Karur Vysya Bank Education Loan Rate of Interest
The bank offers many benefits.
- Faster processing is one of them.
- There is no margin for a loan up to INR 4 Lacs.
- No processing fee is charged in any form.
The interest rates are in accordance with the RBI guidelines.
- The minimum interest rate is 11.85%.
- The maximum interest rate is 12.35%.
- Girls get a concession of 0.5%.
CALCULATE YOUR EDUCATION LOAN EMI
1,000 per month
1,000
1,000
Looking for admission for India and Abroad?
Karur Vysya Bank Education Loan Eligibility
- Indian National. The applicant should be a citizen of India or should have a valid passport of India.
- Admission Basis. The admission to the university/institute should have been on the basis of an entrance exam or on a merit basis.
- Guarantor. The candidate will need to bring his/her father/guardian as guarantor, in case of Individual loans only.
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| Bank / Financer |  Change bank |  Change bank |  Change bank |  Change bank |  Change bank |
| Applicable Rate of Interest | Minimum: 11.85% Maximum: 12.35% | Up to INR 7.50 Lacs: 10.55% Above INR 7.50 Lacs: 10.80% | up to INR 7.5 Lacs: MCLR + 2.00% above INR 7.5 Lacs: 2.60% | Upto 4 Lacs- 16.50% Upto 7.5 Lacs- 17.50% Above 7.5 Lacs- 15.50% | |
| Max Loan with Collateral | For India: INR 10 Lacs For Abroad: INR 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs and beyond based requirement | |
| Max loan without collateral | For India: INR 10 Lacs For Abroad: INR 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs and beyond based requirement | |
| Processing Fee | Nil(but INR 110 are for Vidyalakshmi Portal Handling Charges) | Up to INR 4 Lacs: Nil Above INR 4 Lacs: INR 5000 | Nil | Nil | |
| Repayment Period | 5 to 7 years | 15 years | 15 years | 7 years | |
| Loan for top institutions | No | Yes, SBI Scholar Loan Scheme | Yes, PNB Pratibha | No | |
| Margin | Up to 4 Lacs: No margin Above 4 Lacs: For India-5% For Abroad-15% | For loan above INR 4 Lacs In India: 5% In abroad: 15% | Up to INR 4 Lacs - NIL Above INR 4 Lacs - 5% | Upto loan 4 Lacs: No margin Above 4 Lacs: for India: 5% for Abroad: 15% | |
| Age Limit | No age criteria | no age limit | No age limit | No | |
| Loan Security | Up to INR 4 lacs: Parents as co-applicants. INR 4 lacs to INR 7.5 lacs: Parents as co-applicants, and a suitable third party guarantee. Above INR 7.5 lacs: Parents as co-applicants and suitable tangible security along with the assignment of student's future income. | Upto 7.50 Lacs: Only Parent/ Guardian as co-borrower. No Collateral Security or third party guarantee Above INR 7.50 Lacs: Tangible security along with parents as co borrower | Upto INR 7.50 Lacs: Parent(s)/guardian be made joint borrower (s). No tangible Security and /or 3rd party guarantee is required. Above INR 7.50 Lacs: Parent(s)/guardian be joint borrower(s). Tangible collateral security of suitable value acceptable to bank. | Third party guarantee Collateral security Additionally, assignment of LIC policy in favor of bank amounting 100% of education loan amount Assignment of Future salaries in favor of Axis Bank | |
| Eligibility concession for SC/ST | No | No | 50% for SC/ST, and;60% for General category. | No | |
| Processing Time | 15 days | 20 days | 15 days | 14 Days | |
| Prepayment charges | Nil | Nil | Nil | Nil | |
| Penal charges | No | Penal interest @ 2% to be charged for loans above Rs.4 lacs for the overdue amount and overdue period | Nil | @ 2% per month on the overdue installment/s | |
| Mandatory insurance cover | Yes | Yes | yes | yes | |
| Travel expeneses | Yes | yes | yes | yes | |
| Bank transfter allowance | No such clause mention | available | available | No such clause mentioned | |
| Top up loan availability | Unavailable | yes | available | unavailable | |
| Interest Subsidy Schemes | Skill Loan Scheme CSIS | Padho Pardesh CSIS Skill Loan Scheme | Padho Pardesh CSIS Skill Loan Scheme | CSIS | |
| Tax benifit | Yes | yes | yes | yes | |
| Concession/benefits | Faster processing of loan 0.5% concession on interest rates to girl/female students No processing fee Availability on Vidyalakshmi Portal | Concession to girl students 1% concession if interest is serviced during moratorium period including course period | 0.5% concession to girl students 0.5% concession if interest is serviced during moratorium period including course period Online application | There is no processing fee charged No pre- payment charges are applied No pre- closure charges are applied Loan Disbursal period is 15 working days from the date of final submission of documents |
How to apply for Karur Vysya Bank Education Loan ?
Karur Vysya Bank Education loan application form can be available online or offline at Bank branches.
Visit the official website for Karur Vysya Bank Education Loan.
Click on Apply Now.
Fill out the form with essential details.
Upload the mandatory documents required.
Submit the form and take out a print out of the application.
Visit the bank branch for further formalities.
Applicants can directly visit the nearest branch and ask for an application form. The bank representative will then guide them with all the necessary information regarding eligibility, documents required and also which loan is best suitable.
Karur Vysya Bank Education Loan Details
For Abroad: INR 20 Lacs
Above 4 Lacs:
For India-5%
For Abroad-15%
INR 4 lacs to INR 7.5 lacs: Parents as co-applicants, and a suitable third party guarantee
Above INR 7.5 lacs: Parents as co-applicants
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Expenses covered under Karur Vysya Bank Student Loan Scheme
- Basic Tuition Fees
- Cost of Books/Uniform
- Library/Laboratory Fee
- Residence/Hostel Fee
- Travel Expenses (for studying abroad)
- Cost of Laptop/Computer
Courses Covered Under Karur Vysya Bank Student Loan Scheme
In India
Graduate/ postgraduate degree/ diploma courses conducted by renowned institutions/ universities recognized by UGC, Government, AICTE, AIBMS or ICMR.
Academic courses such as CA, CFA, and ICWAI.
Courses conducted by NIFT, IITs, IIMs, XLRI, IISc, and NID.
Regular degree or diploma courses like, shipping, pilot training, and aeronautical that are approved by Director General of Civil Aviation or Shipping (only if it is pursued in India).
Courses for noble causes such as teaching training (like B.Ed.), nursing courses, and from other training institutions approved by Central Government or by State Government
Reputed foreign universities offering approved courses offered in India.
Courses Covered Under Karur Vysya Bank Student Loan Scheme
In Abroad
Job Oriented Professional and technical courses
Post-graduation courses such as MBA/ MCA
Courses that are offered by CIMA, London and CPA, USA
Pilot Training, Shipping, aeronautical etc. courses that lead to a diploma or degree
Education Loan Documents Required ?
Admission/Offer letter with all essential details
Attested copies of identity proof and residence proof like Aadhaar Card, Voter ID, PAN Card
Self-attested passport size photograph
Marksheet of previously qualified exams.
Income proof along with Latest Salary Slip, Form 16 and ITRs of parents(if required)
Proof of admission
Bank account statement of past 3 or 6 months.
Properly filled Guarantor form.
Interest Subsidy Schemes
Skill Loan Scheme
The bank offers a 'Skill Loan Scheme' for students who aspire to gain knowledge and specialized training in one specific field.
Central Scheme of Interest Subsidy (CSIS)
Formulated by the Govt. of India, a scheme to assist the students belonging to the economically weaker section.
Padho Pradesh
Formulated under the Prime Minister's 15 point programme, this subsidy scheme benefits the students of the minority community who want to study abroad. Such students are provided 100% interest subsidy.
Frequently Asked Questions
What are the schemes that Karur Vysya Bank considers for Education Loan?
+ -There is no mention of any further schemes on bank's website. Candidates may enquire at their nearest branch for such details.
On whose name is the loan granted?
+ -The loan is granted on the name of student/applicant only.
What is the age limit for the loan?
+ -There is no age limit as such. If a candidate has got the admission and he/she fulfills other points too, then he/she can avail the loan irrespective of the age.
What is the meaning of margin on loan?
+ -Margin is that portion of the loan which is not given by the bank, and thus candidate has to arrange such money by his/her own resources only. For example, if loan amount is INR 1 lac and margin is 4%, then bank will give the candidate INR 96000 only.
Where can I avail Karur Vysya Bank Education Loan?
+ -Candidates can either apply through the Vidyalakshmi Portal or can contact their nearest branch to avail the loan.
Is there any method to apply online for the loan?
+ -Yes. As mentioned earlier, students can use the Vidyalakshmi Portal for this.
Is there any minimum aggregate marks criteria to get the Karur Vysya Bank Education Loan?
+ -Nothing such is mentioned on the website. Candidates are advised to enquire about the same at bank's branch.
Is there any discount/rebate offered on Karur Vysya Bank Education Loan?
+ -Yes. Female students do get a rebate of 0.50% on interest rate, as compared to male students.
What all can I provide as tangible security?
+ -Karur Vysya Bank does require the candidate to submit a tangible security equivalent to the amount of loan, in certain cases. Candidates can submit land records/ shares / debentures / public sector bonds / units of UTI, NSC / Life Insurance Policy / bank deposits as a tangible security.
What is Moratorium Period?
+ -Moratorium Period is the time in which the student does not need to start paying the installments of loan. This includes the course period, plus a further period of either 1 year or of 6 months after getting the job, whichever is earlier.
What is tenure of education loan?
+ -Candidates can take the loan for a maximum period of 7 years.
What is the meaning of MCLR?
+ -MCLR (Marginal Cost of Funds based Lending Rate) is a new method devised by RBI of determining the interest rate on loans. It is the minimum rate which a bank needs to charge on any loan.
What all expenses are covered under Karur Vysya Bank Education Loan?
+ -- Basic Tuition Fees
- Cost of Books/Uniform
- Library/Laboratory Fee
- Residence/Hostel Fee
- Travel Expenses (for studying abroad)
- Cost of Laptop/Computer (At reasonable rates and as per the demand of the course)
Are candidates taking admission through the management quota eligible for the loan?
+ -Yes, such candidates are eligible.
What is meant by reputed or recognized institutes?
+ -Recognized institutes are those which fall under the ambit of national level bodies like UGC and AICTE. Reputed institutes include some of the well known institutes of the country, e.g. the IITs and the IIMs.
Is there any special benefit for students getting admission into top colleges of the country?
+ -Nothing such is mentioned on bank's website. Candidates may contact the nearest branch to know this.
What is the processing fee for the loan?
+ -There is no processing fee charged for Karur Vysya Bank Education Loan
What are the charged for delayed payment of EMI?
+ -This will be informed during the application/sanction of loan, as no such details are mentioned on the website.
Will the cost of computer be covered under the loan?
+ -Yes, but only upto a reasonable limit.
Why do I need a PAN Card for loan?
+ -PAN Card makes it easier for banks to get reliable information about the borrowers. It does not harm the applicant and thus the candidate must not hesitate is providing it.
Are Diploma or Certificate courses also included under Karur Vysya Bank Education Loan?
+ -Candidates are advised to contact the bank branch for such queries.
Is it necessary to have a co-borrower?
+ -Since the bank's rules state it, it is necessary to have one.
Who can be my co-borrower?
+ -A parent or guardian is the first preference for this. Spouse is also a valid co-borrower. The co-borrower should have a good credit history and a steady source of income.
What all documents are required from the part of co-borrower?
+ -These include Attested Copies of Age Proof, Residence Proof and Date of Birth. A self-attested passport size photograph. Income Proof and Documents related to Collateral Security.
What are the KYC requirements for the loan?
+ -KYC guidelines require a proper proof of identification and residence, for both the applicant and the co-borrower.
What is the maximum term for repayment of the loan?
+ -It is 7 years.
How can I pay the loan?
+ -Generally the EMI is auto debited from the account of the borrower. Post-Dated cheques can also be used for this purpose.
How is EMI calculated?
+ -- The general formula is EMI = [P x R x (1+R) ^n] / [(1+R)^ n-1]
- In this equation, P is Amount of Education Loan, R is Rate of Interest, n is Tenure of the Loan.
- Applicants can use general EMI calculators available on the web to calculate the EMI.
Will the loan amount be handed over to me or the institute directly?
+ -The amount is directly submitted to the institute.
What if I am not able to complete the course in designated period? Will the loan repayment be extended?
+ -This query can only be handled by the bank's officers themselves, as there are no set rules for this.
Is the interest charged on loan Simple or Compound?
+ -Simple Interest is charged till the beginning of the repayment period. After this, Compound Interest is charged on reducing balance.
What is the interest rate charged on loan?
+ -| Loan Amount | Interest Rates for Boys/Male Students | Interest Rates for Girls/Female Students |
|---|---|---|
| For education loan up to INR 7.5 lacs | One-year MCLR + 3.10% | One-year MCLR + 2.60% |
| For education loans ranging from INR 7.5 to INR 10 lacs | One-year MCLR + 2.85% | One-year MCLR + 2.35% |
| For education loans with value of above INR 10 lacs | One-year MCLR + 2.60% | One-year MCLR + 2.10% |
What is interest subsidy on education loan?
+ -It is a scheme of Government of India which offers benefits on interest to Economically Weaker Sections. Since the bank has not mentioned any of the details related to this on the website, candidates may contact the branch of the bank to know about this.
What is employment verification in relation to the loan?
+ -Banks verify the employment details of the applicant while granting the loan. This forms an important aspect of processing of the application.
Is there any tax benefit on loan?
+ -Under section 80, candidates can avail benefits up to the extent of interest paid by them on the loan, up to a maximum of INR 1.5 lacs every year.
To get Karur Vysya Bank Education Loan, do I need to have bank account with Karur Vysya Bank too?
+ -No, it is not necessary.
Can I repay the loan in foreign currency?
+ -Yes, but some additional charged may be charged on such transaction.
Why banks ask for Insurance Policy as a security?
+ -This is to safeguard the bank in case of sudden demise of the borrower. The banks use the life insurance policy to recover the money.
What is credit score and is it needed while taking the loan?
+ -Credit Score is a measure used by banks to check the credibility of the borrower. If it is not available, the banks evaluate details like reputation of the institute, academic record of candidate etc to determine the credibility.
Are NRIs eligible for loan?
+ -Yes, but only if they have Indian Citizenship and Indian Passport with them.
Is Visa necessary for availing loan for studying abroad?
+ -Yes, Visa is required as a necessary document, along with several others.
What all procedures are required for applying for an education loan for studying abroad?
+ -The first step is to get a valid admission letter from the foreign institute. All further details will be provided by the bank. The bank officials are generally very helpful in such matters and probably the candidate will not face any major issue while taking the loan.
Apart from the bank branch, where can I inquire further about the education loan?
+ -Candidates can use the ‘Live Chat’ feature available on the bank’s website (www.kvb.co.in) to enquire further about any product.
Further, Candidates can use the helpline numbers of the bank. These are 1860-216-1916 (within India) and +91 044 30719161 (outside India). Normal call charges are applicable on these numbers.
For more details, candidates can use the information and links available on the bank’s ‘contact us’ page. It can be reached by clicking on https://www.kvb.co.in/global/contact_us.html .
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