Axis Bank Education Loan Interest Rate and Subsidy

Axis bank Education Loan Schemes have been helping students get affordable loans for their education for a long time. The bank offers various education loan schemes for studies at both Indian and foreign institutions. Axis Bank Education Loan also provides students with Interest Rate Subsidy, especially for girl students. Students and parents looking for education loans are mostly worried about repayment terms. Axis Bank Education Loan Interest Rate and Repayment Options like Education Loan Insurance and Part Payments help them to thwart such worries.

Some peculiar benefits of Axis Bank Education Loan are:-

  • Special Education Loan Interest Rates for Girls
  • No Education Loan Processing Fees
  • Low Interest Rates Education Loan for Study Abroad
  • Maximum Loan Amount up to ₹ 75,00,000 (INR 75 lakh)
  • Low processing time. Min: 1 day to Max: 15 days
  • No margin payment for education loan up to certain limits

Axis Bank Education Loan Interest Rate

Axis Bank Education Loan MCLR Rates

Students need to know that each bank has a certain basic lending rate popularly known as Marginal Cost of fund-based Lending Rates (MCLR) which guides the interest rates of education loan. If students will know about these MCLR rates of the bank, they can themselves estimate the interest rates of any bank’s education loan. Generally, banks offer MCLR rates between the ranges of 2% to 8% for an education loan.

Axis Bank Education Loan interest rate calculations are based on these MCLR rates which are generally updated every month. Axis Bank MCLR Rates (latest) are mentioned here:

Loan Tenure: Axis Bank Education Loan Respective MCLR Rates
Overnight 8.40%
1 Month 8.40%
3 Month 8.55%
6 Month 8.70%
12 Months (1 year) 8.80%
24 Months (2 years) 8.90%
36 Months (3 years) 8.95%

Source: RBI Interest Rate Data Archives Dec 13, 2018 and Axis Bank internal communication

Axis Bank Education Loan Interest Rate: all details

If any student needs direct information about interest rates then Axis Bank also enlists its education loan interest rates for different schemes. Students pursuing international education need not worry as the interest rates of Axis Bank are relatively constant for both domestic and overseas education loan. These education loan interest rates change on case by case basis and other factors like government policy change, loan tenure, etc. Details of Axis Bank Education Loan interest rate details are:

Axis Bank Education Loan Rates of Interest (ROI): latest January 2019

Axis Education Loan Details Applicable Loan Limits Education Loan Interest Rates
Axis Bank Education Loan Base Rate Applicable to all Axis Education Loans Min: 9.50%

Max: 15.50%

Axis Education Loan ₹50,000 to ₹4,00,000 15.2%
Axis Education Loan ₹4,00,000 to ₹7,50,000 14.7%
Axis Education Loan ₹7,50,000 to ₹75,00,000 13.7%

Axis Bank Education Loan Interest Rate Calculations

Everyone should plan for education loan repayment and refinancing before applying for one. Education Loan applicants and co-applicants should know about their necessary loan amount requirement, how long can they afford to pay the EMIs and how much EMI can they pay on monthly basis. An Education Loan Calculator helps a lot in planning these steps of taking an education loan. Axis Bank Education Loan website provides you with an option to calculate the monthly EMI and optimized loan tenure that you’d be able to afford and still pursue the studies. Instructions to use Axis Bank Education Loan EMI Calculator and its benefits are:

  • Visit the Education Loan EMI Calculator on the official Axis Bank Website.
  • Enter the following details in the respective text boxes:-
    1. Loan Amount
    2. Interest Rate
    3. Loan Tenure (duration of Education Loan)
    4. Processing Fee (for details of processing fee read Axis Bank Education Loan: All you need to know at Buddy4Study)
  • Click on the ‘Calculate EMI’ button

The results would give you details of:-

  • Monthly EMI to be paid: For the respective loan tenure, loan interest rate and loan amount
  • Break-up of Total Loan Amount vs. Total Interest: As paid for complete loan duration
  • Timeline of Education Loan account: As per the remaining principal amount after every year of repayment

Axis Bank Education Loan Interest Rate Tax Benefit Calculation

Many taxpaying education loan applicants and co-applicants know that they can claim the tax deductions on Education Loan Interest Rate. But they fail to plan it accordingly so that they can avail the benefit. To know how much tax one could save by taking an Axis Bank Education Loan, one can use the Axis Bank Tax Benefit Calculator for Education Loan. The steps to use this calculator are:

  • Visit the ‘Tax Benefit Calculator’ from the Education Loan section of Axis Bank Website.
  • Enter your Education Loan Amount.
  • Select the Income Tax Slab which applies to you.
  • Rate of Interest (Education Loan applied for)
  • Click on ‘Continue’.

The results will provide you information about:

  • Total Interest paid per annum
  • Net Tax Savings as per Section 80/E regulations
  • Effective Interest Paid: Total interest paid minus Tax savings
  • Effective rate of interest on Education Loan: Actual interest rate paid for after tax savings

Axis Bank Education Loan Interest Rate Subsidy

Axis Bank provides education loans in the best interest of applicant students and co-applicants. To promote the nature of regular EMI payment and to ease the load of repayment of education loan, Axis Bank supports various interest subsidy schemes. Proper documents of education loan are required for availing the benefits of these subsidies. These schemes include the Special Interest Subsidy for female applicants and Central Sector Interest Subsidy (CSIS) Scheme by Government of India. Details of these interest subsidies are:

Axis Bank Education Loan Interest Rate Special Subsidy for Female Education Loan Applicants

  • Only applicable for female education loan applicants
  • Is not available for female co-applicants unless the education loan provides for the education of a female candidate
  • Provides 25 basis points subsidy on interest for Education Loan: This means 0.25% of Education Loan Interest can be deducted for the respective education loan scheme

Central Sector Interest Subsidy (CSIS) Scheme by Axis Bank

Benefits of CSIS Scheme are:

  • Collateral Free Education Loan up to ₹ 7,50,000 for Economically Weaker Sections (EWS)
  • Income Limit of CSIS benefactors is ₹ 4,50,000 (4.5 Lakhs) per annum
  • Complete Interest Subsidy for Moratorium period (course duration of course applicant + 1 year or 6 months from employment, whichever is earlier)

Axis Bank Education Loan adjustment with Scholarships

Axis Bank Education Loans interest rate details have been laid out in a transparent and clear manner on their official website. This makes them a trusted Education Loan provider among parents and students. Students can also adjust their education loan payments with a scholarship. This means that scholarships can be used to adjust the loan disbursed towards academic fees and students won’t have to pay extra interest.

Scholarships and Education loans have become an integral part of funding education in India. With Axis Bank Education Loan Services, students can relieve their academic dreams from the burden of financial limits. They can apply for the Axis Bank Education Loan from Government Vidyalakshmi Portal or Axis Bank official website. Vidyalakshmi Portal is a government portal for application of multiple education loans from one application form. For more details, you can ask our education loan experts at Buddy4Study EduLoans.