AU Small Finance Bank Education Loan: Interest, Eligibility, Documentation

AU Small Finance Bank Education Loan
Home » Education Loan » AU Small Finance Bank Education Loan: Interest, Eligibility, Documentation

AU Small Finance Bank is an Indian small finance bank founded as a Non-Banking Financial Company (NBFC). It is known for offering various banking products and services like personal and business banking, loans, cards, and insurance. Aspiring students can also take an AU Small Finance Bank education loan under the personal loan category for domestic and abroad studies.

Education loans of up to INR 10 lakhs at competitive rates can be availed to fulfil your educational needs. This can help you cover your tuition fees and accommodation expenses. Continue reading to find out more about AU Small Finance Bank education loans.

AU Small Finance Bank Education Loan: Key Highlights

Applicants can take personal loans for education financing from AU Small Finance Bank to fund their academic journey. This enables students to seek funds for their higher studies in India or abroad. Education loans of up to INR 10 lakhs can be used to cover tuition fees, accommodation expenses, textbooks, and other education-related costs.

Existing customers of AU Bank are eligible for pre-approved education loan offers at preferential interest rates without any documentation. You can also avail of preferential processing fees. The best part is that you can consolidate student loans under a single umbrella with AU Bank personal loans for education.

Check out the overview of the AU Bank Education Loan below:

ParticularsDetails
Maximum Loan AmountUp to INR 10 lakhs
Interest RatesUp to 24% p.a.
Repayment Tenure12-60 months
Security/ CollateralNo collateral required
Processing FeesUp to 4% of the loan amount + GST
Documentation ChargesNIL

Also Read: Check out the top public sector bank in India for education loans. Learn about the maximum loan amount offered, interest rates, processing fees, and other details.

Why Choose AU Personal Loans for Education?

You can count on AU Small Finance to take personal loans for education. They offer various benefits like flexibility, quick approval, and unsecured loans. Check out how you can benefit from it-

  • You can get the loan in 5 easy steps via their digital process with minimal documentation.
  • AU Personal Loan for education does not require collateral or a guarantor to sign off.
  • You can choose the repayment tenure from 12-60 months for easy EMIs (Equated Monthly Installments) that suit your needs. You can use the Fly Finance EMI Calculator to calculate your AU Bank education loan EMI.
  • Personal loans for education from AU Small Finance Bank offer you flexibility. You can allocate the funds at your convenience.
  • The bank offers faster approval of personal loans for education, ensuring applicants can timely access the funds.
  • Personal loans for education from AU Bank help you cover your costs, without putting up any assets as security.

AU Bank Education Loan Interest Rate

Factors like loan amount, repayment tenure, and creditworthiness contribute to the student loan interest rates calculation. The interest rate on AU Bank education loans is up to 24% p.a. These are based on Marginal Cost of Funds-based Lending (MCLR).

From 1st Jan 2024 to 31st March 2024, the applicable interest rates on AU Bank education loans ranged from 12.50% p.a to 26% p.a. However, the interest rate on AU education loans based on MCLR with effect from 7th June 2024 is as follows-

TenorMCLR
Overnight10.95%
1 Month10.80%
3 Month11.40%
6 Month11.65%
1 Year12.20%
2 Year12.40%
3 Year12.05%

AU education loan interest rates based on External Benchmark Rates are as follows-

BenchmarkRate (%)
Repo Rate- effective from 9th February 20246.50%
G-Sec Rate- effective from 7th June 20247.21%

Also Read: Check out our blog on full form on RLLR to learn more about Repo-based Loan Lending Rates (RLLR) on education loans.

Eligibility Criteria

The applicant must fulfil the eligibility criteria to apply for AU Bank education loans. The student should avail admission through entrance examination or merit-based. Check out the criteria given below to apply for AU Bank personal loan for education-

  • You should be an Indian resident.
  • The minimum age should be 23 years at the time of Personal Loan application.
  • The maximum age should be 60 years at the time of loan maturity.
  • The minimum repayment tenure can be availed for 12 months.
  • The maximum repayment tenure can be availed for 60 months (5 years).
  •  The loan amount can be applied for up to INR 10 lakhs.

Documents Required for AU Bank Education Loan

The applicant needs to submit some documents to apply for an education loan from AU Small Finance Bank. These documents are related to identity, academic background, and income. Based on these, the bank will verify your eligibility to proceed with the education loan sanction letter and disburse the loan amount. 

Here’s a checklist of documents you need to apply for an AU Small Finance Bank education loan-

Documents Required Salaried Individuals

  • Completed education loan application form: Make sure it’s filled out accurately and signed. Make sure to attach a couple of passport-sized photos.
  • ID proof: Any one of these will work: Passport, Voter ID, Driver’s license, PAN card, Aadhaar card, or Government ID card as KYC documents.
  • Proof of income:
    • Your latest salary slip showing all deductions.
    • Form 16 along with a recent salary certificate from your employer.
  • Proof of residence:
    • Bank account statement.
    • OR Utility bills like electricity or phone bills (not older than 3 months).
    • OR Latest credit card statement.
    • OR Existing house lease agreement (if applicable).
  • Bank statements: Your bank account statements or passbook showing transactions for the last 6 months.
  • Optional documents:
    • Copy of admission letter and fee schedule from the institution.
    • Your academic transcripts (mark sheets/certificates) from previous studies (optional).
    • A detailed breakdown of your estimated education expenses (optional).

Documents Required for Non-Salaried Individuals

The document requirements are similar for non-salaried individuals, with one key difference:

  • Proof of income: Instead of salary slips or Form 16, you’ll need your Income Tax returns for the past 2 years, along with a certified income computation from a Chartered Accountant for those 2 years.

Also Read: Personal loans vs education loans– which one is better? Check out which one you should choose to make the best decision.

How to Apply?

Applying for AU Bank education loan is super easy. The bank’s 5-step digital process offers you convenience at your fingertips. Minimal documentation ensures hassle-free and quicker loan processing to help you secure funds easily. Check out how you can apply for AU Small Finance Bank education loan online-

  • Visit the official website of AU Small Finance Bank.
  • Navigate to the ‘Loans’ section on the top bar.
  • Click on ‘Personal Loan’.
  • Now, click on ‘Apply Now’.
  • Enter your mobile number linked to your Aadhaar Number.
  • Accept the ‘Terms and Conditions’ of the Personal Loan application form.
  • Click on ‘Send OTP’ and verify.
  • Fill in the details as asked and wait for a call back from the bank’s representative.

Please Note: If you are not an existing customer, you might be required to open a Savings Account with AU Bank before applying for an AU Bank education loan.

AU Bank Education Loan: Fees & Charges

We have already talked about AU Bank education loan processing charges and documentation charges in the Overview section. This section includes a detailed schedule of charges for education loans from AU Small Finance Bank. These charges are applicable on pre-approved AU personal loans for education. Check out the table given below-

Charges ParametersCharges Applicable
Stamping ChargesAs per the State’s Stamp Act
Overdue Interest3% per month on the outstanding amount
Prepayment/ Foreclosure Charges– 5% of the principal outstanding, if paid before 12 months- 3% of the principal outstanding, if paid after 12 months
Cheque/ Disbursement/ Education Loan Cancellation– INR 1000 (within 7 days of cheque issue date)- INR 1000 plus interest up to cancellation period

This was all about AU Small Finance Bank education loans. There are other charges applicable to parameters like ECS return, change of bank, conversion of interest rate (fixed to floating rate or vice versa), etc. Please be aware of these charges before applying for an AU Bank education loan or loan from any other bank. Also, compare the education loan interest rates of different banks and NBFCs.

To know more about education loans, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.

FAQs

Can I get an education loan from AU Small Finance Bank?

Yes, aspiring students can take an AU Small Finance Bank education loan under the personal loan category for domestic and abroad studies. The loan amount of up to INR 10 lakhs covers tuition fees, accommodation expenses, textbooks, and other education-related costs.

What is the maximum education loan from AU Bank?

The maximum loan from AU Bank for education financing can be taken up to INR 10 lakhs at competitive rates. This helps students seek funds for all their educational needs.

What is the AU Bank education loan interest rate?

The interest rate on AU Bank education loans is up to 24% p.a., based on the Marginal Cost of Funds-based Lending (MCLR). From 1st Jan 2024 to 31st March 2024, the applicable interest rates on AU Bank education loans ranged from 12.50% p.a to 26% p.a.

Who is eligible for an AU Bank education loan?

The applicant should be an Indian resident. They should be 23 years at the time of Personal Loan application and the maximum age should be 60 years at the time of loan maturity. Also, university admission should be secured through entrance examination or merit-based.

How can I apply for an AU Bank education loan?

You can easily apply for an AU Small Finance Bank education loan online. Visit their official website and navigate to Personal Loans. Click on ‘Apply Now’ and enter your details as asked.

Is an AU Bank education loan a good option?

Yes. AU Bank offers many benefits like pre-approved education loan offers at preferential interest rates and processing fees to existing customers. Besides, you can avail of unsecured loans.

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About Shubhika Garg

Hey there! I'm Shubhika- a proud graduate in English Literature and Language from Delhi University. My journey as a content writer transitioned from online teacher into the world of words. Stepping into the domain of blogs and articles, I discovered my passion for writing growing deeper and stronger. Having said that, I have experience of writing for diverse industries in automobile, technology, ed-tech, finance and mental-health; crafting details to help you find the solution to what you are looking for. Join me as I invite you all explore and learn together.

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