Karnataka Bank Education Loan

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✓ Education Loan @9.93% interest rate

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Table of content

  1. Education Loan Products of Karnataka bank
  2. Karnataka Bank Education Loan Schemes for Abroad Studies
  3. Karnataka Bank Education Loan Schemes for studies in India
  4. Karnataka bank Education Loan Processing fee
  5. Documents Required for Karnataka Bank Education Loan
  6. Karnataka Bank Education loan insurance
  7. Karnataka Bank Loan Margin calculation
  8. How to Apply for an Education Loan from Karnataka Bank?
  9. Why and How to transfer your Education Loan to Karnataka Bank?
  10. Karnataka bank Education loan EMI calculation as per Interest rate
  11. Karnataka Bank Education Loan Repayment process
  12. Interest Subsidy Scheme
  13. FAQ's
  14. Need Help? Ask Here!

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Karnataka Bank offers education loans to students to raise funds for their education in India and abroad. The rate of interest charged on education loans offered by Karnataka bank starts from 9.93%.

Education Loan Products of Karnataka bank

Taking into account the loan parameters and eligibility criteria, Karnataka bank offers the following education loan products:

Karnataka Bank Education Loan Schemes for Abroad studies
Karnataka Bank Education Loan Schemes for studies in India

Let’s understand each one of them separately

 

Karnataka Bank Education Loan Schemes for Abroad Studies

The following Karnataka Bank Education Loan schemes provide opportunities for global exposure, additional career prospects, vibrant skill-learning programs, and other resources to help students make their abroad education worthwhile.

Vidhyanidhi for Abroad Studies

Vidhyanidhi for abroad studies is one of the flagship education loan products among Karnataka bank education loan schemes for abroad studies. 

The detailed criteria and eligibility requirements to apply for an education loan through Vidhyanidhi for abroad studies are mentioned in the table below:

  Loan Parameters 

Details

  Loan Limit

Upto Rs 20 lacs

Expenses covered

    • Tuition fees
    • Traveling expenses
    • Accommodation and living expenses
    • Books and stationary charges
    • Laptop cost  

Accepted co-applicant

Parents, Parents-in-law, Siblings, Spouse

Karnataka Bank Education loan interest rate for Vidhyanidhi for abroad education loan product

9.93% - 12.83%

Moratorium Period

Course duration + 12 months

Repayment Duration

15 years

Repayment policies

    • A period of 2 years will be given to students to complete their course, if not done in the stipulated time.
    • Extensions will only be granted if the student is unable to finish it due to circumstances beyond his/her control.
    • The principal and repayment in equal monthly installments (EMI) will be determined, and the interest accumulated during the repayment holiday will be applied to the principal.

Loan Margin

  • Upto Rs 4 lacs loan amount - 0% margin
  • Above Rs 4 lacs loan amount - 15% margin

Eligibility Criteria

The student should have secured admission to a university abroad

 

Course Eligibility:

  • Post Graduation courses in MBA, MCA, and MS
  • Course offered by CPA in the USA and CIMA in London, etc
  • Graduation: Job-oriented technical/professional courses offered by the prestigious universities
Don't settle for less than you deserve when it comes to your education.

Karnataka Bank Education Loan Schemes for studies in India

Taking the requirements into account, the following Karnataka Bank education loan products are available to provide financial assistance to students pursuing their higher studies in India:

Vidhyanidhi for India
The education loan product is offered by Karnataka bank for students taking admission into technical and professional courses in top colleges of India. 

The detailed criteria and eligibility requirements to apply for an education loan through Vidhyanidhi for study in India are mentioned in the table below:

Loan Parameters

Details

  Loan Limit

Upto 10 lacs

Amounts higher than the given can be tried for applicants with better profiles

Expenses covered

    • Tuition fees
    • Traveling expenses
    • Accommodation and living expenses
    • Books and stationary charges
    • Laptop cost

Accepted co-applicant

Parents, Parents-in-law, Siblings, Spouse

Karnataka Bank Education loan interest rate for Vidhyanidhi for education loan in India

9.93% - 12.83%

Moratorium Period

Course duration + 12 months

Repayment Duration

15 years

Repayment policies

    • If the student does not finish the course in the stipulated time, they will be given 2 years duration to finish the course
    • Only students who are unable to complete their course due to some valid reason will be exempted
    • Interest incurred during the repayment holiday will be determined and the subsequent amount will be paid accordingly

Loan Margin

    • Upto Rs 4 lacs loan amount - 0% margin
    • Above Rs 4 lacs loan amount - 5% margin

Eligibility Criteria

The student should have secured admission to a college or University in India

 

Eligible Courses for Vidhyanidhi Scheme by Karnataka bank (in India)

  • Professional Courses: Computer, Engineering, Law, Medical, Agriculture, Hotel Management, Nursing, Physiotherapy, Veterinary, Dental, Management, Pharmacy, CA, ICWA, CFA.
  • Graduate Courses: Diploma in Engineering, B.A., B.Com., B.C.A., B.Sc., and B.B.M.
  • Courses conducted by UGC/ AICTE/ AIBMS/ ICMR/ Govt. approved colleges or universities to pursue a degree or diploma 
  • Post Graduate Courses: Ph.D. and Masters
  • Courses conducted by NIFT, IIT, XLRI, IIM, 
  • Courses offered by prestigious abroad educational institutions

Karnataka bank Education Loan Processing fee

Karnataka bank education loan processing fee can shoot up to 1-2% of the taken education loan. However, the amount will be again returned back to the student once they take admission into the university. 

Apart from the processing fees, Karnataka bank does charge around Rs 7,500 -Rs 10,000 for the cost of legal and valuation reports, if a student is taking an education loan with collateral security, apart from the other hidden miscellaneous charges.


But WeMakeScholars, being a government-funded initiative, does not charge anything from students to process their education loan. To start your loan process free of cost, request a callback from your financial officer at WeMakeScholars

Documents Required for Karnataka Bank Education Loan

In order to finish the loan procedure as quickly as possible, you will need to provide the following documentation:

Application form for education loan 

Hardcopy of the online loan application form filled on the WeMakeScholars website with 2 photographs of the applicant

Basic documents for Applicant (student) and co-applicant and/or Guarantor

  • Residence proof:   Passport of applicant/ Voter ID Card/ Electricity Bill/ Telephone Bill/ Bank account statement/ Ration card/ Aadhar card. (If permanent and current addresses are different then 2 different proofs are required) 
  • Identity proof: PAN Card and Passport of the student if going abroad
  • Personal Asset & Liability Statement (assessed by the branch professional)
  • Personal or salary bank account statement of last 6 months showing salary crediting every month. For self-employed co-applicant then business transactions of 1 year are required to be shown.

 self-attested documents are accepted

Applicant academic documents

  • Marksheets and certificates of class 10th, 12th, Degree
  • Admission proof for the course (mentioning course duration)
  • Scorecard of competitive examination(course fee details as given by the college or university)

Co-applicant’s documents of Income 

If Salaried

  • Company’s ID card
  • Last 2 years Form 16.
  • Recent salary slips (for the last 3 months)
  • Last 2 year’s ITR

If Self-employed

  • Balance sheet having profit and loss account statements of last 3 years
  • ITR of last 3 years
  • Address proof of business

Other Documents

  • Notarised joint affidavit with the student and co-applicant in Bank’s standard format (Your assigned Financial officer at WeMakeScholars will give you the format)
  • Letter from co-applicant, mentioning that all other leftover other expenses, apart from those covered by education loan will be borne by them (Format will be provided by your assigned Financial officer)

Additional documents (if required)

  • Receipts of payments made previously if any (within the last 6 months only)
  • All loan account statements (1 year) if any pending loans.
  • Break certificate if the students had a gap or failure in studies on Rs. 100 stamp paper. (Format to be provided by WeMakeScholars Financial officer)

Collateral documents (Optional)

Students applying for an education loan with collateral security will have to provide collateral documents. Each state has different requirements for documents. Your WeMakeScholars financial officer will provide you with a special documents checklist as per your state.

Only once you have gathered and turned in all necessary paperwork to the closest bank office or uploaded them on the WeMakeScholars documents portal, your application for an education loan will start processing.

To quickly start your loan process, ask your financial officer about the documents checklist.

Stop struggling with a one-size-fits-all document list - get a custom solution from us today.

Karnataka Bank Education loan insurance

A student will have to pay a premium of around 1-2% of the loan amount, to take the education loan insurance from Karnataka Bank. Loan insurance is a mutual safety scheme that saves the lender from losing all their money and the co-applicant from paying all the money of the education loan, in case of any mishappening with the loan applicant.

To know more about the other benefits of education loan insurance, get in touch with your financial officer at WeMakeScholars.

Karnataka Bank Loan Margin calculation

The loan margin percentage is dependent on the loan amount and place of study. For Karnataka bank education loan products, the loan margin percentages are listed below:

Loan Amount 

Loan Margin 

For an amount of upto 4 lacs

0% loan margin

Above Rs 4 lacs amount to study in India

5% loan margin

Above Rs 4 lacs amount to study abroad

15% loan margin

 

For example, if a student needs 50 lacs to pursue their MBA from a top college in India, then if they eligible to apply to get an education loan from Karnataka Bank, then according to a loan margin of 5%, they will only be granted a loan of Rs 47.5 lacs, the rest Rs 2.5 lacs will have to be arranged by the students, themselves.

Sometimes this loan margin amount is beyond the arrangement capacity of students, in that matter, they should approach WeMakeScholars because we can help them reduce loan margin by implying strategies to reduce loan margin.

How to Apply for an Education Loan from Karnataka Bank?

To apply for an education loan from Karnataka bank here are the following two ways:

Offline application process:

Step 1 Visit the nearest Karnataka bank branch

Step 2 Ask for the student loan schemes and decide which one suits you the best

Step 3 Fill out the loan application form

Step 4 Visit the bank again to submit the documents in the bank on time

Step 5 Take follow-ups from the bank from time to time

Online application process

Step 1: Fill the education loan application form online for Karnataka bank 

Step 2: When received a callback provide all the required information, to get your loan profile analyzed

Step 3: Choose the lender from all the lender options given by your financial officer as per your eligibility and bank policies

Step 4: Upload your documents on WeMakeScholars secure document portal, as per the documents checklist sent by your financial officer.

Step 5: Once your documents are submitted, your file will be logged in. You will receive a loan sanctioning confirmation within 2-6 days from private banks and within 15-20 days from Govt. banks.

Step 6: Collect your loan sanction letter after signing the loan agreement.

The application process will not be as simple, you are sure to find the following issues if you go directly to the banks:

  • No documents checklist
  • Improper information about eligibility for education loan
  • Unavailability of correct details about loan schemes
  • Multiple visits to the banks
  • Issues in legal and valuation reports
  • Lack of proper customer services
  • Delay in loan sanctioning process
  • More Processing time

You can easily jump over these hurdles by taking a leap with WeMakeScholars. Here are the benefits of processing your education loan via WeMakeScholars:

Consistent availability  - We are here to provide you support at all stages of your loan sanctioning process, our financial officers are available from 9 AM to 9 PM on all working days to process your loan.

Shorter Processing time - Get your education loan sanctioned within 1 week from private banks & NBFCs and within 15-20 days from government bank, once your documents are submitted.

Expert guidance - Our trained financial officer helps you compare and guide you to choose the best lender for your education loan suiting your loan profile as per your eligibility.

Negotiation support - Your financial officer will personally negotiate with the lender on your behalf, and if possible, can bring down your effective interest rate by 0.5% - 2% from the bank’s average rate of interest.

Tax benefits - By informing students about the various tax saving schemes under Section 80E and 80C of the Income Tax Department we help them to save more of their taxable income.

Digitized application process - Our online loan application process makes it convenient and fast for students to apply for and process their education loans in the comfort of their homes.

Cashback opportunity - At the time of disbursement, you can get a cashback of up to Rs 3,000 from us.

To make the best and most use of this opportunity, availing the above-mentioned benefits, apply for an education loan through WeMakeScholars, request a callback, or fill out the common application form.

Get the assistance you need to achieve a smooth education loan disbursement process.

Why and How to transfer your Education Loan to Karnataka Bank?

Education Loan Transfer Program of Karnataka Bank offers students the opportunity to transfer their currently open education loan from any other bank to Karnataka Bank.

Students prefer to transfer their education loans to enjoy the following benefits:

  • Cheaper interest rates
  • Easy repayment conditions
  • Easy accessibility to bank
  • Faster customer services
  • Student-friendly bank policies
  • Wide coverage of education loan schemes

But how to transfer an existing education loan to Karnataka bank?

To transfer your existing loan from another bank to Karnataka Bank, you need to follow the steps listed below in order:

  • Collect proof of the amount outstanding from your current lender bank. 
  • Contact WeMakeScholars by requesting a callback, stating that you want an education loan transfer.
  • Submit your documents to Karnataka Bank as instructed by your Financial Officer. 

Once your loan transfer is approved, Karnataka Bank will pay the outstanding balance of your loan to your previous lender. And the same amount will be sanctioned by Karnataka Bank as your new education loan, which you will have to repay as per their repayment plan.

Karnataka bank Education loan EMI calculation as per Interest rate

Karnataka bank’s education loan EMI calculator is available on its website, but we suggest you should use WeMakeScholars Education Loan EMI Calculator because of the following benefits:

Detailed analysis report - Using this calculator, you will be able to get a detailed analysis of your education loan calculation, be it interest amount, EMI amount, or outstanding loan amount.

High accuracy - While designing the calculator, we considered all the possible factors that might alter the calculation, which is why it gives 100% accurate EMI calculation results.

Free of cost - WeMakeScholars education loan EMI calculator is free of cost, like other services offered by us.

Strategic advantage - The results of the calculator give you an edge over others to decide your other loan parameters like interest rate, repayment duration, moratorium period, etc in a better way.

Get more for your money with WeMakeScholars - we can negotiate on your behalf to help you secure an affordable education loan.

Karnataka Bank Education Loan Repayment process

Karnataka Bank applies a variable interest rate to their education loan products, which means that the interest rate of your education loan may change with the change in the repo rate and the change in bank policy.

Therefore, we recommend students contact their financial officers at WeMakeScholars to analyze their education loan profile as we will suggest to students based on their loan profile analysis the best lender offering education loans at the most favorable interest rate on your education loan.

Allow us to guide you through the loan disbursement process with our post-sanction help.

Interest Subsidy Scheme

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

Students belonging to OBC and EBC categories are eligible to get interest subsidies during the moratorium period of their education loan for abroad, under this scheme.

NOTE

  • The family income of the applicant should be less than Rs 8 lacs per annum.
  • Applicant must have taken admission in masters, Ph.D., or MPhil courses

2. Padho Pardesh Scheme

The scheme is to benefit abroad education loan beneficiaries belonging to the EWS category, by providing interest subsidy during the moratorium period.

NOTE

  • The minimum income of the applicant's family should be less than Rs 6 lacs per annum.
  • The student should take admission only in masters, Ph.D. or MPhil courses
  • A Family Income certificate is required to claim benefits.

3. Central Scheme for Interest Subsidy (CSIS)

The scheme is to benefit students belonging to EWS category, by exempting them from paying interest on their education loan during the moratorium period.

NOTE

  • Proof of belonging from the EWS category is mandatory
  • The annual family income of the student should be less than 4.5 lacs per annum.

Education Loan FAQs

  • What is the education loan interest rate for Karnataka Bank?

    The interest rates in Karnataka Bank starts from 9.93% for education loans to study in India and abroad. However, students can get 0.5% - 2% interest rate discount, if they process their education loans with WeMakeScholars.

  • How to apply for an education loan in Karnataka Bank?

    To be eligible to apply for an education loan in Karnataka Bank, apply online by filling up the common application form on WeMakeScholars website or you can also start your loan process by requesting a callback from your financial officer at WeMakeScholars

  • Is Karnataka bank education loan EMI Calculator helpful?

    Yes, the Karnataka Bank education loan EMI calculator helps to know the EMI amount which the student will have to pay in their repayment period. But we suggest you to use WeMakeScholars education loan EMI calculator as it is more accurate and provides detailed analysis of your repayment process.

  • What is the eligibility to get an education loan from Karnataka Bank?

    To get an education loan from Karnataka bank, the applicant must be an Indian citizen who has secured admission in prestigious educational institutions in India or abroad for their higher studies. Ask your financial officer at WeMakeScholars to know the specific eligibility criteria for your education loan.

Our Education Loan team will help you with any questions

Ajay Kumar
WeMakeScholars- supported by IT Ministry, Govt. of India.
Published: | Updated: