Dena Education Loan

  • Max Loan Amount - upto Rs. 2,000,000
  • Attractive interest rate starting at 10.10%
  • Loans upto Rs 4 lakh without collateral and upto Rs 7.5 lakh with third party guarantee. Loans above Rs 7.5 lakh can with adequate collateral
  • Nil margin and 100% finance for loans upto Rs 4 lakh. Loans above Rs 4 lakh can be availed at a margin of 5% for studies in India and 15% for studies abroad
  • Multiple co-borrowers accepted
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Education Loan Dena Bank

  Courses in India Courses Abroad IIT, IIM, ISB Courses
Max Loan Amount Rs. 1,000,000 Rs. 2,000,000 Rs. 2,000,000
Interest Rates      
Loans upto Rs. 4 lakh 10.10% 10.10% 10.10%
Loans Rs. 4.0 - 7.5 lakh 10.10% 0.00% 10.10%
Loans > Rs. 7.5 lakh 10.10% 10.10% 10.10%
Max Funding as Proportion of Cost      
Loans upto Rs. 4 lakh 100% 100% 100%
Loans above Rs. 4 lakh 95% 85% 95%
Max Tenure Post Moratorium      
Loans upto Rs. 7.5 lakh 10 years 10 years 10 years
Loans above Rs. 7.5 lakh 15 years 15 years 15 years
Co-Applicant required (Y/N) Yes Yes Yes
Third Party Guarantee      
Loans upto Rs. 4 lakh Not required Not required Not required
Loans Rs. 4.0 - 7.5 lakh Required Required Required
Loans > Rs. 7.5 lakh Not required Not required Not required
Collateral Security (Fixed deposit/ Property, LIC)      
Loans upto Rs. 4 lakh Not required Not required Not required
Loans Rs. 4.0 - 7.5 lakh Not required Not required Not required
Loans > Rs. 7.5 lakh Required Required Required
Prepayment Charges (Y/N) Nil Nil Nil
Moratorium Period (lower of the two)      
After course period 12 months 12 months 12 months
After getting job 6 months 6 months 6 months

Dena Bank Student Loan Eligibility

Determinants of Eligibility for Education Loans
Age of the Applicant
  • Upto 35 years for non-employed personnels
  • Upto 45 years in case of working employees/ executives
Who is eligible
  • An Indian National having secured admission to professional/technical courses in recognized institutions.
  • Students seeking admission for higher studies.
  • Permanent employees who are employed for not less than three years with any organisation and who intend to acquire higher professional qualifications and have secured admissions in a reputed institute.
Maximum Loan Amount
  • Upto Rs. 1,000,000 for studies in India; with minimum margin money (own contribution by student/ family) of 5% of total cost for loan above 4 Lakh. No Margin for loan less than 4 Lakh
  • Upto Rs. 2,000,000 for studies abroad with minimum margin money (own contribution by student/ family) of 15% of total cost for loan above 4 Lakh. No Margin for loan less than 4 Lakh
  • Upto Rs. 2,000,000 for studies at IIT's, IIM's and ISB's with minimum margin money (own contribution by student/ family) of 5% of total cost
Which Cost Heads/ Expenses are Funded by Bank
  • Admission fees including monthly fees and examination fees.
  • Books, stationery and equipments.
  • Travel expenses/ passage money for studies abroad.
  • Boarding and lodging expenses of authorized hostel or boarding house.
  • Expenses required to complete the courses like those on study tours, project work and thesis etc.
Co-borrower/ Guarantor/ Security
  • Loans upto Rs. 4 lakh: Parents or guardian or husband/ in-laws in case of married woman required as co-borrower
  • Loans above Rs. 4 lakh and upto Rs 7.5 lakh: Parents or guardian or husband/ in-laws in case of married woman required as co-borrower, guarantee from third party guarantor required
  • Above Rs. 7.5 lakh: Parents or guardian or husband/ in-laws in case of married woman required as co-borrower
Repayment Frequency
  • Quarterly or monthly rests.
  • Repayment typically starts 1 year after completing the course or six months after getting a job, whichever is earlier.
  • Loan interest re‐payment will start immediately after disbursement of the first installment of the loan.
Repayment Period
  • Tenure of an education loan consists of Duration of Study + Grace Period after the Study + Repayment Period.
  • For Indian courses repayment tenure is maximum of 5 years after the commencement of repayment.
  • For Abroad courses repayment tenure is maximum for 7 years after the commencement of repayment.
  • There is no prepayment penalty or charge on early prepayment or foreclosure.
Key Appraisal Criteria
  • Good academic record with atleast 50% marks in the qualifying examinations.
  • Admission letter from bonafide educational institution.
  • Passport/visa/i-20 form for studies abroad.
  • Net-worth and credit history (CIBIL) of the guarantors.
Tax Benefits
  • Interest paid on education loan can be claimed as deduction from income of borrower (student) as per Section 80E of the Income Tax Act, 1961.
  • Rebate can be claimed without any upper ceiling or cap.
  • Rebate is available for full time courses, part time courses and vocational courses pursued in India and abroad.
  • Rebate can be claimed within eight (8) years post moratorium period subject to actual payment of interest.
  • Rebate is available for interest paid on loans for education of self, spouse, children or for the student of whom he/she is the legal guardian.
  • No rebate is available for principal repayment.

Dena Education Loan Interest Rate – Alternatives

  • In case you or your parents have availed a home loan and the property is registered, you may opt for a top up loan with balance transfer of the home loan . In this case, you don’t to provide any additional security and the rate of interest will be close to home loan rate (currently 8.60%). This will also be longer tenure loan (upto 15 years) and will result in lower EMI. However, you will not be able to claim income tax benefit available on education loan in this case.

Dena Bank online Education Loan – Things to check

  • You have a valid offer letter from a recognized educational institution.
  • You meet the eligibility criteria of the bank that you are applying to.
  • You have not defaulted on loans or credit card dues in the past and have not delayed payments. If you have, these will reflect in your CIBIL report, hurt your CIBIL score and may result in rejection of your education loan application. Estimate your CIBIL score for free by using CIBIL score estimate calculator.
  • Your CIBIL report does not erroneously show defaults or delayed payments. This can be due to inadvertent error in data shared by banks with CIBIL.
  • You have made own arrangement for margin money and for expenses that are not covered by banks under education loan.
Dena Education Loan News - Feb 2017
01st Sep 16 Dena Bank has reduced its MCLR from 1st September, 2016
Dena Bank has reduced its Marginal Cost Based Lending Rate (MCLR) by 5 basis point (bps) across maturities. The 1 year MCLR has been reduced to 9.45 percent from the current rate of 9.5 percent. The 3 month and 6 month MCLR has been reduced to 9.25 percent and 9.35 percent respectively. Similarly the Overnight MCLR has been reduced to 9.05 percent. These changes are effective from 1st September, 2016. . For borrowers who have taken a home loan from Dena Bank after 1st April 2016, the reduction in MCLR will translate into a reduction in their home loan rates and hence their interest outgo. However, if you have taken home loan at fixed interest rate then your interest expense will remain unchanged.
01st Aug 16 Dena Bank has reduced its MCLR from 1st August, 2016
Dena Bank has reduced its Marginal Cost Based Lending Rate (MCLR) across maturities, effective from 1st August 2016. The 1 year MCLR has been reduced by 5 basis points from 9.55 percent to 9.5 percent. The 3 month and 6 month MCLR has been reduced by 10 basis points to 9.3 and 9.4 percent respectively. Similarly the overnight and 1 month MCLR has been reduced by 15 basis points to 9.1 and 9.2 percent respectively. If you are a borrower of the Dena Bank and have taken loan after 1st April 2016, the reduction in loan rates should result in a lower interest burden and lower EMIs. However, if you have taken loan at fixed interest rate then you will not able to benefit by the rate cut.
13th Jun 16 Dena Bank reports Net Loss of Rs326.38 crore for Q4FY16
As per the result for Q4FY16, Dena Bank has reported Net Loss of of Rs.326.38 crore as the bank had to provide for higher provisions against bad loans. The loss was on account of a tax write-back of Rs.340.86 crore in the March quarter. The bank reported increase in Net Interest Income (NII) by 2.7 percent to Rs.625.17 crore, when compared on yoy basis. Non Interest Income of the bank also increased by 7.21 percent to Rs.215.87 crore. The Asset Quality showed signs of deterioration during the current quarter as Gross NPA in March quarter increased to 9.98 percent from 5.45 percent in year ago period. Net NPAs increased to 6.35 percent against 3.82 percent in previous quarter. Provision for NPA increased to 200 percent in March quarter to 1094.24 crore when compared on yoy basis.
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