A Comprehensive Guide to Karnataka Bank Education Loan to Study Abroad

Karnataka Bank Education Loan
Home » Education Loan » A Comprehensive Guide to Karnataka Bank Education Loan to Study Abroad

Karnataka Bank education loans help aspiring and meritorious students embark on an educational journey. The bank provides financial assistance to such students by providing education loans and funding their higher studies in India and abroad. From undergraduate and postgraduate courses to full-time professional and certificate courses, students can avail of loans at competitive interest rates.

The bank provides higher loan amounts and specialised loan schemes for skill-based learning. The repayment tenure for pursuing higher education will be up to 15 years. In this blog, we will discuss Karnataka Bank education loans to study abroad, the documents required, eligibility criteria, and much more.

Overview of Karnataka Bank Education Loans

Karnataka Bank provides education loans to deserving students to fulfil their academic pursuits without worrying about finances. The bank provides study-abroad education loans under the KBL Vidyanidhi Quick Education Loan Scheme. The maximum loan that is given is up to INR 20 lakhs with interest rates starting from 10.48% p.a. The loan is provided for up to 180 months. 

Some reasons to choose for Karnataka Bank education loan are- 

Maximum Loan AmountUp to INR 20 lakhs to study abroad
Interest RatesStarting from 10.48% p.a.
Moratorium PeriodCourse duration + 6 months
Repayment Tenure180 months (15 years)
Processing FeeNIL
Prepayment ChargesNIL
Margin Money15% for studies abroad

Also Read: Check out the FAQs on the Restructuring 2.0 Scheme of RBI that provides benefits to the borrowers affected by the COVID-19 pandemic. 

Karnataka Bank Education Loan Interest Rates

Karnataka Bank education loan interest rates are competitive and low, starting at 10.48% p.a. The bank offers education loans at floating rates, which means that they are subject to change over the period with changes in market trends and RBI guidelines on education loans.

The interest rates are different for male and female applicants and also depend on the amount of education loan availed. The interest rates are calculated as the sum of MCLR (Marginal Cost of Funds-based Lending Rate) and Spread. For example- if the MCLR is 8.9% and the Spread is 1.95%, then the interest rate will be 10.85%. 

Interest Rates for Males

Loan amountInterest Rate
Upto Rs. 4 lakh(under CGFSEL)One year MCLR + 2.00 = 10.90% p.a.
Rs. 4 lakh to Rs. 7.5 lakh(under CGFSEL)One Year MCLR + 2.00 = 10.90%p.a.
Above Rs. 7.5 lakhOne year MCLR + 4.20 = 13.10% p.a.

Interest Rates for Females

Loan amountInterest Rate
Upto Rs. 4 lakh (under CGFSEL)One year MCLR + 1.95 = 10.85% p.a.
Rs. 4 lakh to Rs. 7.5 lakh (under CGFSEL)One year MCLR + 1.95 = 10.85% p.a.
Above Rs. 7.5 lakhOne year MCLR + 3.70 = 12.60%p.a.

Documents Required

Documents Required for Karnataka Bank education loan are minimal. The applicant needs to provide the documents that intend to prove their identification, residence, income, academics and collateral. Such a requirement by the bank allows them to verify the creditworthiness of the student as well as the student’s admission status. Mentioned below is the list of documents required- 

  • Aadhaar Card, PAN card or Voter ID of applicant/borrower
  • Last qualification mark sheets, score card, degree or diploma 
  • Class X, Class XII and other basic qualification records
  • NSDL application
  • Passport
  • Salary Slips
  • Income Tax Return filing
  • Documents of ownership of asset
  • IELTS certificate (education loan outside India)
  • Offer letter from the University
  • Fee structure of the University
  • Loan agreement signed by the applicant/ co-applicant
  • Signed Sanction letter
  • Disbursement request form 
  • Receipts of fee/ margin money paid to the university 

Also Read: Know all about IBDI education loan documents required. Keep these documents ready to ensure quicker loan processing and approval time. 

Who is Eligible for a Karnataka Bank Education Loan?

To be eligible for Karnataka Bank education loans, the applicant must be 18 years and above. They must be an Indian citizen and the student must have secured admission to a higher education course in recognized institutions. The student should be able to secure admission through fair means, i.e. through the Entrance Test/ Merit Based Selection process.

Besides, Indian citizens. NRIs are also eligible to apply for this education loan. Here’s the detailed eligibility criteria- 

Eligibility Criteria for Indian Residents

  • Applicants must be enrolled in recognized professional/technical courses 
  • Applicants must have proof of admission from the university 
  • Applicant must have exceptionally good academic performance and mandatory creditworthiness

Eligibility Criteria for NRI’s 

  • Same as Indian residents with FEMA guidelines’ compliance
  • Applicants must be enrolled in accredited courses 
  • Indian resident co-borrower must be listed
  • Valid proof of income and residence abroad
  • Applicants must show a valid and specified collateral

Also Read: Let’s compare the process of funds transfer with the help of HDFC Bank and Axis Bank international money transfer services.

How to Apply for Karnataka Bank Education Loan?

Applicants can apply for this education loan easily with its seamless application process. You can simply visit the nearest Karnataka Bank branch and share your details. Make sure to keep the documents handy and submit the same. To apply online, follow these steps- 

  • Visit the official website of Karnataka Bank
  • On the main menu, click on ‘Loans’. 
  • Select ‘Education Loans’ under this category.
  • Click on ‘Apply Now’ for the KBL Quick Vidyanidhi Education Loan. 
  • Fill in your details and submit the same by again clicking on ‘Apply Now’ on the new page.
  • Your information has been shared with the bank. Wait for the representative to get in touch with you.

FAQs on Karnataka Bank Education Loan

What are Karnataka Bank education loans?

Karnataka Bank education loans help aspiring students by providing financial assistance of up to INR 20 lakhs to study abroad. Applicants can also avail up to INR 7.5 lakhs of unsecured education loans from this bank.

What is the Karnataka Bank education loan interest rate?

The interest rates start from 10.48% p.a. Which are provided at floating interest rates. For males, the interest rates range from 10.90% p.a. To 13.10% p.a. Girl students are provided with a concession of 0.50% with interest rates ranging from 10.85% p.a to 12.60% p.a. 

What are the documents required for a Karnataka Bank education loan?

The bank requires basic KYC documents like an Aadhaar Card, PAN card or Voter ID, academic mark sheets, passport, admission letter from the university, IELTS certificate, salary slips, ITR statements, and bank statements of the co-applicant. 

What are the Karnataka Bank education loan eligibility criteria?

To be eligible for this education loan, the applicant must be 18 years and above. They must be an Indian citizen and the student must have secured admission to a higher education course in recognized institutions. NRIs can also apply for this education loan.

How can I apply for a Karnataka Bank education loan to study abroad?

Applicants can apply for this education loan easily with its seamless application process. You can simply visit the nearest Karnataka Bank branch and share your details. Make sure to keep the documents handy and submit the same. You can also apply online by visiting the official website and providing the details as asked.

How long does it take to process the application for a Karnataka Bank education loan?

The education loan processing time is quick, usually between 7-10 working days. During this time, the bank verifies the documents submitted and on successful verification, releases the education loan sanction letter.

Are Karnataka Bank education loans good or bad?

Karnataka Bank education loans are a preferred choice among applicants due to competitive interest rates and zero processing fee which are processed within 7-10 working days. The bank provides collateral-free loans up to INR 7.5 lakhs. All expenses related to study abroad are covered under the scheme. The education loan disbursement process is also hassle-free.

This was all about Karnataka Bank’s education loan to study abroad under the KBL Quick Vidyannidhi education loan scheme. This helps in providing all the necessary financial assistance to aspiring students and embark on academic pursuits without any worry.

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.

Related Blogs
YONO SBI Education LoanHow to Apply for Education Loan Refinance
Credit Score and its Impact on Education LoanTax Exemption from Education Loan
Indian Army Education LoanBonafide Certificate for Education Loan
Tata Capital Education LoanGap Certificate for Education Loan
PNB Education Loan Processing TimeSBI Shaurya Education Loan

Follow Us on Social Media

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.

Leave a Comment

Best Overseas Travel Policies for Students Cheapest Forex Cards for Students Best Picks for Student Travel Insurance Top Banks Offering Education Loans for New Zealand Studies! Apply for YES Bank Education Loan Top Up in Easy Steps Top Currency Exchange Providers in Toronto Documents Required for SBI Takeover of Education Loans Where to Exchange Currency in Birmingham? Major Pros and Cons of Student Loan Consolidation Study Abroad with IOB Scholar Education Loan
×

Send Money Abroad in <15 mins

×

Request a callback

×

Get an education loan at the lowest interest rate

×

Thank you! Your call request has been submitted

Our team will connect with your shortly

aero Confused which education loan is the best for you?