Karnataka Bank Education Loans

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Like all other banks which provide customised services to its customers, Karnataka Bank Ltd also offers several kinds of personalized services to cater the needs of its customers since its inception. Among the various kinds of loans which the bank provides, rests the Vidyanidhi Education Loan Scheme which is given to students aspiring to pursue higher studies in India or abroad.


The courses for which the loan from the bank is available are as follows:

  • Loan application is considered if the candidate opts to study graduate, postgraduate or doctoral program in India.
  • An applicant can also study diploma program in engineering or professional course in Engineering, Law, Hotel Management, Dental Science, Pharmacy, Agriculture, Management, Medicine, Physiotherapy, CFA, CA or ICWA in India for which he may apply for loan.
  • Academic programs by recognized foreign universities, recognized national bodies or reputed institutes like IIM, XLRI, and others in India will also be considered for loan.
  • Even other diploma or degree programs certified by UGC, AICTE, ICMR, AIBMS or Government in India are considered eligible for the loan.
  • Loan application is also considered if the candidate chooses to study employment-oriented graduate program or post graduate program like MS, MBA and MCA or other courses of CPA in the US or CIMA-London abroad.

Eligibility of Candidate

  • Only Indian national can apply for Karnataka Bank Student Loan.
  • For consideration of loan, admission should be available to the candidate to a professional, technical or other kind of program either in India or abroad.
  • The applicant needs to be an adult or a minor student represented by his guardian or parent.

Amount of Loan & Margin

Maximum loan amount of ₹ 7.5 lacs is available for studies in India. The maximum loan amount provided for studies in abroad is ₹ 15 lacs.

Margin of 25 % is there on loan amount above ₹ 2 lacs.

Expenses Taken into Account

Karnataka Bank Student Loan considers almost all expenses of the students which are necessary to complete the course. The loan amount covers tuition fee, cost of books and other study materials, travel expenses and lodging expense. Moreover, fees for exam, library and laboratory as well as caution deposit, refundable deposit and building fund are included in the loan amount.

Repayment and Security

The loan is to be repaid in 5 to 7 years after repayment period begins.

  • Apart from the parent or guardian jointly taking the loan, there should be a guarantor having networth equal to the loan value for borrowing a loan upto ₹ 2 lacs.
  • If the loan amount exceeds ₹ 2 lacs, a parent or guardian should jointly take the loan and a collateral security equal to the loan amount should be submitted.

Further Information

To know more about the loan holiday and interest rates of Karnataka Bank Education Loans, you can visit Karnataka Bank

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