Karnataka Bank Limited

At Karnataka Bank, we understand that all customers are different in unique ways, which is why, regardless of the size of your business or your aspirations, we treat every one as individual and special. This means offering you choices, not only in relation to our products and services but also in the way you interact with us. We understand the changes in your lifestyle, recognize these changes and support you with a high standard of professionalism and service. 

As a premier bank, we have developed comprehensive range of customized products & services suitable for every kind of market, trade or perceived need - Business or Personal. They include, borrowing facilities, deposits, providing optimum returns on surplus funds or helping with overseas transactions. 

We believe in total quality at all levels. We have deployed the most modern information technology to deliver products & services for your benefit with an aim to develop an effective long-term relationship. But most of all, Technology is matched to your expectations of service, for today & for the future.

Karnataka Bank Limited Education Loan:

Eligibility:

Any student, representing himself / herself if major, or a minor student represented by parent or guardian, of Indian nationality, who has secured admission to a professional / technical / other course, in India or abroad.

Courses Eligible:

Studies in India: 

Graduate Courses - B.A., B.Sc., B.Com., B.C.A., B.B.M., Diploma in Engineering, Post Graduate Courses - Masters and Ph.D; Professional Courses - Engineering, Medical, Agriculture, Nursing, Veterinary, Law, Dental, Management, Computer, Pharmacy, Physiotherapy, Hotel Management, ICWA, CA, CFA; Courses conducted by IIM, IIT, XLRI, NIFT; Courses offered in India by reputed foreign universities; Evening Courses of approved Institutes; Other Courses leading to Diploma / Degree conducted by Colleges / Universities approved by UGC / GOVT. / AICTE / AIBMS / ICMR; Courses offered by National Institutes and other reputed private Institutions.

Studies Abroad: 

Graduation - Only for job oriented professional / technical courses offered by the reputed Universities; Post Graduation - MCA, MBA, MS; Courses conducted by CIMA-London, CPA in USA etc.

Loan  Amount:

For studies in India  

a maximum of Rs.10 lakh.

For studies abroad 

a maximum of  Rs.20 lakh.

Loan Coverage:

Tuition Fees 

Hostel Fees and Boarding and Lodging Fees if resident outside Hostel

Examination / Laboratory and Library Fees

Purchase of Books / Study material / Equipment and Uniforms 

Caution Deposit / Building Fund / Refundable Deposits (supported by Receipts issued by the Institution)

Travel expenses / passage money for study abroad 

Purchase of Computer if certified as essential for completion of course 

other expenses like Project Work, Study Tour and Thesis, which are necessary for completion of course

Margin :

Loan upto Rs.4 lakh: 

No margin required.

Loan above Rs.4 lakh: 

5% for studies in India and 15% for studies abroad. 

Scholarship / apprenticeship may be reckoned as part of margin. 

Margin may be brought in on year-to-year basis as and when disbursements are made, on a pro-rata basis.

Security:

Up to Rs.4 lakh: 

No security.

Above Rs.4 lakh and upto Rs.7.50 lakh: 

Collateral in the form of a suitable third party guarantee.

Above Rs.7.50 lakh: 

Collateral security of suitable value or suitable third party guarantee along with the assignment of future income of the student for payment of instalments.

Note:

The loan documents should be executed by both student and the parent / guardian as joint-borrowers.

The security can be in the form of land / building / Govt. securities / Public Sector Bonds/ Units of UTI, NSC, KVP, LIC policy, gold, shares/ debentures, bank deposit in the name of student / parent / guardian or any other third party with suitable margin.

Wherever the land / building is already mortgaged, the unencumbered portion can be taken as security on II charge basis provided it covers the required loan amount.

In case the loan is given for purchase of computer the same has to be hypothecated to the Bank.

Repayment Period :

The loan shall be repaid in 5 to 7 years after commencement of repayment. If the student secures employment during the holiday period, the repayment schedule should be advanced to commence immediately.

The completion of the course includes internship or apprenticeship if compulsory for award of Degree. If the student does not complete the course within the scheduled period, a maximum period of 2 years is permitted for completion. If the student is unable to complete the course for reasons beyond his control then extension may be granted if deemed necessary to complete the course.

The accrued interest during the repayment holiday will be added to the principal and repayment in equated monthly installments (EMI) shall be fixed.

Rate of interest: 

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