IDBI Bank Education Loan

✓ Collateral and Non-collateral Education Loan

✓ At starting interest rate of 9% P.A.

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Table of content

  1. Education loan products of IDBI Bank
  2. IDBI Bank Education Loan Schemes for Abroad Studies
  3. IDBI Bank Education Loan Scheme for Study in India
  4. IDBI bank Education Loan Processing fee
  5. Documents Required for IDBI Bank Education Loan
  6. IDBI Bank Education Loan Insurance
  7. IDBI Bank Loan Margin Calculation
  8. How to apply for an Education Loan from IDBI Bank?
  9. Why and How to Transfer your Education Loan to IDBI Bank?
  10. IDBI Bank Education Loan EMI Calculation as per Interest Rate
  11. IDBI Bank Education Loan Repayment process
  12. Interest Subsidy Schemes by the Government
  13. FAQ's
  14. Need Help? Ask Here!

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IDBI Bank is a government owned development finance institution, regulated by the Ministry of Finance, government of India. It provides education loans to students for their higher education in India and abroad as well.

Education loan products of IDBI Bank

IDBI Bank offers education loans of upto Rs 30 lacs at interest rates starting from 9% per annum. Therefore, it offers the following education loan products:

  • IDBI Bank education loan scheme for study abroad
  • IDBI Bank education loan scheme for study in India

Let’s understand each product in detail.

 

IDBI Bank Education Loan Schemes for Abroad Studies

IDBI Bank education loan schemes for students to study abroad are quite popular, let's see why? The following are the schemes for abroad studies:

Education Loan scheme for Non-Vocational Courses

It is a collateralized education loan scheme, IDBI Bank offers education loans to students in exchange for the following securities:

  • Immovable property - House, Flat, Non-agricultural land
  • Liquid Security - Govt. securities/ Public Sector Bonds, KVP, LIC policy, NSCdebentures, Fixed Deposits with IDBI bank

Loan Parameters 

Details

Loan Limit

Upto Rs. 30 Lakh

Expenses covered

    • Tuition fees
    • Examination fees
    • Cautionary deposit
    • Insurance deposit
    • Travel Expenses
    • Purchase of Books and stationeries
    • Purchase of a Laptop or computer

Accepted co-applicant

Parents, Parents in law, Siblings, Spouse

IDBI Bank Education loan interest rate/interest rates

  • For collateralized education loans 9-11%
  • For non-collateralized education loans 11-13%

Moratorium Period

Course duration + 12 months

Repayment Duration

Upto 15 years after the moratorium period

Eligibility Criteria

The student should have secured admission to the university abroad through an entrance exam

Value of Collateral (only if it is a collateralized education loan)

    • The immovable property value should be a minimum of 133% of the required loan
    • Liquid securities should be at least 110% of the required loan

 

Eligible courses under the Education Loan scheme for Non-Vocational Courses

  • Graduation in job-oriented technical and professional courses which are conducted in prestigious universities
  • Post-graduation courses like MBA, MCA, MS, etc. Approved Post Graduate Diploma courses
  • Courses conducted by CPA in the USA etc, CIMA- London are also eligible

Education Loan to Physically Challenged Persons under NHFDC

Loan Parameters 

Details

Loan Limit

Maximum upto 20 lacs

Expenses covered

    • Course fees
    • Cautionary deposit
    • Travel Expenses
    • Examination fees
    • Books and stationeries purchasing cost
    • Purchase of a Laptop or computer

Accepted co-applicant

Parents, Siblings, Parents in law, Spouse

IDBI Bank Education loan interest rate/rate of interest

    • For collateralized education loans 9-11%
    • For non-collateralized education loans 11-13%

Moratorium Period

Course duration + 12 months

Repayment Duration

Upto 15 years after the moratorium period

Eligibility Criteria

    • Applicants must be Indian citizens.
    • Physical disability of 40% or more as certified in a prescribed format by a competent medical officer, will only be considered acceptable.

Value of Collateral (only if it is a collateralized education loan)

    • For immovable property - The collateral value should be 1.33 times the asked education loan
    • For liquid security - collateral value should be at least 1.1 times the asked education loan

 

NOTE: Students are eligible for governments interest subsidy schemes, under Guidelines for Education Loan to Physically Challenged Persons under NHFDC education loan scheme by IDBI Bank

Get one step closer to your dreams by checking your loan eligibility with us today.

IDBI Bank Education Loan Scheme for Study in India

IDBI Bank has a variety of schemes specially designed for students to study in India. The following are those schemes:

Education Loan scheme for Non-Vocational Courses

Loan Parameters 

Details

Loan Limit

Maximum upto Rs.20 Lakh 

(May offer more, depending on a loan profile)

Expenses covered

    • Tuition fees
    • Travel Expenses
    • Hostel and mess charges
    • Cautionary deposit (refundable or non-refundable)
    • Examination fees
    • The purchase cost of equipment & uniform
    • Laptop or computer purchasing cost
    • Purchase of Books and stationeries

Accepted co-applicant

Parents, Parents in law, Siblings, Spouse

IDBI Bank Education loan interest rate/rate of interest

    • For collateralized education loans 9-11%
    • For non-collateralized education loans 11-13%

Moratorium Period

Course duration + 12 months

Repayment Duration

Upto 15 years after the moratorium period

Eligibility Criteria

The student should have secured admission to a university in India through an entrance exam

Acceptable Collaterals

    • Immovable property - House, Flat, Non-agricultural land
    • Liquid Security - Public Sector Bonds, Govt. securities NSC, LIC policy, KVP, Fixed Deposits and debentures with IDBI bank

Value of Collateral (only if it is a collateralized education loan)

    • The immovable security value should be 1.33 times the asked education loan
    • The value of liquid security should be 1.1 times the asked loan amount

 

Eligible courses under the Education Loan scheme for Non-Vocational Courses 

  • Professional degrees/ Technical postgraduate diplomas/ degrees offered by recognized institutions. 
  • Approved courses for postgraduate degree/ graduate and PG diplomas 
  • Diploma courses in technical streams (generally of 3 years) are offered by approved polytechnic colleges after the 10th standard.
  • Approved courses offered by reputed foreign universities in India. 

Education Loan scheme for Management Quota

Loan Parameters 

Details

Loan Limit

Maximum up to Rs 10 lacs

Expenses covered

    • Tuition fees
    • Cautionary deposit
    • Travel Expenses
    • Hostel and mess charges
    • Examination fees
    • Purchase of Books and stationeries
    • Purchase of a Laptop or computer

Accepted co-applicant

Parents, Parents in law, Siblings, Spouse

IDBI Bank Education loan interest rate/rate of interest

    • For collateralized education loans 9-11%
    • For non-collateralized education loans 11-13%

Moratorium Period

Course duration + 12 months

Repayment Duration

10 years after the moratorium period

Repayment policies

    • Applicant should be Indian and residing in India
    • Applicant should have secured admission under management quota only

Loan Margin

15% of the loan amount

Acceptable Collaterals

    • Immovable property - House, Flat, Non-agricultural land
    • Liquid Security - Public Sector Bonds/ Govt. securities, KVP, debentures, NSC, LIC policy, Fixed Deposits with IDBI bank

Value of Collateral (only if it is a collateralized education loan)

    • An immovable property of at least 1.25 times the asked loan amount
    • Liquid security of at least 1.1 times the asked loan amount

Processing Fee

1% of the loan amount or minimum of 1,000 plus taxes.

Education Loan scheme for Specialized Courses

Loan Parameters 

Details

Loan Limit

Maximum upto 15 lacs

Expenses covered

    • Tuition fees
    • Cautionary deposit (both non-refundable & refundable)
    • Travel Expenses
    • Examination fees
    • Hostel & Mess fees
    • Purchase of Books and stationeries
    • Purchase of a Laptop or computer

Accepted co-applicant

Parents, Parents in law, Siblings, Spouse

IDBI Bank Education loan interest rate/rate of interest

    • For collateralized education loans 9-11%
    • For non-collateralized education loans 11-13%

Moratorium Period

No moratorium Period

Repayment Duration

Up to 7 years

Repayment policies

Interest servicing (Pre-EMI) option during the course period is available to repay the loan

Eligibility Criteria

The student should be an Indian national and must have secured admission to a reputed institute in India

Value of Collateral (only if it is a collateralized education loan)

    • In the case of immovable property - The minimum value should be 1.33 times the asked education loan
    • In the case of liquid security - The minimum value should be 1.1 times the asked education loan

 

Eligible courses under the Education Loan scheme for Specialized Courses

  • Courses of skill enhancement and career advancements like .net, SAP, and C-DAC are also job oriented.
  • Management programs for working professionals and executives, etc.

Education Loan to Physically Challenged Persons under NHFDC

Loan Parameters 

Details

Loan Limit

Maximum upto 10 lacs

Expenses covered

    • Tuition fees
    • Cautionary deposit
    • Travel Expenses
    • Examination fees
    • Purchase of Books and stationeries
    • Purchase of a Laptop or computer

Accepted co-applicant

Parents, Parents in law, Siblings, Spouse

IDBI Bank Education loan interest rate/interest rates

    • For collateralized education loans 9-11%
    • For non-collateralized education loans 11-13%

Moratorium Period

Course duration + 12 months

Repayment Duration

Upto 15 years after the moratorium period

Eligibility Criteria

    • Applicants must be Indian citizens.
    • Physical disability of 40% or more as certified in a prescribed format by a competent medical officer, will only be considered acceptable.

Value of Collateral (only if it is a collateralized education loan)

    • In the case of immovable property - The minimum value should be 1.33 times the asked education loan
    • In the case of liquid security - The minimum value should be 1.1 times the asked education loan

IDBI bank Education Loan Processing fee

IDBI bank usually does not charge any processing fee to process student loans, however, they charge a processing fee of 1% of loan amount or a minimum of Rs 1,000 plus tax under the Education Loan scheme for Management Quota.

However, WeMakeScholars does not charge anything from students, to process their education loan in a hassle-free and convenient way. We are funded and supported by the Ministry of Electronics and Information Technology, Government of India under the Digital India Campaign, and that is why all our premium loan sanctioning services are totally free of cost. Request a callback or fill the common application form to get in touch with your financial officer at WeMakeScholars to get your education loan sanction process started at the earliest.

Documents Required for IDBI Bank Education Loan

A loan application process is considered to start only when the documents of the applicant are submitted. Here is the list of documents to be submitted to the IDBI Bank to start your education loan process.

Address proof of the applicant :

  • Driving license
  • Voter id card
  • Notarized rental agreement
  • Gas bill and electricity bill
  • Valid passport
  • Updated passbook or bank account statement

Academic history of the applicant :

  • Entrance examinations like CAT, IELTS, GRE, TOEFL etc must be cleared by students, also they must provide their report cards.
  • S.S.C, H.S.C, and Graduation Result

Income proofs of the financial co-applicant :

  • KYC documents
  • ITR proofs
  • Bank Statement / Pass Book of last 6 months

Admission proof

  • Proof of admission in the institute along with fees payment schedule
  • Conditional offer letter provided by the university.

Students who process their education loan with WeMakeScholars are given a comprehensive document checklist after their loan profile analysis, they have to submit the listed documents in their nearest IDBI Bank’s branch, to avoid going to the bank students can also upload their documents on WeMakeScholars documents portal, and the bank can access the documents directly from the portal itself. It is completely safe and secure.  

To promptly begin your loan application process with IDBI bank, fill out the common application form or ask for a callback to contact your financial officer.

Get a document list that works for you - contact us to get started.

IDBI Bank Education Loan Insurance

IDBI bank education loan insurance amounts upto 1-2% of the total loan amount. Taking a loan insurance is in the benefit of students and the banks both, as it lessens the risk in loan repayment for both the parties. In case of any mishap with the student resulting in death, the burden of repaying the loan will not rest on the student's parents or co-applicant, if loan insurance is taken.

IDBI Bank has made it voluntary for students to take education loan insurance. However, we suggest students to take loan insurance along with the loan amount, to avoid any kind of risk. For more information about the loan insurance get in touch with your financial officer at WeMakeScholars, to get the best education loan deal with loan insurance.

IDBI Bank Loan Margin Calculation

The percentage of loan margin for education loans taken to study in India lies in between 0-5% of the loan amount, however the loan margin in the Education Loan scheme for Management Quota is 15% of the loan amount.

While the percentage of loan margin for education loan taken to study abroad is 15% of the total loan amount.

If in case, your loan requirement is more, subsequently your loan margin will also be high. But don’t worry, you can get your loan margin reduced by applying some technical strategies which you will get to know from your financial officer at WeMakeScholars, Request a callback or fill the common application form to get in touch with them.

How to apply for an Education Loan from IDBI Bank?

Offline application process

  • Visit the nearest IDBI Bank branch, and enquire about the loan products from the loan officer
  • Gather the documents, as told by the loan officer and also fill out the loan application form.
  • Visit the bank again to submit the application documents, to get your education loan process started.

Online application process via WeMakeScholars

Step 1: Contact WeMakeScholars by Requesting a callback or filling a common application form

Step 2: Provide your education loan details to your assigned financial officer over a call

Your financial officer will analyze your loan profile and suggest you the best lenders to take an education loan. 

Step 3: Choose the best lender as per your eligibility and tell your financial officer.

Step 4: According to the document checklist provided by your financial officer, submit all the documents in the bank or upload them on WeMakeScholars documents portal, to start your education loan process.

Step 5: Your financial officer will take care of everything else, if required take follow ups from them from time to time.

Step 6: Collect your education loan sanction letter from your lender bank within 15 -20 working days after submitting your documents.

If you approach the bank directly to get your education loan sanctioned you are sure to face the following issues:

  • Misleading information about education loan products
  • Improper information about eligibility for education loan
  • Unavailability of correct information
  • Missing list of required documents
  • Lots and lots of documentation
  • Multiple visits to the banks, delaying the process
  • Partiality in legal and valuation reports
  • Disbursement issues after loan sanction

To jump over all the hurdles in your education loan application process, visit WeMakeScholars and apply online for an education loan. Here are the benefits of processing your education loan via WeMakeScholars:

Better Interest rates: Banks offer lower interest rates if the loan application is via WeMakeScholars, as we are their largest partner. The interest rates through WeMakeScholars are 0.5% to 2% lower than the bank’s average. 

Minimal Processing time: We keep a deadline of processing your education loan in 21 days from government banks and 7 working days from private banks and NBFCs after your documents are submitted in the banks, which is almost 50% less than the usual education loan processing time.

Tax benefits: We make sure that you save maximum tax by informing you about the tax saving schemes of the government of India like Section 80E, 80C, etc of the Income tax department, along with the tax collected at source (TCS).

Expert Advice: Your financial officer will analyze your loan profile from all perspectives and guide you to choose the best lenders as per your eligibility and bank policies.

End-to-end support: Not just while sanctioning your education loan, WeMakeScholars team stays with you at the time of disbursement and repayment, even when you are in a 12 hrs different timezone.

Negotiation support: We go an extra mile, to negotiate with the lenders in terms of rate of interest and loan conditions, on your behalf, if there is any scope.

Online application process: Our online education loan application process makes it easy for you to apply for an education loan from the comfort of your home. Moreover, the WeMakeScholars documents portal reduces the stress of going multiple times to the bank just to submit the documents.

Free of cost services: We are funded and supported by the IT Ministry, under the Digital India Campaign and therefore all our premium loan sanctioning services are entirely free of cost for all students.

Cashback offer: You can get up to Rs 3,000 as cashback at the time of your disbursement from us. 

We are the leading education loan processing partner and have helped thousands of students in getting their education loan sanctioned within their deadline by offering our above-mentioned premium services. Request a callback, or fill a common application form, to connect to 10+ public and private banks in India, so that you can compare and get the best education loan deal.

Find out how much you could save on your education loan - apply through WeMakeScholars and let us negotiate on your behalf.

Why and How to Transfer your Education Loan to IDBI Bank?

IDBI bank helps students to save their or their parents hard earned money, by transferring their running education loan from their current lender to IDBI bank, where students can get:

  • The cheaper interest rate on education loan
  • Easy repayment conditions
  • Good serviceability
  • Convenient customer service
  • Wide coverage of education loan products
  • Student-friendly bank policies

But how to transfer your education loan to IDBI Bank?

As we are partnered with 14+ public and private banks along with NBFCs in India, we provide assistance in transferring education loan from any bank to IDBI bank, to transfer your education loan follow the below-mentioned steps:

  • Collect proof of the amount outstanding from your current lender. 
  • Contact WeMakeScholars by requesting a callback, stating that you wish to transfer your loan.
  • Submit your documents to the IDBI Bank as instructed by your Financial Officer.

IDBI Bank Education Loan EMI Calculation as per Interest Rate

IDBI bank has its own education loan EMI calculator, which gives insight to students about their education loan repayment statistics. But still, we suggest you to use WeMakeScholars education loan EMI calculator, as it is more advanced, accurate, and convenient to use. 

WeMakeScholars education loan EMI calculator has the following advantages:

  • Bull’s eye accuracy - The EMI calculator is the most accurate, as it takes into account even the minor parameters while calculating the EMI amount.
  • Detailed analysis - The calculation results display a detailed analysis of the repayment process till the repayment of final EMI is done.
  • Free of cost - WeMakeScholars education loan EMI calculator is free of cost, like other premium services of WeMakeScholars.
  • Futuristic approach - The results help students to decide and align their loan parameters according to their financial capabilities.
Why pay more for your education loan? Choose WeMakeScholars and let us negotiate on your behalf to help you save.

IDBI Bank Education Loan Repayment process

Repayment of an education loan is the most satisfying step of the entire education loan journey. The IDBI Bank education loan repayment process is simple and can be completed in a duration of a maximum of upto 15 years after the moratorium period. 

If suppose a student has taken an education loan of Rs 75 lacs, at 11% for a duration of 15 years, then the following will be the repayment schedule

Repayment Cycles

EMI

Interest portion

Principal portion

Loan Outstanding

Start of loan EMI

96966

78203

18763

8512487

End of year 1

96966

76222

20744

8294391

End of year 2

96966

73822

23144

8030122

End of year 3

96966

71143

25823

7735273

End of year 4

96966

68155

28811

7406305

End of year 5

96966

64821

32145

7039268

End of year 6

96966

61102

35864

6629758

End of year 7

96966

56951

40015

6172861

End of year 8

96966

52321

44645

5663092

End of year 9

96966

47155

49811

5094332

End of year 10

96966

41391

55575

4459757

End of year 11

96966

34959

62006

3751749

End of year 12

96966

27784

69182

2961812

End of year 13

96966

19778

77187

2080464

End of year 14

96966

10846

86119

1097127

End of year 15

96966

881

96085

0

 

Most of the students do not know that they can choose to repay their education loan earlier than the repayment period and save a lot of money and effort over time by applying the following repayment strategies:

  • Opting for shorter repayment periods
  • Part Payment or Prepayment
  • Considering transferring your education loan

Tip - We suggest students pay a little extra amount like Rs 5,000 to Rs 10,000 to the bank while paying the last EMI so that they do not have to pay any extra amount as a penalty if the loan is not closed on the same day.

The process of education loan sanctioning is full of twists and turns, you never know which is the right way, therefore, it is better to hold on to someone experienced. With our vast experience in processing thousands of education loan files, we are familiar with each step of this journey, and that is why invite you to become a part of it. 

Take advantage of our best-in-class education loan sanctioning services by requesting a callback or filling up the common application form.

Count on our post-sanction assistance to provide a smooth and quick education loan disbursement process.

Interest Subsidy Schemes by the Government

Central Government Interest Subsidy Scheme (CSIS)

The scheme is launched and regulated by the central government of India, and provides interest subsidy on education loans of up to 7.5 lacs to eligible students. However, the total loan amount may be more than 7.5 lacs.

Eligibility criteria for CSIS

  • Only Indian students are eligible
  • Only for study programs in India
  • Students should belong to the Economically Weaker Section of society with a family income less than 4.5 lacs 

Note: The scheme has been stopped by the government, so students cannot apply anymore. However, the students who have already applied before 31st march 2022 will continue to receive interest subsidy for the moratorium period.

Padho Pardesh Scheme

Under this scheme, education loan interest subsidy is provided to eligible students of notified minority communities in India, who belong to EWS for a loan amount of up to 7.5 lacs for their studies abroad. However, the loan amount can be higher than that.

Eligibility criteria for Padho Pardesh Scheme

  • Only Indian students are eligible
  • Only for study programs abroad
  • The student’s gross family income cannot be more than Rs 6 LPA

Dr. Ambedkar Center Sector Scheme of Interest Subsidy on Education Loans for Overseas studies for OBC and EBC

There is no need to pay any interest on the taken education loan of up to 7.5 lacs for students who are eligible under Dr. Ambedkar's interest subsidy scheme.

Eligibility criteria for Dr. Ambedkar's interest subsidy scheme

  • Students must be able to produce their caste certificate when asked.
  • Applicant’s annual family income should not be more than Rs 8 LPA
  • Students must be able to produce income certificates when required.
  • Admission  must be secured by students in approved courses at Ph.D., Masters, or MPhil levels abroad

Education Loan FAQs

  • What is the interest rate for an education loan from IDBI bank?

    IDBI bank offers education loans with collateral at an interest rate ranging from 9% to 11%, and without collateral in the range of 11% to 13%. However, if students apply for their education loan in IDBI Bank through WeMakeScholars, then they will surely get a concession on their effective rate of interest.

  • Does IDBI bank give education loans without collateral?

    Yes, IDBI Bank offers education loans without collateral at an interest rate ranging from 11% to 13%. However the maximum amount which a student can get as a non-collateralized education loan depends on the other parameters of the student's loan profile.

  • Does IDBI bank offer education loans to students for abroad studies?

    Yes, IDBI bank offers education loans to study abroad students, provided they are Indian nationals primarily and have secured admission in the foreign university. A proof of the admission will be required at the time of documents submission, to process the education loan. For more details, ask your financial officer at WeMakeScholars.

NEWS

IDBI Bank Announces Adjustments to MCLR Rates

IDBI Bank has recently updated its Marginal Cost of Funds Based Lending Rate (MCLR) rates, as reflected on its official website. The changes in MCLR rates across various tenors are as follows:

  • The overnight MCLR has been reduced to 8.30 percent.
  • For one month, the MCLR now stands at 8.45 percent.
  • MCLR for three months has been set at 8.75 percent.
  • The six-month MCLR rate is 8.95 percent.
  • MCLR has been lowered to 9 percent for one year.
  • For a two-year tenure, the MCLR rate has been revised to 9.55 percent.
  • Additionally, the MCLR rate for three years has been reduced to 9.95 percent.

These adjustments align with IDBI Bank's strategic approach to interest rate management and are aimed at providing competitive loan offerings to customers. Borrowers are encouraged to review these revised rates to understand their implications on existing and prospective loans.

Our Education Loan team will help you with any questions

Ajay Kumar
WeMakeScholars- supported by IT Ministry, Govt. of India.
Published: | Updated: