| Interest Rate | Moratorium Period | Margin Money |
| 8.55% to 11.15% | Course years + 1 year | 0% for up to INR 4 Lakhs1 5% for INR 4 – 7.5 Lakhs 20% for above INR 7.5 Lakhs |
Table of Contents
- Overview of IDBI Bank Education Loans
- IDBI Bank Education Loan Schemes
- IDBI Bank Education Loan Interest Rates
- IDBI Bank Education Loan: Collateral Requirement
- Eligibility Requirements for IDBI Bank Education Loans
- Documents Required for IDBI Bank Education Loans
- Application Process for IDBI Bank Education Loans
- Conclusion: Get Started with Your IDBI Bank Education Loan Application
- Frequently Asked Questions
IDBI Bank education loan simplifies your study abroad funding with high loan amounts, affordable interest rates, friendly repayment plans, and a transparent process. From premier global institutions to top institutions in India and skill-oriented courses, the educational areas of IDBI funding are broad.
Looking forward to finding a top education loan option to sponsor your studies abroad? IDBI Bank can be your top pick if you meet the eligibility requirements.
Overview of IDBI Bank Education Loans
IDBI Bank education loans offer a high loan amount of up to INR 75 Lakhs to study abroad at affordable interest rates. You save additional tax as there is a tax rebate for the interest you pay, according to section 80E of the Income Tax Act.
| Maximum Loan Amount | INR 75 Lakhs |
| Interest Rates | 8.55% to 11.15%. |
| Margin | 0% for up to INR 4 Lakhs 15% for INR 4 – 7.5 Lakhs 20% for above INR 7.5 Lakhs |
| Processing Fees | 1% of the loan amount (max. INR 5000) to be refunded on loan disbursement |
| Repayment Holiday/ Moratorium | Course years + 1 year |
| Maximum Repayment Tenure | 15 years |
| Collateral Requirement | Collateral is required for study abroad loans if the amount is above INR 7.5 Lakhs. |
IDBI Bank Education Loan Schemes
Education Loan Scheme for Studies Abroad
IDBI education loan scheme for studies abroad helps students who secure admission to recognized institutions abroad. If the IDBI bank lists the institution, the maximum loan amount can be up to INR 75 Lakhs. For other universities and courses like pilot training, the maximum loan amount is INR 30 Lakhs.
Education Loan for Studies in Premier Institutions
Under this scheme, students who secure admission to premier institutions like IIMS, IITS, ISBS, top medical institutes, the Indian Institute of Foreign Trade (IIFT), or top management colleges can apply for an IDBI education loan. The maximum loan amount is INR 40 Lakhs, or 100% of the cost of attendance. The maximum amount for colleges not listed by IDBI is INR 25 Lakhs.
Skill Loan Scheme
IDBI Bank offers education loans for skill training courses in India. The student must have secured admission in a
- Course run by Industrial Training Institutes (ITIs)
- Polytechnics
- A school recognized by the Central or State Education Boards or a college affiliated to a recognized university.
- Training partners affiliated with the National Skill Development Corporation (NSDC)/Sector Skill Councils.
- State Skill Mission
- State Skill Corporation, preferably leading to a certificate/diploma/degree issued by such organization as per the National Skill Qualification Framework (NSQF).
Education Loan for Studies in India- General Offer & Offer for CA/CS/ICWA
This scheme is for higher education in India. The maximum loan amount is INR 30 Lakhs for medical courses, INR 25 Lakhs for engineering or management courses, INR 20 Lakhs for aeronautical, pilot training, shipping courses, nursing, etc., recognized by competent regulatory bodies in India, and INR 20 Lakhs for other courses.
IDBI Bank Education Loan Interest Rates
IDBI Bank education loan interest rates are calculated as a Floating Rate of interest linked to RLLR i.e. Repo Linked Lending Rate. Currently, the interest rates range from 8.55% to 11.15%. While studying, you can repay the interest to avoid paying additional interest for the accrued interest after the moratorium period.
IDBI Bank Education Loan: Collateral Requirement
Immovable Property: Immovable property, including open/vacant plots (except Agri land/plot used for cultivation). The security coverage will be the value of immovable property to cover 1.33 times the loan amount.
Liquid collateral options: Fixed deposits with IDBI Bank (valued at face value plus accrued interest, margin 10%), LIC Policies (valued at surrender value, margin 15%), NSC/ KVP (valued at face value, margin 20%), Government Securities/ Public Sector Bonds (valued at the lower of face value or issue price, margin 30%), etc., are accepted. The liquid collateral value must cover the cost of attendance.
Eligibility Requirements for IDBI Bank Education Loans
To get funding for your degree, you must meet IDBI Bank education loan eligibility requirements. The following are the general requirements for IDBI education loans.
- Be an Indian citizen.
- Secure admission to a recognized institution in India or abroad
- Choose an eligible course for funding – MBA, MCA, MS, etc. (for abroad)
Courses eligible for abroad studies:
- MBA, MCA, or MS
- Courses conducted by CIMA- London, CPA in the USA, etc.
- Degree/diploma courses like aeronautical, pilot training, shipping, etc.
- Postgraduate studies leading to PG degrees and PG diplomas are offered by reputed
- institutes/universities only
Documents Required for IDBI Bank Education Loans
The on-time submission of documents is integral to your IDBI education loan application. The student and cosigner are required to submit documents regarding identity, financial credibility, and academic eligibility. For details, check the tables below.
From the student
| Age Proof & Proof of Identity and Address based on Officially Valid Documents as per KYC norms | Mark sheets from Class 10th onwards till the last qualifying examination, and the result of the entrance exam |
| Proof of admission is secured: Offer/Admission Letter from the institution for the course. | Schedule of expenses for the course |
| Passport-size photographs | Details of previous/existing loan, if any, from Banks/Lenders. |
| Pan Card | Aadhaar (mandatory for availing the benefit of Govt.. subsidy scheme) |
| If eligible for benefits under the Government subsidy scheme, the relevant documents are to be furnished | Security documents if applicable Any other document as specified by the Sanctioning Authority |
| Self-attested I-20 form or any document from the university for visa purposes | Self-attested valid passport |
| Self-attested copy of VISA. | Self-attested copies of travel documents are required if the borrower claims reimbursement of travel expenses. |
From cosigner
| Age proof, Proof of Identity, address, and signature as per KYC norms | Passport-size photographs |
| Details of previous/existing loan, if any, from Banks/Lenders. | PAN card |
| Employment, Business or Income Proof | Asset liability state of co-applicant /guarantor for ascertaining Net worth, if applicable |
| Depending on the profile, proof of income may be considered for calculating loan eligibility. | For availing the benefit of Government Subsidy schemes, an Income certificate/ proof from the designated officials of the respective states/Competent Authority is mandatory before sanctioningof loan. |
Application Process for IDBI Bank Education Loans
IDBI education loan application process can be online or offline, whichever is convenient for you. To apply online for IDBI education loans, follow these steps:
- Visit the official website of IDBI Bank
- Complete the application form
- Submit the documents required
- Wait for the bank’s decision
To apply offline, visit a local branch and follow the above steps. If you are eligible, the bank manager will guide you.
Conclusion: Get Started with Your IDBI Bank Education Loan Application
Ready to check your eligibility for an education loan from IDBI Bank? If you meet the requirements, the loan process can be simplified. IDBI Bank is a great choice to finance your study abroad dreams at affordable interest rates and with tax benefits.
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Frequently Asked Questions
What is the interest rate for IDBI Bank education loans?
IDBI Bank education loan interest rates change according to market conditions. The Floating Rate of interest linked to RLLR rates ranges from 8.55% to 11.15%.
Who can be the cosigner for IDBI Bank education loans?
Parents or close relatives can be cosigners for IDBI education loans. Students can negotiate with the IDBI manager for education loans if the cosigner earns a high amount. Ultimately, it’s up to the bank’s decision.
What is the maximum repayment period for IDBI Bank education loans?
Students can choose a convenient repayment plan for their IDBI education loans. The maximum repayment period is 15 years.
Is collateral security mandatory for IDBI education loans?
Generally, no collateral security is required for IDBI education loans of up to INR 7.5 Lakhs. For loan amounts above INR 7.5 Lakhs, collateral security is usually required.
How do you check the eligibility for IDBI Bank education loans?
The primary education loan eligibility requirement for IDBI education loans is that the student must have secured admission to a recognized institute. Check the official website of IDBI Bank for the accurate eligibility requirements for different schemes.
