IDFC First Bank Education Loan

✓ Interest rates as low as 8.5%

✓ Get up to 1 crore

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Table of content

  1. IDFC First Bank Higher Education Loan - International
  2. IDFC First Bank Higher Education Loan - India
  3. IDFC First Bank Processing Fee
  4. Documents required for the IDFC First Bank Higher Education Loan
  5. IDFC First Bank Education Loan Insurance
  6. IDFC First Bank Education Loan Margin
  7. Education Loan Subsidy Schemes
  8. How to Apply for an Education Loan from IDFC First bank
  9. Why and How to Transfer your Education Loan to IDFC First bank
  10. IDFC First Bank Education Loan EMI Calculation as per Interest Rate
  11. IDFC First Bank Loan Repayment Process
  12. FAQ's
  13. Need Help? Ask Here!

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IDFC first bank education loan offers up to 75 Lakhs focusing on universities based in countries like the USA, Germany, UK, Canada, Australia, and Ireland with the rate of interest ranging from 8.5% to 12%. p.a. Read further to know more about the loan schemes offered by IDFC.

IDFC First Bank Higher Education Loan - International
IDFC First  Bank Higher Education Loan - India

In this video, you will discover comprehensive details regarding the IDFC Bank education loan, including an overview of the available schemes, specifics on loan amounts, a breakdown of interest rates, as well as insights into the associated processing fees.

 

IDFC First Bank Higher Education Loan - International

IDFC education loan for abroad offers up to 75 lakhs without collateral and up to 1 Cr for loans with collateral providing coverage for various academic expenses. Read the following table to know further about the IDFC abroad education loan.

Parameters

Details

Loan Limit

  • Up to 75 Lakhs
  • Up to 1 Cr with collateral

Expenses Covered

Academic Expenses: 

  • Tuition and Fees payable to the institute
  • Examination/library /laboratory fees
  • Purchase of book / Equipment/uniforms
  • Living expenses (including Hostel fees)

Additional Expenses:

  • Travel expenses
  • Purchase of computers/laptops
  • Overseas Insurance
  • Cost of health insurance

Accepted co-applicant

Parents, Parents-in-law, spouse, sibling

Interest Rate

  • Collateralized: starts from 8.5%
  • Non- collateralized: 10-12%

Moratorium Period

Course duration + 12 Months

Repayment Duration

12 years including the moratorium period

Repayment Policies

  • The interest payment is optional if the university is included in the prime list 
  • Simple interest is to be paid in the moratorium period if the university is not included in the prime list

Eligibility Criteria

  • National of Inda
  • At least 18 years of age
  • Gotten admission into the preferred university

Collateral Requirement

  • Immovable property: Flat, Non-agricultural land, House 
  • Liquid securities: Fixed deposit, Government bonds, LIC policy

Value of collateral (In case of a collateralized loan)

  • The minimum value for liquid security should be 1.1 times the requested loan amount.
  • Immovable property should have a minimum value of 1.25 times the requested loan amount.

 

Pro tip: If the university fee has already been paid by the student, they can request their financial officer to discuss it with banking personnel and get the amount reimbursed (if the fee was paid within 6 months).

The future is uncertain, but investing in your education is a smart decision that you can make now.

IDFC First Bank Higher Education Loan - India

For pursuing higher education in India IDFC first bank provides an education loan of up to 30 Lakhs with providing coverage for various academic and other miscellaneous expenses. Read further to know more about the IDFC education loan product.

Parameters

Details

Loan Limit

30 Lakhs

Expenses covered

Academic expenses: 

  • Tuition and Fees payable to the institute
  • Examination/library /laboratory fees
  • Purchase of book / Equipment/uniforms
  • Living expenses (including Hostel fees)
  • Additional expenses

Travel expenses

  • Purchase of computers/laptops
  • Overseas Insurance
  • Cost of health insurance

Accepted co-applicant

Parents, Parents-in-law, spouse, sibling

IDFC First  Bank Education loan interest rate

  • Collateralized: 8.5%
  • Non-Collateralized: 10-12%

Moratorium Period

Course duration + 12 Months

Repayment Duration

12 years including the moratorium period

Repayment policies

  • The interest payment is optional if the university is included in the prime list 
  • Simple interest is to be paid in the moratorium period if the university is not included in the prime list

Eligibility Criteria

  • An Indian National (Including NRI)
  • 18 years old or above at the time of loan commencement
  • Admitted to the desired institution after completion of the pre-requisite qualifications

Collateral requirement

Liquid Securities: Fixed deposit, LIC policy, government bonds

Immovable Collateral: House, Flat, Non- agricultural land

Value of collateral (In case of a collateralized loan)

  • Immovable property should have a minimum value of 1.25 times the requested loan amount.
  • The minimum value for liquid security should be 1.1 times the requested loan amount

IDFC First Bank Processing Fee

  • IDFC First bank charges a processing fee of up to 1.5% of the loan amount + GST.

  • For cancellation, They charge 1% of the loan amount and the interest collected up until the cancellation request.

Our services at WeMakeScholars are absolutely free for you, as we don't charge any processing fees. We are able to provide this free service to students seeking scholarships and financial aid because we are funded by the Ministry of IT, the government of India as part of the Digital India campaign.

Documents required for the IDFC First Bank Higher Education Loan

IDFC bank education loan documents required are given in the table below:

Parameters

Details

Basic documentation for student(applicant)

The application form provided by your financial officer at WeMakeScholars is filled in with 2 photographs and a signature.

  1. PAN Card as identity proof (and passport if the applicant is pursuing higher studies abroad)
  2. Any of the following as address proof:
  • Voter ID
  • Aadhar card
  • Electricity bill
  • Bank account statement
  • Ration card 
  • Telephone bill

Note: if the present and permanent address of the student is not the same, two different address proofs are needed to be presented

3. Bank account statement for the last 6 months (Personal/ Salary). For co-applicant, it should show the salary credits if salaried or 1 yr business transactions if self-employed. Personal Asset & Liability Statement (assessed by the branch professional)
All the documents should be self-attested.

Applicant academic documents

  • Evidence of course enrolment or entrance
  • The cost of the course (If available, i20 for USA)
  • Scorecard of GRE/IELTS/GMAT
  • University Ranking printing form
  • Academic certificates and mark sheets—10th, 12th, and degree

Financial Co-applicant Income documents

Salaried:

    • Current pay slips
    • Form 16 from the last two years.
    • ITRs from the previous two years
    • Employers' Identification card (ID)

Self-employed:

1. Last three years' ITR

2. The most recent three-year balance sheet and P&L account (only in case of self-employed businessman)

3. Business address proof

Other Documents

1. A letter saying that the co-signer would cover any additional costs not covered by the loan.

2. A cheque for Rs. 11,800 toward the service charge

Optional: (only in case of a collateral loan)

  • Additional cheque for lawyer and evaluator fees (in case of the evaluation and legal were done by the bank)
  • The owner's declaration for collateral property (on Rs. 20 or 100 stamp paper). If there are many owners of the property, each of them must provide a declaration.

Additional docs

  • Proforma invoice for travel, a laptop, or other items if you're requesting a loan for it.
  • Any receipts for payments made in advance to the university.
  • Any pending loan statements from the previous year.
  • A letter describing the discrepancy An example is this stamp paper for Rs. 100
  • A letter outlining the applicant’s lack of ITR, if relevant.
  • Property and FD documents

 

Based on your specific conditions and needs, we can create a tailored document checklist to help you save time and prevent any enrollment process delays or problems.

Take the hassle out of the loan process with our personalized document list

IDFC First Bank Education Loan Insurance

The loan insurance offered by IDFC bank student loan is up to 2% of the loan amount sanctioned. They also offer mandatory travel insurance.

Loan insurance comes in very handy for the co-applicant. By taking loan insurance the applicant can make sure that the co-applicant isn’t liable for the entire loan repayment in the case of unpredicted events like disability, or even the applicant's death.

IDFC First Bank Education Loan Margin

The loan margin in IDFC First ranges from 0% to 5% i.e the student has to pay around 0% to 5% of the loan amount depending on their profile. For example, if a student has applied for a loan of 50 Lakhs and if the loan margin is 5%, then the loan margin would be equal to 2.5 Lakhs.

We have analyzed various factors that contribute to the loan margin, including market trends, borrower profiles, and economic conditions, and have developed effective strategies for minimizing this margin. 

Education Loan Subsidy Schemes

The government covers the entire accumulated interest during the moratorium period through these initiatives/schemes. (Moratorium term is equal to the length of the course plus one year)

Padho Pardesh Scheme

The Padho Pardesh scheme was a subsidy scheme introduced by the ministry of minority affairs for students pursuing overseas education. 

Eligibility:

  • Applicant belongs to a religious minority (Muslim, Christian, Sikh, Buddhist, Jain, Zoroastrian) and Family Income equates to less than 6 Lakhs  

Note: Beginning on April 1, 2022, the Padho Pardesh system will no longer be available. However, the current beneficiaries as of March 31, 2022, will continue to receive the interest subsidy during the loan's term and moratorium period.

Central Scheme for Interest Subsidy for Economically Weaker Sections

The central scheme interest subsidy for economically weaker sections was introduced by the ministry of human resource development for students pursuing higher education in India 

Eligibility:

  • The applicant’s family income equates to less than 4.5 Lakhs

Dr. Ambedkar Central Sector Scheme

The Dr. Ambedkar Central Sector Scheme was introduced by the ministry of social justice and empowerment for students pursuing higher education abroad. 

Eligibility:

  • The applicant belongs to the economically backward class and their total family income is less than 8 Lakhs.
  • The applicant belongs to the OBC community and their family income equates to less than 8 Lakhs.

How to Apply for an Education Loan from IDFC First bank

Offline education loan application process

Step 1: Go to your nearest IDFC First bank branch and fill in the loan application form.

Step 2: They will check your eligibility for the loan and request the necessary documents. 

Step 3: Submit all the documents required by the bank and wait for the loan to be processed.

Step 4: You may obtain sanction within the bank's specified timeframe, followed by a disbursement.

Online education loan application process through WeMakeScholars

Step 1: Complete the Common Application form for Student Loans.

Step 2: To verify your eligibility, a financial officer will get in touch with you. Give every piece of information that is requested.

Step 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.

Step 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.

Step 5: The moment your documents are submitted, they will be logged in. You will learn the outcome of your loan application from private banks within 2–6 days.

Step 6: Following the sanction, you can obtain your letter of sanction and sign the loan agreement.

Issues while approaching the Lenders Directly

  • It takes you way longer than it needs to for an education loan to get sanctioned when you approach the lenders directly.
  • The loan process is not explained clearly to the applicant by the lenders when approached directly.
  • Students are not equipped with the negotiation skills required to get a lower rate of interest offered.
  • Lack of customer support
  • Banks don’t provide you with a checklist of documents, which results in you taking many trips around the bank to get the full list of documents.
  • No support is offered after the loan amount has been disbursed. 
  • You can futher watch our video on issues to expect after your abroad education loan is sanctioned to get a better idea on all the issues students face after getting their loan sanctioned when going directly through the lenders to get an education loan. 

Benefits of applying through WeMakeScholars

  • Negotiation on your behalf: WMS 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, including the lawyer’s fee, etc.
  • Best customer service/support: You can avail of complete customer support from the WeMakeScholars team for any of the 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.
  • Credentials for your loan profile: You may access your loan profile using your loan profile credentials to find out the status of your loan application.
Take advantage of our free services and get the best deal on your education loan

Why and How to Transfer your Education Loan to IDFC First bank

Why transfer your loan to IDFC First bank?

  • When you transfer an existing loan, the interest rates on both the new loan you're about to take out and your existing loan will be lower.
  • WeMakeScholars has connections to the majority of the public banks, private banks, and NBFCs, making the entire process much easier and quicker.
  • We negotiate on your behalf to make the process easier for you.

How to transfer your loan to IDFC First bank?

  • Acquire details and proof of your pending loan.
  • Request a call back from our team at WemakeScholars.
  • A financial officer will reach out to you, then discuss your wish to refinance your education loan to IDFC First bank.
  • The financial officer will provide you with a list of documents needed for loan transfer.
  • Submit those documents at an IDFC Bank nearest to you.

IDFC First Bank Education Loan EMI Calculation as per Interest Rate

The IDFC education loan EMI calculation primarily depends on these factors.

  • The total loan amount
  • The Compound and simple interest
  • Break down of semester-wise fee structure
  • The Moratorium period or grace period
Don't settle for a high ROI on your education loan - we'll work to get you the best deal possible.

IDFC First Bank Loan Repayment Process

In IDFC First bank, the moratorium period lasts for the course duration plus an additional 12 months. 

For example, if you take out a loan of 20 Lakhs, with an interest rate of 10% and with a repayment tenure of 10 years, this would be your amortization schedule.

  • Payable monthly EMI: 31,221
  • Total amount Payable: 37,46,473
  • Total interest Payable: 17,46,473

Tenure

EMI

Interest portion

Principal portion

Loan Outstanding

End of 1st year

 31221

18585

12635

2217580

End of 2nd year

  31221

17262

13959

2057485

End of 3rd year

  31221

15800

15420

1880626

End of 4th year

  31221

14186

17035

1685247

End of 5th year

  31221

12402

18819

1469410

End of 6th year

  31221

10431

20789

1230971

End of 7th year

  31221

8254

22966

967565

End of 8th year

  31221

5850

25371

676577

End of 9th year

  31221

3193

28028

355119

End of 10th year

   31221

258

30963

0

 

Our team is here to provide you with guidance and support every step of the way, from ensuring that all the necessary paperwork is completed accurately and on time, to helping you coordinate with the bank or financial institution to ensure timely disbursal of the loan amount.

Don't navigate the education loan disbursement process alone

Education Loan FAQs

  • Will hostel expenses be covered under the IDFC education loan?

    Yes, IDFC First bank loan provides financial support for living expenses which covers the Hostel fee/ Accommodation Fee.

  • IDFC student loan covers which expenses?

    IDFC First Bank education loan finances for academic expenses which cover tuition and fees payable to the university(Examination, Laboratory, Books, Equipment,.. etc ) and additional expenses which include travel expenses, health insurance and expenses incurred for purchasing computer/ Laptop.

  • Do I have to start repaying my loan while studying in IDFC?

    No, you don’t need to start paying your education loan while studying, IDFC First bank offers applicants a moratorium/ grace period of course duration + 12 months. This means you don’t have to start repaying your loan for a year after you finish your course.

  • Can I get a student loan in IDFC without any property/ collateral?

    Yes, you can get an education loan without any property/ collateral. IDFC First bank provides non-collateralized education loans with interest rates ranging from 10-12%.

  • Do I have the eligibility for an education loan in IDFC First bank?

    To check your eligibility for an education loan in IDFC you can request a callback from us.

NEWS

IDFC First Bank shares rise 2% as attention turns to potential merger; IDFC reaches new 52-week high, analysts offer insights

IDFC First Bank has achieved significant growth in loans and advances, with a 24.50% year-on-year increase and a 6.70% sequential growth in the first quarter of FY24. This positive news has led to a 2.14% increase in the bank's stock price, closing at Rs 80.33, which is close to its 52-week high. However, the technical setup of the stock remains uncertain, with potential support at Rs 75. 
The bank is also preparing for a merger with IDFC Limited, aiming to simplify its corporate structure and comply with regulations more efficiently. IDFC First Bank's loans and advances have risen from Rs 1,37,663 crore to Rs 1,71,420 crore, and customer deposits have grown from Rs 1,02,868 crore to Rs 1,48,508 crore.
Meanwhile, the broader Indian equity market had a relatively stable performance, with the BSE Sensex experiencing a minor decline while the NSE Nifty reached a new closing peak.

Last updated on - 06/07/2023

IDFC CEO V Vaidyanathan Shines Spotlight on India's Emergence as an Entrepreneurial Hub

V Vaidyanathan, the MD and CEO of IDFC First Bank, highlighted the crucial role of startups in India's transformation from job-seekers to a land of entrepreneurs during Moneycontrol's Startup Conclave in Bengaluru.

Despite funding challenges, he expressed confidence in India's entrepreneurial spirit and its potential for growth. Startups act as mediators in the digital transformation of traditional businesses by providing innovation and technology. The symbiotic relationship between startups and established businesses drives innovation and economic growth.

Vaidyanathan also emphasized the advantages of B2B startups, which cater to business needs, while acknowledging the challenges faced by B2C startups in acquiring and retaining customers. He stressed the responsibility of nurturing the growth and success of team members within organizations
He urged entrepreneurs to consider the larger ecosystem, compromise, and embrace strategic thinking for long-term success. This viewpoint highlights the need for adaptability and the willingness to make tough decisions for the company's overall advancement.

Last Updated On - 11/07/2023

IDFC First Bank Offers Easy School Fee Finance Services

IDFC First Bank has introduced the School Fees Finance Scheme, providing parents with a simple way to manage the escalating expenses of school fees. With fees ranging from Rs. 50,000 to Rs. 1 lakh for LKG and UKG classes, many families face financial challenges. Through this scheme, parents can access loans of up to Rs. 9 lakhs through a straightforward digital application process and flexible repayment options.

The loan tenure can extend up to two years, and applicants need to submit essential documents, including proof of residence, admission papers, fee structure, and bank statements. The scheme is available only to schools affiliated with IDFC First Bank, so it's crucial to verify the list of partnered schools before applying for the loan.

IDFC First Bank also offers education loans of up to Rs. 50 lakhs, including provisions for funding foreign education. These initiatives aim to ease the financial burden of education, enabling students to access quality schooling and pursue higher studies without excessive financial strain.

Last Updated - 24/07/2023

Our Education Loan team will help you with any questions

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