Disbursement Process of Axis Bank Education Loan 

    Updated on: 17 Feb 2023

    There are many terms thrown around when applying for an education loan for abroad studies. With words like ‘education loan sanction’ and ‘education loan disbursement’, students often get confused as to how long the education loan process is and what it really constitutes. 

    GyanDhan has been affiliated with Axis Bank for years now, and we have an out-and-out idea of what the education loan process entails. In this blog, we will demystify the disbursement process of Axis Education Loan from start to end for students and break down the aforementioned processes in simpler terms.

    Check Your Education Loan Eligibility Apply Here

    What are the Perks of an Axis Education Loan? 

    Before we break down the Axis Bank Education Loan process for you, let us shed some light on the perks of applying for an education loan from Axis Bank. Axis Education Loan comes with multiple benefits starting from high-value loans to low processing fees. The education loan covers countries like Australia, Canada, and the USA for undergraduate and postgraduate courses. Axis bank even offers unsecured loans up to INR 40 Lakhs for selected colleges and courses based on the co-applicant’s income. Not just this, Axis bank has one of the lowest processing fees - for a loan below INR 20 lakhs, it is nil. And for a loan amount above INR 20 lakhs, it is 0.75% per lakh, that is Rs. 750 per lakh.  For a loan amount of INR 40 Lakhs, the processing fees would 750*(40-20) = INR 15000 + GST

    What Expenses Do the Axis Bank Education Loans Cover?

    Studying abroad comes with a lot of financial baggage, but with an Axis education loan, you will not have to worry about this burden. The bank covers the majority of the expenses including - 

    • Tuition Fees 
    • Examination Fees 
    • Library Subscription 
    • Cost of Books 
    • Laptop/Equipment, if required.

    However, the bank has set 15% as margin money for education loans for abroad studies.  To read more about this concept, check this blog.

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    What Steps Are To Be Taken Before The Axis Bank Disbursement Process?

    The Process Before the Disbursement is Quite Simple

    • Apply for the loan online and fill the application form. (You can do so on GyanDhan’s platform)
    • The requisite documents are to be submitted.(On applying via GyanDhan, you will have the privilege of submitting documents from the comfort of your home. We will get you in touch with an official/representative who will pick up the documents from your doorstep.)
    • The documents are verified. The bank charges a processing fee of Rs. 15,000 + GST. The sum of Rs. 15,000 is refundable if the loan amount is lower than INR 20 lakhs. For a loan amount above INR 20 lakhs, the processing fee is 0.75% of the differential loan amount above 20 lacs + GST (Non–Refundable fee). This has to be paid via cheque. 
    • Both the applicant and the co-applicant are evaluated on their credit history and CIBIL score along with address verification. The bank officials verify the applicant and co-applicants home and work address. 
    • The loan amount is calculated
    • If the loan is approved, the Axis Bank education loan sanction letter is generated in a day. 

    What Happens After the Axis Education Loan Sanction?

    After the loan is sanctioned, the loan agreement is signed by the applicant and the co-applicant. If the time period between loan approval and disbursement is more than a month,  the student has to further submit bank documents like income statements, bank statements, etc, for the initial disbursement. As mentioned above, document submission becomes a piece of cake if the loan is applied via GyanDhan as we provide a customized document checklist and doorstep pick-up service. Subsequently, a loan account is opened in the name of the applicant and the co-applicant.  

    What is the Axis Bank Education Loan Disbursement Process?

    To initiate the Axis Bank disbursement process, there are still quite a few steps the student will have to complete. For the first disbursement of the loan amount, the student has to submit the following documents - 

    • A demand letter from the college/university
    • Loan agreement signed by the applicant and the co-applicant 
    • Sanction letter signed by the applicant and the co-applicant 
    • Disbursement request form signed by the applicant and the co-applicant 
    • Receipts of the margin money paid to the college/university along with the bank statement reflecting the transaction. However, if you have not paid anything, you can transfer the margin money to Axis Bank (15%), and they will add 85% from your loan account and pay it to the university.
    • Form A2 signed by the applicant and the co-applicant. Form A2 is an application plus declaration for the drawal of foreign exchange, which is a Forex transaction. 

    After this is done, the bank transfers the amount as requested by the student. 

    Different Ways of Paying Tuition Fees 

    There are four ways through which the money can be transferred to the college/university. 

    1. Direct Transfer - Once you submit the fee structure, you can request the bank to directly transfer the tuition fee to the college/university. 
    2. Flywire - Flywire acts as a facilitator between your bank and the college and comes under Peer to Peer transfer method. Steps to start the process - 
      • Go to the Flywire website.
      • Request a payment via Flywire. To do this, you have to enter basic information and your preferred payment method.
      • After selecting the method, provide payment information. 
      • Go to your dashboard after receiving your payment instructions. Select your recipient, country and amount. You can choose any payment method you want to use. 
      • Once the payment is initiated, you have two business days to pay, that is to complete the transaction from your end.
      • After you have sent your funds, you can track your payment online.
      • You will be informed when Flywire receives the payment and further when the payment is forwarded to the institute.
      • The entire process including bank transfer can be completed online. 
    3. Self Payment - Every so often students pay the fees directly to the university. In such a scenario, you can get the fees reimbursed from the bank by showing the fee structure and relevant fee submission proofs. 
    4. Demand Draft - This is another method. However, it is more suitable when applying to domestic institutes. The reason is that DD is a physical document and might get lost in transit. This method is therefore not advisable for international payments. 

    Read Also:

    Exceptional Case of Pre-Visa Disbursement

    A few of the countries like Canada, Germany, and New Zealand require students to discharge the tuition fee/living expenses before the visa procedure. Especially in the case of Germany, students are required to open a block account and show sufficient funds before they can apply for a student visa. Axis Bank Education loan takes this into account and offers pre-visa disbursement wherever required. 

    There are manifold steps in the education loan process from application to disbursement. It is at times quite lengthy and confusing. The guidance and support of GyanDhan will help you sail through the entire process with relative ease. Our education loan counselors will be at your beck and call to help you at every step. 

    Check Your Education Loan Eligibility Apply Here

    What’s the Advantage Of Using the GyanDhan Gateway for Education Loans? 

    GyanDhan has streamlined the entire loan process from application to disbursement. The Axis Bank education loan process otherwise requires multiple visits to the branch with multiple document submissions. But with GyanDhan, the effort needed from your end would be reduced as you’d be provided with assistance at every step by GyanDhan’s education loan counselor. The bank usually takes 15 days from the date of receipt of the complete application along with the documents to disburse the loan amount. This not only means a longer process but also filled with snags if not careful, which will only draw out the process. Applying with GyanDhan would reduce the branch visits to merely 1 or 2, and the entire loan process will be completed in a week, provided you arrange all the necessary documents on time. Our Education Loan Counsellors will strive to accommodate all your requests and do their utmost to provide you with an excellent experience. To be on top of it, you can track the Axis bank education loan status from your dashboard on the GyanDhan account. 
    To complete your education loan process without breaking a sweat, contact GyanDhan right away. Check your loan eligibility here or request a call back here

    First published date: 06 Apr 2020

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About author

Madhuwrita Nandi
Reader, writer, music lover!

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GyanDhan is India's first education financing marketplace.

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