Education Loan EMI Calculator

The bank sanctions the education loan only after thorough due diligence. Axis Bank usually disburses loans within 15 days from the date of receipt of the complete application along with all documents required for a full appraisal.

There is no margin for education loans upto Rs 4 Lakhs. For loans above Rs 4 Lakh, the margin for studies within India is 5% and for studies overseas is 15%.

The documents required for the first disbursement are:

• Demand Letter from college or university
• Disbursement Request Form (DRF) signed by the applicant, co-applicants
• A signed copy of Loan Agreement (which includes Demand Promissory Note, DP Note Delivery-cum-Waiver Letter, Standing Instruction Request, PDC (Post-dated Cheque)
• Sanction Letter signed by the applicant, co-applicants
• Form A2 signed (for the purchase of foreign exchange) by applicant or co-applicants in case abroad Institute cases
• Receipts of Margin Money paid to the college/university along with bank statement reflecting the transaction
• Documents for collateral security ( if applicable)
• Form A2 signed by the applicant or co-applicants in case of overseas institute

For subsequent disbursements as well, many of the aforementioned documents will be needed, particularly the demand letter from the college or university, DRF, receipt of margin money paid, and one any from the exam progress report, mark sheet, bonafide certificate.

Yes, Rs 500 + taxes per cheque bounce and a penal interest @24% per annum i.e. @ 2% per month on the overdue instalment/s. So, as far as possible, keep your repayment track record clean.

Yes. When you avail an education loan, the interest paid (which is a component of your EMI) on the education loan is allowed as a deduction under Section 80E of the Income Tax Act, 1961. The deduction is available for a maximum of 8 years or till the interest is paid, whichever is earlier.