Introduction In the present day scenario, education has become an item of purchase like purchase of any other items in the market. Out of that, professional and technical education in India has become very luxurious, where even an upper middle class man is not able to afford the same out of his earnings in a year. It has become imperative to knock the doors of the banks in India to avail of a loan for education whether it is within the country or abroad. Nowadays all the public sector banks as well as private sectors banks are offering educational loans which is a good option to the common man to get his wishes to be fulfilled in this sector. Axis Bank is one of the banks which is offering education loans in India for studies in India or abroad.
Eligibility The loan is for the students who want to pursue their studies in career oriented courses / programmes i.e. professional or technical studies like Management, Medicine, Engineering, etc. at graduate or post graduate level. To get sanction for an education loan, the student should have passed HSC (10+2) or graduation with at least 50% marks and he/she should have obtained the admission through passing out the entrance test or a merit based selection process after completion of HSC.
Documents Required for Loan The education loan is to be applied for along with the Parent / Guardian as co-applicant who would be treated as Prime Debtor as per the bank records. In the process of sanctioning of education loan, a set of documents are to be submitted which pertains to the co-applicant. Different set(s) of documents are to be required for salaried persons and non-salaried persons.
Amount of the Loan This bank sanctions education loans of Minimum Rs.50,000 and Maximum Rs.75 lakhs for studies in India or abroad. Amount of the loan would be decided by the bank authorities on case to case. The sanction of loan would be for the tuition fee, purchase of books, library fees, hostel charges, etc. The loan amount will be disbursed to the institution in which the studies are being undertaken as and when demanded by them and to the vendor, if any, towards purchase of books.
Applicable Interest & Margin The MCLR (Marginal Cost based Lending Rate) which is being offered by the bank is 8.15%. Further, from the customer's point of view, i.e. the borrower, he would get the benefits of: upto the oan of Rs.4 lakhs there is no margin and 5% margin is on the loans above Rs.4 lakhs for studies in India. The margin is 15% on the loans above Rs.4 lakhs for studies on abroad.
Offers from the Bank All these loans are being offered by the bank with no processing fee, no pre-payment charges and no pre-closure charges. Further the loan will be sanctioned with a time frame of 15 working days from receipt of duly filled-in application in all respects alongwith required documents.
To sum up To fulfill the dreams of a common man in this arena, a helping hand in the form of education loan can be taken from the Axis Bank. Further, the category of people who come under Economically Weaker Sections can obtain subsidy of interest and repayment tenure as per the promotional policies / schemes of the Ministry of Human Resources and Development, Govt. of India.