IDBI Education Loan

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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 an 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 Rs. 20 lacs
Processing Fee No Processing Fee
Loan repayment 15 years
Loan collateral  Up to Rs. 4 lacs no collateral
Rs. 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 Industrial Development Bank of India is a government-owned financial service bank which is headquartered in Mumbai. It is one of the tenth largest bank of development and has 1,853 branches with 1 international branch in Dubai, 3,350 ATMs and 1,382 centres. 

This bank endows to the worthy meritorious candidates, who aspire to study abroad or within the country, with a scheme of education loan. 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. These above reasons make it easier for the students to opt for the loan 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 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 through securing a good position on the entrance test or through the 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 this loan amount. 

Check out Loans by Government
Education Loan by Delhi Government
Education Loan Scheme by Narendra Modi
Education Loan for Abroad Studies by Indian Government

IDBI Education Loan for Study Abroad

The bank grants loans to students that wish to pursue their studies from 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 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 is, 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, 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%

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

Application Form

If you want to apply for an IDBI education loan, here is a stepwise procedure to apply. You can also fill 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)

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, bank deposit in the name of a 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 loan. 
  • The Bank is also ready to accept other substantial security with a margin if the bank finds it suitable. 

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 username & password
  • Click on the enquires tab, 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 username & password
  • Click on the enquires tab, 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. 

Also Check Out

Other Funding Options

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

FAQs

Can I get an education loan without collateral?

Loans up to Rs. 4 lacs don’t require any collateral.

Which bank is the best for education loans abroad?

Some of the best banks for education loans abroad are Axis Bank, HDFC Bank, PNB & Bank of Baroda

Which bank has the lowest interest rate on education loans?

PNB, SBI, HDFC has the lowest interest rate on education loans.

Can I download the IDBI Education loan certificate & loan statement?

Yes, You can download both from the net banking portal.

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 the different loans or for any career assistance or guidance, the experts of Leverage Edu are just a phone call away. Call us at +91-8826200293 to set your career in the right direction.

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