Kotak Mahindra Bank Education Loan: Interest Rates, Eligibility, Application Process & More

Choosing to pursue higher education is often met with one of the biggest challenges: financing. 

Kotak Mahindra Bank’s education loan is a structured solution created to meet the comprehensive costs associated with advanced academic programs, especially for students pursuing specialized or international studies. 

In this article, we’ll cut directly to what matters, giving you a clear breakdown of Kotak’s loan options, eligibility requirements, rates, and processes. 

Here, you’ll get the exact information needed to weigh if this loan fits with your academic and financial plans.

Fees and Charges

Here’s a table summarizing the fees and charges for Kotak Mahindra Bank’s education loan:

Type of Charge	Details
Processing Fee	Nil
Interest Rate	16%
Stamping Charges	Applicable as per the respective State’s Stamp Act
Prepayment/Foreclosure Charges	12 months lock-in period, after 12 months, 5% foreclosure charges + GST on principal outstanding
Late Payment Penalty	3% of the overdue amount is compounded monthly
Cheque Bounce/Dishonor Charges	₹750 per instance (inclusive of applicable taxes)
Swap Charges( Replacement of PDCs)	Up to Rs. 500 per Swap per Instance + GST and other applicable taxes
Duplicate NOC/No Due Certificate	₹500 + GST per issuance + applicable taxes
Charges for generating CIBIL report	₹50 + GST per issuance + applicable taxes

With clarity on the fees, it’s also important to see how the loan aligns with typical academic expenses. The following section details the types of costs that Kotak Mahindra’s education loan is designed to cover.

Expenses covered under Kotak Mahindra bank student loan scheme

Kotak Mahindra Bank’s education loan is structured to support students like you by covering a broad range of academic and living costs. It ensures that you’re not burdened with unexpected financial demands, allowing you to focus entirely on your studies. 

Here’s what this loan covers:

• Tuition fees
• Books, uniforms, and study materials
• Computer or laptop (if required for the course)
• Examination, library, and laboratory fees
• Hostel fees
• Travel expenses (for studies abroad)
• Miscellaneous expenses (e.g., project work, study tours)

In the next section, we’ll outline the key features that make this loan flexible and adaptable to various academic paths.

Also Read: How to Get an Education Loan without Parental Support?

Features of Kotak Mahindra bank student loan scheme

The key features are:

• The loan amount is up to ₹10 lakh for domestic and ₹20 lakh for overseas studies
• Repayment tenure is 5-7 years, plus a moratorium period
• Quick approval process
• Minimal documentation requirements
• 0.5% interest concession for female students
• Eligible for CSIS and Padho Pardesh subsidies

Note: While Kotak is a trusted name in banking, it’s essential to compare options from other banks and NBFCs to ensure you secure the best deal.

This is where FundRight (by GradRight) can assist you. 

FundRight connects you with over 15 Indian and international banks and NBFCs, including SBI, ICICI Bank, Axis Bank, HDFC Credila, Avanse Financial Services, and Tata Capital. This platform simplifies your search for the most suitable education loan.

Here’s how FundRight works in five simple steps:

1. Register on FundRight to begin your application.
2. Unlock loan offers from 15 trusted lenders.
3. Upload your documents securely through the app.
4. Receive personalized assistance from a Financial Advisor to customize your loan offer.
5. Get your loan disbursed in as little as 10 days.

With benefits like zero paperwork, no bank visits, and options for loans without cosigners or collateral, FundRight makes the loan process straightforward and efficient.

Now, let’s explore the eligibility criteria for Kotak Mahindra Bank’s education loan.

In the next section, let’s look at the bank’s eligibility requirements.

Eligibility criteria

Here’s a clear summary of the eligibility criteria for Kotak Mahindra Bank’s education loan:

Age 

• No specific age limit for students
• Co-borrower must be at least 21 years at loan initiation, with a maximum age of 70 at loan maturity

Candidate

• Must be an Indian national
• Must have secured admission through an entrance exam or merit-based selection in India or abroad

Courses in India

• Masters and Ph.D. programs from recognized institutions
• Professional programs like Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, and Computer Science
• Certifications such as CA, ICWA, CS, CFA, and similar professional qualifications
• Management programs like Master’s and diploma management courses
• Diploma courses in fields such as aeronautics, pilot training, shipping, and nursing approved by regulatory bodies like DGCA and the Indian Nursing Council

Courses Abroad

• Undergraduate courses from reputed universities
• Postgraduate programs, including MCA, MBA, MS, and others specified by the bank
• Professional certifications such as CIMA (London), CPA (USA), CFA, CISA, and equivalent recognized courses
• Diploma courses in areas like aeronautics, pilot training, shipping, and other fields recognized by international regulatory bodies

Once eligibility is established, the next step is to gather the necessary documentation. Below is a list of the required documents for the application process.

Also Read: Non Collateral Education Loan for Study Abroad: How To Apply?

Documents required

To apply for an education loan with Kotak Mahindra Bank, ensure you have the following documents ready. 

Document	Applicant	Co-applicant/Co-borrower	Guarantor
Application Form	Required	Required	Required
Photographs (2)	Required	Required	Required
Proof of Identity	Required	Required	Required
Proof of Residence	Required	Required	Required
Signature Verification from Bank	Required	Required	Required
Income Details	Not required	Latest payslip, Form 16, or last 2 years ITR	Latest payslip, Form 16, or last 2 years ITR
Proof of Ownership	Not required	Required	Required
Proof of Relationship	Required	Required	Required
Confirmed Admission Letter	Required	Not required	Not required
Letter from College	Details of the course and fee structure	Not required	Not required
Academic Pass-out Mark Sheet/Certificate	Required	Not required	Not required

With documentation in place, it’s important to plan how you’re going to manage the repayments. Kotak offers flexible EMI payment options, detailed in the next section.

EMI Payment Methods

Kotak Mahindra Bank provides a few streamlined options for repaying education loan EMIs so you can choose based on your banking preferences:

Standing Instructions (SI): 

Ideal if you have a Kotak Mahindra account. This option debits EMIs directly from your account each month without manual intervention, ensuring on-time payments.

Electronic Clearing Service (ECS): 

This is an automatic deduction service for non-Kotak accounts, enabling EMI payments to proceed smoothly even if you bank with another provider.

Post-Dated Cheques (PDCs): 

You can also issue post-dated cheques for the entire loan term. This is useful if you prefer traditional methods and have your own scheduling system.

How to apply for Kotak Mahindra bank education loan?

To apply for a Kotak Mahindra Bank education loan, you can use the online or offline method:

Online:

Go to the Kotak Mahindra Bank website, complete the application form, and upload the required documents (ID proof, admission letter, co-applicant’s income proof).

After submission, print a copy and visit a branch for verification and any remaining formalities.

Visit a Kotak Mahindra branch, fill out the application form, and submit the necessary documents. A bank representative will guide you through eligibility checks and next steps.

FAQ’s