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Axis Bank Education Loan Disbursement Process

Axis Bank Education Loan Disbursement Process

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Thinking of taking an education loan from Axis Bank? GyanDhan breaks down the complete process for you - right from application to disbursement stage! 

GyanDhan
Rohit Gidwani
Updated on:  04 Sep 2023  | Reviewed By: 
Aman 
| 8.83K | 7  min read

Congratulations! Your loan has been approved/sanctioned by Axis Bank. This would be of a great relief in relation to your abroad education loan process. But we would like to inform you that although the majority of the process has been completed yet there is still one more important step that you should know about which is the Axis bank education loan disbursement process. Having a piece of proper knowledge about the disbursement process would not only help you to overcome any difficulties during the process but would also help you in making some wise decisions that can help you in your loan repayment tenure. If you're interested in learning more about the Axis Bank education loan disbursement process, you've come to the right place. This blog will provide you with all the information you need to know.

 


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Overview of Axis Bank abroad education loan

Before we dig deep into the disbursement process, let us recall the Axis Bank abroad education loan features in a brief. 

Feature Details

Loan Amount

Up to 50 Lakhs INR (depending on your university/college category)

Rate of Interest

11% - 11.50%

Loan Tenure

Up to 15 years

Processing Fees

0.75% on sanctioned amount + GST

Margin Money

5% (on all categories)

Moratorium Period

Course + 1 year

Processing Time

Up to 7 days

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Axis Bank education loan disbursement process for abroad studies

This is the stage once your abroad education loan has been sanctioned. Loan sanction means the lender has approved the requested loan amount, but it doesn't mean that funds have been released. Loan disbursement, on the other hand, is the actual transfer of funds to the borrower. It's important to understand that these both are different stages of the loan process. After the loan is sanctioned, the loan agreement is signed by the applicant and the co-applicant. 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.

Considering you get loan disbursed in portions as per requirements (which is also advised as it helps minimize borrowing and reduce interest payments) there are different crieteria and documents that you must keep in mind.

First disbursement of Axis Bank abroad education loan

This is the scenario in which you need to follow some steps and thus get an initial disbursement of the loan amount. The steps which you need to follow are - 

  • list items You have to mail your college/university to get a demand letter. Once you have received that demand letter you need to submit the same to the bank.
  • list items There will be a loan agreement that will be provided to you so that you as an applicant and your co-applicant can sign it. Once they are signed you will also be required to submit it to the bank.
  • list items You would need to inform GyanDhan 5 - 7 days prior to your decided disbursement requirement date so that we can get the process started and get your amount disbursed on time. 
  • list items You will also need to write a disbursement application to the bank which will be attached with a disbursement request form. A disbursement request form is an official bank document that enables you to formally request disbursement.
  • list items Need to make the payment in regard to the margin money as decided in your loan agreement. This can be done in two ways, either you can make the payment and submit a bank statement that shows the transaction or you can send the margin money to Axis Bank directly.
  • list items Form A2 is signed by the applicant and the co-applicant. Form A2 is an application plus declaration for the permission of foreign exchange, which is a Forex transaction. Now this is generally used when the bank is transferring the money directly to the university/college. Apart from it, the different ways in which you can pay the tuition fees are -  Flywire - it acts as a facilitator between your bank and the college and comes under the peer-to-peer transfer method. 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. Demand Draft (DD) - this is another method to pay tuition fees but 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.
  • list items Flywire - it acts as a facilitator between your bank and the college and comes under the peer-to-peer transfer method.
  • list items 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.
  • list items Demand Draft (DD) - this is another method to pay tuition fees but 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.

Subsequent disbursement of Axis Bank abroad education loan

Once you have taken your initial disbursement then you can take subsequent disbursements from Axis Bank as per future requirements. The process to take subsequent disbursement is simpler as compared to the initial disbursement as there are a few steps that you have to do only once. The different steps that you would have to do in order to take a subsequent disbursement are - 

  • list items You will need a demand letter from the university/college of the subsequent amount due at your institute. 
  • list items You would need to fill in the disbursement request form and pay up the margin money as mentioned in the loan agreement. 
  • list items In this subsequent disbursement, you will have to collect and grab the exam progress report or marksheet.
  • list items Form A2 is signed by the applicant or co-applicants so that the payment can be disbursed to the university directly.

 

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Documents required for Axis Bank education loan disbursement process

This section of the blog will provide you with the list of documents that you will need in order to get your loan disbursed. The list is comprised of the general document requirements not set in any particular order or based on one of the above disbursement periods. The documents are - 

  • list items KYC documents (in some cases)
  • list items Demand letter from university/college
  • list items Disbursement application
  • list items Disbursement request form
  • list items Sanction letter
  • list items Signed loan agreement
  • list items Proof of margin money
  • list items Form A2
  • list items Collateral documents (in case of secured loan) 
  • list items Exam progress reports and marksheets (for subsequent years)
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Axis Bank pre-visa disbursement cases

A few 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. 

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How does GyanDhan help in Axis Bank disbursement process?

There are several benefits that you may get when getting your loan disbursed from Axis Bank through GyanDhan. These benefits are - 

  • list items Quick processing - with the help of GyanDhan you can get your loan disbursed quickly without any problems. It will usually take 5 - 7 days after the documents have been submitted.
  • list items Ease in process - Gyandhan provides you with the document checklist that can help in knowing what all documents you need and thus submitting the same for disbursement would be easy. 
  • list items Faster resolution to problems - in case there is a challenge with the disbursement process then we at GyanDhan know whom to escalate the same thus helping you to resolve your problem faster.

 

Now that you are aware of the whole disbursement process, you can confidently proceed with taking abroad education loan. So, what are you waiting for, check your loan eligibility now and get a call back from GyanDhan to start your loan application process.

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Frequently Asked Questions

What is the time period to get the disbursement from Axis Bank?

The disbursement process is completed in 5 - 7 days once the document has been submitted. 

What are the different expenses which are covered by Axis Bank?

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 - 

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

Which is better, one-time disbursement or multiple disbursements?

As per our recommendation, we advise you to take multiple disbursements so that you do not end up taking money more than you required which leads to paying extra interest in the end.

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