Dena Bank Education Loan Rate of Interest
Dena Bank offers friendly services and loans at lower interest rates
- The educational loan covers full-course fee subject to margin
- No margin for amount upto INR 4 Lacs
- Processing charges are refundable
Rate of Interest is charged on the basis of base rate
- ROI for Bank approved Ed Institutes is 8.30%
- For List A rated Ed Institutes, it is 9.85%
- For all other institutes, it is 9.85%
CALCULATE YOUR EDUCATION LOAN EMI
1,000 per month
1,000
1,000
Looking for admission for India and Abroad?
Dena Bank Education Loan Eligibility
- Indian National. A student must be an Indian citizen or must have an Indian passport
- Age Limit. Student must be 18 years old to avail education loan
- Entrance Exam/ Merit Based. He/ she should have secured admission through an entrance exam or on merit basis
- English Proficiency Test. For studying abroad, an aspirant must have qualified any english proficiency test such as GRE, TOEFL, SAT, GMAT, etc.
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| Bank / Financer |  Change bank |  Change bank |  Change bank |  Change bank |  Change bank |
| Applicable Rate of Interest | Bank approved Ed Institutes:8.30% Other institutes: 9.85% | Up to INR 7.50 Lacs: 10.55% Above INR 7.50 Lacs: 10.80% | up to INR 7.5 Lacs: MCLR + 2.00% above INR 7.5 Lacs: 2.60% | Upto 4 Lacs- 16.50% Upto 7.5 Lacs- 17.50% Above 7.5 Lacs- 15.50% | |
| Max Loan with Collateral | _A? rated institutions. In India _ INR 15 Lacs; In Abroad _ INR 25 Lacs Other institutions.India- INR 10 Lacs; Abroad- INR 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs and beyond based requirement | |
| Max loan without collateral | _A? rated institutions. In India _ INR 15 Lacs; In Abroad _ INR 25 Lacs Other institutions.India- INR 10 Lacs; Abroad- INR 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs and beyond based requirement | |
| Processing Fee | For India: Nil For Abroad: INR 1000 | Up to INR 4 Lacs: Nil Above INR 4 Lacs: INR 5000 | Nil | Nil | |
| Repayment Period | 15 years | 15 years | 15 years | 7 years | |
| Loan for top institutions | No | Yes, SBI Scholar Loan Scheme | Yes, PNB Pratibha | No | |
| Margin | Up to INR 4 Lacs: Nil Above INR 4 Lacs: For India- 5%; For Abroad- 15% | For loan above INR 4 Lacs In India: 5% In abroad: 15% | Up to INR 4 Lacs - NIL Above INR 4 Lacs - 5% | Upto loan 4 Lacs: No margin Above 4 Lacs: for India: 5% for Abroad: 15% | |
| Age Limit | no age limit | no age limit | No age limit | No | |
| Loan Security | Up to INR 7.50 Lacs: No security required ABove INR 7.50 Lacs: Tangible collateral security is required | Upto 7.50 Lacs: Only Parent/ Guardian as co-borrower. No Collateral Security or third party guarantee Above INR 7.50 Lacs: Tangible security along with parents as co borrower | Upto INR 7.50 Lacs: Parent(s)/guardian be made joint borrower (s). No tangible Security and /or 3rd party guarantee is required. Above INR 7.50 Lacs: Parent(s)/guardian be joint borrower(s). Tangible collateral security of suitable value acceptable to bank. | Third party guarantee Collateral security Additionally, assignment of LIC policy in favor of bank amounting 100% of education loan amount Assignment of Future salaries in favor of Axis Bank | |
| Eligibility concession for SC/ST | No | No | 50% for SC/ST, and;60% for General category. | No | |
| Processing Time | N.A. | 20 days | 15 days | 14 Days | |
| Prepayment charges | Nil | Nil | Nil | Nil | |
| Penal charges | Nil | Penal interest @ 2% to be charged for loans above Rs.4 lacs for the overdue amount and overdue period | Nil | @ 2% per month on the overdue installment/s | |
| Mandatory insurance cover | Not mandatory | Yes | yes | yes | |
| Travel expeneses | Yes | yes | yes | yes | |
| Bank transfter allowance | No | available | available | No such clause mentioned | |
| Top up loan availability | No | yes | available | unavailable | |
| Interest Subsidy Schemes | CSIS Skill Loan Padho Pardesh | Padho Pardesh CSIS Skill Loan Scheme | Padho Pardesh CSIS Skill Loan Scheme | CSIS | |
| Tax benifit | Yes | yes | yes | yes | |
| Concession/benefits | No processing fee for studies in India No prepayment charges No margin charge on the loan INR 4 Lacs | Concession to girl students 1% concession if interest is serviced during moratorium period including course period | 0.5% concession to girl students 0.5% concession if interest is serviced during moratorium period including course period Online application | There is no processing fee charged No pre- payment charges are applied No pre- closure charges are applied Loan Disbursal period is 15 working days from the date of final submission of documents |
How to apply for Dena Bank Education Loan ?
Dena Bank Education loan application form can be available online or offline at Bank branches.
Visit the official website Dena Bank Education Loan.
Click on Apply Now
Fill out the form with essential details.
Upload the mandatory documents required.
Submit the form and take out a print out of the application.
Visit the bank branch for further formalities.
Applicants can directly visit the nearest branch and ask for an application form. The bank representative will then guide them with all the necessary information regarding eligibility, documents required and also which loan is best suitable.
Dena Bank Education Loan Details
For other institutions.India: INR 10 Lacs; In Abroad: INR 20 Lacs
Above INR 4 Lacs: For India- 5%; For Abroad- 15%
For Abroad: INR 1000
ABove INR 7.50 Lacs: Tangible collateral security is required
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Expenses covered under Dena Bank Student Loan Scheme
- Tuition Fee
- Examination/Library/Laboratory Fee
- Cost of books, equipment, instruments, and uniforms.
- Travel Expenses (for abroad)
- Cost of computer/laptop during a course of time.
- Miscellaneous expenses
Courses Covered Under Dena Bank Student Loan Scheme
In India
Graduation courses
Post-Graduation Courses
Masters and Ph.D.
Professional Courses
Courses Covered Under Dena Bank Student Loan Scheme
In Abroad
Graduation: For Job oriented professionals/ technical courses offered by reputed universities.
Post-Graduation courses like MCA, MBA, MS etc.
Courses conducted by CIMA-London, CPA in USA, etc.
Education Loan Documents Required ?
Admission letter with all essential details
Attested copies of age proof, residence proof and birth date
Self-attested passport size photograph
Copies of qualifying courses
Income proof and/or copy of income tax return file
Details of collateral security along with government approved valuation certificate (if any)
Bank account statement of the applicant.
Copy of passport and visa for abroad courses
Interest Subsidy Schemes
Central Scheme of Interest Subsidy (CSIS)
Formulated by the Govt. of India, a scheme to assist the students belonging to the economically weaker section.
Skill Loan Scheme
The bank offers 'Skill Loan Scheme' for students who aspire to gain knowledge and specialized training in one specific field.
Padho Pardesh
Formulated under the Prime Minister's 15 point programme, this subsidy scheme benefits the students of the minority community who want to study abroad. Such students are provided 100% interest subsidy.
Frequently Asked Questions
What schemes does Dena Bank considers for its education loans?
+ -There are multiple schemes offered by Dena Bank apart from the basic education loans. These are:
- Padho Pardesh
- IBA Model Skill Loan Scheme
- Interest Subsidy Scheme
In whose name is the loan granted?
+ -The loan is granted in the name of the student
Is the loan contract executed only in student's name?
+ -No, the loan can be executed both in name of student and co-borrower as both are equally responsible for repayment of loan.
What is the age limit for availing loan in Dena Bank?
+ -There is no age restriction for the applicant applying for education loan from Dena Bank. He/ she should only meet the other stated eligibility criteria's.
Are minors eligible to apply for Dena Bank Education Loan?
+ -Yes, Minors aspiring for further studies can apply for education loan with help of legal representation from parents/ guardians.
What does margin on any loan mean?
+ -Margin amount is the amount that a borrower has to pay through his/ her own sources in form of a down payment as his/ her contribution towards the education.
Should the student's margin be paid upfront in the starting?
+ -Margin can be paid on a year to year pro rata basis whenever bank disburses loan amount as per requirement.
Where can I avail Dena Bank Education Loan?
+ -You can either contact your nearest branch for the application form or details regarding the loan or apply online from the official website.
Is there any provision to apply for loan online?
+ -Yes, you can apply online through Vidyalakshmi portal to avail for this loan.
Can I view my loan statement online if I am an existing education loan borrower?
+ -Yes, by creating a login on Dena Bank web portal, you can view all details related to education loan online.
Is there any minimum aggregate marks to meet the eligibility criteria to avail Dena Bank education loan?
+ -Yes, a student must have secured a minimum aggregate marks in their last qualifying examination (10+2 or Graduation). Relaxation in the marks is given to SC/ ST students
What is the discount/ rebate offered by Dena Bank?
+ -- 0.50% concession is given to girl students
- 1% concession if interest is serviced during the moratorium period.
- Eligibility criteria and margin on education loan is relaxed for SC/ST students
What all is included in tangible collateral security?
+ -Mostly Dena Bank asks tangible security in lieu of the loan amount sanctioned along with assignment of future salaries in favour of Dena Bank. Tangible security includes documents related to land/ building/ government security/ public sector bonds/ units of UTI, NSC, Life insurance policy/ bank deposits/ shares or debentures. The value of the security should be equal to the education loan amount.
Is scholarship or assistantship included in the margin?
+ -Yes any scholarship or assistantship will be a part of margin charged on education loan.
What is Moratorium Period?
+ -Course Period plus one year, or six months after getting a job
What is tenure of an education loan?
+ -Tenure of education loan provided by Dena Bank is maximum 15 years
What does MCLR stands for?
+ -MCLR stands for Marginal Cost of funds based Lending Rate. It refers to the minimum interest rate of bank below which it cannot lend.
What all expenses are covered under this course?
+ -Expenses covered by Dena Bank education loan are:
- Tuition/ college/ hostel fee
- Examination/ lab/ library fee
- Books/ uniform/ instruments
- Caution deposit
- Passage money for studies abroad, etc.
Will my travel expense will be covered if I take loan from Dena Bank?
+ -Yes, travel expenses are covered under this loan
I have taken admission through management quota. Am I eligible?
+ -This depends totally on bank's discretion as whether a student meets other eligibility criteria or not.
What do you mean by reputed or recognized institutes?
+ -Institutes that are affiliated to state/ central universities and comes under UGC or AICTE are considered as recognized institutes. Reputed institutes are those which are well known and have standard course of repute. More often, banks provide the list of institutes they consider for loan. (You can contact nearest branch for the same)
Are there any special benefits if I have secured admission to one of the top premier institutes?
+ -Dena Bank does not provides any additional concession to students who have secured admission in top rated institutes
What is the processing fee or prepayment charges?
+ -The education loan offered by Dena Bank does not carry any prepayment charges or processing charges for studies in India. For studies abroad INR 1,000 (refundable) is charged as processing fee.
Will cost of my computer be covered under the loan sanctioned?
+ -Reasonable cost for the computer or laptop well be covered under the loan if it is required to complete the course.
Why is Pan Card necessary?
+ -Pan Card is one of the mandatory document required by banks these days. It is mandatory because:
- Easy to assess Income
- Easy to trace borrowers
Are diploma or certificate courses considered under Dena Bank education Loan (both for India and Abroad)?
+ -Diploma courses are eligible under Dena Bank Education Loan. Regular degree or diploma courses like, shipping, pilot training, and aeronautical that are approved by Director General of Civil Aviation or Shipping.
Is a co-borrower necessary for loan?
+ -Yes, it is mandatory to have a co-borrower to avail loan from Dena Bank.
Who can be my co-borrower?
+ -Your parent/ spouse/ guardian can be a co-borrower. A co-borrower should be your immediate family member, should have a steady source of income, and a good credit history.
What all documents are required from the co-borrower?
+ -Documents required from the co-borrower are:
- Attested copies of age proof, residence proof and birth date.
- Self-attested passport size photograph
- Income proof and/or copy of income tax return file
- Details of collateral security along with government approved valuation certificate (if any).
How many guarantors do I need to borrow loan from Dena Bank?
+ -You need at least 2 guarantors to avail loan from Dena Bank.
What is the KYC requirement in education loan?
+ -KYC requirements are the documents as a proof of personal identification and residence proof of the applicant as well as the co-borrower.
What are maximum term for repayment?
+ -Maximum Term for repayment for Loan amount upto INR 7.50 Lacs is 10 years and maximum term for repayment is 15 years for loan amount above INR 7.50 Lacs
How can I repay the loan?
+ -You can repay the loan after the moratorium period by mode of EMI or through post- dated cheques.
What is EMI? How are they calculated?
+ -EMI stands for Equated Monthly Installments. It can be calculated by using the formula given below
- EMI = [P x R x (1+R) ^n] / [(1+R)^ n-1]
- Here, P is Amount of Education Loan, R is Rate of Interest, n is Tenure of the Loan.
- Or simply you can use the EMI calculator provision available on Dena Bank’s official website.
Is the loan disbursed in name of individual applicant or to the institute/ university directly?
+ -The loan is disbursed directly to the institute/ university that you have taken admission to. Hence, an applicant is supposed to submit institute brochure with proper division of the fee
If I am unable to complete my course in given tenure, will my repayment term be extended?
+ -It is completely on the banks discretion to extend the moratorium period or not. It can be extended for maximum 2 years based on student's reason. You can contact your nearest branch for more details.
What is method of application of interest on education loan?
+ -The interest will be charged at simple rate from the date of disbursement till commencement of repayment of loan. After that, compound interest is charged on reducing balance.
What is interest rate of education loan?
+ -The interest rate is different for different loan offered. Refer the tables below:
For Dena Bank Education Loan
| Loan | Category | Effective Rate of Interest |
|---|---|---|
| Dena Vidya Laxmi Education Loan | Bank’s approved Ed Institutes | 8.30% |
| List A rated Ed Institutes | 9.85% | |
| Other Institutes | 9.85% |
For Dena Bank Skill loan Scheme
| Loan | Category | Effective Rate of Interest |
|---|---|---|
| IBA Model Skill Loan Scheme | Loan repayable within 3 years | 9.85% |
| Loan repayable beyond 3 years | 9.85% |
What is interest subsidy on education loan?
+ -Answer: Dena Bank offers
- IBA Model Skill Loan Scheme for students who wish to pursue skill based courses to enhance their knowledge and skills for better career prospects.
- Padho Pardesh Scheme for minority sector students who wish to pursue their studies abroad.
- Interest Subsidy scheme for economically weaker sections and to promote education amongst them
What documents do I need to submit to avail interest subsidy scheme?
+ -The documents that need to be submitted are:
- Income certificate issued by authorised authorities
- Bonafide student certificate
- Letter of undertaking or declaration signed by borrower/ co-borrower
If I am availing loan for overseas studies, can I also avail interest subsidy scheme?
+ -No, the interest subsidy scheme is available only for studies applying for studies in India.
What is employment verification in an education loan?
+ -The bank takes the responsibility to cross verify all the employment details of the applicant and co-borrower. If the banks fails to cross verify every detail provided, it might reject the loan application.
Are there any tax benefits in education loans?
+ -Under Section 80E of Income Tax Act, loan borrowers can avail the tax benefits. This benefit is only available over and above INR 1,50,000. Tax benefits can be availed once the borrower starts paying interest on loan. The deduction is available until borrower pays off full interest amount on loan or for maximum of 8 years (whichever is earlier). You can visit the official website of Dena Bank to calculate your tax benefit through their tax benefit calculator.
Is it necessary to have bank account with the bank while availing loan from that particular bank?
+ -It is not necessary to have a bank account while availing the loan but it makes it easier for the borrower to get loan application approved.
Can I repay my loan in foreign currency even if my bank is in India?
+ -Yes, you can pay the amount in foreign currency (Euro, Pound, Dollar, etc.) The bank might charge an additional currency conversion fee as per RBI regulations.
Why do banks require insurance policy as security?
+ -The banks require insurance policy as security in lieu of education loan provided. The insurance policy should be equal or more to the amount of loan sanctioned. In case of untimely demise of the borrower, the bank recovers the amount from the insurance policy
Are there any additional benefits on availing loan from Dena Bank?
+ -There are no additional benefits offered by Dena Bank mentioned on the official website. Borrowers can contact the nearest branch for the same.
What is credit score? Is it important for education loan?
+ -Credit Score is inclusive of various factors such as credit history (Loan history or credit card). If a student does not have a credit score, banks calculate it by considering factors such as University, College and the Course of admission. Banks consider the academic background of student and credit history of co-borrower.
Are NRIs eligible for the education loan?
+ -NRIs are eligible for the loan if they have Indian citizenship and are Indian passport holder.
Is Visa a necessary document for studying abroad?
+ -Visa is needed as a document proof but it is not a sole requirement.
What all procedures do one have to go through while applying for abroad?
+ -A student who is applying for studying abroad have to give necessary documents required by the bank. One needs to have a thorough knowledge of the course they are applying for and in which institute as it can be asked on the airport by the foreign officials.
If a student have any query, where or whom to contact?
+ -student can reach out to the nearest branch in case of any query.
Customer Care Number: 022- 26545607
Customer Care Id: rbd@denabank.co.in
Local rates apply on every call
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