Understanding Axis Bank Education Loan Interest Rates

Axis Bank is the third-largest private-sector bank in India, with 5,000+ domestic branches. The bank offers a wide range of education loan options, including secured and unsecured loans. But what is the Axis Bank education loan interest rate? 

The interest rate charged by Axis Bank depends upon various factors, including the applicant’s profile, target universities, co-applicant’s income, and pledged collateral. The bank prescribes a base interest rate from 10.5% to 13.25% for unsecured loans and 10% for secured loans. These interest rates can change based on the factors mentioned above. The table below explains the factors in detail and gives you the interest rates charged under different conditions. Check your profile and loan requirements to find out the interest rate that will apply to your education loan.

*Note: 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.

The education loan interest rate in India for Axis Bank depends on the type of loan you choose. The two types of loans provided by banks are unsecured and secured education loans. An unsecured, or non-collateral, education loan does not require you to pledge property/collateral to get approved, whereas a secured or collateral, education loan requires physical or liquid securities.

Axis Bank Education Loan Interest Rate on Unsecured Loans

Axis Bank unsecured loan interest rates are decided based on specific, predefined university lists set by the bank. The universities are divided into Prime A, Prime B, Prime D, and Prime E, which dictate the interest rates charged for the loan. Applicants should check the university lists while applying for an education loan at Axis to gain a better idea of the probable interest rate. Axis Bank also offers several specialised unsecured loan options that assess the applicant’s eligibility and interest rates through specific requirements. Explore the different education loan options offered by Axis Bank and choose the one that suits your financial needs.

1. Premier University Scheme

Axis Bank has a pre-decided list of premier institutions, which are categorised into Prime A, Prime B, Prime D and Prime E. Each of these categories has a separate rate of interest and maximum loan amount. The applicable loan amounts and interest rates are explained below. 

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

2. GRE Scheme

Axis Bank provides a unique GRE-based scheme in which the loan amount is determined by the GRE score you obtain. Under this scheme, you do not require an admission letter to get the loan approved. The details of this program are mentioned below.

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

3. Income Scheme

Under this scheme, the education loan amount is primarily determined by the co-applicant's income. The bank provides a list of the maximum loan amount for specific income brackets. This list is periodically revised and should be confirmed when you are applying for an income based education loan at Axis Bank. The co-applicant’s profile is also assessed based on the organisation they are employed in. MNCs/Fortune 500 companies and companies listed on the national stock exchange have a higher chance of getting approval under this program. 

4. Elite Scholars Scheme

Elite Scholars is a special initiative by WeMakeScholars in partnership with Axis Bank that focuses on students planning to study at prestigious universities. Under this initiative, students receive an education loan from Axis Bank at preferential interest rates. To qualify for this education loan, the student must process their application through WeMakeScholars. They can avail a special rate of interest, processing fees, and other requirements, which are listed as follows:

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

Secured loans, also known as collateral-based loans, are another loan option offered by Axis Bank. Here is the list of acceptable collateral for Axis Bank.

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

The education loan interest rate is decided based on the loan amount, repayment tenure, and other details from the applicant’s profile. Once the interest rate is decided, the EMI structure is calculated through a universal formula:

EMI = P × R × (1 + R)ⁿ / [(1 + R)ⁿ − 1]

Where:

P = Principal loan amount

R = Monthly interest rate

N = Number of monthly instalments

You can also use the Axis Bank education loan interest rate calculator to easily calculate your EMI and understand your potential repayment amount. You can use the moratorium period, total loan amount, rate of interest payable during moratorium, and repayment tenure to calculate the final EMI. 

These are some of the examples that will assist you in understanding the Axis Bank education loan interest rate better.

Example 1:

Maya is going for an unsecured education loan for her master's degree at a Prime A university in the United States and has taken a loan of ₹50 lakh. The interest rate applicable to Maya under this scenario is between 10.5%-11.5%. The approximate EMI that Maya will have to pay if she opts for a 15-year repayment tenure and pays maximum partial simple interest during the moratorium is between ₹50,000 and ₹53,000. 

Example 2: 

Rahul is going for his master's degree to the United States; his university falls in the Prime E listing of Axis, and he has a GRE score of 310. He takes a loan of ₹30 lakh under the GRE scheme, and his interest rate is between 11.5% and 12.75%, with a repayment tenure of 15 years. The approximate EMI that Rahul has to pay if he pays full simple interest during the moratorium will be ₹35,000 - ₹37,000. 

Example 3:

Khushi is going for her master's degree in the UK, and her university falls in the Prime B listing of Axis. Her total loan amount is ₹60 lakh, and she opts for a 10-year repayment tenure. Her interest rate would be around 11.25%-11.75%. If she pays the maximum possible partial simple interest during the moratorium period, her payable EMI would be around ₹74,000 - ₹76,000.

Interest During Moratorium Period

During the moratorium period (repayment holiday), Axis Bank charges compound interest on the disbursed amount. Depending on the university category, you may be required to pay partial or full simple interest during the moratorium period. You can find the breakdown of interest charged during the moratorium below.

Interest During the Repayment Period 

After the moratorium period, repayment begins through EMIs. The total EMI is calculated based on the principal amount and the interest charged on it. The EMI remains largely fixed but can have minor fluctuations based on repo rate changes. Axis Bank offers a maximum tenure of 15 years, with an option of foreclosure or prepayment at any time at no additional cost. The repayment structure is calculated to ensure that you clear your principal amount and interest charged within the pre-decided tenure. 

1. University/Institution - One of the most important factors affecting the Axis Bank education loan interest rate is the university you choose. Axis Bank has a pre-decided list of universities, and based on that, your maximum loan amount and rate of interest are determined. These are known as the Prime lists, and they are divided into the USA prime list and non-USA prime list.

2. Collateral - When an asset is pledged against an education loan, the risk factor is significantly reduced. This is why secured loans generally have lower interest rates than unsecured education loans.

3. Co-applicant’s Income - Both secured and unsecured loans require a strong co-applicant income profile. As private banks offer better unsecured loan options, they focus heavily on the co-applicant income, especially for income based options. 

Choosing the right education loan is crucial to your study abroad journey, and the interest rates heavily influence the decision. But the interest rate applied to your application depends on various other factors and has to be considered carefully. This article provides a comprehensive insight into the education loan interest rate in Axis Bank, so that you can make an informed decision. If you need additional guidance or want to ensure a hassle-free loan application process, where you can get the best possible interest rate for your profile, check your eligibility with WeMakeScholars today!