Kotak Mahindra Bank Education Loan

Kotak Mahindra Bank Limited offers student loans to individuals to study in India and even abroad. The interest rate in Kotak Mahindra Bank starts from 9% for secured and 12% for unsecured education loans.

The products are designed to provide financial assistance to students pursuing higher education in India as well as abroad

• Scheme to study Abroad
• Scheme to study in India

The details of Kotak Mahindra Bank Education Loan scheme to study abroad are down below 

Eligible courses to study abroad, under this scheme are

• MS and MBA courses are acceptable as postgraduate courses
• Graduation: course from listed reputed universities abroad.
• Other approved courses like CPA in the USA, CIMA in London, CISA, and CFA are also eligible to study abroad

No need to worry if your course is not in the above-given list of eligible courses, get in touch with your financial officer at WeMakeScholars, to learn about other lenders and get the best education loan deal for your study abroad course. 

Public and private banks in India offer education loans to students to study in popular Indian cities and states like Pune, Jaipur, Gujarat, etc. Kotak Mahindra Bank charges an interest rate on this granted education loan. The interest rate starts from 9%, further details are given below:

Eligible courses to study in India, under this scheme are:

• Professional Courses in Computer Sciences, Engineering, Agriculture, Medical, Veterinary, Dental, Management, and Law.
• Post-Graduation Courses: like Ph.D. and Masters from accepted institutions.
• Other courses such as CA, CFA, ICWA, and CS.
• Degree or diploma courses in shipping, pilot training, nursing, aeronautical engineering, or other courses run by the Director General of Civil Aviation, Indian Nursing Council, Shipping, or any other regulatory authority in India.
• Full-time degree or diploma in courses approved and conducted by ICMR, AICTE, UGC, Govt., AIBMS, etc.
• Diploma and Master in Management programs.

If your course is not on the above-given list. Don’t worry, get in touch with your financial officer at WeMakeScholars, to know other lenders that offer education loans for your course of study in India. Request a callback or fill out the common application form to get the best education loan deal.

Kotak Mahindra Bank, in spite of being a private bank, does not charge any processing fee from students. However, they charge some miscellaneous fees which are as per the below-mentioned table:

Submitting the right set of documents is required to start the application process at Kotak Mahindra Bank. The general list of documents required by Kotak Mahindra Bank is as follows:

Section 1: Application form   

Hard Copy of the loan application form submitted on the WeMakeScholars website with 2 passport-size photographs

Section 2: Bank KYC documents of loan Applicant and co-applicant 

1. Residence proof – Voter ID Card/ Passport/ Telephone Bill/ Electricity Bill/ Ration card/ Bank account statement/ Aadhar. (if current and permanent residence proofs have different addresses, then 2 proofs will be required)
2. Identity proof – Passport of the student, if going for abroad studies, Aadhar card or PAN Card
3. The bank account statement of the last 6 months (Personal/ Salary) for a co-applicant, it should also show the credited salary, and if self-employed 1 yr business transactions will be required.
4. Statement of personal liability & asset (accepted by the branch personnel)

All the documents should be self-attested.

Section 3: Academic documents of student

1. Education mark sheets and certificates of class 10, 12, and Degree
2. Fee structure as given by the university or college
3. Entrance exam scorecard provided by the responsible authority
4. Proof of admission to the course, mentioning the study duration

Section 4: Income documents of co-applicant

If Salaried

1. Form 16 details the applicant for the last 2 years.
2. Salary slips (last 3 months)
3. Last 2 years ITR
4. ID card of the applicant

If Self-employed

1. Proof of business address
2. Last 3 years' Income Tax Return
3. Last 3 years' balance sheet showing profit & loss account

Section 5: Other Documents

1. A written statement as per the format given by the WeMakeScholars financial officer,  from the co-applicants side, stating that they will take care of all other expenses apart from those covered.
2. A joint affidavit from the applicant and co-applicant side as per the standard format which will be shared with you by your assigned financial officer 

Section 6: Additional docs (if applicable)

1. Payment receipts of any transactions done in the past 6 months
2. Pending loan account statements of the past 1 year
3. Letter of the gap if the students had a failure/break in studies on Rs. 100 stamp paper. (Format to be provided by WeMakeScholars Financial officer)

Section 7: Collateral documents (Optional)

Students are required to show/ submit the collateral documents to the bank. The necessary collateral documents checklist differs as per students' loan profile. Ask your assigned financial officer to provide you with a collateral documents checklist.

Kotak Mahindra Bank insists on taking insurance for your Education Loan. The charges are around 1-2% of the loan amount. Taking a loan insurance reduces the risk for the bank, as the student's family will not have to pay the loan back if something happens to the student; instead, the insurance company pays it off.

Kotak Mahindra Bank applies a loan margin of 5% of the entire loan amount to study in India and 15% to study abroad. 

For example,

If a student needs a loan of 50 lacs for their higher education in India, then the maximum loan amount that can be granted to the student by Kotak Mahindra Bank will be 95% of the asked loan amount. That is, 47.5 lacs. Similarly, if the ask amount is the same for higher studies in the USA, the maximum loan amount will be 42.5 lacs, according to an 85% loan margin.

However, sometimes the applicants are not in a financial state to bear such a high loan margin amount, in that case, you should ask your financial officer at WeMakeScholars- how to reduce your loan margin. Because there are certain methods you can imply through which you can reduce your loan margin.

Offline Application Process

• You can visit your nearest Kotak Mahindra Bank and speak to the loan officer about loan schemes and the loan application form.
• Ask about the documents checklist and submit the documents on your next visit to finally start your loan process

Online Application Process through WeMakeScholars:

Step 1: Reach out to WeMakeScholars by Requesting a callback or filling out a common application form

Step 2: Give all your details to your assigned financial officer over a call

Your financial officer will suggest you the best lenders as per your loan profile analysis.

Step 3: Choose the best lender as per your eligibility and tell your financial officer.

Step 4: Submit all your documents either in the bank or upload them on our documents portal, to start your process.

Step 5: Relax because your financial officer will take care of the rest of everything, and will keep you posted about the process, if required call your financial officer to know the progress.

Step 6: Take your sanction letter from your lender bank within 15 -20 days.

The application process is not as simple as it looks if you go directly to the banks to get your education loan sanctioned. Following is the list of issues if you go directly to the banks:

• Lack of proper customer services
• No particular list of required documents
• Issues in legal and valuation reports
• Lots of documentation
• Delay in the process
• Multiple visits to the banks
• Improper idea of eligibility for education loan
• Unavailability of correct information

To avoid such issues, visit WeMakeScholars and apply online for an education loan. Here are the benefits of processing your education loan via WeMakeScholars:

• Expert Guidance - On the basis of your profile, your financial officer will suggest to you the best lender and guide you throughout your sanctioning process.
• Minimal Processing time - With WeMakeScholars you get your loan sanctioned within 7 days from private banks & NBFCs, and within 15-20 working days from government banks once the documents are submitted or uploaded on the WeMakeScholars documents portal. This is almost 50% of the time than what banks usually take.
• Tax Benefits - With WeMakeScholars, you get complete guidance on how to save tax under Section 80E, 80C, etc of the Income tax department, along with the tax collected at source (TCS).
• Negotiation Support - We go a little extra mile, to negotiate with the lenders in terms of rate of interest and loan conditions, wherever possible, on your behalf
• End-to-end Support: Even after getting your loan sanctioned, we will still be available at your service, till the last repayment of your EMI, even after 15 years.
• Better Interest Rates: We are the largest education loan partner of the banks, therefore they offer special interest rate discounts of 0.5% to 2% on the usual rate for the students who process with WeMakeScholars
• Free of Cost Services: All the premium services offered by WeMakeScholars, related to the sanctioning process are totally free of cost, as we are funded and supported by the IT Ministry, GOI.
• Cashback offer - You get a chance to win a  cashback of up to Rs 3,000 from us, at the time of your disbursement 
• Digitized Application Process - The WeMakeScholars documents portal reduces the stress of going multiple times to the bank just to submit the documents, making the process hassle-free. All our services are entirely free of cost for students and so far we have helped thousands of students in getting their education loans sanctioned within their deadline.

An education loan transfer is a good option to save money while repaying. Kotak Mahindra Bank allows you to transfer your running education loan from your existing lender to Kotak Mahindra bank where you can get the:

• Good serviceability
• Less Rate of Interest
• Loan products with wider coverage
• Convenient customer service
• Easy bank policies
• Net Banking and Mobile Banking facilities

If you are unsatisfied with the services or processing of your education loan, reach out to us. We will help you find a lender with the above-listed benefits and also complete your transfer process, totally free of cost. Follow the below-mentioned steps to transfer it to Kotak Mahindra Bank:

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

Once your loan transfer is approved, Kotak Mahindra Bank will pay the outstanding balance of your loan to your previous lender and the same amount will be sanctioned by Kotak Mahindra Bank as your new education loan.

This EMI amount is calculated considering all the parameters of the education loan so that the entire loan amount can be repaid within the stipulated time. However, this EMI amount calculation depends on the following fixed and variable factors 

• Moratorium period
• Type of Interest
• Rate of Interest
• Repayment Duration
• Semester-wise disbursement
• Grace period

In light of this, we would like to offer you the WeMakeScholars EMI Calculator, which determines the entire EMI amount based on the current interest rate as per your education loan.

Advantages of WeMakeScholars education loan calculator:

• 100% accuracy - The calculator is designed considering all the important factors that alter the calculation results, therefore making it the most accurate EMI calculator.
• Strategic advantage - It provides an idea about repayment statistics, and you can plan and organize your EMI repayment strategy accordingly.
• No cost - The loan calculator is free of cost, just like all other services of WeMakeScholars. 
• Detailed Explanation - You get a complete analysis of your repayment schedule, along with the semester-wise division of disbursement.

The repayment process of Kotak Mahindra Bank can last up to 15 years, as it is the maximum repayment duration. 

If any student takes an education loan of 40 lacs,  at a 9% rate of interest for a repayment period of 15 years, the following will be the amortization schedule

However, students can opt to repay their education loan earlier as well, by the following methods:

• Prepayment or Part Payment
• Opting for shorter repayment periods
• Considering transferring your education loan

When you use our service to complete your student loan, from application to repayment, the WeMakeScholars team will provide you with more financial guidance regarding the process, through which you can save your hard-earned money. 

Dr. Ambedkar Interest subsidy scheme for OBC and EWS students

The Indian Government launched this scheme to benefit students belonging to EBC and OBC communities, to exempt them from interest payable within the moratorium period. This scheme is only for eligible abroad study aspirants.

Eligibility conditions for Dr. Ambedkar Interest Subsidy Scheme for OBC and EBC students

• Students should have secured admission in the approved courses at M.Phil, Masters, or Ph.D. levels abroad
• Students of the OBC category should present their caste certificate.
• The family income of the student hailing from the EBC category and OBC category should not be more than Rs 8 lacs per annum
• Loans should be taken from scheduled banks according to the Indian Banking Association guidelines

Padho Pardesh Scheme

The Government of India launched this scheme to benefit eligible students from EWS of notified minority communities for their education abroad.

Eligibility Conditions for the Padho Pardesh Scheme

• Students should pursue courses at M.Phil, Ph.D. levels, and Masters.
• Students should have taken the loan from a scheduled bank as per the Indian Banks Association guidelines.
• The total family income of the student should not be more than Rs 6 lacs per annum.
• Government-approved income certificate is mandatory.

Central Scheme for Interest Subsidy (CSIS)

The scheme was announced by the MHRD, now the Ministry of Education, to grant interest subsidies on education loans taken by students belonging to the EWS section of society. 

Eligibility conditions for CSIS

• Students should have proof of belonging from the EWS section of society.
• Students must secure admission in approved courses of study in India only
• The annual family income of the student should not exceed Rs 4.5 lacs per annum.

Benefit: Under the scheme, in the moratorium period, eligible students need not pay any interest for their education loan taken to study in India.