Bandhan Bank education loan to study abroad is the perfect solution for you to pursue higher studies. Bandhan Bank offers a variety of education loan options designed to support Indian students pursuing higher education, both in India and abroad. These include the “Sushiksha Loan” designed exclusively for existing micro-banking customers, and personal loans for educational needs.
With interest rates at 13.45 per annum, flexible repayment tenures, and loan amounts up to INR 10,000, Bandhan Bank aims to make education accessible and affordable. This blog post will explore the features, benefits, eligibility criteria, and application process for Bandhan Bank education loans, providing you with the information needed to finance your academic aspirations.
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Bandhan Bank Education Loan
Bandhan Bank provides education loans for students wanting to pursue higher education in India and abroad through their personal loan products. They offer loan amounts up to INR 10,000 with interest rates at 13.45% p.a. The repayment period can extend up to 12 months.
| Feature | Description |
|---|---|
| Loan Amount | Up to INR 10,000 |
| Interest Rate | 13.45% p.a |
| Repayment Period | Up to 1 year |
| Processing Fee | NIL |
| Moratorium Period | Course duration + 1 year |
| Co-Applicants | Parents, in-laws, spouses, and siblings |
| Eligible Expenses | Tuition fees, examination fees, transport, medical, books, apparatus, and incidental expenses |
| Collateral | Immovable property and cash instruments (the latter is subjected to minimum value) |
| Other | The interest collected during the moratorium period is added to the repayment and principal amount. The primary account must process at least 1 customer-induced transaction every month. |
About Bandhan Bank
Bandhan Bank can’t be considered a new bank as it has been present in the market since 2014. Since its foundation, Bandhan Bank has been one of India’s leading financial institutions that provides a wide range of banking services like savings accounts, loans, insurance policies, etc.
It was founded by a Bengali enthusiast known as Chandra Sekhar Ghosh with the main vision of making banking more easy and accessible to the masses. This bank is scaling up quickly to compete against market leaders like HDFC Bank, SBI Bank, etc and currently has over 6,000 banking outlets across India.
Also, Read- LOAN RELATED TERMS THAT EVERY STUDENT SHOULD KNOW!
Bandhan Bank Education Loan Interest Rates
Bandhan Bank’s education loan interest rates are linked to the Marginal Cost of Funds Based Lending Rate (MCLR), which has been in effect since April 1, 2016. Currently, the interest rate for education loans stands at 13.45%.
Check out some important points on Bandhan Bank education loan interest rates-
- MCLR-linked interest rates mean that interest rates on Bandhan Bank education loans can fluctuate depending on the bank’s policies and market conditions.
- Since the interest rate is linked to MCLR, it may change periodically, impacting the total cost of the loan.
- Students from economically weaker sections availing of Bandhan Bank education loans may check for any interest rate concessions from the Bank.
Please note: At 13.45%, the education loan interest rate is on the higher side compared to some public sector banks. This means students may face a higher repayment burden. It is ideal to consider the banks offering the lowest interest rates on education loans.
Benefits of Bandhan Bank Education Loan
Though Bandhan Bank’s education loan interest rates are high compared to other banks, reasons like quicker loan approval, disbursement, and shorted loan tenure make it an ideal choice for Bandhan Bank’s existing customers. Check out the key benefits of financing your study abroad dream via Bandhan Bank Education Loan-
- Exclusive for Existing Micro-Banking Customers – This loan is designed specifically for Bandhan Bank’s micro-banking customers, ensuring financial support for their children’s education.
- Quick Loan Approval & Disbursement – Bandhan Bank Savings Account holders benefit from a faster approval process and quick fund disbursement, reducing waiting time.
- Flexible Loan Amount – Students can avail of a loan ranging from INR 1,000 to INR 10,000, catering to smaller educational expenses.
- Short Loan Tenure – With a tenure of up to 1 year, borrowers can quickly repay the loan without long-term financial stress.
- Convenient Doorstep Banking – The bank provides biometric authentication and loan disbursement at the borrower’s doorstep, making the process hassle-free.
- Minimal Documentation – The loan application process is simple and requires minimal paperwork, making it accessible to a wider section of society.
Eligibility Criteria
You need to certain eligibility criteria to get your Bandhan Bank education loan approved. This includes fulfilling age, academic, and financial criteria for the bank to verify your details. Take a look at who is eligible to apply for a Bandhan Bank education loan.
- You should be an Indian citizen or a permanent resident of India.
- Your minimum age should be 16 years and your maximum age should be 35 years.
- You should have secured admission or have an offer letter from a recognized university abroad for a full-time degree or diploma course.
- You should have an impeccable academic record and a valid score on entrance exams like GMAT, GRE, or any other relevant entrance exam scores.
- You should have a co-applicant with a regular source of income and a good credit history.
- You need to provide collateral security such as property, fixed deposit, gold, or any other asset as per the bank’s norms.
- You and your co-applicant both need to be creditworthy.
Relevant Read- HOW TO GET AN EDUCATION LOAN AGAINST PROPERTY TO STUDY ABROAD?
Bandhan Bank is one of the most trusted and transparent banks in India, there are no hidden charges or convenience fees but here are the charges and penalties you need to be aware of before opting for a Bandhan Bank education loan:
| Fee Type | Charges |
| Processing fee | NIL |
| Prepayment fee/ Foreclose | NIL |
| Late payment fee | 2% per month on the overdue amount |
| Cheque bounce fee | INR 500 per cheque |
| ECS bounce fee | INR 500 per request |
| Loan cancellation fee | INR 1,000 |
Documents Required
Here are some of the necessary documents needed for an education loan at Bandhan Bank:
- Identity Proof like an Aadhaar card or Driving License
- Pan Card
- Birth Certificate for age verification
- Academic proof such as mark sheets, certificates, degrees or any previous qualification
- Admission proof such as an offer letter from the university
- Income proof such as salary slips, and bank statements
- Collateral security proof like property papers or fixed deposit receipts
Also Read- CONSOLIDATE STUDENT LOANS: MEANING, BENEFITS, PROCESS
Bandhan Bank Education Loan Process
You can follow this straightforward guide which can ease your Bandhan Bank Education Loan application process:
- Firstly, you can visit your nearest Bandhan Bank branch for offline assistance or you can simply head over to the official website of Bandhan Bank to apply for an education loan directly
- Click on “Apply for Education Loan” and you can also check the terms and conditions before applying
- Fill out the online application form with all the necessary information asked for and don’t forget to attach/ upload all the necessary documents mentioned above
- The bank will verify your documents and check your eligibility and creditworthiness (if you visit the nearest branch this will be done in a few minutes by the bank’s representatives)
- After the bank conducts the valuation of your collateral they will adjust the interest rate accordingly
- If you are comfortable with the interest rates and terms and conditions sign the education loan sanction letter and loan agreement letter
- You also need to do an ECS Mandate for your loan repayment
- Once everything is verified and successful, your loan amount will be disbursed by the bank directly to your account or to the university or institution’s account and that will be decided by the bank
FAQs
Yes, Bandhan Bank provides education loans for students who want to pursue higher education in India and abroad. The loan is offered under personal loan products, with a loan amount of up to INR 10,000 and an interest rate of 13.45% p.a.
To apply for a Bandhan Bank education loan, the applicant must:
– Be an Indian citizen or permanent resident.
– Be between 16 and 35 years old.
– Have secured admission to a recognized university in India or abroad.
– Have a co-applicant (parent, spouse, or sibling) with a stable income.
– Provide collateral security as per the bank’s guidelines.
The Bandhan Bank education loan interest rate for studying abroad is 13.45% p.a., linked to the MCLR (Marginal Cost of Funds Based Lending Rate). This means the interest rate can fluctuate based on market conditions.
Students applying for an education loan to study abroad must:
– Have secured admission to a full-time degree or diploma program at a recognized foreign university.
– Provide entrance exam scores (GMAT, GRE, etc.) if applicable.
– Have a co-applicant with a stable income and good credit history.
– Provide collateral security such as property or fixed deposits, depending on the loan amount.
Here are the following countries that are eligible for Bandhan Bank education loans to study abroad: USA; UK; Canada; Australia; New Zealand; Germany; France; Singapore and China.
You can check the status of your Bandhan Bank education loan application by visiting the nearest branch of Bandhan Bank or by logging in to their website or mobile app with your credentials. Additionally, you can also call the customer support and do the same.
If you fail to repay your Bandhan Bank education loan, you will be charged a late payment fee of 2% per month on the overdue amount. This will also affect your credit score negatively and the bank can even take legal action against you.
– Visit the Bandhan Bank website.
– Click on “Apply for Education Loan”.
– Fill in details and upload documents.
– Bank verifies eligibility & collateral.
– Loan is disbursed to your account or university.
To apply for Bandhan Bank education loan, you can choose the following methods-
– Online: Apply on the Bandhan Bank website.
– Offline: Visit the nearest branch with documents.
There is no processing fees for Bandhan Bank education loan, but be aware of:
– Late Payment Fee: 2% per month.
– Cheque/ECS Bounce Fee: INR 500 per instance.
– Loan Cancellation Fee: INR 1,000.
This was everything related to the Bandhan Bank Education Loan. To learn more about education loans, the best bank accounts for students, forex, banking experience for global students, or international money transfers, reach out to our experts at 1800572126 to help ease your experience with studying abroad.
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