Kotak Mahindra Bank Education Loan Rate of Interest

Kotak Mahindra Bank has easy loan disbursal and fast processing facilities which make it one of the most sought banks for education loans.

  • No age criterion for the applicant while the co-applicant should have an age between 21 and 70.
  • No prepayment charges, minimal documentation, and quick approval of loans.
  • The maximum loan limit is INR 20 Lacs.

The interest rates are set as per the RBI guidelines.

  • For loans up to INR 7.5 Lacs, the RoI ranges from 11.50% to 24%.
  • For loans above INR 7.5 Lacs, the RoI is 15.75%.
  • 0.50% concession is given to girl students

CALCULATE YOUR EDUCATION LOAN EMI

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EMI Payable

1,000 per month

Total Interest

1,000

Payable Amount

1,000

Total Interest
Principal Loan Amount

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Kotak Mahindra Bank Education Loan Eligibility

loan eligibility image
  • Indian National. The applicant should be a citizen of India or should have a valid passport of India.
  • Courses. Graduation/ post-graduation/ diploma courses are considered.
  • Admission Basis. The admission to the university/institute should have been on the basis of an entrance exam or on a merit basis.
  • Age. No age criteria for the applicant but the co-applicant should have an age between 21 years and 70 years.

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Bank / FinancerChange bankChange bankChange bankChange bankChange bank
Applicable Rate of InterestUp to INR 7.5 Lacs: 11.50% to 24%.
Above INR 7.5 Lacs, the RoI is 15.75%.
Up to INR 7.50 Lacs: 10.55%
Above INR 7.50 Lacs: 10.80%
up to INR 7.5 Lacs: MCLR + 2.00%
above INR 7.5 Lacs: 2.60%
Upto 4 Lacs- 16.50%
Upto 7.5 Lacs- 17.50%
Above 7.5 Lacs- 15.50%
Max Loan with CollateralFor India: INR 10 Lacs
For Abroad: INR 20 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs and beyond based requirement
Max loan without collateralFor India: INR 10 Lacs
For Abroad: INR 20 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs and beyond based requirement
Processing FeeUpto 2% of the loan amount+ GST and other applicable statutory leviesUp to INR 4 Lacs: Nil
Above INR 4 Lacs: INR 5000
NilNil
Repayment Period5-7 years15 years15 years7 years
Loan for top institutionsNoYes, SBI Scholar Loan SchemeYes, PNB PratibhaNo
MarginUp to 4 Lacs: No margin
Above 4 Lacs: For India:5%; For Abroad:15%
For loan above INR 4 Lacs
In India: 5%
In abroad: 15%
Up to INR 4 Lacs - NIL
Above INR 4 Lacs - 5%
Upto loan 4 Lacs: No margin
Above 4 Lacs: for India: 5%
for Abroad: 15%
Age LimitNo age criteriano age limitNo age limitNo
Loan SecurityNo collateral or security for a loan up to INR 7.5 Lacs.Upto 7.50 Lacs: Only Parent/ Guardian as co-borrower. No Collateral Security or third party guarantee
Above INR 7.50 Lacs: Tangible security along with parents as co borrower
Upto INR 7.50 Lacs: Parent(s)/guardian be made joint borrower (s). No tangible Security and /or 3rd party guarantee is required.
Above INR 7.50 Lacs: Parent(s)/guardian be joint borrower(s). Tangible collateral security of suitable value acceptable to bank.
Third party guarantee
Collateral security
Additionally, assignment of LIC policy in favor of bank amounting 100% of education loan amount
Assignment of Future salaries in favor of Axis Bank
Eligibility concession for SC/STNoNo50% for SC/ST, and;60% for General category.No
Processing TimeN.A.20 days15 days14 Days
Prepayment chargesAfter 12 months: 5% foreclosure charges + GST on principal outstandingNilNilNil
Penal charges3% of Overdue AmountPenal interest @ 2% to be charged for loans above Rs.4 lacs for the overdue amount and overdue periodNil@ 2% per month on the overdue installment/s
Mandatory insurance coverNot mandatoryYesyesyes
Travel expenesesyesyesyesyes
Bank transfter allowanceNoavailableavailableNo such clause mentioned
Top up loan availabilityNoyesavailableunavailable
Interest Subsidy SchemesCSIS
Skill Loan Scheme
Padho Pardesh
Padho Pardesh
CSIS
Skill Loan Scheme
Padho Pardesh
CSIS
Skill Loan Scheme
CSIS
Tax benifitYesyesyesyes
Concession/benefitsQuick Approval of Loan
Concession for girl students
Minimal documentation
No prepayment charges
Concession to girl students
1% concession if interest is serviced during moratorium period including course period
0.5% concession to girl students
0.5% concession if interest is serviced during moratorium period including course period
Online application
There is no processing fee charged
No pre- payment charges are applied
No pre- closure charges are applied
Loan Disbursal period is 15 working days from the date of final submission of documents
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How to apply for Kotak Mahindra Bank Education Loan ?

Kotak Mahindra Bank Education loan application form can be available online or offline at Bank branches.

Visit the official website for Kotak Mahindra Bank Education Loan.

Click on Apply Now.

Fill out the form with essential details

Upload the mandatory documents required.

Submit the form and take out a print out of the application.

Visit the bank branch for further formalities.

Applicants can directly visit the nearest branch and ask for an application form. The bank representative will then guide them with all the necessary information regarding eligibility, documents required and also which loan is best suitable.

Kotak Mahindra Bank Education Loan Details

Loan Limit
For India: INR 10 Lacs
For Abroad: INR 20 Lacs
Margin
Up to 4 Lacs: No margin
Above 4 Lacs: For India:5%; For Abroad:15%
Processing Fee
Nil
Loan Security
No collateral or security for a loan up to INR 7.5 Lacs.
Loan Repayment
5-7 years

Expenses covered under Kotak Mahindra Bank Student Loan Scheme

  • Tuition Fee
  • Cost of Books, Uniforms or Stationery
  • Cost of Laptop or computer (if required)
  • Examination Fee
  • Library/ Laboratory Fee
  • Hostel Fee
  • Travel Expenses (for abroad)
  • Miscellaneous expenses

Education Loan Documents Required ?

Copy of Admission letter with all essential details

Attested copies of age proof, residence proof and birth date

Two Self-attested passport size photographs of applicant, co-applicant, and the guarantor.

Copies of qualifying courses

Salary proof including Latest salary slip, Form 16 and recent salary certificate (if salaried).

Admission Proof including Fee receipts, Transfer certificate, etc.

Schedule of expenses of the course.

Copy of passport and visa for abroad courses

Interest Subsidy Schemes

Skill Loan Scheme

The bank offers 'Skill Loan Scheme' for students who aspire to gain knowledge and specialized training in one specific field.

Central Scheme for Interest Subsidy

Formulated by the Govt. of India, a scheme to assist the students belonging to the economically weaker section. 

Padho Pardesh

Formulated under the Prime Minister's 15 point programme, this subsidy scheme benefits the students of the minority community who want to study abroad. Such students are provided 100% interest subsidy.

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Frequently Asked Questions

01

What schemes does Kotak Mahindra Bank considers for its education loans?

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There are multiple schemes offered by Kotak Mahindra Bank apart from the basic education loan. These are:

  • National Skill Certification and Monetary Reward Scheme
  • Skill Loan Scheme
02

In whose name is the loan granted?

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The loan is granted in the name of the student

03

Is the loan contract executed only in student's name?

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No, the loan can be executed both in name of student and co-borrower as both are equally responsible for repayment of loan.

04

What is the age limit for availing loan in Kotak Mahindra Bank?

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  • For applicant: Age limit for applicant should be less than 18 years at time of applying for graduation course.
  • For Co-applicant: Minimum age limit for availing loan from Kotak Mahindra Bank is upto 21 years and maximum age limit is 70 years.
05

Are minors eligible to apply for Kotak Mahindra Education Loan?

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Yes, Minors aspiring for further studies can apply for education loan with help of legal representation from parents/ guardians.

06

What does margin on any loan mean?

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Margin amount is the amount that a borrower has to pay through his/ her own sources in form of a down payment as his/ her contribution towards the education.

07

Should the student's margin be paid upfront in the starting?

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Margin can be paid on a year to year pro rata basis whenever bank disburses loan amount as per requirement.

08

Where can I avail Kotak Mahindra Bank Education Loan?

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You can either contact your nearest branch for the application form or details regarding the loan or apply online from the official website.

09

Is there any provision to apply for loan online?

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Yes, you can apply online through Vidyalakshmi portal to avail for this loan.

10

Is there any minimum aggregate marks to meet the eligibility criteria to avail Kotak Mahindra Bank education loan?

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Yes, a student must have secured a minimum aggregate of 50% marks in their last qualifying examination (10+2 or Graduation)

11

What is the discount/ rebate offered by Kotak Mahindra bank?

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  • 0.50% concession is given to girl students
  • Eligibility criteria and margin on education loan is relaxed for SC/ST students
12

What all is included in tangible collateral security?

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Mostly Kotak Mahindra bank asks tangible security in lieu of the loan amount sanctioned along with assignment of future salaries in favour of Kotak Mahindra Bank. Tangible security includes documents related to land/ building/ government security/ public sector bonds/ units of UTI, NSC, Life insurance policy/ bank deposits/ shares or debentures. The value of the security should be equal to the education loan amount.

13

Is scholarship or assistantship included in the margin?

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Yes any scholarship or assistantship will be a part of margin charged on education loan.

14

What is Moratorium Period?

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Course Period plus one year, or six months after getting a job

15

What is tenure of an education loan?

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Tenure of education loan provided by Kotak Mahindra Bank is minimum 5 years and maximum of 7 years.

16

What does MCLR stands for?

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MCLR stands for Marginal Cost of funds based Lending Rate. It refers to the minimum interest rate of bank below which it cannot lend.

17

What all expenses are covered under this course?

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Expenses covered by Kotak Mahindra Bank education loan are:

  • Tuition/ college/ hostel fee
  • Examination/ lab/ library fee
  • Books/ uniform/ instruments
  • Caution deposit
  • Passage money for studies abroad, etc.
18

Will my travel expense will be covered if I take loan from Kotak Mahindra Bank?

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Yes, travel expenses are covered under this loan

19

I have taken admission through management quota. Am I eligible?

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This depends totally on bank's discretion as whether a student meets other eligibility criteria or not.

20

What do you mean by reputed or recognized institutes?

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Institutes that are affiliated to state/ central universities and comes under UGC or AICTE are considered as recognized institutes. Reputed institutes are those which are well known and have standard course of repute. More often, banks provide the list of institutes they consider for loan. (You can contact nearest branch for the same)

21

Are there any special benefits if I have secured admission to one of the top premier institutes?

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Kotak Mahindra Bank provides no such provision or special benefit to the students who secure admission in top premier institutes

22

What is the processing fee or prepayment charges?

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The education loan offered by Kotak Mahindra Bank does not carry any prepayment charges. Processing fee charged is 2% of the loan amount + service tax and other applicable statutory levies

23

Will cost of my computer be covered under the loan sanctioned?

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Reasonable cost for the computer or laptop well be covered under the loan if it is required to complete the course.

24

Why is Pan Card necessary?

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Pan Card is one of the mandatory document required by banks these days. It is mandatory because:

  • Easy to assess Income
  • Easy to trace borrowers
25

Are diploma or certificate courses considered under Kotak Mahindra Bank education Loan (both for India and Abroad)?

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Yes diploma or certificate courses are eligible under Kotak Mahindra Bank Education Loan. Regular degree or diploma courses like, shipping, pilot training, and aeronautical that are approved by Director General of Civil Aviation or Shipping

26

Is a co-borrower necessary for loan?

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Yes, it is mandatory to have a co-borrower to avail loan from Kotak Mahindra bank.

27

Who can be my co-borrower?

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Your parent/ spouse/ guardian can be a co-borrower. A co-borrower should be your immediate family member, should have a steady source of income, and a good credit history.

28

What all documents are required from the co-borrower?

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Documents required from the co-borrower are:

  • Attested copies of age proof, residence proof and birth date.
  • Self-attested passport size photograph
  • Income proof and/or copy of income tax return file
  • Details of collateral security along with government approved valuation certificate (if any).
29

What is the KYC requirement in education loan?

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KYC requirements are the documents as a proof of personal identification and residence proof of the applicant as well as the co-borrower.

30

What are maximum term for repayment?

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Maximum term for repayment is 7 years

31

How can I repay the loan?

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You can repay the loan after the moratorium period by mode of EMI or through post- dated cheques.

32

What is EMI? How are they calculated?

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EMI stands for Equated Monthly Installments. It can be calculated by using the formula given below

  • EMI = [P x R x (1+R) ^n] / [(1+R)^ n-1]
  • Here, P is Amount of Education Loan, R is Rate of Interest, n is Tenure of the Loan.
  • Or simply you can use the EMI calculator provision available on Kotak Mahindra Bank’s official website.
33

Is the loan disbursed in name of individual applicant or to the institute/ university directly?

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The loan is disbursed directly to the institute/ university that you have taken admission to. Hence, an applicant is supposed to submit institute brochure with proper division of the fee

34

If I am unable to complete my course in given tenure, will my repayment term be extended?

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It is completely on the banks discretion to extend the moratorium period or not. It can be extended for maximum 2 years based on student's reason. You can contact your nearest branch for more details.

35

What is method of application of interest on education loan?

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The interest will be charged at simple rate from the date of disbursement till commencement of repayment of loan. After that, compound interest is charged on reducing balance.

36

What is interest rate of education loan?

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The interest rate is different for different category. Refer the table below:

For Loan upto INR 7.5 Lacs11.50% to 24%For girl students: 10.25%
For Loan above INR 7.5 Lacs15.75% For girl students: 15.20%
37

What is interest subsidy on education loan?

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Kotak Mahindra Bank offers CSIS for students belonging to economically weaker section of the society to promote education amongst them.

38

What documents do I need to submit to avail interest subsidy scheme?

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The documents that need to be submitted are:

  • Income certificate issued by authorised authorities
  • Bonafide student certificate
  • Letter of undertaking or declaration signed by borrower/ co-borrower
39

If I am availing loan for overseas studies, can I also avail interest subsidy scheme?

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No, the interest subsidy scheme is available only for studies applying for studies in India.

40

What is employment verification in an education loan?

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The bank takes the responsibility to cross verify all the employment details of the applicant and co-borrower. If the banks fails to cross verify every detail provided, it might reject the loan application.

41

Are there any tax benefits in education loans?

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Under Section 80E of Income Tax Act, loan borrowers can avail the tax benefits. This benefit is only available over and above INR 1,50,000. Tax benefits can be availed once the borrower starts paying interest on loan. The deduction is available until borrower pays off full interest amount on loan or for maximum of 8 years (whichever is earlier). You can visit the official website of Kotak Mahindra Bank to calculate your tax benefit through their tax benefit calculator.

42

Is it necessary to have bank account with the bank while availing loan from that particular bank?

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It is not necessary to have a bank account while availing the loan but it makes it easier for the borrower to get loan application approved.

43

Can I repay my loan in foreign currency even if my bank is in India?

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Yes, you can pay the amount in foreign currency (Euro, Pound, Dollar, etc.) The bank might charge an additional currency conversion fee as per RBI regulations.

44

Why do banks require insurance policy as security?

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The banks require insurance policy as security in lieu of education loan provided. The insurance policy should be equal or more to the amount of loan sanctioned. In case of untimely demise of the borrower, the bank recovers the amount from the insurance policy

45

Are there any additional benefits on availing loan from Kotak Mahindra Bank?

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There are no such additional benefits on availing loan from Kotak Mahindra Bank. Though, there are no processing or pre-payment charges applied by bank on education loan.

46

What is credit score? Is it important for education loan?

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Credit Score is inclusive of various factors such as credit history (Loan history or credit card). If a student does not have a credit score, banks calculate it by considering factors such as University, College and the Course of admission. Banks consider the academic background of student and credit history of co-borrower.

47

Are NRIs eligible for the education loan?

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NRIs are eligible for the loan if they have Indian citizenship and are Indian passport holder.

48

Is Visa a necessary document for studying abroad?

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Visa is needed as a document proof but it is not a sole requirement.

49

What all procedures do one have to go through while applying for abroad?

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A student who is applying for studying abroad have to give necessary documents required by the bank. One needs to have a thorough knowledge of the course they are applying for and in which institute as it can be asked on the airport by the foreign officials.

50

If a student have any query, where or whom to contact?

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student can reach out to the nearest branch in case of any query.

Customer Care Number: 1860-266-0811/ 1860- 266-2666

Customers can add their respective state?s STD code with 66006022

Local rates apply on every call

Calls are answered only during business hours for corporate bank customers.

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