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Kotak Mahindra Bank Education Loan

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Best Rate

10.25%

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Kotak Mahindra Bank Education Loan

What Is an Education Loan?

An Education loan is the loan or funds acquired by an individual to pursue higher studies in India or abroad. The loan repayment commences for the student after completing the education and a period of 6 months is given as grace period to students to get or join a job.

The repayment amount will be determined by your choice of interest, you need to decide how you want to repay the loan. That is if you want to start paying during the time of moratorium period itself or after the moratorium period. The Moratorium period is the time of your education plus 6 months or 1 year given to get a job. It is only after this time that you are expected to pay the loan.

The loan interest starts to accrue at the time of dispersal of funds, so at the time of your graduation you have a huge amount to repay. The other option is your parents or guardian can start paying the loan during the moratorium period itself where it is calculated as a simple interest.

This way your loan amount at the time of graduation is drastically reduced.

There are 4 types of education loans in India

1. Under Graduate education loan - These are given to students who have completed their secondary education and looking to do higher studies in the form of under graduation. It can be done in India or abroad.

2. Post graduate education loan - These are education loans given to individuals who want to pursue post-graduation after completing under graduation course from a reputed university/college. Here also the loan can be for studying in India or abroad.

3. Parents availing education loan - This is the case where the parents take loan for the education purposes of their children. This is an unsecured loan and need not be for graduate or post-graduation courses but also for elementary and higher secondary courses.

4. Career growth education loans - These are loans provided to young people who want to pursue courses or trainings, certifications that will benefit their career growth.

About Kotak Mahindra Bank

Kotak Mahindra Bank is an Indian private sector bank headquartered in Mumbai, Maharashtra, India. RBI gave Kotak Mahindra license in the year 2003 to their flagship company Kotak Mahindra Finance Ltd. Today Kotak Mahindra operates with a network of 1,369 branches across 689 locations and 2,163 ATMs in the country. It was the fourth largest private bank in India by market capitalization.

An Introduction to Kotak Mahindra Bank Education Loans

Education is one area where everybody is willing to spend a lot of money to live a prosperous life in the future. Being one of the major education loan providers, Kotak Mahindra Bank understands the needs of the students and offers extremely competitive education loans at better interest rates. Every year, many students secure admissions in top universities and colleges in India and abroad with Kotak Mahindra Bank education loans.

Advantages of Kotak Mahindra Bank Education Loan

Following are some of the advantages of applying for an educational loan with Kotak Mahindra Bank.

  • Low interest rate
  • No hidden costs and administrative charges
  • Less paperwork
  • No processing fees
  • No security required for up to 4 Lakhs

Features of Kotak Mahindra Bank Student Loan Scheme

Objective: To provide term loan to Indian students for pursuing higher education in India and abroad where admission has been secured

Quantum of Loan:For studies in India, up to INR 10 Lakhs and for studies in abroad INR 20 Lakhs

Repayment Period:The repayment needs to be made with a maximum of 5-7 years.

Interest rate:Educational loans generally varies between 11.5% and 24%. The bank has recently lowered its minimum rate for girl students to 10.25% for loans up to Rs.7.50 lakhs

Age Eligibility

  • There is no specific restriction regarding the age of a student to be eligible for an education loan.
  • Age of joint applicant / co-borrower / guarantor should be minimum 21 years at the time of loan origination and maximum age at the time of loan maturity can be 70 years.

If the student was a minor while the joint applicant / co-borrower / guarantor executed the document for the loan, the bank will obtain a letter of ratification from him/ her upon attaining majority.

Student Eligibility

  • The student should be an Indian National
  • The student shall have secured the admission in India or abroad through an entrance test or through merit based selection process

Eligible Courses

India

  • Post-Graduation Courses: Masters and Ph.D. from accredited institutions.
  • Professional Courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management and Computer Sciences.
  • Other professional courses such as CA, ICWA, CS, and CFA.
  • Masters and Diploma Management Programs.
  • Other courses leading to degree/diploma conducted by colleges/universities approved by UGC / Govt. / AICTE / AIBMS / ICMR, etc.
  • Regular Degree/Diploma course like aeronautical, pilot training, shipping, nursing or any other discipline approved by Directory General of Civil Aviation / Shipping / Indian Nursing Council or any other regulatory body, if the course is pursued in India.
  • Any other course as shall be declared from time-to-time.

Studies abroad

  • Graduation: Reputed universities.
  • Post-graduation: MCA, MBA, MS and other courses as shall be declared from time-to-time.
  • Other courses such as CIMA - London, CPA in USA, CFA, CISA, and other approved courses as shall be declared.
  • Degree/Diploma course like aeronautical, pilot training, shipping, etc. provided these are recognized by competent regulatory bodies abroad for employment in India/abroad.

Charges

Loan Processing ChargesUp to 2% of the loan amount+ service tax and other applicable statutory levies
Stamping ChargesApplicable as per the respective State's Stamp Act
Credit Appraisal ChargesUp to 5% of the Loan amount, not exceeding Rs.7500(inclusive of service tax)
Overdue Interest3% of Overdue Amount, compounded monthly on the amount due but unpaid from the date of the amount falling due till the date of actual payment
Collection Charges30%(inclusive of service tax and other applicable statutory levies) of cheque/instrument dishonor charges+ overdue interest
Dishonor Charges Per InstanceRs.750.00 per instance (inclusive of service tax and other applicable statutory levies)
Swap Charges (Replacement of PDCs)Up to Rs.500 per Swap per Instance+ service tax and other applicable statutory levies
Prepayment Interest / Foreclosure ChargesLock in period for 12 months. After 12 months, 5% foreclosure charges + service tax on principal outstanding
Duplicate Issue of NOCRs.500 + service tax and other applicable statutory levies per instance
No Due CertificateRs.500 + service tax and other applicable statutory levies per instance

Documents Required

  • Letter of admission
  • Filled in Loan Application Form
  • 2 passport size photographs
  • Statement of cost of study
  • PAN Card of the student and Parent/ Guardian
  • AADHAR Card of the student and Parent/ Guardian
  • Proof of identity (Driving Licence/Passport/Aadhar/ any photo identity)
  • Proof of residence (Driving Licence/Passport/Electricity bill/Telephone bill)
  • Student/Co-borrower/ guarantor's bank account statement for last 6 months
  • IT return/ IT assessment order, of previous 2 years of Parent/ Guardian/ other co-borrower (if IT Payee)
  • Brief statement of assets & liabilities of Parent/ Guardian/ other co-borrower
  • Proof of income (i.e. salary slips/ Form 16) Parent/ Guardian/ other co-borrower

EMI Payment Methods

Kotak Mahindra Bank education loan can be repaid in following three ways.

Standing Instruction (SI): If you are an existing account holder with Kotak Mahindra Bank, Standing Instruction is the best mode of repayment. Your EMI amount will be debited automatically at the end of the monthly cycle from the Kotak Mahindra Bank account you specify.

Electronic Clearing Service (ECS): This mode can be used if you have a non-Kotak Mahindra Bank account and would like your EMIs to be debited automatically at the end of the monthly cycle from this account.

Post-Dated Cheques (PDCs): You can submit post-dated EMI cheques from a non-Kotak Mahindra Bank account at your nearest Kotak Mahindra Bank Loan Centre. A fresh set of PDCs will have to be submitted in a timely manner. Please note Post Dated Cheques will be collected non-ECS locations only.

It is recommended that you opt for either the SI or ECS mode of payment for faster and less prone to error than the use of PDCs.

How to Apply for Kotak Mahindra Bank Education Loan?

You can either apply online or visit a nearby Kotak Mahindra Bank branch for the application. You can also download the education loan application form from the Kotak Mahindra Bank official website, complete the form and submit it the bank representative.

You can also check your eligibility for an education loan through CreditMantri and apply for it.

Kotak Mahindra Bank Education loan FAQ

1. What is the interest charged during moratorium period?

Only simple interest will be charged during the moratorium period. After the moratorium period the actual interest mentioned will be charged.

2. Can I take an education loan without a co-borrower?

No, a co-borrower is needed to take an education loan. The loan will be taken as a joint loan in collaboration with your parent/ guardian or spouse.

3. Is there a range on the rate of interest charged on Education Loan offered by Kotak Mahindra Bank?

Yes, the interest rate ranges from 11.5% to 24%. However, the it is subject to change at the sole discretion of the bank.

4. I am planning to study abroad. Am I eligible to apply for an Education Loan?

Yes, Kotak Mahindra Bank offers up to INR 20 lakh for courses pursued abroad which also includes travel expenses and study tours.

5. Is there a processing fee for an education loan with Kotak Mahindra Bank?

Up to 2% of the loan amount+ service tax and other applicable statutory levies.

6. Is there a way I can reduce the interest paid?

There is special subsidy provided according to Central Government subsidy for education loans. Kotak Mahindra Bank also provides special interest rates for some premier institutions. The other option is your parent/ guardian or spouse can pay the loan amount during the moratorium period due to which the loan amount you need to repay is less.

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