KBL PEAK Education Loan

About the KBL PEAK Education Loan

KBL PEAK (Pre-Education Assistance for Knowledge) Education Loan scheme is designed for students pursuing recognised academic programmes in India or abroad. The scheme is aligned with the guidelines issued by the Indian Banks’ Association (IBA) and offers financial assistance to cover tuition fees and associated costs. The education loan caters to various professional and technical courses approved by government bodies such as UGC, AICTE, and international institutions with reputable accreditation.

KBL PEAK Education Loan - Rate of Interest

The KBL PEAK education loan interest rate is based on the student’s profile, co-applicant details, repayment type (EMI or moratorium), and the periodic review process.

• The standard interest rate is 9.18% per annum. 

• Female students enrolling in STEM courses receive a 0.10% concession on the interest rate.

Note: The rate is updated per KBL's latest terms as of 16 June 2025. The applicable interest rate may vary depending on changes in the RBI Repo Rate or revisions to the bank’s lending policies.

Features of KBL PEAK Education Loan

The KBL PEAK Education Loan offers the following features:

• High Loan Limit: The Karnataka Bank education loan program allows students to borrow up to ₹2 crore to cover educational expenses, including tuition fees, travel costs, and other related expenses.

• Flexible Repayment Options: Choose between repayment during study or after completion (moratorium).

• Tax Benefit: Section 80E of the tax code allows you to claim interest paid as a tax deduction, which lowers your taxable income.

• Supports Broader Education Planning: It can be integrated with child education plans, ensuring financial planning for younger siblings.

• Extended Loan Tenure: The loan tenure can extend up to 15 years, including the moratorium period (course duration plus 12 months or 6 months after getting a job, whichever is earlier).

• No Pre-Closure Charges: Early repayment is allowed without any penalty, offering flexibility and savings on interest.

Investment

Secure

Secure your child’s future with or without you

Start Investing

₹10,000/Month

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₹1 Crore^*

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Eligibility of the KBL PEAK Education Loan

To apply for the KBL PEAK Education Loan, the following eligibility criteria must be met:

• The student must be an Indian citizen.

• Admission secured in a recognised institution for undergraduate, postgraduate, or professional courses in India or abroad.

• Required – typically a parent or guardian with steady income.

• Students must be at least 18 years old.

• Co-applicant must have a satisfactory credit history and repayment capacity.

Documents Required for KBL PEAK Education Loan

To ensure smooth processing of your KBL PEAK education loan application, keep the following documents ready:

1. For Students

   • ID Proof: PAN card

   • Address Proof: Aadhar card, driving licence, voter ID, or passport

   • Entrance exam result: The result of the entrance exam, such as GMAT, GRE, IELTS, etc.

   • Admission proof: Admission letter from the educational institution.

   • Academic records: Academic Transcripts (10th, 12th, and graduation mark sheets)

   • Foreign education: Copy of passport, visa, and proof of overseas admission

2. For Co-Applicant

   • PAN card and address proof

   • Income documents:

     • Salaried: Salary slips (3 months), bank statements (6 months), Form 16 (2 years)

     • Self-employed: ITR (3 years), P&L, balance sheet, business proof, and bank statements

   • Property ownership or rental proofs

For tax planning, families can also check potential deductions using an income tax calculator, particularly for deductions available under the child education allowance and Section 80E.

Most Important Terms and Conditions

Before applying for the KBL PEAK Education Loan, applicants should be aware of the following key terms:

• Processing fees: Standard fees apply as per bank policy. It may vary for domestic and international courses.

• Disbursement schedule: Funds are released directly to the institution in instalments or jointly for living costs.

• Tax claim: Under Section 80E, interest is deductible for up to 8 years or until repayment, whichever is earlier.

• Collateral Requirements Based on Loan Amount:

  • Up to ₹40 lakh: No collateral required (conditions apply).

  • Above ₹40 lakh:

    • 100% collateral if EMIs are paid during the moratorium period.

    • 150% collateral if EMIs are not serviced during the moratorium.