Kerala Gramin Bank Education Loan: Interest Rate, Eligibility, Dates, Benefits

Home » Education Loan » Kerala Gramin Bank Education Loan: Interest Rate, Eligibility, Dates, Benefits

Our educational loans are intended to give deserving students the financial assistance they need to pursue higher education anywhere in the world. Students can get low-interest education loans from Kerala Gramin Bank at reasonable rates. Learn more about the documents and qualifying requirements for student loans, easy repayment alternatives, and EMI. Through its 40-year history of providing clients with devoted and personalized care through its predecessor RRBs, KGB has carved out a niche for itself. As of 30.09.2019, it had 634 branches, making it Kerala’s second-largest bank in terms of branch network.

Bank Name Kerala Gramin Bank
Established on07-08-2013
Guarantor Required Yes 
Pre Clouser Charges As decided by the bank from time to time

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.

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 program seeks to ensure that deserving students won’t miss out on chances due to a lack of financial provisions.

Eligible Courses 

These are the eligible courses that come under in Kerala Gramin Bank Education loan 

Must Read: Types of Education Loan for Indian Student 

Kerala Gramin Bank Education Loan Amount

According to the guidelines set forth by the Indian Banks Association, banks grant loans of up to Rs. 10 lacks for study at Indian universities and up to Rs. 20 lacks for study overseas. The loan amount is determined by the course and the organization providing the course.

Interest Rate 

  • 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.


  • Nil for amounts up to Rs. 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 lacks 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.

Must Read: Student Loan Eligibility Criteria for Studying Abroad 


Huge quantities of money must be borrowed for overseas education, and the majority of PSBs demand collateral. Secured loans are those for which the borrower must put up collateral.

  • Parents will co-borrow with you.

Moratorium Period

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 Banks likewise recognizes the financial restraints faced by students after they have finished their courses and offers them time to begin loan repayment. 
  • The bank provides a period equal to the length of the course plus one year or six months after beginning employment, whichever comes first.


Loans up to Rs. 4 lakh

  • Parent to be joint borrower; no security.
  • Assignment of the student’s future income for the purpose of installment payments

 Loans above Rs.4 lakh and up to Rs. 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 lacks

  • 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: Expenses Covered in Education Loan 

Eligibility Requirements

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 a loan from Kerala Gramin Bank 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 

The list of the required paperwork for an 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-
  • 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: Education Loan without Collateral 


Q1. Does Gramin Bank give education loans?

Ans: For loans up to Rs. 7.50 lakh- for up to 10 years. For loans above Rs. 7.50 lakh- up to 15 years.

Q2. What does Kerala Gramin Bank do?

Ans. These are the facilities provided by Kerala Gramin Bank:

Personal Banking. 
Balance Transfer.
Financial Inclusion. Banking Correspondents.
Online Insurance.
Pension Matters.
Customer Education.
National Cyber Crime Helpline 1930.

Q3. How can I check my education loan Eligibility? 

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 

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