Education Loan

Kerala Gramin Bank Abroad Education Loan

 Kerala Gramin Bank Abroad Education Loan

On this Page:

Explore the Kerala Gramin Bank education loans to study abroad with GyanDhan. Know interest rates, eligibility criteria, security requirements & more.

GyanDhan
Anjaney Chaturvedi
Updated on:  18 Mar 2024  | Reviewed By: 
Aman 
| 5.76K | 7  min read

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.

Need An Education Loan For Abroad Studies?

Fill this form and get in touch with an expert

Looking for an abroad education loan?
By entering my phone number, I give consent to override NCPR and recieve WhatsApp messages.
Sprinkles

Overview of Kerala Gramin Bank abroad 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 abroad education loans

Maximum loan amount

INR 20 Lakhs

Rate of interest

10% - 13.60%

Processing charges

1% of loan amount

Margin money

15%

Moratorium period 

Course years + 1 year or 6 months after getting job whichever is earlier

Repayment tenure

10 - 15 years

Courses eligible 

  • list items Graduation: Job-oriented professional and technical courses abroad
  • list items Post-graduation: MBA, MS, MCA, etc.
  • list items PG degrees and PG diplomas from reputed universities abroad

 

Sprinkles

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.

Calculate your monthly EMI for Kerala Gramin Bank using EMI Calculator

Sprinkles

Eligibility for Kerala Gramin Bank abroad 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 are the eligibility criteria for Kerala Gramin Bank abroad education loan:

  1. list items The student must be an Indian national
  2. list items If the student is minor, the parent/guardian must represent the student
  3. list items The loan shall be in the joint names of the student and parent/guardian
  4. list items Student must get admission to a recognized institution abroad through academic merit
Sprinkles

Security requirements for Kerala Gramin Bank abroad 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. 

  1. list items Loan amount up to 4 Lakhs: No security is required
  2. list items 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
  3. list items 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.

Sprinkles

Expenses covered under Kerala Gramin Bank abroad 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: 

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

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: 

  1. list items Visit the nearest branch of Kerala Gramin Bank
  2. list items Fill out the application form
  3. list items 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.

Read more about

Sprinkles

Documents required for Kerala Gramin Bank abroad 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. 

Ease your documentation work. Apply for an education loan with GyanDhan and get a customized checklist of documents

Documents from the student

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

Documents from co-applicant: 

  1. list items KYC documents as proof for identity, age, and address
  2. list items Passport-size photographs
  3. list items Details of the previous or existing loan if any
  4. list items Proof of income or employment or business
  5. list items Asset liability ascertaining net worth if applicable
  6. list items Documents to avail government subsidy benefits
  7. list items 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!

Check Your Education Loan Eligibility

Sprinkles

Frequently asked questions

Are Kerala Gramin Bank abroad education loans secured or unsecured? 

Kerala Gramin Bank education loans are secured for loan amounts of more than INR 4 Lakhs. You can get up to INBR 4 Lakhs without any collateral security. For education loans between INR 4 - 7.5 Lakhs, the applicant or a third party must pledge collateral equivalent to the loan amount. The collateral value must be 150% of the loan amount for amounts more than INR 7.5 Lakhs. 

How long is the application process for education loans from Kerala Gramin Bank? 

Typically an education loan involving collateral takes around 30 days to complete the application process. Education loans from Kerala Gramin Bank can take up to 30 days or more, depending on the strength of your application. 

Can a student outside Kerala apply for an education loan from Kerala Gramin Bank? 

According to the eligibility requirements of Kerala Gramin Bank education loans, Indian citizens can apply for an education loan irrespective of their non-residence in Kerala. However, the property to be pledged must be a landed property in Kerala with valid documents. 

Does Kerala Gramin Bank give interest subsidies in education loans? 

Yes. Since the Kerala Gramin Bank is jointly owned by the central and state governments, you can expect eligible subsidy benefits for education loans from Kerala Gramin Bank. 

Can I apply for Kerala Gramin Bank education loans to study anywhere in the world? 

The bank states that education loans are provided to eligible candidates to study anywhere in the world. However, the eligibility criteria specifically mention there will be an assessment of the future income potential of the applicant. So your course and university must be acceptable for the bank to sanction an education loan.

Check Your Education Loan Eligibility


Sprinkles

Have More Questions on This Topic?

Ask from a community of 10K+ peers, alumni and experts