Today Indian students are aiming for high-ranking universities and colleges both in India and abroad but the catch here is that these institutions charge high fees due to high-quality education and resources provided by them. This creates a financial hurdle in a student’s dream of achieving their higher education goals. In this case, financial aid in the form of an education loan can work like magic for a student.
Today, there are many banks that offer education loans one of which is DCB Bank. If you are looking for information on DCB education loans then you are definitely at the right place as in this blog we have written all the important details related to it. Keep reading further to know more!
|Bank Name||Development Credit Bank Ltd.|
|Loan Amount Limit||For education in India – INR 10 Lakh|
For education in abroad – INR 20 Lakh
|Processing fee||Around 1 to 2% of the total loan amount sanctioned|
|Moratorium Period||Course period + 1 year|
|Accepted co-applicants||Parents, siblings, spouse, parents-in-law|
|DCB education loan interest rate||Non-collateralised loan – 12 to 14%|
Collateralised loan – 9 to 11%
Table of contents
DCB Education Loan Interest Rate
While applying for an education loan it is extremely crucial to know about the interest rate levied by the bank so that you are able to make the best decision for yourself according to your circumstances. Therefore, to help you we have created a table below that contains information related to interest rates levied by DCB bank depending upon the range of loan amount:
|Loan Amount Range||Courses in India||IIT, IIM, ISB courses||Courses Abroad|
|Loan up to INR 4 Lakh||10.50%, for girls – 10%||8.85%||10.50%, for girls – 10%|
|Loan between INR 4 Lakh to INR 7.5 Lakh||10.50%, for girls – 10%||8.85% to 10%||10.50%, for girls – 10%|
|Loans more than INR 7.5 Lakh||10.50%, for girls – 10%||8.85% to 10%||10.75%, for girls – 10.25%|
DCB Education Loan Schemes
DCB offers education loans under various schemes so that students can choose an option according to their needs and situation. The table below shows the maximum loan amount and interest rates of various education loan schemes offered by DCB Bank:
|Schemes||Maximum Loan Amount||Interest Rates|
|DCB Bank takeover of education loan||INR 1.5 Cr.||10.05%|
|DCB Bank Global Ed-Vantage||INR 1.5 Cr.||10.05%|
|DCB Bank student loan||INR 20 Lakh||10.05%|
|DCB Bank scholar loan||INR 40 Lakh||8.95% to 9.25%|
|DCB Bank skill loan||INR 1.5 Lakh||9.55%|
Also Read: Pro Tips for Managing Your Student Loans
You can apply for a DCB education loan either through offline or online mode. In order to apply through offline mode you need to follow the steps mentioned below:
- Go to the nearest branch of DCB.
- Complete the application form and submit all the required documents.
- After this, your documents will be verified manually.
- Once the documents are verified, you will be notified by your relationship manager.
- After all of this, the loan amount will be sanctioned and disbursed.
To apply for DCB education through online mode you need to follow the steps mentioned below:
- Visit the official website of DCB Bank and click on the link for the education loan application.
- Fill out the entire application carefully by providing the required details.
- Attach the digital copies of all the documents necessary.
- Before submitting make sure you go through the form again in order to avoid any mistakes after which you can submit the application.
- Since DCB Bank is a private-sector bank the result of your application will be given in 2 to 6 days.
- If your application gets approved you will receive your sanction letter after which you can sign the loan agreement.
In order to get your education loan application to get approved you need to fulfil the eligibility criteria set by the bank. Mentioned below are the eligibility criteria for the DCB education loan:
|Who can apply?||An Indian national – who has taken admission to do a technical course in a recognised institute in India. |
Permanent Employees – Working for at least three years in any organisation.
|Applicant’s age||Non-employed – Not more than 35 yrs. |
Working employees/executives – Not more than 45 yrs.
|Loan Amount Limit||For pursuing education in India – INR 10 Lakh |
For pursuing education abroad – INR 20 Lakh
For pursuing studies at IIT’s, IIM’s and ISB’s – INR 40 Lakh
|Repayment Frequency||After the first loan instalment, the repayment of loan interest will start.|
There will be quarterly or monthly rests.
It will either start 1 year after completing the course or 6 months after getting the job, whichever is first.
|Repayment Period||Indian courses – After the beginning of the repayment period, the tenure will be a maximum of 12 years. |
Abroad courses – After the beginning of the repayment period, the tenure will be a maximum of 12 years.
Tenure – It consists time period of the course, a grace period after completing the course and a repayment period.
Students wishing to apply for a DCB education loan need to provide the documents mentioned below with the application form:
|Income proof in case of salaried co-borrower||Salary slips |
Bank account statement
|Income proof in case of self-employed co-applicant||Bank account statement |
Business address proof
IT returns for the last two years
Certificate of qualification
Form 16A (if applicable)
|Residence proof||Water Bill|
Voter’s ID card Letter from any recognised public authority
Bank account statement
Voter’s ID card
Photo credit card
Central and state government-issued photo ID proof
|Applicant||2 passport-size photographs |
Mandatory passport submission
Cost of education, schedule of expenses
Loan account statement for the last 1 year (if a loan was taken previously)
Proof of admission – admission letter from any university or college
Academic records – Class 10th and 12th results, graduation results semester-wise, and entrance exam results on the basis of which admission is taken.
|Co-Applicant||2 passport-size photographs |
Loan account statement of the last 1 year (if any loan was taken before)
Expenses Covered Under DCB Education Loan
DCB education loan will cover various expenses that a student will incur during the time of their course. Mentioned below is the list of some of these expenses:
- Cost of tuition/ tuition fee
- Academic expenses like laboratory fees, library fees, books, examination fees, equipment, etc.
- Applicant’s health insurance (if applicable)
- Caution fee as requested by the institution
- Miscellaneous expenses
Some of the banks that offer low-interest rates on education loans are:
Bank of Baroda – starts at 9.7% p.a
SBI – starts at 9.05% p.a
HDFC Credilla – starts at 9.75% p.a
Axis – starts at 10.5% p.a
ICICI – starts at 10.5% p.a
Yes, a bank can reject the education loan application of a student if they have a poor academic record. Banks usually look for the past academic performance of the student in order to gauge their future earning potential so that they are able to repay the loan.
In case of non-repayment of the education loan, the lender will initially send you notices after which you will be given warnings. If you still fail to comply, you will be termed as a defaulter and your credit score will decrease as a result. Also, CIBIL will add you to its list of defaulters.
This was everything about the DCB education loan! To know more about the loan application process, and the best bank accounts for students or international money transfers, subscribe to Fly.Finance or reach out to our experts to help ease your study abroad experience.