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Pursuing higher education abroad opens doors to global opportunities, but funding such endeavors often requires careful financial planning. IDBI Bank offers education loans designed to support students chasing their academic dreams overseas. Understanding the IDBI Bank education loan interest rate and its associated terms can help you make informed decisions.
This blog explores the IDBI Bank education loan interest rate, eligibility, and other options for the bank’s education loans, ensuring you have the clarity needed to finance your international studies.
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What Are IDBI Bank Education Loan Interest Rates?
The total cost of an education loan to study abroad is greatly influenced by its interest rate. IDBI education loan interest rates are competitive, helping ease the financial burden for those studying abroad. These rates vary based on factors such as the loan amount, course type, and whether collateral is provided.
Knowing the current IDBI Bank education loan Interest rate helps you plan your finances effectively. Here are the rates:
- Floating Rates: Linked to the Repo Linked Lending Rate (RLLR), currently at 8.95%.
- Rate Range: Typically ranges from 8.55% to 13%, depending on loan specifics like amount and collateral.
- Concessions:
- 50 basis points (bps) discount for female students.
- 25 bps discount for existing bank customers, physically challenged students, or those from SC/ST categories.
- 1% interest remission during the moratorium period if interest is serviced.
- Premier Institutes: For top-tier institutes, rates start at 6M MCLR + 0.05%.
| Loan Type | Interest Rate | Conditions |
| Non-Vocational Courses (Up to INR 10 Lakhs) | 1-year MCLR + 0.85% (approx. 9.85%) | Collateral may be required for higher amounts. |
| Non-Vocational Courses (Above INR 10 Lakhs) | 1-year MCLR + 1.45% (approx. 10.45%) | Collateral mandatory. |
| Management Quota Courses | 13.50% (BR + 3.50%) | For students admitted via management quota. |
| Premier Institutes | 6M MCLR + 0.05% | Applicable to top institutes abroad and in India. |
| Physically Challenged (NHFDC Scheme) | 3.5% (female), 4% (male) | Subject to specific conditions. |
Note: Rates may vary depending on market trends and IDBI Bank’s internal policies. It is advisable to check with the bank for the latest updates before submitting your application.
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- Maximum Education Loan for Abroad Studies in 2025
- Vijaya Bank Education Loan- Interest Rate, Apply Online
Comparison of IDBI Student Loan Interest With Other Banks
For an education loan in India, choosing the right lender involves comparing the interest rate of top banks giving education loans in India with the IDBI Bank education loan interest rate to study abroad. This ensures you select the most cost-effective option for your studies abroad.
As we have already IDBI’s rates are competitive, but other factors like processing fees and repayment flexibility also matter. Here is the comparison:
| Bank | Interest Rate Range | Key Features |
| IDBI Bank | 8.55% – 13% | No processing fee for Indian studies, flexible tenure up to 15 years, subsidies available. |
| SBI | 8.15% – 11.75% | Lower rates for premier institutes, 0.50% concession for female students. |
| ICICI Bank | Repo + 3.75% onwards | Linked to repo rate, no moratorium for some loans. |
| IDFC FIRST Bank | Repo-linked, varies | Flexible tenures, tax benefits under Section 80E. |
IDBI Education Loan Amounts and Security Requirements
The loan amount you can borrow from IDBI Bank depends on the destination and course type. Security requirements also play a role in determining the IDBI Bank education loan interest rate and loan approval.
For the IDBI education loan process, understanding the loan limits and collateral needs ensures you plan your finances accurately. Here are the IDBI Bank education loan Limits:
- Up to INR 75 Lakhs for studies in the USA, UK, Canada, Australia, EU, Singapore, Japan, Hong Kong, or New Zealand.
- Up to INR 30 Lakhs for other countries or specialized courses (e.g., aeronautical, pilot training, shipping).
- Collateral:
- No collateral required for loans up to INR 7.5 Lakhs.
- For loans above INR 7.5 Lakhs, collateral (immovable property or liquid securities) is mandatory.
- Immovable property must be valued at 1.33 times the loan amount (agricultural land not accepted).
- Liquid collateral (e.g., fixed deposits, government securities) must cover 100% of the loan after margin deduction.
- Margin:
- No margin for loans up to INR 4 Lakhs.
- 10% margin for loans above INR 4 Lakhs, brought in on a pro-rata basis if disbursed in stages.
Eligibility Criteria for IDBI Bank Education Loans
Before applying, you must meet specific eligibility requirements to qualify for an IDBI Bank education loan. These criteria ensure the bank supports students with strong academic profiles and promising career prospects.
Meeting the eligibility standards can also influence the IDBI Bank education loan interest rate offered. Here are the criteria details:
- Nationality: Must be an Indian national or hold an Indian passport.
- Admission: Secured admission to a recognized foreign university via merit or entrance exam.
- Course Eligibility: Covers job-oriented professional/technical courses, postgraduate programs (e.g., MBA, MS, MCA), and courses like CIMA (London) or CPA (USA). Only examination fees and travel costs are funded for CPA/CIMA.
- Co-Borrower: A parent, guardian, or spouse must act as a co-borrower.
- Institution Recognition: Courses must be offered by reputed institutions ranked by QS, Webometrics, or similar.
Also Read:
Tips to Secure the Best IDBI Bank Education Loan Interest Rate
Getting a lower IDBI Bank education loan interest rate can ease your repayment pressure. Strategic planning and meeting specific criteria can help you qualify for concessions and better terms. Here are the tips:
- Maintain a High Credit Score: A strong credit score (of the co-borrower) can lead to lower rates.
- Opt for Collateral: Secured education loans (above INR 7.5 Lakhs) often have lower interest rates can ranging from 9% to 11%, compared to unsecured loans (11%–13%).
- Service Interest During Moratorium: Paying interest during the course period can reduce the rate by 1%.
- Choose Premier Institutes: Taking admission to top-tier institutes worldwide qualifies you for lower rates.
- Apply Early: Early applications allow time to negotiate terms and explore subsidies.
Financing your education overseas is an important step, and IDBI Bank’s education loans offer a reliable solution with competitive interest rates and flexible terms. By understanding the IDBI Bank education loan interest rate, eligibility criteria, and other options, you can make informed decisions to support your academic journey.
FAQs
The IDBI Bank education loan interest rate for international studies ranges from 8.55% to 13%, linked to the Repo Linked Lending Rate (currently 8.95% ). Rates vary based on collateral, loan amount, and course type, with lower rates (e.g., 6M MCLR + 0.05%) for premier institutes.
IDBI Bank’s education loan covers expenses like tuition fees, travel expenses, accommodation, examination fees, books, and other related costs. This comprehensive coverage ensures students can focus on their studies without financial strain.
To qualify for an IDBI Bank education loan abroad, you must be an Indian national with secured enrollment at an accredited international university via merit or entrance exam. Eligible courses include job-oriented professional/technical programs, postgraduate degrees (e.g., MBA, MS), and specific courses like CIMA or CPA. A co-borrower (parent, guardian, or spouse) is required.
For IDBI Bank education loan above INR 7.5 Lakhs, collateral such as immovable property (valued at 1.33 times the loan amount) or liquid securities (covering 100% of the loan after margin) is mandatory. Loans up to INR 7.5 Lakhs do not require collateral.
You can secure a lower rate by providing collateral, maintaining a high credit score (for the co-borrower), servicing interest during the moratorium period (1% remission), or gaining admission to premier institutes. Female students and specific categories (e.g., SC/ST, physically challenged) may also qualify for concessions of 25–50 basis points.
IDBI Bank offers up to INR 75 Lakhs for studies in countries like the USA, UK, Canada, Australia, the EU, Singapore, Japan, Hong Kong, or New Zealand. For other countries or specialized courses (e.g., aeronautical, pilot training), the limit is INR 30 Lakhs.
The repayment tenure for IDBI Bank education loan can extend to 15 years for loans above INR 7.5 Lakhs and 10 years for loans up to INR 7.5 Lakhs or management quota admissions. A moratorium period (course duration plus 1 year or 6 months after employment) applies, with simple interest charged during this time.
Yes, the interest paid on an IDBI Bank education loan is fully deductible under Section 80E of the Income Tax Act, with no upper limit on the deduction amount. This benefit applies throughout the repayment period, reducing your tax liability.
IDBI Bank typically processes education loans within 15 days, depending on document verification and loan complexity. Submitting accurate documents, such as admission proof and KYC, ensures faster approval.
Yes, IDBI Bank allows prepayment of education loans without any penalty. This flexibility lets you clear the loan early, potentially saving on the total interest paid based on the IDBI Bank education loan interest rate.
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