Education is crucial for personal and professional growth, but rising costs can create financial barriers. This is where Kerala Gramin Bank Education Loan comes in, offering a viable solution for students who need financial assistance to pursue their educational aspirations.
In this blog, we will explore everything you need to know about the Kerala Gramin Bank Education Loan, including its features, eligibility criteria, required documents, and more. We’ll also discuss the benefits of opting for this education loan and why it stands out in the competitive market of student loans.
Table of contents
- Kerala Gramin Bank Education Loan Overview
- Kerala Gramin Bank Education Loan Purpose
- Eligible Courses for Kerala Gramin bank Education Loan
- Kerala Gramin Bank Education Loan Amount Limits
- Eligibility Requirements for Kerala Gramin Bank Education Loan
- Documents Required for Kerala Gramin Bank Education Loan
- Kerala Gramin Bank Contact Details
- FAQs
Kerala Gramin Bank Education Loan Overview
Kerala Gramin Bank Education Loan is designed to support deserving students in pursuing higher education both in India and abroad. With competitive interest rates and flexible repayment options, this loan makes financing education easier and more affordable.
Key Features:
- Low-Interest Rates: Students can avail themselves of loans at competitive rates.
- Flexible Repayment Options: Easy EMIs ensure manageable repayment.
- Simple Documentation: A hassle-free process for quick approval.
- Global Education Support: Covers studies both in India and overseas.
Banking Strength & Accessibility
Kerala Gramin Bank (KGB), with a legacy spanning over 40 years, has established itself as a trusted financial institution. As of 30.09.2019, it operates 634 branches, making it Kerala’s second-largest bank in terms of branch network. This widespread presence ensures that students across Kerala can easily access Kerala Gramin bank education loans to achieve their academic goals.
About Kerala Gramin Bank
A regional rural bank with significant rural penetration is Kerala Gramin Bank. Despite the fact that the bank is a regional rural bank, KGB offers all the key features of a PSB. By providing financial support to industries like agriculture, micro, small, and medium enterprises, education, housing, microcredit, weaker sections, SC/ST communities, etc., the bank’s main goal is to launch the necessary interventions for the overall economic upliftment and advancement of the people of Kerala.
| Bank Name | Kerala Gramin Bank |
| Established on | 07-08-2013 |
| Headquarter | Malappuram |
| Guarantor Required | Yes |
| Pre Closure Charges | As decided by the bank from time to time |
Kerala Gramin Bank Education Loan Purpose
In order to help deserving or meritorious students finish their education, particularly for higher education, financial aid is being provided. The Kerala Gramin bank education loan program seeks to ensure that deserving students won’t miss out on chances due to a lack of financial provisions.
Eligible Courses for Kerala Gramin bank Education Loan
These are the eligible courses that come under in Kerala Gramin Bank Education loan
- Ug & Pg (Graduate and Undergraduate)
- Professional Course (Engineering, Management, Agriculture, Medical)
- Courses conducted by IIM, IIT, IISC, NIFT, etc.
- Courses offered by National Institutions.
- Studies abroad.
- The course should be Recognized by the state/ central Government
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Kerala Gramin Bank Education Loan Amount Limits
Kerala Gramin Bank offers education loans based on the Indian Banks Association (IBA) guidelines, ensuring students receive the necessary financial support to pursue higher education. The loan amount varies depending on the course and institution.
Education Loan Amount Limits:
- For studies in India: Up to INR 10 lakh
- For studies abroad: Up to INR 20 lakh
The Kerala Gramin bank education loan sanctioned amount limits is determined by factors such as tuition fees, living expenses, travel costs, and other educational needs. Kerala Gramin Bank ensures a structured approach to financing education, making higher studies more accessible for students in India and overseas.
Interest Rate for Kerala Gramin bank Education Loan
Kerala Gramin Bank offers education loans at competitive interest rates, ensuring affordable financing for students. The rates may vary based on the loan amount, course, and institution. Here are the interest rate for Kerala Gramin bank education loan:
- With EM Security= Refund of 1% in interest during the repayment holiday for fast servicing of interest is 12.50%
- Without EM Security: 13.50%, 1% interest rebate for timely interest service during the repayment holiday.
Marginfor Kerala Gramin bank Education Loan
The margin for Kerala Gramin Bank Education Loan refers to the percentage of expenses students must finance on their own. It varies based on the loan amount and study location, ensuring a balanced funding approach. Here are the margin for Kerala Gramin bank education loan:
- Nil for amounts up to INR 4 lakhs.
- 5% for in-country studies and 15% for study abroad
Repayment Method
An overseas student debt must be repaid, and this is a very onerous undertaking given the size of the payment.
- The maximum repayment period for loans over 7.5 lakhs is 15 years.
- Maximum repayment time for loans over 5 lakh is 10 years Moratorium period (Course period + 1 year or 6 months after finding work, whichever comes first)
- Moratorium: One additional semester a year or six months following employment, whichever comes first. In 5-7 years, the loan must be repaid.
Co-borrower for Getting Kerala Gramin bank Education Loan
Students borrowing large amounts for education loans, usually for overseas studies, are required to provide collateral. Similarly, for Kerala Gramin Bank Education Loans, students must offer collateral as security for Secured loans.
In such cases, parents usually act as co-borrowers and provide collateral as security alongside the student.
Moratorium Period for Kerala Gramin Bank Education Loan
The moratorium period, sometimes known as the repayment holiday, is the time after the course has been completed during which you are not required to begin the payback procedure.
- Kerala Gramin Bank Education Loan also acknowledges the financial challenges students face after completing their courses and provides a grace period before repayment begins.
- The bank provides a period equal to the length of the course plus one year or six months after beginning employment, whichever comes first.
Security for Kerala Gramin Bank Education Loan
When applying for a Kerala Gramin Bank Education Loan, understanding the security requirements is crucial. The bank offers different terms based on the loan amount and other factors.
- Loans up to INR 4 Lakh: No security is required, but a parent must be a joint borrower.
- Assignment of Future Income: For loan repayment, the student’s future income is assigned for the purpose of installment payments.
This approach ensures flexibility and financial support for students pursuing higher education
Loans above Rs.4 lakh and up to INR 7.5 lakh
- A parent will co-borrow.
- Third-party guarantee with adequate assets to settle the loan’s balance or equitable mortgage of land worth enough to cover the debt
- Assignment of the student’s future income for the purpose of installment payments
Loan above 7.5 lakhs
- The parent must co-borrow with another party on a land contract worth at least 150% of the loan amount.
- Assignment of the student’s future income for the purpose of installment payments
Expenses Covered
Knowing the costs that the loan for study abroad will cover is crucial for students. It is preferable to be aware of the expense coverage before applying for the loan because living costs and other costs can be expensive abroad. These are some of the costs that most banks cover, albeit the level of coverage varies from bank to bank:
- Fees for college tuition
- Fees for the mess and hostel
- Fees for the exam, the library, and the lab
- The price of books, uniforms, and other expenses
- Cost of a laptop or computer, if one is needed to finish the course
- Travel costs overseas for projects and thesis research, if necessary.
Must Read: Can A Government Employee Avail Education Loan for Higher Studies?
Eligibility Requirements for Kerala Gramin Bank Education Loan
There is no point in looking into other options if you are not qualified for the loan. You shouldn’t make assumptions because the eligibility requirements vary from lender to lender. The eligibility requirements for Kerala Gramin Bank education loan for study abroad are as follows:
- The student must be an Indian citizen.
- Parent or guardians should speak on behalf of a minor pupil.
- Loans must be made in the student and parent/guardian’s joint names.
- Students must have successfully completed a merit-based selection process to gain admission to a reputable higher education program in India or overseas.
Documents Required for Kerala Gramin Bank Education Loan
When applying for a Kerala Gramin Bank education loan, it is essential to provide the necessary documentation to ensure a smooth and efficient loan process. The bank requires a set of documents to verify your identity, educational qualifications, and financial background. The list of the required paperwork for Kerala Gramin Bank education loan for international study is as follows:
- Properly completed and signed application for a student loan, together with photos
- Documentation proving “Know Your Customer” (KYC)
- Passport, voter ID cards, driver’s license, PAN cards, Aadhar card, and government department ID card are acceptable forms of identification.
- Recent wage certificate and Form 16 or most recent pay stub with any deductions
- Evidence of residency include a bank account statement, the most recent utility bill, the most recent phone or mobile bill, the most recent credit card statement, and the current lease on a home.
- A bank statement or bank passbook with transactions from the previous six months
- Form of Guarantor, a copy of the institute’s admission letter and the institute’s fee schedule (optional).
- S.S.C., H.S.C., and degree course grades/pass certificates (Optional)
- Costs of the course broken down in great detail (Optional)
Kerala Gramin Bank Contact Details
- Bank official website- https://www.keralagbank.com
- Contact Details- 0483 2733509, 0497 2717800
- Email ID- [email protected], [email protected]
- Missed a Call on.- 9015800400
- Total Branches- 649
- Headquater- Malappuram
- Bank Address- PB No.10, KGB Towers, AK Road, Malappuram – 676 505
Must Read: Part Period Interest in Education Loan: Meaning and Calculation Method
FAQs
Kerala Gramin Bank Education Loan is a financial product designed to assist students in pursuing higher education in India and abroad. It offers low-interest rates, flexible repayment options, and covers tuition, living expenses, and other educational costs.
Key features include low-interest rates, flexible repayment options, simple documentation, global education support, and a wide network of Kerala Gramin Bank branches across Kerala for easy access.
The Kerala Gramin Bank Education Loan covers UG and PG programs, professional courses like Engineering, Medical, and Management, courses from IIM, IIT, and similar institutions, as well as studies abroad.
For studies in India, the Kerala Gramin Bank Education Loan limit is up to INR 10 lakh, and for studies abroad, it is up to INR 20 lakh.
The Kerala Gramin Bank education loan interest rate is 12.50% with EM security and 13.50% without EM security. There are additional interest rebates for timely repayments.
Collateral is required for loans above INR 4 lakh. For loans above INR 7.5 lakh, additional collateral such as land may be needed, along with co-borrowers.
The repayment period can extend up to 15 years for loans over INR 7.5 lakh and 10 years for loans above INR 5 lakh. There is also a moratorium period, which includes the course duration plus one year or six months after employment.
The loan covers tuition fees, hostel fees, exam/lab/library fees, books, travel costs for studies abroad, and even the cost of a laptop if needed for the course.
Required documents include a completed loan application form, KYC documents, passport-sized photos, admission letter from the institute, fee schedule, parent’s income proof, and bank statement.
The applicant must be an Indian citizen who has secured admission to a recognized educational institution. The loan must be co-borrowed by the parent or guardian in the case of a minor student.
For loans up to INR 7.50 lakh- for up to 10 years. For loans above INR 7.50 lakh- up to 15 years.
These are the facilities provided by Kerala Gramin Bank:
Personal Banking.
Balance Transfer.
Business.
Financial Inclusion. Banking Correspondents.
Online Insurance.
Pension Matters.
E-Auction.
Customer Education.
National Cyber Crime Helpline 1930.
Ans. Here are the steps to check the education loan eligibility:
Duly filled in and signed the application form with affixed photographs.
Two photographs.
Copy of exam mark sheets of 10th/12th or latest education certificate.
Statement of course expenses/cost of study.
Aadhaar Card and Pan Card of the student and Parent/ Guardian.
This Was all about Kerala Gramin Bank Education Loan if you have loan related query contact fly. finance on 1800 57 2000
