IDFC First Bank Education Loan

Private banks are one of the largest givers of education loans in India. They are known for their collateral-free loans, faster processing, and flexible rules. The most famous private banks in India that give education loans are - ICICI, Axis, HDFC, Kotak-Mahindra, and IDFC First Banks. 

IDFC First Bank is a private sector bank in India that was formed due to the merger between IDFC Bank and Capital First in December 2018. The merger aimed to create a combined entity that could offer a comprehensive range of banking and financial services.

It recently started giving out education loans, beginning its services in March 2022. This bank gives a greater preference to the academic performance of the students and the ranking of the university they choose to go to to decide the loan amount, unlike other banks which heavily focus on collateral value or financial co-applicants’ income rather than students’ profile. This is beneficial to students because it encourages their abilities and makes them feel supported in their dreams. Let us know more about their education loan.

IDFC First Bank provides the following types of study loans. They are:

• Secured loans
• Unsecured loans
• Study in India loans
• Study abroad loans

Let us know the definitions of each of the words.

Secured loans: Secured loans are the ones where you pledge collateral against the loan. The collateral can be immovable property like houses, plots, and agricultural lands or liquid security such as fixed deposits, term life insurance, or government bonds.

Unsecured loans: Unsecured loans do not require you to pledge any collateral for the education loan. The financial co-applicant's income and academic profile are thoroughly evaluated before giving out an unsecured loan.

Study in India loans: IDFC First Bank gives education loans to pursue studies in India. They have loan products for higher education and for school education as well.

Study abroad loans: This loan product is for students who wish to pursue higher studies in foreign countries. 

As said earlier, IDFC First Bank gives a higher priority to students' dreams. They offer an education loan for the following courses so that the student can choose their course of choice.

IN INDIA:

• A loan is given to finance school fees. 
• Undergraduate studies from UGC and government-recognized colleges.
• Masters or Ph.D. courses.

ABROAD:

• Undergraduate courses.
• Masters degrees.
• Postgraduate degrees.
• STEM courses- Science, Technology, Engineering, Mathematics. 
• Management courses.

IDFC First Bank is so versatile with the courses it funds. In addition to the courses mentioned above, it also funds education for executive, part-time, vocational, and diploma courses.

To avail of an education loan from IDFC Bank, you will need to meet some eligibility criteria. 

Let us see what parameters you should fulfill.

Insider tip: If you chose to study abroad, and picked your course and university but still need to get your admission letter, IDFC Bank can still sanction you a loan.

Although it is mandatory to meet the criteria of having an admission letter from your choice of institute before the loan, IDFC First Bank has a unique feature that lets you take a loan even without having an admission letter. 

But bear in mind that it can only happen in some cases and loan sanction without an admit letter will depend on the type of course you chose, the university, and the country you are going to.

IDFC First Bank has broad-based loan products. For study in India, it has one product. For abroad education loans, they categorize their products into a few types, such as:

• Platinum Plus
• Platinum
• Titanium
• Gold
• Bronze

These divisions are made based on the countries and the choice of universities students choose to go to. 

We will now explore each product individually. We have made tables on each of the products’ details. If you face any confusion while trying to understand them, reach out to our team and we will guide you.

All the details mentioned below are for an unsecured education loan.

IDFC First Bank study in India loan product

IDFC First Bank - USA loan product

The USA is very famous for its prestigious universities and quality higher education. It is the choice of country to go for their studies for many students. This is the reason why IDFC First Bank has a special loan product for the USA.

In the USA education loan product, there are three categories, namely Platinum Plus, Platinum, and Titanium.

Maximum loan amounts in the USA loan product are as follows:

Interest rates of the products are in the tables before:

IDFC First Bank Non-USA loan product:

This loan product is for other top countries students go to other than the USA. It has four categories, namely- Platinum, Titanium, Gold and Bronze.

Maximum loan amount in the Non-USA loan product are as follows:

Interest rates of the products are in the tables:

For secured loans for any country:

Moratorium period:

The moratorium period is also called a repayment holiday where you are not expected to pay back the taken education loan. 

IDFC First Bank offers a moratorium period of course duration + 1 year.

Repayment tenure:
The time given to repay the loan is 12 years including the moratorium period.

Processing fee:
1.5% of the sanctioned loan amount + GST is the processing fee. But if you process your loan through WeMakeScholars, then you can get a 0.5% discount on the processing fee. Choose us. 

They charge 1% of the loan amount and the interest collected up until the cancellation request as a cancellation fee, in case you wish to close your loan after disbursement.

EMI Payment during moratorium:
Banks require the student to pay interest in the moratorium period. This is how IDFC First Bank mandates EMI payment during the repayment holiday.

• If the university falls under Platinum-Plus, Platinum, Titanium, and Gold, then a partial simple interest of 2000 to 5000 rupees must be paid.
• If it is a Bronze category university, full simple interest should be paid immediately after loan sanction. Repayment tenure for this category is 12 years.

Calculate your EMI amount with our EMI Calculator.

Loan Insurance:
2% of the loan amount must be taken as loan insurance. Travel insurance is mandatory.

This loan covers all the expenses from plane tickets to tuition fees and everything in between. 

Accommodation, stationery, laptop, and all other expenses are covered under an education loan.

IDFC First Bank also covers all these expenses for students who take an education loan to study in India including living expenses.

To get an education loan from IDFC First Bank, you must produce some documents to the bank. These documents will be properly checked for authenticity and act as proofs as well. There is a list of documents required. We shall see what they are in the table below:

If you are taking a secured loan, then the documents you will need to submit are:

FURTHER INFORMATION: If the university you choose falls under Platinum-Plus, Platinum, and Titanium list, then the income of the financial co-applicant is not checked. However, the CIBIL score will be checked. 

These are not all, there is a list of necessary documents that you will need to keep ready before the loan process. Click here to get a neatly crafted checklist of documents so you don't miss out on any document.

Now it is time to decide if you would like to take your education loan from this bank. If yes, how do you apply for it? Here is how:

Directly from the branch:

1. On the banks’ official website, there is an education loan panel.
2. You will find an option called ‘FIRST UNI’. There is a hyperlink for the form that needs to be filled out for an education loan.
3. Fill out the loan application form.
4. The bank officials will reach out to you and guide you through the rest of the process.

But why go through all the inconvenience and keep waiting for the bank to carry out the process when WeMakeScholars does everything for you, that too, free of cost?

Here is how you can apply through WeMakeScholars and have a smooth loan process.

1. Complete the Common Application form for Student Loans.
2. To verify your eligibility, a financial officer will get in touch with you. Give information that is requested of you.
3. Our financial officer will provide you with a comparison of all the lending banks from whom you are qualified for a loan. Based on your eligibility and lending policies, choose a lender.
4. According to the document checklist that your financial officer has provided, submit your papers to the bank or upload them to WeMakeScholars' secure link-uploading portal.
5. The moment your documents are submitted, they will be logged in. You will learn the outcome of your loan application within 2–6 days.
6. Following the sanction, you can obtain your letter of sanction and sign the loan agreement.

• Negotiation on your behalf: The WeMakeScholars team can negotiate on your behalf with the bank for the best ROI and also we see that you are charged nominal for the complete process.
• Best customer service: You can avail of complete customer support from the WeMakeScholars team for any doubts you have, anytime.
• The cashback offered: You will be rewarded with a cashback on multiple disbursements to a maximum of INR 3000, as you are supporting the Digital India campaign by applying for your study abroad education loan via WeMakeScholars.
• You may access your loan profile using your credentials to find out the status of your loan application.
• Transparent and understandable process so that you don’t have to stay confused about what’s going on with your loan.