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
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
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.
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:
| GRE Score | Loan Amount Available |
|---|---|
| Between 300-315 | Up to INR 30 lakhs without collateral |
| Above 316 | Up to INR 40 lakhs without collateral |
The repayment term for this loan is available for up to 10 years after completing the course program.
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.
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.
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.
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.
While Axis Bank Study Abroad loans come with multiple options, students and their families should ensure they meet the eligibility requirements before applying.³
A student is required to meet the following eligibility requirement for any of the Axis Bank education loans:
The student applicant is expected to have met all the entry requirements, beyond admission, for the program abroad.
While the student eligibility criteria are the same for all the loans, the collateral requirements differ per loan.²
| Loan Type | Collateral Requirement |
|---|---|
| Prime Abroad | No collateral up to INR 50 lakhs on a case-to-case basis. |
| GRE-based Funding | No collateral up to INR 40 lakhs based on GRE scores. |
| Income-based Funding | No collateral up to INR 40 lakhs. |
| Loans for higher study (abroad) | No collateral up to INR 7.50 lakhs. |
| Loan for Working Professionals | No collateral up to INR 40 lakhs. |
Axis Bank can ask for collateral security for loan amounts above the limit or in specific cases.¹
Axis Bank does require the payment of fees for all loans and has a margin requirement for specific loan amounts.
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.
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:
| Loan Amount | Effective Interest Rate* |
|---|---|
| Up to INR 4 lakhs | 15.20% |
| From INR 4 lakhs to INR 7.50 lakhs | 14.70% |
| Above INR 7.50 lakhs | 13.70% |
*Rates retrieved on 1 June 2023.
Please verify the latest interest rates from the Axis Bank website.
Please note that the interest rate may vary based on your application profile.
| 💸 Income Tax Benefit |
|---|
| Education loan borrowers get tax benefits under Section 80E of the Income Tax Act.⁷ It allows the student or their family to get a tax exemption on the interest paid on an education loan during each financial year. |
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
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.
Make sure you have the following documents with you when you are ready to apply for an education loan:³
| 📞 Contact Details of Axis Bank | |
|---|---|
You can reach out to Axis Bank online or over the phone with any questions during this process:⁶
|
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.
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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Sources used for this article:
Sources verified on 1 June, 2023.
Cover photo by Parker Gibbons on Unsplash.
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