Karnataka Bank Education Loan

Taking the requirements into account, the following Karnataka Bank education loan products are available to provide financial assistance to students pursuing their higher studies in India:

Vidhyanidhi for India
The education loan product is offered by Karnataka bank for students taking admission into technical and professional courses in top colleges of India. 

The detailed criteria and eligibility requirements to apply for an education loan through Vidhyanidhi for study in India are mentioned in the table below:

Eligible Courses for Vidhyanidhi Scheme by Karnataka bank (in India)

• Professional Courses: Computer, Engineering, Law, Medical, Agriculture, Hotel Management, Nursing, Physiotherapy, Veterinary, Dental, Management, Pharmacy, CA, ICWA, CFA.
• Graduate Courses: Diploma in Engineering, B.A., B.Com., B.C.A., B.Sc., and B.B.M.
• Courses conducted by UGC/ AICTE/ AIBMS/ ICMR/ Govt. approved colleges or universities to pursue a degree or diploma 
• Post Graduate Courses: Ph.D. and Masters
• Courses conducted by NIFT, IIT, XLRI, IIM, 
• Courses offered by prestigious abroad educational institutions

In order to finish the loan procedure as quickly as possible, you will need to provide the following documentation:

Application form for education loan 

Hardcopy of the online loan application form filled on the WeMakeScholars website with 2 photographs of the applicant

Basic documents for Applicant (student) and co-applicant and/or Guarantor

• Residence proof:   Passport of applicant/ Voter ID Card/ Electricity Bill/ Telephone Bill/ Bank account statement/ Ration card/ Aadhar card. (If permanent and current addresses are different then 2 different proofs are required) 
• Identity proof: PAN Card and Passport of the student if going abroad
• Personal Asset & Liability Statement (assessed by the branch professional)
• Personal or salary bank account statement of last 6 months showing salary crediting every month. For self-employed co-applicant then business transactions of 1 year are required to be shown.

 self-attested documents are accepted

Applicant academic documents

• Marksheets and certificates of class 10th, 12th, Degree
• Admission proof for the course (mentioning course duration)
• Scorecard of competitive examination(course fee details as given by the college or university)

Co-applicant’s documents of Income 

If Salaried

• Company’s ID card
• Last 2 years Form 16.
• Recent salary slips (for the last 3 months)
• Last 2 year’s ITR

If Self-employed

• Balance sheet having profit and loss account statements of last 3 years
• ITR of last 3 years
• Address proof of business

Other Documents

• Notarised joint affidavit with the student and co-applicant in Bank’s standard format (Your assigned Financial officer at WeMakeScholars will give you the format)
• Letter from co-applicant, mentioning that all other leftover other expenses, apart from those covered by education loan will be borne by them (Format will be provided by your assigned Financial officer)

Additional documents (if required)

• Receipts of payments made previously if any (within the last 6 months only)
• All loan account statements (1 year) if any pending loans.
• Break certificate if the students had a gap or failure in studies on Rs. 100 stamp paper. (Format to be provided by WeMakeScholars Financial officer)

Collateral documents (Optional)

Students applying for an education loan with collateral security will have to provide collateral documents. Each state has different requirements for documents. Your WeMakeScholars financial officer will provide you with a special documents checklist as per your state.

Only once you have gathered and turned in all necessary paperwork to the closest bank office or uploaded them on the WeMakeScholars documents portal, your application for an education loan will start processing.

To quickly start your loan process, ask your financial officer about the documents checklist.

To apply for an education loan from Karnataka bank here are the following two ways:

Offline application process:

Step 1 Visit the nearest Karnataka bank branch

Step 2 Ask for the student loan schemes and decide which one suits you the best

Step 3 Fill out the loan application form

Step 4 Visit the bank again to submit the documents in the bank on time

Step 5 Take follow-ups from the bank from time to time

Online application process

Step 1: Fill the education loan application form online for Karnataka bank 

Step 2: When received a callback provide all the required information, to get your loan profile analyzed

Step 3: Choose the lender from all the lender options given by your financial officer as per your eligibility and bank policies

Step 4: Upload your documents on WeMakeScholars secure document portal, as per the documents checklist sent by your financial officer.

Step 5: Once your documents are submitted, your file will be logged in. You will receive a loan sanctioning confirmation within 2-6 days from private banks and within 15-20 days from Govt. banks.

Step 6: Collect your loan sanction letter after signing the loan agreement.

The application process will not be as simple, you are sure to find the following issues if you go directly to the banks:

• No documents checklist
• Improper information about eligibility for education loan
• Unavailability of correct details about loan schemes
• Multiple visits to the banks
• Issues in legal and valuation reports
• Lack of proper customer services
• Delay in loan sanctioning process
• More Processing time

You can easily jump over these hurdles by taking a leap with WeMakeScholars. Here are the benefits of processing your education loan via WeMakeScholars:

Consistent availability  - We are here to provide you support at all stages of your loan sanctioning process, our financial officers are available from 9 AM to 9 PM on all working days to process your loan.

Shorter Processing time - Get your education loan sanctioned within 1 week from private banks & NBFCs and within 15-20 days from government bank, once your documents are submitted.

Expert guidance - Our trained financial officer helps you compare and guide you to choose the best lender for your education loan suiting your loan profile as per your eligibility.

Negotiation support - Your financial officer will personally negotiate with the lender on your behalf, and if possible, can bring down your effective interest rate by 0.5% - 2% from the bank’s average rate of interest.

Tax benefits - By informing students about the various tax saving schemes under Section 80E and 80C of the Income Tax Department we help them to save more of their taxable income.

Digitized application process - Our online loan application process makes it convenient and fast for students to apply for and process their education loans in the comfort of their homes.

Cashback opportunity - At the time of disbursement, you can get a cashback of up to Rs 3,000 from us.

To make the best and most use of this opportunity, availing the above-mentioned benefits, apply for an education loan through WeMakeScholars, request a callback, or fill out the common application form.

Education Loan Transfer Program of Karnataka Bank offers students the opportunity to transfer their currently open education loan from any other bank to Karnataka Bank.

Students prefer to transfer their education loans to enjoy the following benefits:

• Cheaper interest rates
• Easy repayment conditions
• Easy accessibility to bank
• Faster customer services
• Student-friendly bank policies
• Wide coverage of education loan schemes

But how to transfer an existing education loan to Karnataka bank?

To transfer your existing loan from another bank to Karnataka Bank, you need to follow the steps listed below in order:

• Collect proof of the amount outstanding from your current lender bank. 
• Contact WeMakeScholars by requesting a callback, stating that you want an education loan transfer.
• Submit your documents to Karnataka Bank as instructed by your Financial Officer. 

Once your loan transfer is approved, Karnataka Bank will pay the outstanding balance of your loan to your previous lender. And the same amount will be sanctioned by Karnataka Bank as your new education loan, which you will have to repay as per their repayment plan.

1. Dr. Ambedkar Interest subsidy scheme for OBC and EBC students

Students belonging to OBC and EBC categories are eligible to get interest subsidies during the moratorium period of their education loan for abroad, under this scheme.

NOTE

• The family income of the applicant should be less than Rs 8 lacs per annum.
• Applicant must have taken admission in masters, Ph.D., or MPhil courses

2. Padho Pardesh Scheme

The scheme is to benefit abroad education loan beneficiaries belonging to the EWS category, by providing interest subsidy during the moratorium period.

NOTE

• The minimum income of the applicant's family should be less than Rs 6 lacs per annum.
• The student should take admission only in masters, Ph.D. or MPhil courses
• A Family Income certificate is required to claim benefits.

3. Central Scheme for Interest Subsidy (CSIS)

The scheme is to benefit students belonging to EWS category, by exempting them from paying interest on their education loan during the moratorium period.

NOTE

• Proof of belonging from the EWS category is mandatory
• The annual family income of the student should be less than 4.5 lacs per annum.