Features of Axis Bank Unsecured Education Loans
- No Collateral Required: Unsecured education loans from Axis Bank do not require pledging assets like property, fixed deposits, or other securities. This makes the loan accessible to students and families who may not have high-value assets to offer as collateral. Ideal for students focusing on their studies without the stress of risking family assets.
- High Loan Amounts: Up to ₹75 Lakh: For premier courses abroad (Prime Abroad category) and select programs. Up to ₹50 Lakh: For GRE-based funding (based on GRE scores) and income-based funding (based on co-applicant's income). Up to ₹40 Lakh: For Prime A universities (top-tier master's programs abroad). Up to ₹25 Lakh: For Prime B universities (other leading universities, including some bachelor's programs). Up to ₹7.5 Lakh: For non-prime courses and universities.
- 100% Financing of Education Costs: Covers tuition fees, hostel/mess charges, books, laptops, laboratory equipment, uniforms, travel expenses (for abroad studies), and other related costs. Also funds refundable deposits demanded by colleges (capped at 10% of tuition fees). Ensures comprehensive financial support.
- Pre-Admission Sanction Letter: Axis Bank provides a provisional loan sanction letter before university admission, which serves as proof of financial support during the admission process and visa applications. This feature is particularly beneficial for international students.
- Quick Disbursal: Once approved, funds are disbursed within 2 working days, ensuring timely availability for tuition payments or other expenses. The approval process typically takes 7-10 working days for unsecured loans, provided all documents are complete.
- Flexible Repayment Tenure:
- Up to 15 years for Prime Abroad loans
- Up to 10 years for GRE-based and income-based funding loans
- Longer tenures reduce monthly EMI burdens
- Moratorium Period: A repayment holiday is offered, covering the course duration plus a 6-12 month grace period after course completion. During this period, no principal or interest payments are required, although interest accrues. Note: For income-based loans, immediate EMI repayment may apply without a moratorium.
- Competitive Interest Rates: Interest rates for unsecured loans typically range from 11% to 13% for Prime A and Prime B programs, depending on the student's profile and university ranking. Rates are linked to the Reserve Bank of India's Repo Rate (currently 6% as of April 2025), with a margin added by the bank.
- Tax Benefits: Under Section 80E of the Income Tax Act, borrowers can claim a deduction on the entire interest paid on the loan, with no upper limit. The deduction is available for up to 8 years from the start of repayment or until the interest is fully repaid, whichever is earlier.
- No Prepayment or Foreclosure Charges: Axis Bank does not penalize borrowers for early repayment or loan closure, allowing students to save on interest costs if they repay the loan ahead of schedule.
- Pre-Visa Disbursement Facility: For countries like the USA, Australia, UK, New Zealand, Germany, and Canada, Axis Bank offers pre-visa disbursement to meet university demands for upfront tuition fees or living expenses.
- Multi-Currency Forex Card: For abroad studies, Axis Bank provides a multi-currency Forex Card to facilitate easy access to funds for living and travel expenses. This enhances convenience and financial management for students studying overseas.
- Pre-Admission Sanction for Visa and Admission: Provisional Sanction Letter serves as proof of financial backing for university applications and visa processes. Simplifies visa approvals.
- Quick and Hassle-Free Disbursal: Fast Processing: Loan approval takes 7-10 working days, with funds disbursed within 2 working days post-approval. Ensures timely payment of tuition fees and other expenses.
- Flexible Repayment Options: Long Tenure: Up to 15 years for Prime Abroad loans and up to 10 years for GRE-based or income-based loans.
- Tax Benefits Under Section 80E: Interest Deduction: Borrowers can claim a tax deduction on the entire interest paid on the loan under Section 80E of the Income Tax Act, with no upper limit for up to 8 years from repayment start.
- No Prepayment or Foreclosure Charges: Borrowers can repay the loan early or in full without incurring penalties, saving on interest costs if the student secures a high-paying job or receives financial support.
- Pre-Visa Disbursement for Abroad Studies: For countries like the USA, Canada, Australia, UK, Germany, and New Zealand, Axis Bank disburses funds before visa approval to meet university or visa requirements.
- Multi-Currency Forex Card for Abroad Studies: Students receive a multi-currency Forex Card for easy access to funds for living expenses, travel, and other costs while studying abroad.
- No Processing Fees: Axis Bank waives processing fees for education loans, reducing upfront costs for borrowers.
- Support for Diverse Courses and Institutions: Funds career-oriented courses like medicine, engineering, management, law, arts, and sciences at recognized institutions in India and abroad.
- Central Government Interest Subsidy Scheme (CSIS): For economically weaker sections pursuing professional/technical courses in India. Provides 100% interest coverage during moratorium for loans up to ₹7.5 lakh.
Frequently Asked Questions (FAQs)
What is an unsecured education loan, and how does it differ from a secured
loan?
An unsecured education loan from Axis Bank does not require collateral (e.g., property, fixed
deposits). It relies on the student's academic profile and the co-applicant's financial stability
(e.g., income, CIBIL score >700). A secured loan requires collateral, which the bank can seize in
case of default. Unsecured loans may have slightly higher interest rates (typically 11%–13% for
Prime programs) due to the increased risk for the bank.
Who is eligible for an unsecured education loan from Axis Bank?
Eligibility criteria include: Student must be Indian citizen with minimum 50% marks in
HSC/graduation (60%+ for abroad studies), admitted to recognized institution for career-oriented
courses. Co-applicant must be Indian citizen with CIBIL score >700 and minimum income of
₹35,000/month for income-based loans. Specific variants have additional requirements (GRE scores for
GRE-based funding, university ranking for Prime Abroad).
What is the maximum loan amount for an unsecured education loan?
The loan amount depends on the course and institution: Up to ₹75 lakh for Prime Abroad programs at
top universities, up to ₹50 lakh for GRE-based/income-based funding, up to ₹40 lakh for Prime A
universities, up to ₹25 lakh for Prime B universities, and up to ₹7.5 lakh for non-prime courses.
Working professionals can get up to ₹20 lakh without co-applicant.
What documents are required to apply for an unsecured education loan?
Required documents include: Student's KYC (PAN, Aadhaar, passport for abroad), academic records,
admission letter, fee structure, entrance exam scores. Co-applicant's KYC, income proof (salary
slips, ITRs), bank statements (6-12 months), CIBIL score (>700). Additional documents may include
visa copy (abroad), tenancy agreement, income certificate (for CSIS subsidy).
How do I apply for an unsecured education loan?
You can apply online at www.axisbank.com, via Axis Mobile App/Internet Banking (for existing
customers), by visiting an Axis Bank branch, or through doorstep service (call 1-860-419-5555).
Approval takes 7–10 working days, with disbursal within 2 days post-approval.
What is the interest rate for unsecured education loans?
Interest rates typically range from 11% to 13% for Prime A/B programs, linked to the RBI Repo Rate
(6% as of April 2025) plus a bank margin. Rates for non-prime courses may be higher. Rates are
floating and reset every 3 months, potentially affecting EMIs or tenure.
Is there a moratorium period for repayment?
Yes, a moratorium period covers the course duration plus a 6–12 month grace period post-course
completion, during which no principal or interest payments are required (interest accrues). For
income-based loans, immediate EMI repayment may apply. Repayment tenure is up to 15 years (Prime
Abroad) or 10 years (GRE/income-based).
Are there any tax benefits on unsecured education loans?
Yes, under Section 80E of the Income Tax Act, you can claim a deduction on the entire interest paid
on the loan, with no upper limit. The deduction is available for up to 8 years from the start of
repayment or until the interest is fully repaid, whichever is earlier.
Are there any processing fees or prepayment charges?
Processing Fees: None; Axis Bank waives processing fees for education loans. Prepayment/Foreclosure
Charges: None; you can repay the loan early without penalties, saving on interest costs.
Can I get a loan sanction letter before admission?
Yes, Axis Bank provides a pre-admission sanction letter as proof of financial support, useful for
university admissions and visa applications (e.g., for USA, Canada, Germany). This is issued after
initial eligibility checks and document verification.
List of Unsecured Education Loans by Axis Bank
- Axis Bank Prime Abroad
- Axis Bank GRE-based Funding
- Axis Bank Income-based Funding
- Axis Bank Loan for Higher Study
- Axis Bank Loan for Working Professionals
- Axis Bank Balance Transfer
- Axis Bank GRE-Based Funding Loan
- Axis Bank Income-Based Funding Loan