Karnataka Bank Education Loan
Karnataka Bank provides education loans with interest rates range from 9.18% p.a. to 10.48% p.a. for pursuing studies in India or overseas. It also provides
skill financing programs for certificate, diploma, and degree programs.
These loans include competitive interest rates and flexible repayment terms, making education affordable to everybody.
Karnataka Bank Education Loan Interest Rates
The interest rates for education loans from Karnataka Bank are as follows:
Type of Loan | Effective Rates |
KBL Peak Education Loan | Starting at 9.18% p.a. |
KBL Skill Loan | Starting at 10.48% p.a. |
Note:
- These interest rates are applicable for normal, meritorious, girl, and girl meritorious students
- The above-mentioned rates are effective from 1 December 2024, and are subject to change
Karnataka Bank Education Loan EMI Calculator
The Karnataka Bank education loan EMI calculator is a free and simple online tool. It provides an accurate repayment schedule that gives a thorough view of your Equated Monthly Instalment (EMI) over the years.
This aids in financial planning and ensures that your EMIs are paid on time. All you need to do is input the necessary information, such as your loan amount, payback term, and interest rate. When you click the ''Calculate'' button, the details will be generated and presented on the screen immediately.
Here's an example to illustrate this better:
Let's say you have been approved for an education loan from Karnataka Bank for Rs.10 lakh at an interest rate of 10.73% for a tenure of 5 years. These are the details you will get:
- Equated Monthly Instalment (EMI): Rs.21,608
- Total interest due: Rs.2,96,481
- Total amount payable: Rs.2,96,481
The amortisation table for the loan will be:
Year | Principal Paid (A) | Interest Paid (B) | Total Payment (A+B) | Outstanding Loan Balance |
2025 | Rs.1,61,126 | Rs.98,170 | Rs.2,59,296 | Rs.8,26,207 |
2026 | Rs.1,79,292 | Rs.80,004 | Rs.2,59,296 | Rs.6,46,916 |
2027 | Rs.1,99,504 | Rs.59,792 | Rs.2,59,296 | Rs.4,47,412 |
2028 | Rs.2,21,996 | Rs.37,300 | Rs.2,59,296 | Rs.2,25,416 |
2029 | Rs.2,25,417 | Rs.12,273 | Rs.2,37,690 | Rs.0 |
Documents Required to Apply for Karnataka Bank Education Loan
The following are the documents required to apply for Karnataka Bank Education Loan:
- Photocopies of all the previous years' examination certificates
- Documents showing the candidate is an Indian Citizen
- Indian Passport (for NRIs)
How to Apply for Karnataka Bank Education Loan?
You can apply for the education loan from Karnataka Bank in two ways:
Offline Application Process for Karnataka Bank Education Loan
Visit your nearest branch with the required documents. Request for the application form and after filling it up accurately, submit it along with the documents to the concerned official.
Online Application Process for Karnataka Bank Education Loan
To apply online, follow the steps given below:
Step 1: Visit the official website of Karnataka Bank
Step 2: Click on ''Menu''
Step 3: In the dropdown menu, click on ''Loans''
Step 4: Select ''Education Loans''
Step 5: On the loan page, click on ''Read More'' under the loan you wish to apply for
Step 6: Click on ''Apply Online'' on that page
Step 7: On the pop-up page, click on ''Accept'' after reading the terms and conditions
Step 8: You will be redirected to the Vidya Lakshmi page where you can complete your loan application
Subsidy Schemes for Karnataka Bank Education Loan
Central Sector Interest Subsidy (CSIS) Scheme
The Central Scheme for Interest Subsidy (CSIS) is part of the Government of India's Education Loan Scheme. During the moratorium period, this scheme gives a rebate on the interest component of an education loan. It is eligible for technical and professional degree financing.
Students whose annual family income does not exceed Rs.4.5 lakh can apply for an education loan of up to Rs.7.5 lakh under this scheme.
Padho Pardesh Scheme
The Central Government sponsors this scheme, which gives a subsidy on the interest component of an education loan for students from minority populations who intend to study abroad.
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FAQs on Karnataka Bank Education Loan
- What kind of study related expenses does KBL Vidyanidhi cover?
Tuition and hostel fees, accommodation and boarding fees, library and examination fees, expenses incurred for the purchase of books, study materials, equipment, and uniform, caution deposit, building fund, refundable deposits, project work, study tours, and any other charges are all covered. Passage money for international studies and computer purchases with proper proof of purchase will also be compensated.
- What is ePass Karnataka?
The Electronic Payment and Application System of Scholarships (ePASS), also known as KARePASS, is managed by the Government of Karnataka's Department of Backward Classes Welfare. You can find more information here: ePass Karnataka.
- I am looking forward to applying for an education loan for my son from Karnataka bank. What form of loan security is accepted?
Immovable property such as land, buildings, and so on can be used to offer security. Pledged securities include public sector bonds, government bonds, life insurance plans, gold, shares, and debentures.
- Is the loan contract executed only in the student's name?
No. The loan documents will be executed by both the student and parent/guardian as joint borrowers. All the borrowers are equally responsible for repayment of loan.
- Are minors eligible to apply for a study loan from Karnataka Bank?
Yes. Minors aspiring for further studies can apply for a loan from the bank with legal representation from parent(s)/guardian.
- Should the student's margin be paid upfront?
The student's margin share can be paid on a year-to-year footing on pro rata basis when the bank disburses the loan amount based on the requirement.
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