Karur Vysya Bank Education Loan: Detailed guide

Karur Vysya Bank is an Indian commercial Bank that provides educational loans to students pursuing higher education abroad and in India. The maximum loan amount is INR 10 lakh for studying in India and INR 20 lakh to study abroad. The loans given out by the Karur Vysya Bank are long-term loans. The Bank has a total of 799 branches and 1640 ATMs across the country. Moreover, the  Bank has been providing services to customers for more than a century. Keep reading to know more about the Karur Vysya Bank education loan. National University of Singapore PhD scholarships.

Why should you choose the Karur Vysya Bank Education Loan?

Below are the reasons a customer should choose the Karur Vysya Bank Education Loan.

• No margin is charged for education loans up to INR 4 lakh
• No processing charges are there for educational loans abroad
• The maximum repayment tenure is between 5-7 years
• Low-interest rate and less paperwork
• A concession of 0.50% is provided for female students

 Karur Vysya Bank Education Loan: Eligibility Criteria 

The Karur Vysya Bank education loan eligibility criteria are as follows:

• The applicant must be an Indian citizen or should have a passport from India
• The applicant must have received admission to the university/institute abroad 
• Moreover, the student should have received admission on the basis of merit or based on an entrance test 
• For individual loans, the candidate is required to bring his/her father/guardian as a guarantor.

The Karur Vysya Bank Education Loan Scheme: Eligible Courses

The following are the eligible courses under the Karur Vysya Bank Education Loan scheme:

• Professional or technical courses abroad
• Degree and diploma courses in shipping/ aviation approved by the Director General of Civil Aviation/Director General of Shipping
• MCA, MBA, MS or similar postgraduate diploma courses abroad
• Other professional courses from institutions such as CPA (USA), CIMA (London)

Expenses Covered Under the Karur Vysya Bank Education Loan

The following expenses would be covered under the Karur Vysya Bank Education loan:

Expenses Covered

Tuition fees

Examination fees

Library/Laboratory fees

Books/Equipment/Uniform/ Computer expenses

Travel expenses to study abroad

Miscellaneous Expenses

Also read: SBI Scholar Loan: College List, Interest Rate, Application

Features of Karur Vysya Bank Education Loan for Abroad 

The main features of the Karur Vysya Bank Education Loan for abroad studies are as follows:

• Maximum education loan: The maximum education loan provided for the prime institutions is up to INR 20 lakh
• Interest Rate- The Karur Vysya Bank Education Loan interest rate for abroad studies is between 10.60% to 11.60% p.a.
• Moratorium Period- The moratorium period of the Karur Vysya Bank Education Loan is course duration +6 months.
• Repayment Period- The repayment period is up to 5-7 years. 
• Collateral Margin-  100% when the interest is paid during the moratorium period. 90%- when the interest is not paid during the moratorium period. Do note that the commercial property is also considered as collateral and the market value will be considered.

Karur Vysya Bank Education Loan:  Subsidy Schemes 

The Karur Vysya Bank offers two subsidy schemes for taking education loans for abroad studies. They are as follows,

Education Loan Scheme	Beneficiary	Eligibility Requirement
Dr Ambedkar Interest subsidy scheme	OBC/EBC students	Admission to M.Phil., Masters, or PhD programs overseas
Padho Pardesh Scheme	EWS members of recognized minority groups	M.Phil., PhD, and Masters-level courses

Vysya Bank Education Loan: Documents Required 

Below is the list of documents required for the Vysya Bank Education Loan to study abroad.

Documents Required

Loan application form with two passport-size photographs

Applicant/co-applicant proof; for Example Residential proof, previous 6-month salary/ personal bank account statement

Proof of admission to the university abroad. For example, the offer letter

Certificates and education mark sheets of class 10th, 12th, and Degree

Entrance exam results

Income documents of the co-applicant. For example, the ITR of the last 2 years, employee ID card

Legal joint affidavit from the student and co-applicant’s side in Bank’s standard format

Certificate of break if the students had a failure or gap in studies on Rs. 100 stamp paper

Collateral Documents (Optional)- Government bonds/LIC policies/immovable properties

Karur Vysya Bank Education Loan Insurance

Taking educational loan insurance is very important. It would keep both the applicant/co-applicant safe in case of any mishappening to the student. The education loan insurance interest rate is usually between 1-2% of the loan amount.

Karur Vysya Bank Education Loan Margin Calculation

The Karur Vysya Bank education loan margin rate differs on the basis of the amount of loan taken. 

Education Loan Amount	Education Loan Margin
Till INR 4 lakh	0
Above INR 4 lakh for abroad education	15%

Also Read: Study Abroad Loans: Financial Tips For Abroad Studies Aspirants

Karur Vysya Bank Education Loan: Application Process

The Karur Vysya Bank education loan application process is as follows:

• Consult the Karur Vysya Bank representative
• Fill out the education loan application process along with two passport-size photographs
• Submit the documents required to get an education loan abroad
• Finally, wait for the bank’s approval 
• The bank will notify the applicant about the approval of the education loan for abroad studies after checking the details 
• Students can also visit the official website of the bank and apply for a loan. The bank representatives would send the executives to collect the documents to continue the education loan application process. The applicant will be notified in case the loan is approved.

Also read: MBA Education Loan Abroad

FAQs

The Karur Vysya Bank is a bank that was established in 1916 in Karur. Over the years, it has grown into a leading financial institution that offers a variety of financial services including education loans. The Karur Vysya Bank education loan limit for abroad studies is INR 20 lakh. The interest rate is between 11.48% to 13.98%. & the repayment period is between 5-7 years. For any student loan, bank account, or money-related queries, contact Fly Finance Team.