Axis Bank Education Loan for Study Abroad

What is the Axis Bank Education Loan for studying abroad?

Axis Bank offers education loans to Indian students planning to study at international universities. Depending on the university tier, course choice, and academic profile, students can secure up to ₹1 Crore or more to fund their overseas degree.

The loan covers the entire financial scope of studying abroad:

• Tuition and College Fees: Paid directly to the international institution.
• Living Expenses: Hostel, PG accommodation, food, and daily living costs.
• Travel Expenses: One-way economy airfare to the study destination.
• Equipment and Supplies: Laptop or computer purchase, lab equipment, books, and study materials.
• Mandatory Charges: Health insurance premiums, examination fees, and library charges.

Axis Bank study abroad loan interest rates

Axis Bank education loans for studies in India and abroad are offered at floating rates linked to the RBI Repo Rate. Education loan interest rates can vary because the Repo Rate is reset every three months.

The rate offered to an individual borrower is therefore subject to the applicable loan terms and the bank’s assessment.

Eligibility criteria for Axis Bank abroad education loan

Applying for an education loan for studies abroad through Axis Bank requires meeting the bank’s basic eligibility conditions.

Student eligibility

• Nationality: The student must be an Indian citizen.
• Academic Record: A minimum of 50% marks in HSC and graduation is required under the bank’s stated eligibility criteria.
• Course Level: The loan is available for career-focused courses, such as medicine, engineering, and management, at the graduate and postgraduate levels.
• Admission Status: Admission must be secured in India or abroad through an entrance examination or merit-based selection process after completing HSC (10+2).

The final eligibility is determined by Axis Bank based on its policy at the time of loan application and disbursement.

Co-applicant eligibility and credit score requirement

Since students generally do not have a regular independent income, the co-applicant plays an important role in the loan assessment.

• Acceptable Co-applicants: Parents, spouses, siblings, or parents-in-law may be co-applicants, depending on the applicable loan structure.
• Income: Axis Bank does not prescribe a fixed minimum monthly salary for the co-applicant on its current eligibility page. However, the co-applicant must provide proof of regular income.
• Credit Profile: Axis Bank assesses the financial profile and repayment capacity of the applicant and co-applicant.

Documents required for Axis Bank study abroad loan

Paperwork for an Axis Bank education loan must be complete before the application is processed.

• Student Documents: KYC documents, admission letter with the fee schedule, and mark sheets or passing certificates for SSC, HSC, and degree courses.
• Co-Applicant Documents: KYC documents and financial documents. For salaried applicants, Axis Bank requires bank statements or passbook records for the last six months, along with salary-related documents. Self-employed applicants may need bank statements, GST documents, and ITRs.
• Collateral Documents: Where collateral is required, the relevant security documents must be submitted.
• For Overseas Disbursement: Form A2 is required for an overseas institute, along with the other documents specified for disbursement.

Loan amount and margin money requirement

Axis Bank offers different education-loan limits depending on the applicable scheme and the student’s profile.

For Prime Abroad, the bank offers an unsecured loan of up to ₹1 crore. Its broader education-loan offering’s maximum collateral-free amount can reach ₹1.5 crore, subject to eligibility and applicable terms. Loans with collateral can be sanctioned based on the value of the security and the bank’s assessment.

Margin requirements are structured as follows:

• Loans up to ₹4 lakh: No margin.
• Loans above ₹4 lakh for studies in India: 5% margin.
• Loans above ₹4 lakh for studies abroad: 15% margin.
• Select institutes: Axis Bank states that no margin may be required.

Scholarships, fixed deposits, or the borrower’s own funds paid to the institute can be considered towards the margin, subject to the bank’s terms.

Processing fees, prepayment, and other charges

The exact charges should be checked against the applicable sanction and fee schedule before disbursement.

• Processing Fee: Up to 2% of the loan amount plus applicable GST, as per the applicable Axis Bank fee schedule.
• Prepayment & Foreclosure Charges: Axis Bank states that education loans do not carry prepayment charges. Its education-loan information also states that there are no foreclosure charges.
• Property Valuation / Legal Fees: These may apply where collateral is offered and are subject to the applicable charges and transaction requirements.

Repayment options and moratorium period

Repayment schedules are built around the study timeline:

• Moratorium Period: Spans the total course duration plus a 6-month to 1-year grace period after graduation.
• In-Course Payments: Depending on the scheme, students pay Simple Interest or Partial Simple Interest during the study period to keep interest accumulation manageable.
• Max Tenure: Up to 15 years after the moratorium ends.
• Planning EMIs: Before signing the agreement, use an Axis Bank Education Loan EMI calculator to map out expected monthly payouts against your estimated post-graduation salary.

Axis Bank vs HDFC vs ICICI for Study Abroad Loans

Outlined below is a comparison between Axis Bank, HDFC, and ICICI features for study abroad loans:

Comparing options like an HDFC Bank study loan abroad with Axis Bank ensures you lock in the lowest interest rates and the best repayment terms for your profile.

Tax benefits on Axis Bank education loan under section 80E

Taking an education loan for studies abroad unlocks significant tax savings for the co-applicant or student payer.

Under Section 80E of the Income Tax Act, the entire interest paid on an Education Loan during the financial year is eligible for deduction from taxable income. There is no upper monetary limit on the interest amount you can claim. This education loan tax benefit remains available for up to 8 consecutive financial years starting from the year you begin repaying the loan interest.

How to Apply for Axis Bank Study Abroad Loan Online

You can apply for an education loan for studies abroad via the Urban Money website:

• Visit the official Urban Money website.
• Select Education Loan under the loan category.
• Browse and compare different loan options.
• Click Enquire Now to select your preferred option.
• Enter basic details such as name, city, and mobile number.
• Verify identity using the OTP sent to the registered number.