Karur Vysya Bank(KVB) Education Loans for Abroad Studies

Getting an education loan for abroad studies can be a tough chase if you are not well aware of the options available. Many government banks - SBI & BOB, private banks- ICICI Bank & Axis Bank, and NBFCs - HDFC Credila in India offer loans for overseas education. One of such popular government banks offering loans for foreign education is the KVB, or Karur Vysya Bank.

Founded in 1916 by Athi Krishna Chettiar & M. A. Venkatarama Chettiar, Karur Vysya Bank is one of the leading public-sector banks in India.

The bank is headquartered in Karur, Tamil Nadu, attracting many students residing in the same region for education loans. Karur Vysya Bank education loans include expenses such as college fees, hostel fees, books, equipment fees, travel money, etc., for overseas education. It also takes into consideration the building fund deposits, caution deposits, and all the refundable deposits.

In this blog, we will study all the features and benefits of the Karur Vysya Bank student education loan. So, let's plunge in…

Features of Karur Vysya Bank Education Loan

Eligibility Criteria of Karur Vysya Bank Education Loan

When considering an education loan from Karur Vysya Bank, it's essential to understand the specific eligibility criteria that applicants must meet to secure financial assistance for their educational pursuits.

• The applicant should be an Indian national.
• The applicant should have been admitted in India or overseas to pursue higher / professional/ technical education.
• He/she must have security to pledge. 

Interest Rate of Karur Vysya Bank Education Loan 

Karur Vysya Bank offers education loans with interest rates ranging from 12.05% to 14.55%. No foreclosure or pre-payment penalties apply to retail term loans under floating rates. Borrowers can switch from floating to fixed rates by contacting their branch.

During the loan tenure, borrowers with floating rates can adjust EMI, extend the loan term, or prepay partially or fully. The bank allows switching loan terms based on the loan duration:

• Over 20 years: 6 times
• 15 to 20 years: 5 times
• 10 to 15 years: 4 times
• 5 to 10 years: 3 times
• 3 to 5 years: 2 times
• 3 years or less: 1 time

Switching is allowed once every two years.

Margin Money on Karur Vysya Bank Education Loan 

The minimum margin requirement for Karur Vysya Bank education loans is as follows:

• For loans up to ₹4 lakhs: No margin required, whether studying in India or abroad.
• For loans above ₹4 lakhs and up to ₹7.50 lakhs: 5% margin for studies in India and 15% for studying abroad.
• For loans above ₹7.50 lakhs: 15% margin applies for both studying in India and abroad.

Documents Required for Karur Vysya Bank Education Loan

The documents supplied in accordance with the KVB student loan schemes prove education loan eligibility in KVB bank. Below is a list of needed documents to begin the loan application process at KVB Bank:

Section 1: Form of application:

• Application for an education loan, accompanied by two passport-size pictures

Section 2: Basic documentation of the applicant/co-applicant and/or guarantor:

• Identity proofs - Passport of the student (if traveling overseas), PAN Card - Residence Proof - Passport/ Voter ID Card/ Ration card/ Electricity Bill/ Telephone Bill/ Statement of bank account/ Aadhar card. If the current and permanent addresses are the same, two different proofs will be required.
• For salaried co-applicants, the previous 6 months' pay or personal bank account statements demonstrating normal salary crediting. A year's worth of business transactions is necessary if the co-applicant is self-employed.

Personal asset and liability statement confirmed by bank staff. All documents must be self-attested.

Section 3: Academic documents submitted by the applicant:

• Proof of course entrance (with total course duration)
• Certificates and education mark sheets from 10th, 12th, and Bachelor’s degrees
• Fees as specified by the college or university
• Scorecard of the entrance exam

Section 4: Co-applicant income documentation:

If Salaried:

• Employers ID card - ITR of last 2 years - Last 3 months salary slips - Form 16 of the last 2 years.

For Self-employed:

• Profit and loss account and balance sheet over the previous three years (only if self-employed)
• Last three years' ITR 
• Business address evidence

Section 5: Additional Documents:

• A legal joint affidavit in the Bank's standard format from the student and co-applicant.
• Declaration from the co-applicant that all remaining expenses, other than those covered by the loan, would be paid by the co-applicant.

Section 6: Additional documents (if any):

• A certificate of break on Rs. 100 stamp paper if the students experienced a failure or gap in their studies.
• All loan account statements (1 year) if there are any outstanding loans.
• Receipts for past payments made within the last 6 months, if any

Section 7: Supplementary documentation (Optional):

• Students who are taking out college loans with collateral must also provide collateral documentation. Each state has its own set of collateral documents.

How to Apply for Karur Vysya Bank Education Loan?

There are two ways to apply for an education loan from Karur Vysya Bank:

Offline: Submit all the required documentation to your nearest branch. Request the application form and, after carefully filling it out, submit it to the appropriate official together with the required papers.

Online: Follow the instructions below to apply online:

Step 1: Go to Karur Vysya Bank's official website.

Step 2: Click on 'Menu'. 

Step 3: Select 'Loans' from the dropdown menu.

Step 4: Go to the 'Education Loans' tab.

Step 5: On the loan page, click 'Read More' under the loan for which you want to apply.

Step 6: On that screen, click the 'Apply Online' button.

Step 7: After reading the terms and conditions, click 'Accept' on the pop-up screen.

Step 8: You will be led to the Vidya Lakshmi website to complete your loan application.

Security Required to be Pledged for the Karur Vysya Bank Education Loan

• For loans up to INR 4 Lakhs - Parents are to sign as co-applicants. No security is required.
• For loans above INR 4 Lakhs and up to INR 7.50 Lakhs - Parents are to sign as co-applicants together with a third party as a "Joint Borrower". His/her net worth will be taken into consideration for loan approval.
• Above INR 7.50 Lakhs and up to INR 150 Lakhs - Property required as collateral security.

Karur Vysya Bank Education Loan Insurance 

Obtaining education loan insurance is required when applying for a loan from Karur Vysya Bank. Education loan insurance typically costs 1-2% of the loan amount. Purchasing loan insurance protects the co-applicant in the event that something goes wrong with the student, causing them to be unable to repay the education loan.

Karur Vysya Bank Education Repayment Process 

The repayment period for education loans in Karur Vysya Bank is normally 10 years, however, it can be extended to 15 years based on the student's loan profile.

If you choose, you can repay the education loan earlier than the specified repayment period by applying the following strategies:

• Loan transfer for education
• Choosing a shorter repayment period 
• Making a partial or full payment

Education Loan Interest Subsidy Schemes 

Padho Pardesh Scheme: 

The Ministry of Minority Affairs created the project to assist EWS members of identified minority groups who desire to pursue higher education in other countries.

Eligibility for the Padho Pardesh Scheme:

• Students ought to engage in M.Phil., Ph.D., and Master-level courses.
• It is necessary to provide a certified copy of your income certificate.
• According to the Indian Bank Association’s guidelines, students must have acquired their loan from a scheduled bank. 
• The student’s family’s annual income should not exceed INR 6 lakhs.

Note: The government of India has ended the Padho Pardesh Scheme on April 1, 2022, however existing beneficiaries will continue to receive benefits. 

Dr. Ambedkar Interest subsidy scheme for OBC and EBC students:

The Ministry of Social Justice and Empowerment created a program to grant refunds on interest payable during the moratorium period of an education loan for students from the EBC and OBC segments of society. This program is only open to qualified students who want to study abroad.

Eligibility for the Dr. Ambedkar Interest Subvention Program for EBC and OBC students:

• Students must have been accepted into authorized M.Phil., Masters, or Ph.D. programs abroad.
• Students from the OBC and EBC groups must not possess a family income that exceeds INR 8 lakhs per year.
• A caste certificate is necessary for students in the OBC category.
• Only loans obtained from approved banks in compliance with the standards of the Indian Banking Association are permitted.

Central Scheme for Interest Subsidy (CSIS) 

The MHRD, now known as the Ministry of Education, established the initiative to grant interest waivers on student loans obtained by individuals from the EWS segment of society.

Eligibility Criteria for CSIS:

• Students must have documents from the EWS section of society demonstrating their membership, and they must only be allowed into authorized study programs in India.
• The annual income of the student's household should not exceed INR 4.5 lakhs.

Benefit: Qualifying students who borrowed money to study in India during the moratorium period are excused from paying interest on their loans as part of the initiative.

Is the Karur Vysya Bank Education Loan Available For All Types of Degrees and Disciplines?

Yes, Karur Vysya Bank offers education loans for undergraduate courses, diploma courses, and postgraduate courses which give professional and technical degrees in India or abroad.

In search of an education loan to study abroad? Get in touch with GyanDhan and avail of overseas education loans from top government banks, private-sector banks, and NBFCs. What’s more! Our loan assistance service is free of cost. We have partnered with popular financial lenders in India to provide the best deals on foreign education loans. For both secured and unsecured abroad education loans, you can check your loan eligibility and get a callback from us.

List of Eligible Degrees and Courses in Karur Vysya Bank Education Loan:

Karur Vysya Bank (KVB) education loans cover a wide range of eligible degrees and courses, including:

• Graduation: Job-oriented professional and technical courses offered by reputed institutions.
• Post-graduation: MBA, MCA, MS, and other job-oriented technical/professional courses.
• Post Graduate Diploma: Courses offered by reputed institutions.
• Doctorate Programmes: Ph.D. programs.

Additionally, degree/diploma courses like PG certificates, MBBS, UG diplomas, pilot training, aeronautics, and shipping are also eligible, but these require co-applicants with a strong income profile.

Frequently Asked Questions