Axis Bank Education Loan for Studying Abroad

Axis Bank education loans are provided under 6 schemes: Premier University Scheme, Income-Based Scheme, GRE-based scheme, secured loan scheme, partially secured loan scheme, and Elite Scholars Scheme, available only through WeMakeScholars. The interest rates for the Premier University Scheme and GRE-based scheme start from 10.5%; for the income-based scheme, it starts from 12%; for secured loans, the rates start from 10%, and for partially secured loans, the interest rates start from 11%. WeMakeScholars offers a special scheme in partnership with Axis Bank where the interest rates start from as low as 9.99%. The Axis Bank education loan details, such as interest rates, loan amount, margin money, and eligibility criteria, are listed below.

*The interest rates mentioned are indicative and subject to change. The final interest rate also depends on individual profiles and the bank’s discretion. 

**Burgundy Account: It is a special customer account where the customer maintains a minimum balance of ₹10 lakh at all times. Burgundy account holders can avail additional benefits while applying for an education loan at Axis. 

Below are the Axis Bank education loan schemes for education abroad:

Premier University Scheme 

Under this scheme, there is a list of selected universities categorised as Prime A, Prime B, Prime D, and Prime E. Prime A consists of the top universities, and Prime E consists of recognised but not top universities. The list is created by Axis Bank, and the parameters for categorisation are QS ranking, country, and course. You can get up to a ₹1.5 crore loan under this scheme. 

There is also a special benefit for Axis Bank account holders who maintain an average deposit of ₹10 lakh. This is known as a Burgundy account, and under this, the maximum loan amount for Prime A and B listed universities can go up to ₹2 crore.

GRE-Score Based Loan

GRE is an entrance exam required by many universities, mainly in the US. Under the GRE score-based loan, a student can be qualified for collateral-free loans of up to ₹50 lakh. The key benefit of this scheme is that the student doesn't require an offer letter to get the loan sanctioned under this scheme. Only the score is essential for the loan process. Do note that the minimum required income of the co-applicant under this scheme is 4.2 LPA. Here is a breakdown of how much collateral-free loan can be provided under this scheme. 

Co-Applicant Income Based Loan

The income-based scheme is another scheme offered by Axis Bank. If the university the student has opted for doesn’t fall under the premier university list, then the student can go for a co-applicant income-based loan. In this, the company where the co-applicant is employed and their income will be evaluated in order to decide the final loan amount. If the co-applicant is employed in a well-established and top company such as an MNC or a Fortune 500 listed company, then a higher loan amount is possible. 

Secured and Partially Secured Loans

Axis Bank education loans are also provided against collateral. It is primarily divided into fully secured education loans, where your total expenditure is lower than the collateral value that you pledge. Then we have partially secured loans, where the collateral value is lower than the total expenditure. The maximum loan amount for both of these schemes is based on the collateral value and total expenditure for education. 

Here you will find information regarding all the expenditures covered under your education loan, what pre-admission is, and what the maximum loan amount offered under each scheme is. 

Loan Amount by Scheme

Pre-Admission Sanction

Pre-admission sanction is a service offered by Axis Bank. Many times, universities ask you to provide proof of funds in order to provide an admission letter, and without an admission letter from the university, a sanction letter from the bank can't be issued. Hence, many private banks offer a pre-admission sanction letter. In this, all the key features such as loan amount, interest rate, and other important details are mentioned, which can be presented as proof of funds and used to obtain the admission letter. Once the admission letter is issued by the university, the bank issues the final sanction letter. This is known as a pre-admission sanction letter and support. 

Expenses Covered

An Axis Bank education loan for abroad studies covers tuition, living costs, and travel costs. Here is a detailed list of all the expenditure covered under your Axis Bank education loan.

• Academic costs - Tuition fees, lab and examination charges, and any other university-specified expenditure are covered under academic costs.

• Living expenditure - The bank covers hostel fees/rent, caution/security deposit, building fund, food and grocery charges, Wi-Fi, and mobile charges. 

• Miscellaneous expenses - Health insurance, public transport charges, flight charges, and other such costs.

Note: Living expenses (except accommodation) and miscellaneous expenses are reimbursed, not disbursed upfront, so keep all your receipts safe for future claims. 

Margin Money Requirement

Margin money refers to a share of expenses that the student has to pay from their own funds. The margin money percentage is set by the bank and varies based on the scheme. This is not a fee paid to the bank; it is your own contribution towards your expenses.

The education loan margin money for Axis Bank is NIL for prime listed universities, and for the income-based scheme it is 15% of the sanctioned loan amount.

Axis Bank education loans without collateral are offered under 4 main schemes: Premier University Scheme, GRE-based Scheme, Income-based Scheme, and Elite Scholars Scheme. Depending on the student's profile and co-applicant's income, the student can qualify for a respective scheme. The information about these Axis Bank abroad education loan schemes is listed in the article. 

Accepted Collateral for Secured Loans

Every bank has a list of accepted collateral; only the collateral in that list is accepted in order to provide a loan. In the case of Axis Bank, the accepted collateral is as follows :

1. Fixed deposits- Only Axis Bank FDs are accepted. If you have an FD in another bank, you are required to break it and create a new FD in Axis Bank to get a loan. 

2. Residential property - House, Flat, Bungalow 

3. Commercial property - Shops, showrooms and office buildings

4. Non-agricultural land 

 Collateral margin

When an asset is pledged, banks do not provide the full market value of that asset. They cut a small portion of the value, which is known as margin. This is to safeguard the money the bank lends you against market fluctuations. For example, if Maya wants a ₹1 crore education loan and is pledging an ₹1 crore FD, then the maximum loan amount that the bank will offer her is ₹90 lakh, not ₹1 crore. If she pledges a residential property worth ₹1 crore and her co-applicant is self-employed, then the maximum loan amount she can get on that property is ₹75 lakh. Here are the margin percentages of Axis Bank for different types of collateral: 

Axis Bank education loan interest rates depend on which scheme the student opts for; there are 6 schemes under which Axis Bank education loans are provided. Here is a detailed breakdown of all the interest rates under each scheme:

*The interest rates mentioned are indicative and subject to change. The final interest rate also depends on individual profiles and the bank’s discretion. 

To better understand how your interest rate is calculated, what your interest rate is going to be during the moratorium period and repayment tenure, read the Axis Bank education loan interest rate page.

Here is a list of all the charges and processing fees charged by Axis Bank to process your education loan. 

Processing Fees:

Other Charges:

Student Eligibility Criteria

1. Should be an Indian citizen and generally between the ages of 18 and 35 at the time of application. 

2. Should have scored a minimum of 50% to 60% marks in class 12th and graduation.

3. Should have secured admission in the selected university and possess an admission letter.

Co-Applicant Requirements

1. Must be an immediate family member of the applicant.

2. Should have a minimum income of 4.5 LPA if the applicant is going for a listed university; for a non-listed university, the minimum required income is 6 LPA (as direct EMI will start).

3. A minimum required CIBIL score of 650-700 or above is necessary.

Scheme-Specific Eligibility

1. Premier university scheme - The university should fall in the prime listing for students to get collateral-free loans under this scheme.

2. Income-based scheme - If the university the applicant chooses doesn't fall in the prime listing of Axis, then the co-applicant has to be employed at a listed company. Only then is the applicant eligible for this scheme. The listed companies are usually the MNCs/ Fortune 500 companies or the companies listed on the national stock exchange. 

3. GRE-based scheme - The applicant has to score at least 301 on the GRE to qualify for this loan scheme.

Collateral Documents

For residential/commercial property:

• Sale agreement/Chain agreement

• Occupancy Certificate (OC), Commencement Certificate (CC), or sanctioned plan approval

• Latest maintenance receipt; latest utility bill

For liquid securities such as FDs

• Fixed Deposits - principal value certificate and other documents are required

Note: Only Axis Bank FDs are accepted as collateral; if you have an FD in another bank, you are required to break it and create a new one in Axis Bank.

To start the Axis Bank education loan apply online process, visit the official Axis Bank education loan page and click on ‘Get a call back’. After you click on the option, you will be directed to a simple form asking for your basic details. This includes your name, phone number, email ID, city, and state. After clicking on submit, you will be contacted by a bank executive in a few days, who will provide you with Axis Bank education loan details. After that, they will take the process further. 

Processing Time 

Processing time refers to the time banks take to evaluate your profile and provide you with a sanction letter. This time usually begins after you have submitted all the required documents. Here is the average time that it takes to process your loan application after your document submission.

How to Check Your Application Status

Once you have filled out your application form and submitted it, you will be given an application number. You can track your application on the bank’s official portal or contact the bank branch where your application is being processed. If you provide the application number, you will be provided with information about your Axis Bank education loan.

For any queries, you can use the Axis Bank education loan contact details on the bank’s official website or visit your nearest Axis Bank branch. You can also use the ‘Get a call back’ option, and a bank executive will reach out to you.

Moratorium Period

The education loan moratorium period is also known as a grace period or repayment holiday, during which the student does not have to pay any EMI. This period lasts for the course duration plus 6 months post-course completion. This period is only offered under education loans with the intent to provide ample time for students to find and settle in a job, after which EMIs start. 

During this period, simple interest is calculated on your disbursed amount, and based on your university ranking, you are required to pay either simple interest or partial simple interest. To understand interest payment during moratorium, read the Axis Bank interest rate page listed above.

Repayment Tenure

The repayment tenure refers to the period after your moratorium period ends, during which your EMIs start and continue until your entire borrowed loan amount is repaid. The maximum tenure offered by Axis Bank for repayment of an education loan is up to 15 years, including moratorium.

Axis Bank Education Loan EMI Calculator 

Example 1: Prime E, PG in the USA 

Karan borrows ₹25,00,000 at 12.5% over 7 years.

• Monthly EMI: ₹44,803

• Total interest: ₹12,63,460

• Total repayable amount: ₹37,63,460

• Moratorium: Yes, full simple interest is paid.

Example 2: Prime B, PG in Germany 

Vikram borrows ₹35,00,000 at 11.75% over 8 years.

• Monthly EMI: ₹56,405 

• Total interest: ₹19,14,907

• Total repayable amount: ₹54,14,907

• Moratorium: Yes, partial simple interest is paid. 

Example 3: Elite Scholars - Elite- USA 

Dev borrows ₹45,00,000 at 9.99% over 12 years

• Monthly EMI: ₹53,753

• Total interest: ₹32,40,364

• Total repayable amount: ₹77,40,364

• Moratorium: Partial simple interest has to be paid.

To see how these rates affect your monthly payment, use the Axis Bank education loan calculator 

Notes:

1. All examples are for illustration only. The loan amounts, interest rates, and tenures are assumed, and the names used are fictional.

2. EMIs are calculated on a reducing balance basis and rounded to the nearest rupee. Actual EMIs may differ slightly depending on the lender’s calculation method.

3. Partial simple interest applies to Prime A and Prime B universities (PG programs) and to the Elite Scholars scheme. Only part of the interest is payable during the course and moratorium.

4. Full simple interest applies to Prime D and E universities (PG programs), the income-based scheme, and undergraduate programs.

Prepayment and Foreclosure Charges

Prepayment is divided into two types: Part prepayment (partial prepayment) and foreclosure (full prepayment). When a lump-sum amount is paid over the EMI amount, it is known as part prepayment (partial prepayment); the additional amount paid directly reduces your principal amount. In foreclosure, you close the loan account by paying the entire outstanding loan amount in one go before the repayment tenure ends. In both scenarios, banks lose future interest income, which is why they levy prepayment/foreclosure charges. But in the case of Axis Bank, this charge isn't applicable. Axis Bank doesn't levy any education loan prepayment/foreclosure charge, making it easier for students to close their loan sooner.

Section 80E of the Income Tax Act allows the applicant or co-applicant to claim a tax deduction on the entire interest amount paid towards your education loan. The repayment of the principal amount doesn't qualify for any tax deduction; only the interest does. Note that this deduction is only available under the old regime and can only be claimed for 8 consecutive years. 

How to Apply Through WeMakeScholars

You can start your application process via WeMakeScholars by visiting the official website, where you will find an option to ‘Check Eligibility’. 

After clicking on the link, you will be directed to a simple form where you are required to fill in your basic details such as: name, email ID, nationality, phone number, city/district, and where you are planning to pursue your higher education. 

After submission, you are connected with a financial officer who will tailor a loan plan for you based on your requirements and profile. After you are connected to the respective banks, you can upload the required documents on the WeMakeScholars portal. After which your loan process begins. Your financial officer is your point of contact who will keep you updated and informed about the entire loan process from start to finish.

What You Get Through WeMakeScholars

• Broad Spectrum of Choices: WeMakeScholars is partnered with 20+ banks and NBFCs, giving students a broad range of schemes to choose from.

• Lower Interest Rates: Processing via WeMakeScholars can get you interest rates up to 2% lower than applying directly with a bank.

• Faster Loan Process: The WeMakeScholars team will constantly look into the loan process, making sure your loan is sanctioned within days.

• Cashback: Students processing their education loan via WeMakeScholars receive a cashback of up to ₹3,000 on their first disbursement. 

• Free of Cost: All services of WeMakeScholars are completely free; hence, students are not charged any service fee. 

• End-to-End Support: From checking your eligibility with various banks to providing post-loan sanction support, you are assisted throughout the loan process. Along with the Axis Bank education loan contact channels, your WeMakeScholars financial officer stays available as your point of contact.

Note: The interest rates mentioned are indicative and subject to change. Total cost also depends on individual preferences and the bank's discretion.

Axis Bank education loans for studying abroad are offered under six schemes, so the right choice depends on your profile. Students admitted to prime-listed universities can opt for the Premier University Scheme, GRE scorers can get up to ₹50 lakh without an offer letter, and those with property/assets can choose secured loans from 10%. Loans go up to ₹1.5 crore, with a repayment tenure of up to 15 years and no prepayment/foreclosure charges. Before applying, check your university’s prime listing and keep your co-applicant’s documents ready.