RBL Bank — Education Loans (India)

1. Bank Overview

RBL Bank (formerly Ratnakar Bank Limited) is a private-sector Indian bank founded in 1943, headquartered in Mumbai. It offers a wide range of consumer banking products—including education loans—and emphasizes retail-friendly services with a growing branch presence.

2. Loan Features & Coverage

• Purpose: Loans available for both domestic and international studies, with full coverage of tuition, living, books, travel, laptop purchase, and other related academic costs.
• Loan Amount: Typically ranges from ₹50,000 up to ₹10 lakh, with scope for higher amounts upon review.

3. Interest Rates

• Without Collateral: ~12% to 14% p.a.
• With Collateral (e.g., property or fixed deposits): ~9% to 11% p.a.

Compared to PSU lenders that often offer sub-10% rates for premier institution admits, RBL’s unsecured rates are higher—though they may work for students with collateral or urgent needs.

4. Moratorium & Repayment Terms

• Moratorium Period: Course duration plus 1 year, or 6 months post-employment—whichever is earlier.
• Repayment Tenure: Up to 15 years (excluding the moratorium).
• Interest Handling: Simple interest during moratorium; thereafter, compound interest on reducing balance.

5. Application & Administration

• Application Channels: Available online through the RBL website, or offline via your local branch.
• Processing Fee: Up to 1% of the loan amount + GST (for secured loans); unsecured options may have no processing fee.
• Prepayment: No foreclosure charges, which eases early repayment flexibility.
• Loan Transfers: RBL supports balance transfers and refinancing from other lenders.

6. Eligibility & Documentation

• Residency: Applicant and co-borrower must be Indian residents.
• Co-applicants: Could include parents, siblings, or spouse, with proof of relationship required.
• Eligibility Documents: Admission letter, course details, KYC (Aadhaar, PAN, address proof), academic transcripts, and co-borrower income documents.
• Collateral Requirements: For secured loans, collateral must be valued at least 125% of the loan amount (properties or FDs).

7. Community Insights & Real-World Notes

While there's limited Reddit feedback specifically on RBL Bank’s education loans, broader insights suggest:

• Higher interest rates compared to SBI or PSUs, especially for unsecured loans.
• Private banks may offer speed and convenience, but borrowers often prefer PSU terms for affordability.

8. Summary Table