RBL Bank offers some of the most competitive education loan interest rates among private banks in India. The interest rate on education loans from RBL Bank can be different for individuals based on factors such as your credit score and the credit score of your co-applicant, the loan amount, and the university to which the student has been admitted.
As one of the leading private sector banks, RBL Bank provides not only education loans but also a wide range of financial products for students and salaried individuals. In addition to education loans, RBL Bank offers services like Forex cards and other financial solutions to meet your needs.
RBL Bank Education Loan Eligibility
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RBL Bank Education Loan Programs: Study Abroad and Domestic Education
The RBL education loan is available for students who are availing loans either for a study abroad program or for those wishing to study in India. Let’s look at both of them one by one.
RBL Bank Education Loan Study Abroad
RBL Bank provides education loans up to INR 20 lakhs for Indian students planning to pursue higher education at foreign universities. These loans cover various expenses, including tuition fees, examination fees, and living costs. For non-collateral loans, the interest rate ranges from 12% to 14%, while collateralised loans come with an interest rate between 9% to 11%.
RBL Bank also offers flexible repayment terms of up to 15 years, along with a moratorium period that allows students to start repaying after completing their course or securing a job. This flexibility makes RBL Bank’s education loan a great option for students studying at prestigious universities around the world, including those in the USA, UK, Canada, and more.
Key Details of RBL Bank Education Loan
Tip: RBL Bank offers reduced interest rates for students admitted to top-tier universities. Choose a highly ranked university to potentially secure a better interest rate.
Countries Eligible for an Education Loan from RBL Bank
RBL Bank supports education loans for students heading to various international destinations. Some of the preferred countries include:
- USA
- UK
- Canada
- Australia
- Germany
- The Netherlands
- Ireland
- New Zealand
- Switzerland
- Dubai
- Italy
- Singapore
- France
- Sweden
Explore the loan programmes of other banks before making a final, well-informed decision. Check out the SBI Education Loan. If you are interested in knowing more, also learn about the 5 best education loans in India! This will help you take the right education loan for your studies,
RBL Education for Studies in India
RBL Bank provides education loans for Indian students pursuing higher education within the country, offering loan amounts up to INR 10 lakhs. These loans can cover a range of expenses, including tuition fees, examination fees, living expenses, and even the purchase of a laptop. The interest rate for non-secured loans ranges from 12% to 14%, while secured loans have an interest rate between 9% and 11%.
Key Details of RBL Bank Education Loan for Indian Studies
RBL Bank’s education loan is designed to make higher education in India more accessible, with flexible terms and a wide range of covered expenses. It’s a great option for students seeking financial support while pursuing their academic goals in India.
There are several education loan schemes available from the government for students belonging to an economically weaker section. Check out education loan schemes by the government!
Not Just Tuition Fees, But Other Expenses Are Also Covered. Check Simplified Education Loans from Propelld.
RBL Bank Education Loan Interest Rate
RBL Bank provides education loans with interest rates beginning at approximately 10% per year. The interest rate is determined by factors such as the loan amount, the chosen course, and the applicant's credit score. RBL Bank offers flexible repayment terms of up to 180 months and loan amounts up to INR 2 crore. These competitive interest rates make it easier for students to pursue higher education without financial burdens.
If you are joining a scholar institute such as the IIT, you can avail education loans at a lower interest rate. Here’s your guide to applying for an education loan for IITs.
RBL Bank Processing Fee
RBL Bank charges a minimal processing fee for processing your education loan application. This fee must be paid upfront in order to have the loan sanctioned.
RBL Bank Education Loan Insurance
RBL Bank offers education loan insurance to safeguard the loan in case of unforeseen circumstances such as death or disability, where you are unable to repay the loan. In such situations, the insurance company will settle the outstanding loan amount on your behalf.
The bank charges a fee of 1% to 2% of the loan amount for this insurance. However, you don’t need to pay this fee upfront, as it is typically adjusted with your RBL Bank education loan account.
Documents Required for Applying to RBL Education Loan
Here’s a breakdown of the documents needed to apply for an education loan from RBL Bank:
This table provides a comprehensive list of all the documents you will need to apply for an education loan from RBL Bank.
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How to Apply for an Education Loan from RBL Bank?
Applying for an education loan from RBL Bank is a simple and efficient process. Follow the steps below for a hassle-free experience:
1. Eligibility Check and Document Checklist
The Financial Officer will ask you a few questions to check your loan eligibility. Once assessed, they will send you a document uploading link or a checklist of required documents for the application.
2. Loan Sanction Process
The assigned lenders will handle the loan processing and sanctioning procedures. Throughout this process, you can reach out to your Financial Officer for clarification or to address any concerns about your loan application.
3. Loan Sanction
You will receive your loan sanction within the promised time frame.
RBL Bank Education Loan Repayment Process
RBL Bank offers flexible repayment options for its education loans. Here’s a breakdown of the repayment process:
1. Interest Payment During Moratorium Period
- During the moratorium period, which typically includes the course duration plus one year or six months after securing a job (whichever is earlier), interest payment is optional.
- If you choose not to pay the interest during this period, the interest amount will be added to the principal, and the total loan amount will increase. This increased amount will then be adjusted into your monthly EMIs.
2. Early Loan Closure
If you wish to close your loan before the completion of the full tenure, RBL Bank provides the following options:
- Loan Transfer to Another Bank: You can transfer your education loan to another bank that may offer better terms or a lower interest rate.
- Choosing a Shorter Repayment Duration: You have the option to reduce the loan tenure, which will result in higher monthly EMIs but will help you pay off the loan faster.
- Prepayment: You can make prepayments towards the loan to reduce the principal, thus reducing your EMIs or shortening the tenure.
By utilising these options, you can manage your loan repayment more effectively and potentially reduce the total interest paid over the life of the loan.
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RBL Bank Education Loan EMI Calculation
Understanding your EMI breakdown for an education loan will help you plan your finances effectively throughout the loan tenure. Here’s a sample EMI calculation based on a loan of ₹20 lakhs, with an interest rate of 10% per annum, for a loan repayment period of 10 years.
- Loan Amount: ₹20,00,000
- Annual Interest Rate: 10%
- Repayment Period: 10 years (120 months)
- Course Duration: 2 years
For this example, the monthly EMI is ₹32,707, and the annual EMI would be ₹39,268.
Breakdown of Loan Repayment Over 10 Years
Key Points to Understand
1. EMI
The fixed monthly amount you will pay throughout the loan tenure (₹32,707).
2. Interest Portion
The interest part of the EMI payment, which is higher in the initial years.
3. Principal Portion
The part of the EMI that goes toward reducing the loan principal.
4. Loan Outstanding
The remaining loan balance after each year’s EMI payment.
As shown in the breakdown, initially, a larger portion of your EMI goes toward paying off the interest, with the principal portion gradually increasing over the loan tenure. By the end of Year 10, your loan will be fully repaid.
This clear understanding of how your EMI breaks down will help you plan and manage your finances effectively during the loan repayment period.
Or, make your EMI calculation simple with an EMI calculator.
Applying for an education loan might seem like a lengthy and complicated process with lots of new terms, heavy paperwork and complicated timelines.
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FAQs on RBL Bank Education Loan
What is the RBL Bank Education Loan?
RBL Bank offers educational loans to students aiming for higher education in India or abroad. The loan covers expenses like tuition fees, living expenses, examination fees, books, and even the purchase of a laptop or computer, if required. The key details, such as loan amount, interest rates, and repayment terms, are different depending on the applicant's profile, the course, and the institution.
What is the maximum loan amount for an RBL Bank Education Loan?
RBL Bank offers education loans ranging from INR 50,000 up to INR 2 crore, depending on the course, institution, and whether collateral is provided. The loan amount can also be increased after evaluation of the applicant’s financial profile.
What is the interest rate on RBL Bank Education Loans?
RBL Bank’s education loan interest rates vary depending on whether the loan is secured (collateralised) or unsecured.
Non-collateralised loan: 12% to 14%
Secured loan: 9% to 11%
The exact rate depends on the applicant's creditworthiness, the loan amount, and the type of course.
What are the eligibility criteria for an RBL Bank Education Loan?
To qualify for an RBL Bank education loan, you must:
Be a resident of India
Have secured admission to a recognised institution in India or abroad
Meet the bank’s credit assessment criteria (e.g., credit score, financial background)
The applicant should be under 35 years of age (varies based on the course and co-applicant’s profile)
Can I get an RBL Bank Education Loan for studying abroad?
Yes, RBL Bank provides education loans for students planning to study abroad. You must have secured admission to a recognised foreign university. The loan can cover tuition fees, living expenses, travel, and other related costs.
Is collateral required for an RBL Bank Education Loan?
RBL Bank does not require collateral for loans up to INR 4 lakhs; for loans above INR 4 lakhs, collateral such as property, fixed deposits, or other assets may be required. Collateral-free loans are available for those who meet specific eligibility criteria, such as a high credit score and stable financial background.
What is the maximum loan tenure for an RBL Bank Education Loan?
The maximum loan tenure for repayment is 15 years, excluding the moratorium period. The moratorium period is usually the entire course duration plus 1 year or 6 months after securing a job, whichever is earlier.
Can I repay my RBL Bank Education Loan early?
Yes, you can repay your RBL Bank education loan before the scheduled tenure. Early repayment options are available, and the bank may not charge any penalty for prepayment, depending on the specific terms of the loan agreement.
What expenses are covered under the RBL Bank Education Loan?
RBL Bank’s education loan covers a wide range of expenses, including:
Tuition fees
Examination fees
Library fees
Books and study materials
Laptop/computer purchase
Living expenses (food, accommodation, etc.)
Travel expenses (for studying abroad)
Miscellaneous expenses
What documents are required to apply for an RBL Bank Education Loan?
The documents required include:
Proof of Identity (Aadhar card, PAN, passport, etc.)
Proof of Residence (Aadhaar card, utility bills, bank statement, etc.)
Academic Documents (Mark sheets, admission proof, fee structure)
Co-applicant's income proof (Salary slips, ITR, etc.)
Collateral documents (if applicable)
Other documents (affidavit, relationship proof, etc.)
How do I apply for an RBL Bank Education Loan?
You can apply for an RBL Bank education loan by contacting the bank directly. The process involves checking eligibility, submitting the required documents, and completing the application form. After that, the bank will process the loan and provide a sanction letter.
What is the moratorium period for the RBL Bank Education Loan?
The moratorium period is the period during which you are not required to pay EMIs. For an RBL Bank education loan, the moratorium period is the course duration plus one year or six months after securing a job, whichever is earlier. Interest payment during this period is optional.
What happens if I miss an EMI payment for my RBL Bank Education Loan?
If you miss an EMI payment, RBL Bank may charge a penalty for the late payment. Additionally, it may affect your credit score. It’s crucial to maintain a timely repayment schedule.
Can I get an RBL Bank Education Loan without collateral?
Yes, RBL Bank offers education loans without collateral for loans up to INR 4 lakhs. For higher loan amounts, collateral may be required. You must meet the bank’s eligibility criteria, including a good credit history and a stable financial background, to qualify for a collateral-free loan.
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