Axis Bank Education Loan

Axis Bank Limited is India’s third largest private sector bank, which offers student loans of up to Rs 1 Cr to students needing financial assistance for their higher education in India and abroad, at a rate of interest starting from 13.70%.

Axis Bank has multiple loan products which we have categorized under:

Schemes for Abroad studies
- Abroad Education Loan 

- Premier Universities Scheme 

- GRE product

- Income-based Product

- Collateral-Based Product

Schemes for studies in India
- Collateralized Education Loan

- Non-collateralized Education Loan

- Income-Based Product

- Collateral Based ProductLet’s understand each of them separately.

The video provides a thorough overview of the Axis Bank student Loan, encompassing key elements like loan options, borrowing limits, interest rates, and processing fees. Furthermore, it presents exclusive information sourced from official Axis Bank circulars, which cannot be found anywhere else on the internet, including the Axis Bank website.

Under the abroad student loan product, Axis bank offers study loans with and without collateral to students going to study in the top colleges and universities abroad. Now let's understand the other features of abroad student loans through the given table:

Note: To get a student loan without collateral the college or university in which you are taking admission must be in either Prime A or Prime B list of Axis Bank.

Acceptable collaterals

Premier Universities Scheme 

The information about which university falls under category A and which falls under category B is not publicly accessible, as it is considered internal information of Axis Bank. However, you can rest assured that if you wish to find out whether your university is included in Axis Bank's prime list, you can contact our FOs, and they will inform you about its inclusion or exclusion.

GRE Product

For students wishing to study abroad in nations like the USA, Australia, the UK, etc., the Graduate Record Examination (GRE) is one of the required tests. Given the importance of the GRE test, Axis Bank has introduced a unique GRE-based solution for those who want to study abroad. The main attributes of a product built using GRE are:

Note: 

• Applicants can get their loans sanctioned even without an offer letter.
• Even if the college or university of the applicant is not on Axis Prime A or Prime B list, still they can get loan under this product.

Income Based Product

Based on the income of their co-applicant, students who plan to pursue their selected course of study in the nation of their choosing can apply for non-collateralized student loans through Axis Bank. There is no moratorium period with the Axis Bank income-based product; a direct EMI is applied to the sanctioned loan amount as soon as it is disbursed.

The Axis bank income-based product accepts two types of co-applicants, features, and requirements of each are different. Let’s understand one at a time:

1. For salaried co-applicant
Acceptable Locations - Most of the metropolitan cities of different states in India are serviceable locations for this scheme. Request a callback from WeMakeScholars to know if this scheme is serviceable in your city or not.

Income table

2. For Self-employed co-applicant
As per the Axis bank guidelines, a self-employed co-applicant can be the person who has:

• Self-business
• Lived at one address for at least 12 months
• Income Tax Return (Amount is not considered) 
• Running a business for at least 3 years
• Minimum CIBIL score of 700 (negotiable)

To check the loan eligibility for Axis income-based product in the case of self-employed co-applicant - 4 criteria are checked

Cash profit of the company/ Saral income

Net worth of the sole proprietor

Company turnover

Location of the co-applicant

Collateral Based Product

The collateral-based product offered by Axis bank allows the applicants to take advantage of collateralized student loan products and income-based products together. And that is why, the rate of interest offered on student loans taken through this product is only around 10.5 percent, which is comparatively very less.

The acceptable collaterals and respective loan margins are given in the table below:

Axis Bank offers both collateralized and non-collateralized student loans to students going to study in the top colleges and universities in India. The loan under this scheme is offered as per the following conditions:

Types of acceptable collaterals

Income Based Product

Axis bank’s income-based product is to provide non-collateralized student loans to students planning to pursue their preferred course of study in the country of their choice based on the income of their co-applicant. Under the Axis bank income-based product, a direct EMI is applicable on the sanctioned loan amount as soon as the student loan is disbursed, there is no moratorium period. 

The Axis bank income-based product accepts two types of co-applicants, and the requirements and features of each are different. Let’s understand one at a time:

1. For salaried co-applicant

Acceptable Locations - Most of the metropolitan cities of different states in India are serviceable locations for this scheme. Request a callback from WeMakeScholars to know if this scheme is serviceable in your city or not.

Income table

2. For Self-employed co-applicant

As per the Axis bank guidelines, a self-employed co-applicant can be the person who has:

• Self-owned business
• ITR, without considering the amount
• The business should be running for at least 3 years
• Lived at one address for at least 1 year
• CIBIL score should be at least 700 (can be negotiated) 

The following 4 parameters are checked to check eligibility for self-learning co-applicant

Cash profit of the company/ Saral income

The net worth of the sole proprietor

Company turnover

Location of the co-applicant

Collateral Based Product

The collateral-based product offered by Axis bank allows the applicants to take advantage of collateralized student loan products and income-based products together. And that is why, the rate of interest offered on study loans taken through this product is only around 9 percent, which is comparatively very less.

The different acceptable collateral and margins for this product are given below

Processing Fee

In the case of Axis bank, its processing fee has been revised just a while ago after the recent Repo Rate hike. The new processing fee applicable to process a student loan from Axis bank is to be up to 2% of the loan amount + GST.

But, as we mentioned your student loan processing fee depends on your student loan product, in the case of a non-collateralized loan product, the below-mentioned processing fee criteria are followed-

• Loan Amount Upto 20 lacs = 15K+GST (Refundable)
• Loan Amount Above 20 lacs = 0.75% of amount above 20 lacs + GST (non refundable)

Moreover, students will also have to pay Rs 7,500 - Rs 10,000 as legal and valuation report charges, if students take student loan with collateral.

But WeMakeScholars being a government-funded initiative, provides all its services free of cost to all students.

The most difficult task while applying for a student loan is to collect and submit all the required documents as and when required by the banks. Generally, banks have very specific requirements and leave no scope for negotiation even if a single document is unavailable. 

That is why we suggest applicants keep a document checklist ready before going to the banks to submit their documents. So that, you do not have to waste your time running back and forth every single time. So, here is a list of required documents for:

For salaried individuals:

• Last 6 month’s bank statements
• Bank KYC documents
• S.S.C., H.S.C, Degree course mark sheets, and passing certificate 
• Admission letter from the institute with fees structure
• The guarantor Form is optional to show

For all other Individuals

• Passbook statement of previous 6 months
• Letter of admission in your preferred institute with the fees payment schedule
• KYC documents
• Passing certificate or mark sheets passing certificates of H.S.C, S.S.C. Degree courses
•  The guarantor form is optional

First disbursement

• Applicant and co-applicants signature on the sanction letter
• Margin money’s bank transaction statement paid to the college or the university
• College or university's fees demand letter
• In the case of foreign educational institutes Form, A2 will have to be signed by the applicant or co-applicant
• Documents for collateral security (if applicable)
• Applicant and co-applicants have to sign the loan agreement
• The request of disbursement signed by the applicant and co-applicants

Subsequent disbursement

• Signed form requesting for disbursement, from applicant and co-applicants 
• A demand letter from a college or university
• If any margin money is paid directly to the college or university, then its receipt along with bank statement will be required
• Form A2 signed by applicant or co-applicants in case of overseas institute
• Any one of bonafide certificate or exam progress report card is required

Here we have provided you with a general documents checklist that are required to be submitted in the banks. But, to get the detailed documents checklist as per your loan profile analysis, process your student loan with WeMakeScholars by getting in touch with our financial officers.

Axis bank offers student loan insurance at 1% - 2% of the loan amount. Loan insurance helps the loan applicant and their dependents to avoid paying for the loan if any mishappening occurs with the applicant resulting in their inability to repay the loan. When applying to get a student loan from Axis bank, students are also required to take loan insurance.

For more information about loan information, ask your financial officer while processing your loan with WeMakeScholars. 

Axis bank charges a loan margin on the offered loan amount, the percentage depends on the loan amount according to the values given in the following table:

For Axis bank, loan margin calculation also depends on the student loan product that you take for your higher studies. If you take a collateralized student loan your loan margin will be 0%. Also, if your college or university (whether in India or abroad) lies in the prime A and prime B list of Axis bank, then you are eligible to proceed with your student loan without paying the loan margin amount irrespective of the loan amount. But since the prime list is confidential it is not available in not available on the internet, not even on Axis bank’s website. 

WeMakeScholars, being a full-time higher studies loan partner with Axis bank, has access to the list. Request a callback, today from your financial advisor at WeMakeScholars to get to know if your college or university falls under the Axis banks prime A and prime B list or not and start your student loan application process.

To apply for student loan online from Axis Bank for the steps below:

Step 1: Talk to your financial officer, by requesting a callback or filling up the common application form

Step 2: Give your loan profile details as asked by them over the phone

Step 3: Choose your lender as per your eligibility and bank policies

Step 4: As per the documents checklist shared by your financial officer, upload your documents on the WeMakeScholars documents portal or visit the bank and submit them.

Step 5: Collect your study loan sanction letter from the bank within 1 week after you submit your documents.

While processing your student loan with us you can skip the following issues that you will face if you go to the banks directly to get your loan sanctioned:

• You will have to go to the banks multiple times
• No proper documents checklist will be provided
• The entire loan sanctioning process will be time-consuming
• There will be no scope for negotiation
• You will not be provided with proper customer support & services
• There is no way to resolve your post-sanction disbursement issues 

When you process your higher studies loan with WeMakeScholars, you are sure to get the following benefits:

Online application process - Offline loan application process has been revolutionized by the online student loan application process offered by WeMakeScholars. 

Expert guidance - We provide complete loan profile analysis support to compare and choose the best lender as per your eligibility and requirements

Minimal Processing time - If applied through us, from private banks & NBFCs, your loan could be sanctioned within 7 days and from a government bank, your loan will be sanctioned within 15-20 days, after submission of documents. Both timelines are 50% less than what banks usually take.

Negotiation support - Wherever possible, your assigned financial officer will negotiate with the lender's team, on your behalf to get the best student loan deal for you.

Consistent availability - Being an online platform, we have a dynamic presence all the time, and students can reach out to us on all working days from all parts of the world.

Cashback offer - You get Rs 3,000 as cashback from us at the time of your loan disbursement. 

WeMakeScholars is a government-funded initiative, supported by the Ministry of Electronics and Information Technology, under its Digital India Campaign. We do not charge anything from students in exchange, all our services are totally free of cost.

Student loan transfer is one of borrower-friendly services offered by Axis bank, through which it allows the applicants to transfer their already existing loan from any other bank to Axis bank, to enjoy the following benefits:

• Lower rate of interest
• Easy repayment conditions
• Student-friendly bank policies
• Wider coverage of loan products

But how to transfer?

To transfer your existing loan from another bank to Axis bank,  you need to follow the below-mentioned steps, sequentially;

• Ask for the outstanding balance amount proof from your current lender.
• Approach WeMakeScholars by requesting a callback, stating that you want to transfer your loan.
• Submit your documents as mentioned by your financial officer in the Axis bank

Once your loan transfer is approved, Axis bank will pay for your outstanding loan amount to your previous lender. And the same amount will be sanctioned as your new student loan from Axis bank. Excited to know how much you can save by this?

Check out the - Education loan transfer calculator

It is a specially designed loan transfer calculator that will help you to calculate how much you will be able to save over the years if you transfer your existing loan to Axis bank. The calculator is designed considering the special interest rates for WeMakeScholars customers. So you will be able to save the promised amount only if you process your loan transfer via WeMakeScholars.

Axis Bank's loan EMI calculator is available on its website for students to calculate their monthly EMI amount once their loan is sanctioned. However, we suggest students to use WeMakeScholars loan EMI calculator, because of the following reasons:

High accuracy - The calculator is most accurate as it considers all the parameters that affect the EMI amount calculation.

Strategic edge - The calculation results, help students to decide the strategy of their student loan repayment, students can get an idea about their repayment schedule

No charges - It is free of cost for all the students 

In-depth analysis - The results include an amortization table having interest amount, principal amount, and outstanding loan amount at the end of each EMI payment.

A WeMakeScholars special discount is considered while designing the algorithm therefore, the EMI values are specially for WeMakeScholars customers only. To avail the benefits become a WeMakeScholars customer by requesting a callback from our financial officer.

While Axis bank offers a repayment duration of 15 years, including the moratorium period. Many students opt to repay the loan early, but how? 

Here are the ways of repaying the student loan at the earliest in Axis bank:

• Prepayment or Part Payment
• Opt for shorter repayment periods
• Considering transferring your student loan

For example, if a student takes loan of Rs 50 lacs for their higher education in a top university in the USA at a 10% rate of interest for a repayment period of 12 years after the moratorium period, then their repayment schedule will be as follows:

Pro Tip - While giving the cheque of the last EMI installment we suggest you should keep a little extra amount of Rs 5,000 - Rs 10,000 with the usual EMI because the transaction will be updated the next day and you will have 

When you process your higher studies loan with WeMakeScholars, our team will suggest more tips and tricks for saving money throughout your loan process, starting from application form to repayment. That is why choose WeMakeScholars to process your student loan by requesting a callback to fill up the common eligibility form today itself.

1. Padho Pardesh Scheme:

Launched to benefit EWS category students, to motivate students to take study abroad loan

Eligibility criteria for Padho Pardesh Scheme

• Maximum family income can be Rs 6 lacs per annum.
• Only master, PhD level, and M.Phil level courses are eligible
• Taken student loan should be according to IBA guidelines
• Government authorized income certificate proof is mandatory.

Note: The scheme has been discontinued. However, beneficiaries before 31st march 2022 will continue to receive interest subsidy.

2. Central Scheme for Interest Subsidy (CSIS):

The scheme benefits EWS category students, taking admission to study in India.

Eligibility criteria for CSIS 

• Students should have proof of belonging from the EWS section of society.
• Maximum family income can be Rs 4.5 lacs annually.

3. Dr. Ambedkar Interest subsidy scheme for OBC and EBC students

Students belonging to  EBC and OBC sections of the society, to give rebates on their interest payable within the moratorium period of their student loan. This scheme is only for eligible abroad study aspirants.

Eligibility criteria for Dr. Ambedkar Interest subsidy scheme for OBC and EBC students

• Students must take admitted only in masters, MPhil, and Ph.D. courses.
• The maximum family income of the candidate should not be more than Rs 8 lacs
• Students belonging to the OBC category must submit their cast certificate
• The loan must be taken according to IBA guidelines