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Education Loan in Kerala

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Education Loan in Kerala

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Brinda Khurana
Brinda Khurana

Study Abroad Expert

Updated on:  21 Nov 2024 | 
Reviewed By:  Aman  
| 507 | 55  min read

If you're a student in Kerala looking to pursue higher education but are worried about financial barriers, securing an education loan could be your pathway to success. Kerala, celebrated for its impressive literacy rates, provides various financial aid opportunities for students. In this blog, we will delve into the top education loan options available in Kerala in 2024, helping you make a well-informed choice to finance your educational goals.

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Which Bank is Best for an Education Loan in Kerala?

In Kerala, numerous banks provide education loans to students aiming to pursue higher education either within India or internationally. It's advisable to thoroughly explore the various offerings from these public sector and private sector banks as well as NBFCs to find an education loan that best suits your educational and financial requirements.

 

Leading Banks for Education Loan in Kerala For Studies in India 

Bank Name  Loan Amount  Processing Fee

State Bank of India 

Up to INR 50 lakh

Nil - INR 10,000+Tax 

Axis Bank 

Up to INR 75 lakh (unsecured) 

Up to 2% of the amount+GST 

ICICI Bank 

Up to INR 1 crore 

Up to 2% of the amount +GST

IDFC First 

Up to INR 30 lakh (unsecured) 

Up to 1.5% of the amount 

UBI 

Up to INR 1.5 cr (secured) 

Up to INR 40 lakh (unsecured)

INR 5000 (refundable) 

HDFC Credila 

Up to INR 40 lakh 

1% + GST 

Auxilo 

Up to INR 65 lakh 

Up to 2% of the sanctioned loan amount 

InCred 

Up to INR 60 lakh

0.75% - 1% of the sanctioned loan amount

BOB 

INR 7.5 lakh - INR 1.5 cr 

1% (max. INR 10,000) 

Check Your Education Loan Eligibility

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Leading Banks for Education Loan in Kerala for Abroad Studies

Bank Name  Loan Amount  Processing Fee

State Bank of India

Up to INR 1.5 cr with collateral 

INR 10,000

Axis Bank

Prime A - INR 1 cr

Prime B - INR 40 lakh 

0.75% on the sanctioned loan amount 

ICICI Bank 

Up to INR 2 cr (secured) 

Up to INR 1 cr (unsecured) 

Up to 0.75% TO 1% + GST 

IDFC First Bank

Up to INR 75 lakh without collateral 

Up to 1.5% of the sanctioned loan amount 

Union Bank of India 

Up to INR 2 cr (secured) 

Up to INR 40 lakh (unsecured) 

INR 5000

HDFC Credila 

Up to INR 75 lakh 

0.5% - 1% 

Avanse 

Up to INR 75 lakh 

1% - 1.5% 

Auxilo 

Up to INR 65 lakh 

0.5% - 1.5% 

InCred 

Up to INR 80 lakh 

1% - 2% 

MPower Financing

Up to 100,000 USD 

5% (adjusted in the loan amount) 

Prodigy Finance 

Up to 100% cost to study 

Up to 5%, added to loan amount*

*Note: Upon loan approval, students are required to pay an upfront fee of $100 to receive their sanction letter.

 

Explore Best Banks for Education Loans!

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Kerala Gramin Bank Education Loan Scheme 

Kerala Gramin Bank provides an education loan scheme tailored to offer financial assistance to students pursuing postgraduate studies after completing their bachelor’s degree. This scheme supports Indian nationals seeking higher education either in India or abroad. Here are the key details of this scheme:

  • list items Loan Limit: The amount available as a loan ranges from Rs. 10 lakhs to Rs. 20 lakhs.
  • list items Interest Rate: Interest rates vary between 10% and 13.60%, depending on various factors including the loan amount and the repayment period.
  • list items Loan Margin: There is a loan margin of 15%, which varies based on the country where the student intends to study. This margin represents the percentage of the total education cost that the borrower must fund out of pocket.
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    What are the Documents Required for an Education Loan in Kerala?

    When applying for an education loan in Kerala, it's crucial to prepare and present specific documentation to ensure a smooth application process. Here's an overview of the necessary documents required for both unsecured education loans and secured education loans:

     

    Basic Documents Required:

     

  • list items Online Application Form: To initiate your loan application.
  • list items Identity Proof: This could be your Aadhaar Card, Voter ID, Passport, or Driving License.
  • list items Address Proof: Same as identity proof options like Aadhaar Card, Voter ID, Passport, or Driving License.
  • list items Confirmation of Enrollment: An official admission letter from the educational institution.
  • list items Educational Records: Certificates from your 10th, 12th, and undergraduate studies.
  • list items Proof of Income for the Last Three Months: This includes pay slips or a company letter.
  • list items Form 16 for the Past Two Years: For salaried co-applicants showing taxed income.
  • list items Income Tax Return (ITR) for the Previous 2 Years: To demonstrate financial history.
  • list items Financial Documents: Balance sheets and profit/loss accounts for self-employed co-applicants.
  • list items Statement on Breaks in Academic or Employment History: If applicable, must be documented on Rs. 100 stamp paper.

    •  

    Additional Documents for Secured Loans:

     

  • list items Co-applicant's Basic Income Certificate: Required if no income tax returns are available.
  • list items Proof of Collateral Pledged: Such as property title deeds, sale agreement, gift deed, will, etc.
  • list items Munnadaram and Conversion Certificate: If applicable, to confirm land conversion for loan collateral.
  • list items Acceptance from Neighboring Property Owners: Necessary if the collateral property has access via a private road.
  • list items 30 Years of Ownership Transfer Documents or Earlier Chain of Sale Deeds: To trace the property's ownership history.
  • list items Latest Property Tax and Electricity Bills: To confirm the current status and valuation of the property.
  • list items Municipality-Approved Building Plan or Plot Layout Copy: For loans secured against a property under construction or renovation.

    •  

    Having these documents prepared and organized can significantly expedite the processing of your education loan application in Kerala. Make sure to check with the specific bank or financial institution for any additional requirements or variations in document specifications.

    Agricultural land can be used as collateral for obtaining education loans. Institutions like Kerala Gramin Bank offer agricultural loans against the mortgage of agricultural land. These loans can cover various agricultural and related activities, including the purchase of land. The loans generally require the land to be valued at 150% of the loan amount if the amount exceeds Rs. 1.6 lakhs, ensuring substantial security for the loan provided.

     

    Avoid Loan Letdowns: Know What Knocks Your Education Loan Off Track!

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    Education Loan Interest Rate in Kerala For Studies in India

    Bank Name  Interest Rate  Interest Rate Concession 

    State Bank of India 

    Starts from 8.30% 

    0.60% Business strategy discount 0.50% - for female students 

    0.50% - Rinn Raksha 

    Axis Bank 

    Starts from 11.5% 

    0.5% - 2% 

    ICICI Bank 

    Starts from 10.5% -11% 

    0.5% - 2% 

    IDFC First 

    Starts from 8.5% - 10% 

    0.5% - 2% 

    UBI 

    Starts from 11.15% 

    0.5% for female students

    1% if the SI is paid in full 

    HDFC Credila 

    Starts from 10.25% - 12.75% 

    		 -

    Auxilo 

    Starts from 11% - 13.5% 

    0.5% - 2% 

    InCred 

    Starts from 11% - 13.5% 

    0.5% - 2% 

    BOB 

    Starts from 8.85% 

    0.5% 
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    Education Loan Interest Rate in Kerala For Studies in Abroad 

    Bank Name  Interest Rate  Interest Rate Concession 

    State Bank of India 

    Starts from 10.15% 

    0.5% concession in interest for female students 

    0.5% - Rinn Raksha 

    Axis 

    9.99% - 12.5% 

    		 -

    ICICI 

    10.25% - 12.5% 

    		 -

    IDFC First 

    9.5%-11% (secured) 

    11%-13% (unsecured) 

    		 -

    UBI 

    9.25% - 9.75% 

    		 -

    HDFC Credila 

    10.25% - 12.75% 

    		 -

    Auxilo 

    11.5% - 13% 

    		 -

    InCred 

    11.85% - 13.25% 

    		 -

    MPower 

    12.99% - 15.99% 

    -

    Prodigy 

    11.5% - 13.5% 

    -

    BOB 

    9.7% (fixed) 

    0.20% concession in interest for female applicants of non-premier institutes

    Verify your eligibility for an education loan with GyanDhan today! Simply visit the GyanDhan website, use their loan eligibility tool, and receive instant feedback on your options. 

    Calculate your Education Loan EMI

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    What is the Eligibility Criteria to Avail an Education Loan?

    To qualify for this education loan scheme, applicants must meet specific eligibility requirements:

     

    1. Parental or Guardian Representation: A parent or guardian must act as the co-borrower for students who are minors, ensuring legal and financial responsibility.
     

    2. Joint Loan Agreement: The loan will be issued in the names of both the student and the parent/guardian, linking both parties to the financial commitment.
     

    3. Admission Through Merit: The student must have secured admission to a recognized institution either in India or abroad, based on merit through a competitive selection process.
     

    These criteria are designed to ensure that the loan is used for legitimate educational purposes and that there is adequate financial backing to support the student's academic journey.

    Top Benefits of Education Loans—Learn How They Can Empower Your Academic Journey! 

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    Conclusion 

    In conclusion, securing an education loan in Kerala enables students to overcome financial hurdles and access higher education. With various loan options available, students can select plans that align with their educational and financial needs. It’s crucial to carefully review different banks' terms, including interest rates, repayment conditions, and collateral requirements.

     

    To enhance the chances of loan approval, students should understand common loan rejection reasons, ensure eligibility criteria are met, provide accurate documentation, and consider securing collateral if needed. Additionally, opting for reputable institutions and aligning with the bank's lending criteria can improve approval prospects.

     

    Education loans provide crucial support for covering tuition, living expenses, and academic materials, helping students focus on their educational and career aspirations. By making well-informed decisions and planning strategically, students in Kerala can manage their educational finances effectively.

     

    In Kerala and exploring education loan options? GyanDhan is your go-to platform, offering a pathway to secure financing for your higher studies in India or abroad. Our education loan experts help you in securing high loan amounts under favorable terms with a track record of higher loan approval rates. We also assist with pre-visa loan disbursement, crucial for your visa application. Best of all? Our expert, end-to-end service comes at absolutely no extra cost to you. Check your loan eligibility on GyanDhan now and take the first step towards realizing your academic dreams.

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    Frequently Asked Questions 

    What expenses are covered by education loans in Kerala?

    Education loans in Kerala generally cover a wide range of expenses associated with higher education. These include tuition fees, examination fees, costs related to mandatory study tours and projects, and living expenses like accommodation and meals.

    What are the typical interest rates for education loans in Kerala?

    Interest rates for education loans in Kerala vary by bank and whether the loan is secured or unsecured. Rates can range from as low as 8.30% to up to 13.5%, depending on the bank and the specifics of the loan product.

    Are there any processing fees for education loans in Kerala?

    Yes, most banks charge a processing fee for education loans. These fees vary and can be a percentage of the loan amount (ranging from 0.5% to 2%) or a flat fee. Some banks may waive these fees during promotional periods.

    What is the moratorium period for education loans in Kerala?

    The moratorium period for education loans in Kerala typically lasts from 6 months to 1 year after course completion. This grace period allows graduates time to secure employment before they need to start repaying the loan.

    What collateral is required for securing an education loan in Kerala?

    Collateral requirements depend on the loan amount and bank policies. For higher loan amounts, collateral such as property or other valuable assets may be required. The exact nature of the collateral and its requirements can vary significantly between banks.

    Calculate your Education Loan EMI

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