Abroad education loans in Karnataka fund tuition, living, and travel costs for students who plan to study overseas. A two-year master’s program typically costs around ₹40–45 lakh, with some destinations costing more. Demand is growing steadily, with 6% of India's nearly 900,000 students studying abroad in 2023 being from Karnataka.
To help you fund your overseas studies, this guide walks you through the best banks and NBFCs, Karnataka Bank loan details, interest rates, and the process.
Best Banks for Education Loans in Karnataka
Compare leading lenders for domestic and overseas studies below.
a. For Studies in India
Wondering how to get an education loan for abroad studies smoothly and quickly? Check out our detailed guide: How to Get an Education Loan for Abroad Studies in 2024.
b. For Studies Abroad
Get an Education Loan with Higher Chances of Approval.
Karnataka Bank Education Loan (KBL PEAK)
Karnataka Bank offers a dedicated education loan scheme called KBL PEAK to support students pursuing higher education in India and abroad. This loan helps cover tuition fees, living expenses, travel costs, and other education-related expenses.
Max Loan Amount
- For studies in India: Up to ₹10 lakh
- For studies abroad: Up to ₹20 lakh
Moratorium Period
- Moratorium on repayment is available for the duration of the course plus 6 to 12 months, allowing students to focus on their studies without immediate repayment pressure.
- During this period, only simple interest is charged; the full interest rate applies after the moratorium.
Co-applicant Rules to Apply for Education Loan in Karnataka Bank
- A co-applicant is mandatory and typically includes parents, parents-in-law, siblings, or spouse.
- The co-applicant's income and credit history are considered for loan sanction.
Karnataka Bank Education Loan Interest Rate 2025
How to Apply for Karnataka Bank Education Loan (KBL PEAK)
Applying for an education loan in Karnataka follows the following steps:
- Collect ID proof, academic records, admission letter, co-applicant income proof, and collateral papers (if applicable).
- Apply at Karnataka Bank by visiting a branch or through its website/authorised portals.
- Fill in the application form with accurate student, co-applicant, course, and institution details.
- Submit all required documents for verification.
- Bank reviews documents, credit history, and co-applicant income; may request additional info.
- Upon approval, you will receive a sanction letter detailing the loan amount, interest rate, tenure, and repayment terms.
- The loan is disbursed directly to the institution or the student’s account as per the agreement.
Need help understanding the different types of education loans and their benefits? Read about Types of Education Loan in 2025: Interest Rates & Benefits.
Minimal Docs, Maximum Approval - Apply Now.
Documents Required for an Education Loan in Karnataka
Applying for an education loan in Karnataka involves submitting specific documents to verify identity, academic eligibility, course details, and financial capacity.
1. Personal Identity and Address Proof
- Aadhaar Card
- PAN Card
- Passport (mandatory for studies abroad)
- Voter ID, Driving License (any one)
- Recent utility bill, rent agreement (if current address is different)
2. Academic Records
- Mark sheets and certificates for 10th, 12th, and higher education
- Entrance exam scores (GRE, GMAT, IELTS, TOEFL, etc.) if applicable
- Admission/offer letter from the educational institution
- Statement of cost of study or schedule of expenses
- College/course prospectus (optional)
- Scholarship or fee waiver letters (if any)
3. Co-applicant Documents
- Identity proof and address proof of the co-applicant (parent, spouse, or guardian)
- Passport-size photos of the co-applicant
- Income proof for salaried co-applicants: salary slips for last 3 months, Form 16, IT returns for last 2-3 years, bank statements for 6 months
- Income proof for self-employed co-applicants: business proof, IT returns, bank statements, professional certificates (if any)
4. Additional Documents (if applicable)
- Collateral security documents if the loan amount requires security
- Gap certificate for any study or examination gaps (self-declaration)
- Repayment bank account documents
Eligibility & How to Get an Education Loan in Karnataka
Learn how to qualify and what you need to apply for a student loan in Karnataka.
Looking for collateral-free education loans to fund your studies overseas? Explore Education Loan Without Collateral for Abroad: Lenders & ROI.
How to Get an Education Loan in Karnataka
Follow the step-by-step guide below to apply for and obtain an education loan in Karnataka.
- Choose Bank or NBFC
Research and shortlist lenders offering education loans with favourable interest rates and terms for your study plans (India or abroad).
- Check Loan Margin
Understand the margin money requirement (0%–15%) depending on the loan amount and study location.
- Prepare Documents
Collect ID proofs, admission letters, academic records, co-applicant income proofs, and collateral documents if required.
- Apply for the Loan
Visit the bank branch or apply online through the bank’s official portal or platforms like Vidya Lakshmi.
- Loan Processing & Sanction
The lender verifies documents, the co-applicant's credit history, and income eligibility before sanctioning the loan.
- Loan Disbursement
After the sanction, the loan amount is disbursed in parts or in full, typically sent directly to the institution or student account as per the payment schedule.
Required and Acceptable Collateral Documents to Avail an Education Loan in Karnataka
Collateral acts as security for the lender and is generally required for loans above ₹7.5 lakh, ensuring lower interest rates and higher loan amounts.
Types of Acceptable Collateral
- Immovable Property: Houses, apartments, villas, commercial spaces, or non-agricultural land with clear ownership.
- Financial Assets (Liquid Security): Fixed deposits, life insurance policies with surrender value, government bonds, or securities.
Other Documents as Collateral Proof
- Title Deed/Sale Deed: Proof of property ownership and transaction history.
- Registered Lease or Rental Agreement: Applicable if property is rented.
- Property Tax Receipts: Shows up-to-date payments.
- Encumbrance Certificate: Confirms no legal disputes or debts on the property.
- Chain Deed: Documents the ownership history for authenticity.
Important Notes
- Collateral value should approximately match or exceed the loan amount.
- Loans below ₹7.5 lakh are often collateral-free for eligible borrowers.
- All documents must be legally valid, registered, and dispute-free.
- Banks conduct valuation and legal checks before sanctioning the loan.
Curious about the perks and tax benefits of education loans? Learn more at Education Loan Benefits in India and Abroad 2025.
Securing an overseas education loan in Karnataka is easier when you know the latest rates, required documents, and the difference between secured and unsecured funding. Whether you choose a traditional bank like Karnataka Bank or prefer a fully digital experience, planning early and comparing options is key to stress-free financing.
Propelld makes it even simpler. Apply for a collateral-free education loan with quick approvals, flexible repayment plans, and a 100% digital process. Start your application today with Propelld and get your study-abroad funding approved in days, not weeks.
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