IDBI Education Loan

Every individual is not awarded the same means of making the most of the opportunities that come their way. This is why those in a position to help, introduce ways of helping out those who lack the monetary aspect of the support system needed to achieve their dreams. While gaining a scholarship is not easy, there are other ways that can help you achieve your study abroad goals. This is exactly how different education loans play a huge role in the lives of meritorious students who are held back by their need for funds for education. This blog provides insight into one such education loan, i.e. the IDBI Education Loan. Let us have a look at why the IDBI Education Loan is necessary. 

Maximum Loan Limit	INR 20 lacs
Processing Fee	No Processing Fee
Loan Repayment	15 years
Loan Collateral	Up to INR 4 lacs no collateral INR 4 Lacs to 7.5 Lacs – Third-party guarantee Above Rs.7.5 Lacs – 100% loan amount tangible collateral
Interest Rate	9 – 12 %

About IDBI Education Loan

Previously known as the Industrial Development Bank of India is a government-owned financial service bank that is headquartered in Mumbai. It is one of the tenth largest banks of development and has 1,853 branches with 1 international branch in Dubai, 3,350 ATMs, and 1,382 centres. 

This bank endows worthy meritorious candidates, who aspire to study abroad or within the country, with a scheme of education loans. The education loan aims to provide students aspiring for higher studies through recognized institutions with financial stability. The different scheme options help students to cover whatever portion of their educational finance they need to be covered. The above reasons make it easier for students to opt for loans for a better and brighter future built on a strong financial base. 

IDBI Bank Education Loans

There are 4 kinds of loan schemes that come under the Bank schemes, which are: 

• Loans for vocational education/ courses 
• Loan for non-vocational courses 
• Education Loan under Financial Inclusion Programme (FIP)
• Loan for other students who receive admission to their desired institute from the management quota. 

To avail of this loan, there are certain requirements the candidate needs to fulfil and one of the requirements is that the student has to be of Indian nationality. The candidate should have secured admission by securing a good position on the entrance test or through merit-based selection, after the completion of secondary and senior secondary classes. For those candidates who have secured their admission through the management quota by scoring extra marks above the standard marks required for the management quota, the loan is available. The candidates need to fulfil the general/ST/SC/OBC specifications to avail of this loan amount. 

Check out Loans by the Government:

• Education Loan by Delhi Government
• Education Loan Scheme by Narendra Modi
• Education Loan for Abroad Studies by Indian Government

Eligibility

Evidence of TOEFL, GMAT, GRE, and a 1-20 admit card are required for international universities:

• In the +2 stage for graduate courses, at least 75%.
• First-class graduates for postgraduate coursework.
• At foreign universities, the applicant’s age cannot exceed 35;
• For Indian universities, it cannot exceed 30.
• The parent(s) or guarantors’ age should be under 55.
• The family’s annual income must be at least Rs. 3 lac.

IDBI Education Loan for Study Abroad

The bank grants loans to students that wish to pursue their studies at foreign universities. However, the loan depends on the university. All the universities are not covered by IDBI education loans. Here is the list of courses & universities.

Undergraduate Courses	Job-oriented professional/ technical courses from recognized institutions
Postgraduate Courses	Courses accredited as Post Graduate Diploma courses such as MCA, MBA, MS, etc.
Courses in UK & USA	Accredited by CIMA- London & CPA in the USA
Special Courses	Aeronautical, pilot training, shipping, etc from recognized institutions.

IDBI Education Loan Amount 

The amount loaned by the IDBI Education Loan depends thoroughly on the income of parents as well as the students (after they finish their studies) and on the repaying capabilities of both. The maximum loan amount that can be availed, however, for studying in India is around Rs. 10 lakh and for studying outside India is Rs. 20 lakhs. 

IDBI Education Loan Interest Rate

IDBI Education Loan Interest Rate depends on courses. The interest rate is different for vocational, and non-vocational courses. Here is the list of IDBI Education Loan Interest Rates.

Non-Vocational Courses	8 – 9%
Vocational/ Skill Development Courses	9 – 10%
Premier Education Institutes courses	7 – 8%

Application Form

If you want to apply for an IDBI education loan, here is a stepwise procedure to apply. You can also fill out the IDBI Loan Form offline. 

• Visit the official website of the IDBI.
• Click on the “Apply Now” option.
• Select the Education Loan option from the list.
• You will be redirected to a new page & you can start filling in all the required details.
• Submit the IDBI Education Loan Form. 

Click Here to apply for IDBI Education Loan Application Form (Online)
Click Here to download the IDBI Education Loan Application Form (Offline)

Documents Required

For applying for an education loan there are some important documents required. Here is the list of documents required

• Address proof
• Identification card
• Application form
• Passport-size photographs
• Admission Letter
• Income proof of the guarantor
• Collateral Security documents
• GRE/IELTS/TOEFL/GMAT Score
• 10th and 12th exam mark sheets

Repayment Details 

The repayment period for the IDBI Education Loan of Rs. 7.5 lakhs is up to a period of 10 years and for amounts above Rs. 7.5 lakhs the repayment period is about 15 years. According to the IDBI rule, the moratorium period is the duration of courses and an added year or 6 months after getting a job. For security reasons: 

• Loans between Rs.4 lakhs- Rs. 7.5 lakhs requires the guarantee of a third party.  
• A loan amount above 4 lakhs does not require any kind of security. 
• For loans above Rs. 7.5 lakhs, IDBI accepts: 
• Units of NSC, UTI, KVP, LIC, mutual funds, gold, Government securities, debentures, share, and bank deposits in the name of the closest family member which needs to be 1.1 times according to the set bank margins. 
• Land or building which is not agricultural kind and should be at least 1.33 times the amount of the loan. 
• The Bank is also ready to accept other substantial security with a margin if the bank finds it suitable. 

EMI Payment Methods

Here are the ways you can make EMI Payments: 

• Standing Instruction: This type of EMI is the best for you if you have an existing account at the company. The EMI account will be automatically debited from your account every month. 
• Electronic Clearing Service: This type of EMI is good for those who do not have an IDBI Bank and would like their EMI to be debited automatically at the end of every monthly cycle. 
• Post-Dated Cheque: You can submit post-dated cheques from a non-IDBI bank account at your nearest IDBI Bank loan centre. 

IDBI Education Loan Statement

If you need a loan statement you don’t have to visit the branch, you can simply download the IDBI Education Loan statement at home. Here are the steps to download:

• Visit the net banking portal or the official website of IDBI bank
• Login to your account using your username & password
• Click on the enquires tab, and from there you can select your loan statement
• Download & take a printout for the same.

IDBI Education Loan Certificate

You can download your educational loan certificate from the net banking portal or the official website. Here are the steps to download the certificate:

• Visit the net banking portal or the official website of IDBI bank
• Login to your account using your username & password
• Click on the enquires tab, and from there you can select provisional educational loan certificate.
• Download & take a printout for the same in case you need a hard copy.

Contact Number

In case of any query or doubts, you can reach IDBI bank by contacting them at their 24 x 7 Toll-Free number 1800-209-4324. 

The following Loan can also be useful:

• ICICI Education Loan
• Bank of Baroda Education Loan
• Allahabad Bank Education Loan
• The PNB Education Loan Program
• Canara Bank Education Loan
• HDFC Education Loan
• Vijaya Bank Education Loan
• Syndicate Bank Education Loan
• Avanse Education Loan
• IOB Education Loan
• Axis Bank Education Loan
• Allahabad Bank Education Loan
• SBI Education Loan

Other Funding Options

You can also look for several scholarship options such as HDFC Scholarship, Canara Bank Scholarship, and Inspire Scholarship amongst others. that provide funding for studies in India and abroad. These have been given a run-down below.

• Inspire Scholarship
• DCE Scholarship
• Canara Bank Scholarship
• Moma Scholarship
• MHRD Scholarship
• JK Scholarship
• Santoor Scholarship
• Punjab Scholarship
• Indira Gandhi Single Girl Child Scholarship
• Ishan Uday Scholarship
• Oasis Scholarship
• Dr Ambedkar Scholarship
• NEC Scholarship
• Aditya Birla Scholarship
• Vidyasiri Scholarship
• GP Birla Scholarship
• Abdul Kalam Scholarship
• Siksha Abhiyan Scholarship
• HDFC Scholarship

FAQs

Hopefully, this blog has given you a better understanding of the IDBI Education Loan. There are numerous other Loan schemes available with different other banks as well as non-financial centres, that are dedicated to helping the less fortunate students in pursuing their chosen course. For further guidance on how to apply for different loans or for any career assistance or guidance, the experts of Leverage Edu are just a phone call away. Call us at 1800 57 2000 to set your career in the right direction.