, spouse, or parents-in-law.
• Received at least 50% marks in HSC and graduation.
• Already received admission to the desired university, college, or program overseas.

The student applicant is expected to have met all the entry requirements, beyond admission, for the program abroad.

Collateral Security Requirements

While the student eligibility criteria are the same for all the loans, the collateral requirements differ per loan.²

Axis Bank can ask for collateral security for loan amounts above the limit or in specific cases.¹

Upfront Payments Required

Axis Bank does require the payment of fees for all loans and has a margin requirement for specific loan amounts.

• Upfront processing Fees: A maximum of 2% of the loan amount.⁴
• Margin: Loans above INR 4 lakhs require a 15% margin, provided pro-rata at each loan disbursement.¹

In addition, if you provide property as collateral for a loan, you are required to pay the out-of-pocket expenses for property evaluation and legal appraisal.

Interest Rates for Axis Bank Study Abroad Loan

The interest rate for Axis Bank Education Loans is linked to the Reserve Bank of India's Repo rate.⁴ The bank adds a spread on top of the repo rate, which can depend on several factors, such as the loan amount, repayment tenure, collateral value, and the borrowers' credit rating. Here are the current interest rates for an Axis Bank education loan, based on the loan amount:

Please note that the interest rate may vary based on your application profile.

Repayment Terms for Axis Bank Study Abroad Loan

Once the loan is approved, Axis Bank provides a moratorium period that lasts through the course duration plus an additional six months.

After the moratorium ends, the bank expects you to start making the monthly principal and interest on the loan. Axis Bank offers a loan tenure of 10 to 15 years, depending on the loan – but you can also pay it back sooner.²

How to Apply for Axis Bank Study Abroad Loan

The easiest and most convenient way to start the process for an Axis Bank loan is to do it online.⁵ But if you prefer, you can also head to your local Axis Bank branch to get started. You must speak to an Axis Bank representative before submitting a formal application in both cases.

Online Axis Bank Study Abroad Loan application

• Access the official online education loan application on the Axis Bank website.
• Confirm whether you are an existing customer.
• Provide your mobile number, state and city of residence, name, and email.
• Complete the Captcha verification and tick on the box authorising Axis Bank to contact you regarding the loan application process formalities.
• You'll get a call back from an Axis Bank official, who will take you through the education loan application process.

Offline - In person

• Students can head to their local branch of Axis Bank and get their loan application started with the assistance of a loan official.

Documents required

Make sure you have the following documents with you when you are ready to apply for an education loan:³

• KYC documents of the student and co-applicants, including ID and address.
• Income proof documents, including bank statements or passbooks for the last six months.
• Copy of the admission letter from the university.
• The university fee schedule for disbursements.
• Marksheets of all exams passed from Standard X onwards.
• Respective documents for collateral, if required.

Axis Bank Education Loan Disbursement Process

Axis Bank disburses tuition and other expenses directly to the university or college abroad. You can request the bank to credit your overseas bank account for your living expenses.

Start your journey with Wise: the world’s most international account⁸

Opening an overseas account is one of the first things you will need to figure out when you arrive abroad for your studies. Check out the Wise multi-currency account available for residents living in supported countries. Enjoy an account as worldly as you are and spend just like a local when you travel abroad with a linked debit card, while also paying less in fees.

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