Can you get an education loan for online courses?

Chaitali Das has been working as an administrative assistant for the last 13 years. She wants to upskill herself and has been researching online courses that will help her get a promotion. She has zeroed in one offered by a recognized university, as part of its online corporate education programmes. The only hitch is that it costs Rs 2 lakh and Chaitali currently doesn’t have that kind of money to spare. She consulted her Axis Bank relationship manager, who answered her questions. Here is how the conversation went:

1. Does Axis Bank provide educational loans for online courses?
Short answer – yes.

2. What is the minimum academic qualification needed for availing of such a loan?
You have to be at least a graduate to qualify for a loan.

3. Are there any specific professional qualifications required to avail of such a loan?
In addition to the requirement of being at least a graduate, the candidate should have a minimum of one year of employment with their current employer to be eligible for a loan for an online course. The sector they are working in doesn't matter.

4. What is the documentation required to apply for these loans?
Mandatory KYC (Know Your Customer) documentation is required. The candidate will also have to submit a college offer letter and income statements (bank statements for the last six months, IT returns).

5. What does the loan cover?
The loan covers the total cost of education, i.e. tuition fees, library/lab fees, and living expenses (if any).

6. What is the tenure of the loan?
The maximum tenure for this loan is ten years.

[Also Read: Eight Benefits of Taking an Education Loan in 2021]

7. Is there any moratorium available on this loan like in regular education loans?
Regular education loans have a moratorium period. The applicant doesn't have to repay the loan during the course period plus one year or six months after getting a job, whichever is earlier. An education loan for online education has no such moratorium.

8. What’s the rate of interest on these loans?
It starts from 9.0% per annum.

9. Is the loan available for only recognized universities/institutions or even private sector edutech companies?
Preference is given to recognized universities, but courses offered by private edutech companies can also be considered on a case-to-case basis.

10. What is the disbursal process for these loans?
The disbursal process is similar to the process for regular education loans. The loan is disbursed directly to the university post receiving a request from the university.

With her queries answered, Chaitali is now gearing up to apply for the course of her choice that will help improve her career prospects.

Axis Bank is one of the very few financial institutions providing educational loans for online & executive courses which can further your career.

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