Karnataka Bank


Under Graduate Courses:-

B.Com, B.A, B.Sc, Diploma, B.B.M & B.C.A.

Professional Degrees:-

Engineering, Medical, Agriculture, Nursing, Veterinary, Law, Dental, Management, Computer, Pharmacy, Physiotherapy, Hotel Management, ICWA, CA, CFA

Professional Courses from Reputed Institutions:-

IIT, IIM, XLRI, NIFT, reputed foreign universities offering courses in India.

Programs offered by Private Universities:-

All courses/degrees approved by UGC/GOVT./AICTE/AIBMS/ICMR

For courses in India, the bank provides a loan amount up to Rs.10 lacs and for overseas studies, this doubles at Rs.20 lacs.

The interest charges incurred on education loan differs on the basis of merit, gender of the applicant and the loan amount. The breakdown has been provided below for reference.

  1. Normal Student
  2. Meritorious Student
  3. Normal Girl Student
  4. Meritorious Girl Student

Akin to its public sector counterparts, Karnataka bank follows the nomenclature of base rate linked system of computing the applicable interest rate on education loans.

Therefore, there are two components, Base rate + Fixed Rate (Scheme).

The applicable rates and fees are subject to periodic change based on market conditions and decision of the bank.


  • flexible tenures for loan repayment that starts at 5-7 years.

The conditions below apply on repayment:-

  • Students who secure employment during the holiday term should immediately notify the bank representatives.
  • The repayment term will be advanced to commence immediately owing to the income derived from the employment.
  • Interest charges for the repayment holiday will be accrued and added to the loan account to be paid later in the EMI (Equated Monthly Instalment) mode.
  • Students who do not complete the course within the stipulated period will be given a leverage of additional two years for completion. Further extension will be made available for reasons beyond the control of the student.

For loan amounts of up to Rs.4 lacs, no margin is required. The bank provides cent percent funding. For borrowings above this limit, the margin is 5% for studies undertaken in India and 15% for studies in foreign countries. (Scholarships can be included in the applicant’s margin)

  • Loan Security:-
  1. Loan amount up to Rs.4 Lacs
  • No security required:-
  1. Amount from Rs.4 lacs to Rs.7.50 lacs
  2. Third party guarantee - collateral
  3. Borrowing over 7.50 lacs
  4. Collateral guarantee from third party with assignment of certain income from the student’s employment towards EMI repayment.
  1. Hostel & Tution fees
  2. Boarding and Lodging fees
  3. Expenses for purchase of books/study materials
  4. Procurement of computer/gadgets
  5. Travel expenses and Passage money for overseas studies
  6. The list above is not exhaustive. KBL covers all course related expenses under the scheme based on the expenses incurred during the course.
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