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Karur Vysya Bank Education Loan
Max Tenure
NA
Best Rate
8.65%
Processing Fee
nil*
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Karur Vysya Bank (KVB) Education Loan
What Is an Education Loan?
An Education loan is the loan or funds acquired by an individual to pursue higher studies in India or abroad. The loan repayment commences for the student after completing the education and a period of 6 months is given as grace period to students to get or join a job.
The repayment amount will be determined by your choice of interest, you need to decide how you want to repay the loan. That is if you want to start paying during the time of moratorium period itself or after the moratorium period. The Moratorium period is the time of your education plus 6 months or 1 year given to get a job. It is only after this time that you are expected to pay the loan.
The loan interest starts to accrue at the time of dispersal of funds, so at the time of your graduation you have a huge amount to repay. The other option is your parents or guardian can start paying the loan during the moratorium period itself where it is calculated as a simple interest.
This way your loan amount at the time of graduation is drastically reduced.
There are 4 types of education loans in India
1. Under Graduate education loan - These are given to students who have completed their secondary education and looking to do higher studies in the form of under graduation. It can be done in India or abroad.
2. Post graduate education loan - These are education loans given to individuals who want to pursue post-graduation after completing under graduation course from a reputed university/college. Here also the loan can be for studying in India or abroad.
3. Parents availing education loan - This is the case where the parents take loan for the education purposes of their children. This is an unsecured loan and need not be for graduate or post-graduation courses but also for elementary and higher secondary courses.
4. Career growth education loans - These are loans provided to young people who want to pursue courses or trainings, certifications that will benefit their career growth.
About Karur Vysya Bank (KVB)
Karur Vysya Bank was started in the year 1916 in Karur, then a small textile town with a vast agricultural background. What started as a venture with a capital of Rs. 1 lakh has grown into a leading financial institution that offers a multitude of financial services, under one roof, to millions of its customers. It has 735 branches and network of 1748 ATM's and around 446 cash deposit machines.
An Introduction to Karur Vysya Bank (KVB) Education Loans
Education is one area where everybody is willing to spend a lot of money to live a prosperous life in the future. Being one of the major education loan providers, Karur Vysya Bank (KVB) understands the needs of the students and offers extremely competitive education loans at better interest rates. Every year, many students secure admissions in top universities and colleges in India and abroad with Karur Vysya Bank (KVB) education loans.
Advantages of Karur Vysya Bank (KVB) Education Loan
Following are some of the advantages of applying for an educational loan with Karur Vysya Bank (KVB).
- Low interest rate
- No hidden costs and administrative charges
- Less paperwork
- No processing fees
- No security required for up to 4 Lakhs
- 0.50% concession for girl students
Features of Karur Vysya Bank (KVB) Student Loan Scheme
Objective: To provide term loan to Indian students for pursuing higher education in India and abroad where admission has been secured
Quantum of Loan:For studies in India, up to INR 10 Lakhs and for studies in abroad INR 20 Lakhs
Margin: No margin for up to INR 4 Lakhs and for above that limit, 5% of margin for studies in India and 15% for studies in abroad
Repayment Period: In 5-7 years after repayment holiday (course period and 1 year or 6 months after getting job whichever is earlier)
Security:
For loans up to Rs.4.00 Lakhs: Parents to join as Co Applicants & No security.
For loans above Rs.4.00 Lakhs and up to Rs.7.50 Lakhs:
Parents to join as Co applicants together with collateral security in the form of suitable third-party guarantee. The bank may, at its discretion, in exceptional case, waive third party guarantee if satisfied with the Net Worth / Means of parent/s who would be executing the documents as "Joint Borrower"
Above Rs.7.50 Lakhs:
Parents to join as Co applicants together with tangible collateral security of suitable value, along with the assignment of future income of the student for payment of installments.
Students admitted under Management Quota are also eligible for Educational Loan. However other norms / guidelines about eligibility criteria are to be complied as per State/Central government norms
Guarantee: Father/Guardian in case of Individual applicant
Processing charges:
NIL
Rate of Interest
| Loan Amount | For Boys | For Girls |
|---|---|---|
| Educational loan Up to Rs.7.50 lakhs | One-year MCLR + 3.10% | One-year MCLR + 2.60% |
| Educational Loans Above Rs.7.50 lakhs up to Rs.10.00 lacs* | One-year MCLR + 2.85% | One-year MCLR + 2.35% |
| Education Loans above Rs.10.00 lacs (classified as Non-Priority) | One-year MCLR + 2.60% | One-year MCLR + 2.10% |
Courses Covered
Studies in India:
- Graduation, Post-graduation including regular technical and professional Degree/Diploma courses conducted by colleges/universities approved by UGC/ AICTE/IMC/Govt. etc
- Regular Degree/ Diploma Courses conducted by autonomous institutions like IIT, IIM etc
- Teacher training/ Nursing courses approved by Central government or the State Government
- Regular Degree/Diploma Courses like Aeronautical, pilot training, shipping etc. approved by Director General of Civil Aviation/Shipping/ concerned regulatory authority
Studies abroad:
- Job oriented professional/ technical Graduation Degree courses/ Post Graduation Degree and Diploma courses like MCA, MBA, MS, etc offered by reputed universities
- Courses conducted by CIMA (Chartered Institute of Management Accountants) - London, CPA (Certified Public Accountant) in USA etc.
Expenses Covered
- Fees payable to college/school/hostel
- Examination/Library/Laboratory fees
- Purchase of Books/Equipment/Instruments/Uniforms, Purchase of computers- essential for completion of the course (maximum 20% of the total tuition fees payable for completion of the course)
- Caution Deposit/Building Fund/Refundable Deposit (maximum 10% of tuition fees for the entire course)
- Travel Expenses/Passage money for studies abroad
Documents Required
- Letter of admission
- Filled in Loan Application Form
- 2 passport size photographs
- Statement of cost of study
- PAN Card of the student and Parent/ Guardian
- AADHAR Card of the student and Parent/ Guardian
- Proof of identity (Driving Licence/Passport/Aadhar/ any photo identity)
- Proof of residence (Driving Licence/Passport/Electricity bill/Telephone bill)
- Student/Co-borrower/ guarantor's bank account statement for last 6 months
- IT return/ IT assessment order, of previous 2 years of Parent/ Guardian/ other co-borrower (if IT Payee)
- Brief statement of assets & liabilities of Parent/ Guardian/ other co-borrower
- Proof of income (i.e. salary slips/ Form 16) Parent/ Guardian/ other co-borrower
EMI Payment Methods
Karur Vysya Bank (KVB) education loan can be repaid in following three ways.
Standing Instruction (SI): If you are an existing account holder with Karur Vysya Bank (KVB), Standing Instruction is the best mode of repayment. Your EMI amount will be debited automatically at the end of the monthly cycle from the Karur Vysya Bank (KVB) account you specify.
Electronic Clearing Service (ECS): This mode can be used if you have a non-Karur Vysya Bank (KVB) account and would like your EMIs to be debited automatically at the end of the monthly cycle from this account.
Post-Dated Cheques (PDCs): You can submit post-dated EMI checks from a non-Karur Vysya Bank (KVB) account at your nearest Karur Vysya Bank (KVB) Loan Centre. A fresh set of PDCs will have to be submitted in a timely manner. Please note Post Dated Checks will be collected non-ECS locations only.
It is recommended that you opt for either the SI or ECS mode of payment for faster and less prone to error than the use of PDCs.
How to Apply for Karur Vysya Bank (KVB) Education Loan?
You can either apply online or visit a nearby Karur Vysya Bank (KVB) branch for the application. You can also download the education loan application form from the Karur Vysya Bank (KVB) official website, complete the form and submit it the bank representative.
You can also check your eligibility for an education loan through CreditMantri and apply for it.
Karur Vysya Bank (KVB) Education loan FAQ
1. What is the interest charged during moratorium period?
Only simple interest will be charged during the moratorium period. After the moratorium period the actual interest mentioned will be charged.
2. Can I take an education loan without a co-borrower?
No, a co-borrower is needed to take an education loan. The loan will be taken as a joint loan in collaboration with your parent/ guardian or spouse.
3. Is there a range on the rate of interest charged on Education Loan offered by Karur Vysya Bank (KVB)?
Yes, the interest rate ranges from 8.65 % - 12.00%. However, the it is subject to change at the sole discretion of the bank.
4. I am planning to study abroad. Am I eligible to apply for an Education Loan?
Yes, Karur Vysya Bank (KVB) offers up to INR 20 Lakhs for courses pursued abroad which also includes travel expenses and study tours.
5. Is there a processing fee for an education loan with Karur Vysya Bank (KVB)?
There are no processing fees for an education loan with Karur Vysya Bank (KVB)
6. Is there a way I can reduce the interest paid?
There is special subsidy provided according to Central Government subsidy for education loans. Karur Vysya Bank (KVB) also provides special interest rates for some premier institutions. The other option is your parent/ guardian or spouse can pay the loan amount during the moratorium period due to which the loan amount you need to repay is less.