Disbursement Process of Axis Bank 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

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.

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. 

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.  

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.