Kerala Gramin Bank Abroad Education Loan

Kerala Gramin Bank, a Regional Rural Bank (RRB) sponsored by Canara Bank and jointly owned by central and state governments, offers education loans to all Indian citizens. With a net asset value of INR 29.5 Cr the bank is headquartered in Malappuram, Kerala.

The objective of Kerala Gramin Bank's education loans is to support students from rural areas in achieving their educational aspirations. When searching for the best education loan, consider Kerala Gramin Bank to take advantage of government benefits such as interest subsidies, tax benefits, and lower interest rates.

If you are new to education loans offered by Kerala Gramin Bank, this blog provides essential information on studying abroad with Kerala Gramin Bank's education loan options.

Overview of Kerala Gramin Bank Education Loans

Education loans by Kerala Gramin Bank can help those students who need an education loan under INR 20 Lakhs. You can get interest subsidies and tax benefits under section 80 E for education loans from Kerala Gramin Bank. The bank offers special interest concessions for girl students under its Sukanya scheme.

See the overview table below for a quick understanding of the Kerala Gramin Bank education loans to study abroad: 

Kerala Gramin Bank Interest Rates 

Kerala Gramin Bank offers education loans to support students pursuing higher education in India and abroad. Kerala Gramin Bank education loan interest rate and other details for these loans are as follows:

Kerala Gramin Bank Interest Rate:

• For Studies in India:

• 
  Loan Amount up to INR 4 lakhs: 10.50%
• 
  Loan Amount above INR 4 lakhs and up to INR 7.5 lakhs: 11.60%
• 
  Loan Amount above INR 7.5 lakhs: 12.60%

• For Studies Abroad:

• 
  Loan Amount up to INR 7.5 lakhs: 11.60%
• 
  Loan Amount above INR 7.5 lakhs: 12.60%

Loan Amount:

• For Studies in India: Up to INR 10 lakhs.
• For Studies Abroad: Up to INR 20 lakhs.

Key Features:

• Margin:

• 
  No margin for loans up to INR 4 lakhs.
• 
  5% margin for loans above INR 4 lakhs for studies in India.
• 
  15% margin for loans for studies abroad.

• Repayment Period:

• 
  Up to 10 years for loans up to INR 7.5 lakhs.
• 
  Up to 15 years for loans above INR 7.5 lakhs.

KG Sukanya Scheme for Girl Students

KG Sukanya scheme by Kerala Gramin bank is for the higher education of the girl students. The scheme provides education loans with an interest rate of 10% for loans over INR 7.5 Lakhs, 11.60% for amounts up to INR 7.5 Lakhs, and 12.60% for loans less than INR 7.5 Lakhs. The rest of the terms and conditions are that of other Kerala Gramin bank education loans.

Eligibility for Kerala Gramin Bank Education Loan

One of the most important factors to consider before applying for a student loan is its eligibility criteria. Some criteria might change depending on case to case basis, but the overall eligibility pivots around the same points.

Below is the eligibility criteria for Kerala Gramin Bank Education Loan:

• The student must be an Indian national
• If the student is minor, the parent/guardian must represent the student
• The loan shall be in the joint names of the student and parent/guardian
• Student must get admission to a recognized institution abroad through academic merit

Security Requirements for Kerala Gramin Bank Education Loans

Kerala Gramin Bank education loans are provided against collateral security of immovable properties such as plots, buildings, etc. The requirement of collateral security is determined according to the quantum of the education loan. 

• Loan amount up to 4 Lakhs: No security is required
• Loan amount between INR 4 Lakhs and INR 7.5 Lakhs: A third-party guarantee with net worth to cover the loan amount or equitable mortgage of landed property with sufficient value is required
• Loan amount more than INR 7.5 Lakhs: EM (Equitable Mortgage) of property with sufficient value, covering at least 150% of the loan amount

In all the cases the parent should be a joint borrower and assignment of future income of the student is done for payment of installments.

Expenses Covered under Kerala Gramin Bank Education Loan

Education loans by Kerala Gramin Bank cover all the necessary expenses within the loan amount limit. The borrower might request the bank to add some expenses or remove some owing to the bank's discretion. 

Study-abroad education loans generally cover the following expenses: 

• Tuition fees for college
• Hostel and mess charges
• Examination, library, and laboratory fees
• The cost incurred for uniforms, books, etc.
• Cost of laptop or computer if that is required for the completion of the course
• Expenses for traveling abroad as part of the study (for projects and thesis)

How to apply for Kerala Gramin Bank abroad education loan?

The application for an education loan begins with checking your education loan eligibility. If you are eligible, proceed with further steps like contacting the lender, gathering the documents, submission of collateral or co-applicant details, and getting a sanction letter. 

Follow the steps below to apply for an education loan from Kerala Gramin Bank: 

• Visit the nearest branch of Kerala Gramin Bank
• Fill out the application form
• Submit required documents at the proper stages of application

Make sure your university and course of study are eligible for getting an education loan from Kerala Gramin Bank. Once applied, it might take 30 days or more for the loan to be approved, depending on your profile. 

Documents Required for Kerala Gramin Bank Education Loan

Mentioned below is a general list of documents required when you apply for an education loan from Kerala Gramin Bank to study abroad. Note that there are case-specific requirements, and the documents you need when applying for an education loan may surpass the list. 

Documents from the student

• KYC documents - proof of identity, age, and address
• Academic mark sheets from class 10th onwards
• Entrance exam result
• Offer letter or any other proof of admission
• Schedule of expenses for the course
• Passport-size photographs
• Details of the previous or existing loan if any
• Documents required for benefits under government subsidy scheme
• Security documents if applicable
• A valid passport
• Self-attested copy of VISA

Documents from co-applicant: 

• KYC documents as proof for identity, age, and address
• Passport-size photographs
• Details of the previous or existing loan if any
• Proof of income or employment or business
• Asset liability ascertaining net worth if applicable
• Documents to avail government subsidy benefits
• Other case-specific documents demanded by IDBI

However, while education loans from Kerala Gramin Bank are considerable, note that the maximum loan amount of Kerala Gramin Bank education loans is restricted to INR 20 Lakhs. This amount is insufficient for many students whose course of study has high tuition fees. Also, the living expenses abroad are high, and the total cost of study and living might be above INR 20 Lakhs.

Calculate your total expense of studying abroad before applying for Kerala Gramin Bank education loans to save your time and effort. Explore lenders and check your education loan eligibility to find the guaranteed best loan for you!

Frequently Asked Questions