Yes Bank Education Loan

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Table of content

  1. Yes Bank Education Loan Schemes for Abroad Studies
  2. Yes Bank Education Loan Schemes for Studies in India
  3. Yes Bank Education Loan Processing Fee
  4. Documents Required for Yes Bank Education Loan
  5. Yes Bank Education Loan Insurance
  6. Yes Bank Loan Margin Calculation
  7. Subsidies offered for Education Loans
  8. How to apply for an education loan from Yes Bank?
  9. Why and how to transfer your education loan to Yes bank?
  10. EMI Calculation as per Yes bank loan rate of interest
  11. Yes Bank loan repayment process
  12. FAQ's
  13. Need Help? Ask Here!

India’s Largest Study Abroad Funding Expo (SAFE) 2024


- Explore 26,000+ International Scholarships

- Instant Education Loan-pre approval with the lowest interest rate in India


Yes Bank offers personal loans of up to 40 Lakhs for students wanting to pursue higher education with interest rates starting from around 10.99% p.a and a repayment tenure lasting up to 60 months (5 Years). Read further to know more about the yes bank education loan details. 

  • Yes Bank Education Loan Schemes for Abroad studies
  • Yes Bank Education Loan Schemes for studies in India

Yes Bank Education Loan Schemes for Abroad Studies

The Yes Bank abroad education loan product offers to finance education under their personal loan while offering up to 40 Lakhs for various academic expenses.

Parameters

Details

Loan Limit

Up to 40 Lakhs

Expenses covered

  • Academic expenses such as Examination, Library, and Laboratory fees
  • Course fee
  • Travel expenses
  • Health insurance (If applicable)
  • Caution fee asked by the educational institution
  • Expenses required for books/equipment/ instruments/ uniforms
  • Equipment expenses
  • Miscellaneous expenses
  • Eligibility for scholarships will be at the time of loan amount calculation

Accepted co-applicant

Parents, Parents-in-law, Spouse, Siblings

Interest Rate

Starting from 10.99%

Moratorium Period

Course duration + 1 year

Repayment Duration

Up to 60 months

Repayment policies

  • The interest accumulated during the moratorium period/ Grace period will be added to the principal amount and the EMI.
  • The repayment period is generally guided to be 15 years for all categories. 
  • Even though EMI-based is generally the most widely accepted method of repayment, for certain working professionals such as doctors and CAs telescoping repayments can be implemented

Eligibility Criteria

  • The applicant must be an Indian citizen 
  • Should have admission to higher education in accepted institutions Abroad through merit-based examinations or entrance exams.
  • Should have completed 10 +2 or a course equivalent to it.

 

Collateral requirement

Liquid property: LIC policy, Fixed deposit, Government bonds

Immovable property: Non- Non-agricultural land, House, Flat

Value of collateral(In case of a collateralized loan)

  • The value of the immovable property must be 1.25x times the requested education loan amount
  • When liquid security is required,
    The minimum amount should be 1.1 times the requested student loan.

 

Courses recognized for higher education abroad

  • Professional and technical courses for career improvement provided by reputable institutions
  • Post-graduate programs including MCA, MS, and MBA
  • Professional courses offered by CIMA-London and CPA-USA.
  • Diploma and degree programs in pilot training, shipping, and aeronautics that have been approved for employment by regulatory organizations in India and overseas.

In case your preferred course is not mentioned in the above list, our course articles can help you find a loan for the course you desire.

Pro tip: In circumstances where the student has already paid the tuition cost, the financial officer can ask the banking authorities for reimbursement of the tuition fee (if the payment was made within 6 months)

Ready to take the first step towards funding your education? Check your eligibility today

Yes Bank Education Loan Schemes for Studies in India

For education in India, you can get up to 40 Lakhs at an interest rate of 10.99%  providing coverage for various academic and other expenses such as tuition fees, examination fees, miscellaneous expenses, etc.

Loan parameters 

Details

Loan Limit

40 Lakhs

Expenses covered

  • Course fee
  • Academic expenses such as Examination, Library, and Laboratory fees
  • Travel expenses
  • Health insurance (If applicable)
  • Caution fee asked by the university
  • Expenses required for books/equipment/ instruments/ uniforms
  • Miscellaneous expenses
  • Eligibility for scholarships will be at the time of loan amount calculation
  • Equipment expenses

Accepted co-applicant

Parents, Parents-in-law, Spouse, Siblings

Interest Rate

Starting from 10.99%

Moratorium Period

Course duration + 1 year

Repayment Duration

Up to 60 months

Repayment policies

  • The interest accumulated during the moratorium period/ Grace period will be added to the principal amount and the EMI.
  • The repayment period is generally guided to be 15 years for all categories. 
  • Even though EMI-based is generally the most widely accepted method of repayment, for certain working professionals such as doctors and CAs telescoping repayments can be implemented

Eligibility Criteria

  • The applicant must be an Indian citizen 
  • Should have secured admission to higher education in accepted institutions in India through merit-based examinations or entrance exams.
  • Should have completed 10 +2 or a course equivalent to it.

Collateral requirement

Immovable property: House, non-agricultural land, Flat

Liquid property: LIC policy, Government bonds, Fixed deposit

Value of the collateral (In case of a collateralized loan)

  • The minimum amount should be 1.1 times the requested student loan.
  • The value of the immovable property must be 1.25 times the requested education loan amount When liquid security is required.

 

Courses recognized for higher education in India

  • Graduate, post-graduate, and PG diploma courses by Educational institutions and universities approved by AIBMS/ UGC/ ICMR/Government/AICTE
  • Professional courses such as CA, ICWA, CFA, etc 
  • Courses conducted by XLRI, NID, NIFT, IITs, IIMs, IISC, etc. 
  • Degree and diploma courses in courses like aeronautical, shipping, pilot training, nursing, etc. (Must be approved by the director general of civil aviation/
  • Indian nursing council/ shipping or any other regulatory body if the course is pursued in India.
    Approved courses by foreign universities in India.

Yes Bank Education Loan Processing Fee

The processing fee is around 1-2%, which you won’t have to pay upfront to the bank. 

You can talk to your financial officer from WeMakeScholars to provide more details on the charges levied by the bank.

At WeMakeScholars, the services we provide come at no cost to you, as we do not charge any processing fees. Our organization is funded and supported by the Ministry of IT, Government of India as part of the Digital India campaign. This allows us to offer our services free of charge to students seeking scholarships and other forms of financial aid.

Documents Required for Yes Bank Education Loan

Parameters

Details

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

  • Application form provided by the financial officer of WeMakeScholars, duly completed with two pictures and a signature.
  • A passport/ voter ID card/ electricity bill/ telephone bill/ ration card/ bank account statement and Aadhar card are all acceptable forms of identification as proof of residency. If the applicant's permanent and current addresses are different, two different proofs are needed.
  • Identity proof: PAN card and passport
  • Personal Asset and Liability Statement in this format, as determined by the branch professional
  • The most recent six-month bank statement (personal/salary). The co-applicant credits must be presented, and if the co-applicant is self-employed, one year's worth of company transactions must be documented.

The documents must be self-attested.

Applicant Academic Records

  • Proof of secured admission/enrollment in the program (should be evidencing total duration of the course)
  • The course fee structure (If available, i20 for USA)
  • Scorecard of GRE/IELTS/GMAT
  • Educational institution Ranking printout form
  • Academic Records and certificates- 10th, 12th, Degree

Financial Co-applicant Income documents

If Salaried:

  • most recent pay slips (for the last 3 months)
  • Form 16 of the previous 2 years.
  • ID Card of the employer
  • last two years ITR

If Self-employed:

  • past three years ITR
  • 3 years ago Profit and loss account and the balance sheet (only if self-employed businessman)
  • Proof of company address/ Business address

Other Documents

  • A cheque for Rs. 11,800 is required as a processing fee.
  • A letter saying that the co-applicant would be responsible for any remaining costs not covered by the loan. 
  • Additional cheques for attorney and evaluator fees (if your legal and valuation process is done by the bank itself)
  • Affidavit of the property collateral owner (on Rs. 20 or 100 stamp paper). If there are many owners of the property, each of them must provide in this format.

Additional docs

  • Any pending loan statements from the previous year.
  • Receipt for any payments in advance.
  • Proforma invoice for the trip, laptop, or another item if you're requesting a loan for it.
  • If appropriate, a letter stating the reason for missing ITRs of the co-applicant.
  • A letter outlining the discrepancy, An example is this stamp paper for Rs. 100.

 

We can provide you with a customized list of documents based on your unique circumstances and requirements. This can save you time and help you avoid any potential delays or issues in the enrollment process. 

Don't waste any more time gathering documents - let us do the work for you!

Yes Bank Education Loan Insurance

It is mandatory to take loan insurance in Yes Bank. It typically represents 1% to 2% of the loan amount.

In the event of unlucky occurrences like disability, or even the applicant's demise, loan insurance proves to be of great help to the co-applicant. With loan insurance, the applicant may ensure that their parents or co-applicants aren't solely responsible for loan repayment.

Yes Bank Loan Margin Calculation

For example, if a student has applied for a loan of 60 Lakhs and if the loan margin is 15%,  Then the loan margin would be 15% of the loan amount which would be equal to 9 Lakhs.

We understand that loan margins can have a significant impact on the cost of borrowing, and we are committed to helping students secure the best possible loan terms and interest rates. 

You can watch our video on Education Loan Margin, where our co-founder explains all about loan margin and where we take a look an interesting case handled by our team.

Subsidies offered for Education Loans

Through these programs/initiatives, the government pays out the total amount of cumulative interest accrued during the moratorium period. (The time of a moratorium is six months after obtaining employment, or the course length plus one year/ 6 months). 

Padho Pardesh

  • The applicant is a member of a religious minority, such as a Muslim, Christian, Sikh, Buddhist, Jain, or Zoroastrian and their family income is less than 6 Lakhs.

Central scheme for interest subsidy for economically backward classes

  • The household income of the applicant is less than 4.5 lakhs.

Dr. Ambedkar's central sector scheme

  • This subsidy is available to students who fall under the Economically Backward Class (EBC) and whose family income are less than 8 Lakhs per year.
  • This subsidy is available to students from OBC populations who have a household income of less than 8 Lakh rupees.

How to apply for an education loan from Yes Bank?

Yes bank education loan process (Offline)

Step 1: Visit the closest operating branch to you 

Step 2: Submit all the required documents at that branch 

Step 3: Your documents will be verified manually

Step 4: The loan amount will be sanctioned and disbursed after verification.

Online application process through WeMakeScholars

Step 1: Fill out the Common application form available for student loans 

Step 2: A financial officer from WeMakeScholars will get in touch with you to check your eligibility.

Step 3: Our team members will provide you with a clear comparison between all the lenders from who you can avail of your loan on the basis of your eligibility for the loan. Choose a lender.

Step 4:  Directly submit the documents to the bank or upload your documents on the WeMakeScholars secured portal according to the document checklist sent to you by your financial officer.

Step 5: From the time, you submit the documents you will be logged in by our team. You will find out the result of your application within 2-6 days in private banks and 15-20 days in government banks.

Step 6: After which you will sign the loan agreement and receive the sanction letter.

Problems that students have when contacting a lender directly

  • Very lengthy processing time
  • Unclear instructions on how to submit a loan application
  • There is no list of prerequisite documents.
  • Post-disbursement assistance is not provided.
  • The loan procedure is not well explained.
  • Unsatisfactory customer service

By Applying for Yes Bank Education Loan through WeMakeScholars

You don’t need to pay a processing fee in WeMakeScholars for the services we provide. It's completely free of cost. We are an organization funded and supported by the Ministry of IT, the government of India.

  • Negotiation on your behalf: To make sure you get the best interest rates (0.5% to 2% less than the bank’s average) from the banks our team of financial officers at WeMakeScholars negotiates with the bank on your behalf.
  • Best customer service/support: You can reach out to us at any stage during your loan process. We even provide post-disbursement assistance till you pay your last EMI
  • The cashback offered: You will be rewarded with a cashback on disbursement of your education loan to a maximum of INR 3000, as you are supporting the Digital India campaign by applying for your study abroad education loan via WeMakeScholars.
  • Loan profile credentials: You can use your loan profile credentials to access your loan profile and check on the status of your application for an education loan.
Get personalized support from our team - apply through us and experience the best customer service.

Why and how to transfer your education loan to Yes bank?

Why Transfer?

  • By transferring a loan from one bank to another you can get lower rates of interest on the existing loan and also on the new education loan you’re applying for. This can help you save a ton of money over a long period of time!
  • Yes bank also offers top-up to add on to the loan during the same repayment tenure
  • As WeMakeScholars is connected to most of the public banks, private banks, and NBFCs the whole process becomes so much easier and faster.
  • The negotiation for a lower interest rate is done by our team of financial officers on your behalf, making the whole process a walk in the park for you. 

How do I transfer?

  • Get access to the details of your outstanding loan amount.
  • Request a call back from us. You will get contacted shortly.
  • Inform your financial officer about your wish to get your loan transferred
  • Submit the documents suggested to you by your financial officer to your nearest branch of Yes Bank.

EMI Calculation as per Yes bank loan rate of interest

Generally, the education loan EMI in Yes Bank is calculated on the basis of these variables.

  • The simple and compound interest charged on the loan
  • The total loan amount sanctioned
  • The fee structure broke down semester-wise
  • Total loan amount
  • The Grace period

Calculate your EMI using the WMS education loan EMI calculator to get the most accurate prediction of EMI on your education loan. The calculator is user-friendly and easy to navigate, allowing you to input your loan details and receive an accurate EMI calculation in a matter of seconds. This information can help you plan your finances more effectively and make informed decisions about your loan repayment strategy.

Get the best possible rates for your education loan - apply through us and let us negotiate on your behalf.

Yes Bank loan repayment process

Let’s assume you apply for a yes bank education loan of 28 Lakhs with an interest rate of 10% and a tenure of repayment equal to 12 years. The amortization schedule would look as follows.

  • Payable monthly EMI: 39,527
  • Total amount payable: 56,91,919
  • Total interest payable: 28,91,919

Timeline

EMI

Interest portion

Principal portion

Loan Outstanding

End of 1st year

39527

26419

13108

3157157

End of 2nd year

39527

25046

14481

2991070

End of 3rd year

39527

23530

15997

2807592

End of 4th year

39527

21855

17672

2604902

End of 5th year

39527

20004

19523

2380988

End of 6th year

39527

17960

21567

2133626

End of 7th year

39527

15702

23826

1860363

End of 8th year

39527

13207

26320

1558485

End of 9th year

39527

10451

29077

1224997

End of 10th year

39527

7406

32121

856589

End of 11th year

39527

4042

35485

449603

End of 12th year

39527

327

39201

0

 

They let applicants choose an option of prepayment past 12 EMI payments.

If you want to have a clearer understanding of how EMIs are calculated and the factors considered in calculating the repayment schedule, you can watch our video on how to accurately calculate EMI for an Education loan.

Our team is here to provide you with guidance and support every step of the way, from ensuring that all the necessary paperwork is completed accurately and on time, to helping you coordinate with the bank or financial institution to ensure timely disbursal of the loan amount. 

Let us help you complete your education loan process with ease through our post-sanction assistance.

Education Loan FAQs

  • What is an overdue amount?

    The loan balance that a client fails to return on time is referred to as being "loan overdue." In such circumstances, the lender may assess a late payment fee or an overdue interest rate on the amount past due.

  • Can I transfer my education loan to YES Bank?

    Yes, you can transfer your existing education loan to another bank.

  • Can I apply for an education loan in YES bank if I haven’t got admission yet?

    Yes, you can always try applying for an education loan before getting admission to get an estimation of how much amount you can get from the loan. Reach out to us to know more about the loan application process by requesting a callback.

  • Can I reduce my education loan interest rate?

    Yes, the interest rates can be negotiated with the banks depending on the applicant’s profile for an education loan. To know more about it, request a call back from us.

  • Which is better: Reducing the EMI or reducing the repayment tenure of my education loan?

    Reducing your repayment tenure is better than reducing your EMI. A reduced EMI might be a better option for people with a lot of other debts to pay as it reduces the load for each month. But a smaller EMI each month results in a longer repayment tenure because of which you end up paying a lot more in the form of interest.

NEWS

Yes Bank's Loan Portfolio Expands by 7.5% to Reach Rs 2 Trillion in Q2 June

Yes Bank, a private sector lender in India, has witnessed a 7.5% YoY growth in its loan book, reaching Rs 2 trillion by the end of June 2023. This growth is reflected in the bank's loans and advances, with gross retail disbursements amounting to Rs 11,357 crore in Q1FY24, slightly lower than the previous year's Rs 11,863 crore in the same quarter.

Furthermore, Yes Bank experienced a 13.5% year-on-year increase in its deposits, reaching Rs 2.19 trillion by the end of June 2023. However, the share of low-cost money, represented by Current Account and Savings Account or CASA deposits, decreased from 31.6% in June 2022 to 29.4% in June 2023. The credit-deposit ratio for the bank stood at 91.3% in June 2023, compared to 96.4% in the same period the previous year.

Last updated on - 07/08/2023

Our Education Loan team will help you with any questions

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