Education Loan FAQs

The Bank will convey its decision within 15 working days from the date of receipt of the education loan application, provided the application is complete in all respects.

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%.

Financial Default*: 8% p.a. above applicable interest rate on the overdue amount (subject to the aggregate not exceeding 24% per instance). There shall be no capitalisation of Penal Charges.
*Financial Default includes all types of payment or financial defaults/irregularities with respect to your loan account.

The Reserve Bank of India (RBI) vide its circulars no DBR.DIR.BC.No.14/13.03.00/2019-20 on “External Benchmark Based Lending” dated September 04, 2019 and circular no. DBR. Dir. No.85/13.03.00/2015-16 on “Interest Rate on Advances” dated March 03,2016 , updated as on September 04,2019 has advised to link all new floating rate personal or retail loans (housing, auto, etc.) and floating rate loans to Micro and Small Enterprises extended by banks with effect from October 01, 2019 to external benchmark which can be one of the following:

- Reserve Bank of India policy repo rate
- Government of India 3-Months Treasury Bill yield published by the Financial Benchmarks India Private Ltd (FBIL)
- Government of India 6-Months Treasury Bill yield published by the FBIL
- Any other benchmark market interest rate published by the FBIL.

In line with the above circular, Axis Bank has adopted Repo rate as the external Benchmark lending rate with effect from October 01, 2019.

New customer at REPO RATE : - All new floating rate loans and credit limits renewed with effect from October 01, 2019 will be linked to Repo rate.

Existing customer at MRR/BPLR/Base rate/MCLR: - Existing loans and credit limits linked to MRR/BPLR/Base rate/MCLR shall continue till repayment or renewal, as the case may be. Only if existing customers approach us and give request for switching from MRR/BPLR/Base rate/MCLR to REPO RATE then only it will be changed. Once transitioned to REPO RATE, the customer can’t switch back to the old benchmark rates.

All floating rate loans will be linked to REPO RATE. The rate offered to you shall be the REPO RATE plus spread. It may be noted that the Repo rate would be reset every three months.

Further, the Bank is free to decide the spread over the Repo Rate. The spread may undergo a change during the tenure of the loan.

Bank will publish the Repo rate every month on a pre-announced date. The rate applicable to you would be the prevailing repo rate for that month.

For all loans linked to Repo rate, the reset frequency would be three months.

Yes! You can switch from a floating rate of interest to a fixed rate of interest and vice versa Charges

This option can be exercised 3 times during the tenor of your loan as per the bank’s approved policy, effective 01 Jan 2024.

Please visit your nearest loan centre to execute the supplementary agreement along with signature of all the borrowers carrying Photo ID and Signature proofs.

YES, for all floating rate loans/credit facilities, if customer is on MRR/BPLR/Base rate/MCLR, customer can give request to move to REPO RATE. Hence, the benchmark rate and spread shall undergo a change.

• In case the effective rate is being kept the same, only an administrative fee shall be charged from you.
• In case the effective rate is being reduced, the bank shall charge a switch fee in addition to the administrative charges in line with the Bank’s pricing policy.

You are requested to visit the nearest loan center along with the co-applicant(s) and/or guarantor(s), since there would be additional documentation involved.

The Repo Rate would be reset every three months. The impact would be given on loan tenure first, however if maximum tenure has already been availed then the EMI would have to be modified.

No, there is no option to move back from REPO RATE to Base rate/BPLR/MRR/MCLR.

YES, Base rate/MCLR will be reviewed by the Bank from time to time and it may or may not change.

Applicable REPO RATE for each month will be updated on Axis Bank Website.

You will come to know through our Website / SMS / Email/ letter as deemed fit.

Any foreclosure/excess amount paid by you to the Bank; shall be appropriated in the loan account basis the below criteria/methodology in the absence of any specific instructions from you:

1. Excess amount greater than (>) EMI: If service request (SR) for part payment is not created/received within 2 days of receipt of funds, the excess funds will be adjusted towards principal outstanding as part payment.
2. Excess amount equal to (=) EMI: If service request (SR) / instructions for part payment is not created/received on same day of receipt of funds, excess amount will be refunded to your operative account.
3. Excess amount less than (<) EMI: Excess amount will be kept unappropriated in the Loan account for 15 days. Post 15 days, the excess funds shall be adjusted towards principal outstanding as a part payment.
4. Excess amount equal to (=) or greater than (>) foreclosure / pre-closure amount : In case no instructions are placed by you at the Loan Centre / Phone Banking within 3 working days from the date of credit in Loan account and:
1. Excess amount is equivalent (=) to the foreclosure amount, Loan account will be proactively closed by the Bank.
2. Excess amount is greater than (>) the foreclosure amount, adjustment in Loan account would be as follows:
1. If excess amount is up to INR 20,000, Loan account would be closed by the Bank and after closure, excess funds would be credited to the Loan repayment account.
2. If excess amount is greater than INR 20,000, the Bank will connect with you telephonically for verification of payment. Alternatively, you may connect with the Bank on 18604195555 to confirm the credit adjustment in your Loan account.
5. Excess amount less than (<) the foreclosure amount: In case no instructions are placed by you at the Loan Centre / Phone Banking within 3 working days from the date of credit in Loan account, then excess amount will be adjusted against the outstanding principal, leaving an amount equivalent to one EMI for forthcoming EMI presentation. However, in case you would like the entire amount to be adjusted against the outstanding principal, please place a request at Phone Banking / Loan Centre at the earliest.