IDBI Bank Education Loan

IDBI Bank's Education Loan Programs

There are 4 different types of Education Loans available:  

• Education Loan Scheme for Overseas Studies 
• Education Loan for Studies in India – General and CA/CS/ICWA Programs
• Education Loan for Studies in Premier Institutions 
• IDBI Bank Skill-Based Education Loan Scheme

Education Loan Scheme for Overseas Studies

The education loan is available for eligible candidates, including Indian nationals and NRIs, with admission criteria based on an entrance test or merit-based selection after completing HSC (10 plus 2 or equivalent). Degree/Diploma courses, including aeronautical, pilot training, and shipping, are eligible if recognized by competent regulatory bodies.

Postgraduate studies leading to PG degrees and PG diplomas from reputed institutes/universities are also covered. Assessment criteria include employability and earning potential, evaluated upon course completion.  

Eligible Candidate for Education Loan 

1. Indian National (including NRIs) 
2. Admission Criteria: Entrance Test/Merit-Based Selection process after completing HSC (10 plus 2 or equivalent) 

Eligible Courses 

1. Graduation: Job-oriented professional/technical courses offered by reputed universities/institutions abroad. 
2. Post-graduation: MCA, MBA, MS, etc. 
3. Courses Conducted by CIMA-London, CPA in the USA, etc. : For CPA/CIMA courses, only examination fees and travel costs are considered for calculating the loan amount. 
4. Degree/Diploma Courses: Aeronautical, pilot training, shipping, etc., provided these are recognized by competent regulatory bodies in India/abroad for the purpose of employment. 
5. Postgraduate Studies: Leading to PG degrees and PG diplomas offered by reputed institutes/universities only. 

Assessment Criteria 

1. Employability and Earning Potential: Assessed upon completion of the course. 

Quantum of Finance 

1. Need-based finance: Subject to specified ceilings based on the country of studies/course. 

Expenses Covered under the Loan 

1. Tuition fees, examination fees, lodging and boarding charges, etc. : Depending on the country of studies/course. 

Repayment Terms 

1. Loan Repayment: Up to 15 years after a moratorium period. 
2. Moratorium Period: Course period plus 1 year. 

Interest Rates 

1. Floating Rate of Interest: Linked to RLLR (Repo Linked Lending Rate). 

Margin and Security 

1. Margin: Total Course Fee (including Living Expenses) minus Sanctioned Loan Amount. 
2. Security: Collateral required for amounts above Rs.7.5 lakh. 
3. Collateral Options: Immovable Property, Fixed Deposits, LIC Policies, NSC/KVP, Government Securities. 

Balance Transfer Facility 

1. Available: Subject to eligibility criteria, including a fully disbursed loan before balance transfer, a minimum 12-month repayment track record, and no instances of cheque bounces/installment default. 

Processing Fees 

1. 1% of the loan amount, subject to a maximum of Rs.5000, plus applicable taxes. 

Documents Required 

1. Various documents, including age proof, identity proof, admission letters, and financial documents (the documents depend on the applicant's profile). 

Education Loan for Studies in India (General & CA/CS/ICWA Programs)

The loan covers approved courses leading to graduate/post-graduate degrees, and PG diplomas/certificates from recognized institutions. It also includes professional and technical courses under government subsidy schemes, as well as courses offered by prestigious institutions like IIMs, ISB, IITs, IISC, XLRI, NIFT, and NID. Both regular degree/diploma courses in India and those offered by reputed foreign universities are eligible.

Assessment criteria focus on the employability and earning potential of the student upon completing the course. The quantum of finance is need-based, determined by the course and specified ceilings. Cases exceeding these ceilings are considered on a case-by-case basis. 

Eligible Candidate 

1. Indian National including NRIs (for Studies in India & Abroad). 
2. PIO/OCI eligible for studies in India. 
3. Admission secured through Entrance Test/Merit-Based Selection process after HSC (10 plus 2 or equivalent). 

Eligible Courses 

1. Approved courses leading to graduate/post-graduate degrees, PG diplomas/certificates from recognized institutions. 
2. Professional and Technical courses under Government Subsidy Schemes. 
3. Courses by IIMs, ISB, IITs, IISC, XLRI, NIFT, NID. 
4. Regular Degree/Diploma courses in India and courses offered by reputed foreign universities. 

Assessment Criteria 

1. Employability and earning potential of the student upon completion of the course. 

Quantum of Finance 

1. Need-based finance based on course and ceilings. 
2. Finance in excess of specified ceilings considered case by case. 

Expenses Covered under Loan 

1. Tuition fees, examination/library/laboratory fees, caution deposit, building fund, purchase of books/equipment/instruments, academic and maintenance fees, study tours, project work, thesis, exchange programs, etc. 

Repayment Terms 

1. Up to 15 years after a moratorium period. 

1. Moratorium period: Course period plus 1 year. 

Processing Charges 

1. Nil processing fee. Vidyalakshmi Portal Fees: Rs.100 plus applicable taxes. 

Margin & Security 

1. Margin: Based on the total course fee (including Living Expenses) minus Sanctioned Loan Amount. 
2. Security: Collateral required for amounts above Rs.7.5 lakh. 

Interest 

1. Floating Rate linked to RLLR (Repo Linked Lending Rate). 

Reimbursement Facility 

1. Available within 6 months of the actual expense, subject to proper documentation. 

Top Up Loan/Second Loan 

1. Available for an increase in course fee or pursuing another course/post-graduation. 

Government Subsidy Scheme 

1. Eligible borrowers can avail subsidy under the Central Sector Interest Subsidy Scheme. 

Documents Required 

1. Documents, including age proof, identity proof, admission letters, and financial documents.  

Balance Transfer 

1. Available subject to compliance with applicable BT norms. 

Education Loan for Studies in Premier Institutions (Non-Vocational Courses)

The education loan is tailored for students securing admission to premier institutions in India listed in the bank's approved roster. The quantum of finance is capped at Rs.40 lakhs or 100% of the total program cost (inclusive of insurance cover), whichever is lower. Security norms vary based on the institution.

For ISB and IIMs, up to Rs.40 lakhs, a co-applicant is mandatory, and no security is required if the applicant's parent, who is the co-borrower, has a satisfying net worth. For amounts exceeding Rs.40 lakhs, tangible collateral security is needed, along with the assignment of the student's future income.

The covered expenses include fees payable to college/school/hostel, examination/library/laboratory fees, caution deposit, building fund/refundable deposit (up to 10% of total tuition fees), and the purchase of essential items like books, equipment, instruments, uniforms, and computers.

Additional expenses such as academic and maintenance fees, study tours, project work, thesis, and exchange programs (up to 20% of total tuition fees) are also covered. The loan includes service tax and cess if applicable, as well as the insurance premium for the student borrower. 

Eligible Candidate: 

1. For students securing admission in premier institutions in India enlisted in the approved list of the bank. 
2. Co-applicant is mandatory. 

Expenses Covered under Loan: 

1. Fee payable to college/school/hostel. 
2. Examination/Library/Laboratory fee. 
3. Caution deposit, Building fund/refundable deposit (up to 10% of total tuition fees). 
4. Purchase of books/equipment/instruments/uniforms/computer if essential for the course. 
5. Other expenses like academic and maintenance fees, study tours, project work, thesis, and exchange programs (up to 20% of total tuition fees). 
6. Service Tax and Cess if applicable. 
7. Insurance premium for the student borrower. 

Quantum of Finance: 

1. Rs.40 Lakhs or 100% of the total cost of the program (inclusive of insurance cover), whichever is lower. 

Indian School of Business (ISB) - Hyderabad and Mohali Campus, and Indian Institutes of Management (IIMs): 

1. Upto Rs.40 lakhs: Co-applicant is mandatory. No security is needed if the applicant provides satisfying net worth/means of the parent who is the co-borrower. 
2. Above Rs.40 lakhs: Tangible collateral security, along with the assignment of future income of the student for payment of instalments. 

Premier Institutes other than ISB and IIMs: 

1. Upto Rs.25 Lakhs: Co-applicant is mandatory. No security is needed if the applicant provides satisfying net worth/means of the parent who is the co-borrower. 
2. Above Rs.25 Lakhs: Co-applicant is mandatory. Tangible collateral security, along with the assignment of future income of the student for payment of instalments. 

Type of Collateral & Security coverage: 

1. Security coverage: The value of immovable property is 1.33 times of the loan amount. 
2. Fixed deposit with IDBI Bank, LIC Policy, NSC/KVP, Government Securities/Public Sector Bonds. 
3. Security coverage: Collaterals should cover 100% of the loan amount after deducting the applicable margin. 

Repayment Terms: 

1. Loan repayment in equated monthly instalments over a period of up to 15 years. 
2. Moratorium period: Course period plus 1 year. 
3. Interest servicing during the moratorium period is optional. 

Interest: 

1. Floating Rate linked to RLLR (Repo Linked Lending Rate). 
2. Concession in Interest rate for existing customers, girl child, minority, SC/ST, physically challenged. 
3. Interest concession if interest is serviced during the moratorium. 

Reimbursement Facility: 

1. Loan for reimbursement of eligible expenditure can be availed within 6 months of the actual expense, subject to proper documentation. 

Processing Charges: 

1. Nil processing fee. Vidyalakshmi Portal Fees: Rs.100/- plus applicable taxes. 

Government Subsidy Scheme: 

1. Subsidy under the Central Sector Interest Subsidy Scheme can be availed by eligible borrowers. 

Top-Up Loan/Second Loan: 

1. Available for financing an increase in course fee or pursuing another course/post-graduation. 

Documents Required: 

1. Age Proof and Proof of Identity and Address based on Officially Valid Documents as per KYC norms. 
2. Mark sheets from Class 10th onwards till the last qualifying examination, result of entrance exam. 
3. Proof of admission secured: Offer Letter/Admission Letter from the Institution for the course. 
4. Schedule of expenses for the course. 
5. Passport-size photographs. 
6. Details of previous/existing loans, if any, from Banks/Lenders. 
7. Pan Card, Aadhaar Card(mandatory for availing the benefit of Govt. subsidy scheme). 
8. Security documents if applicable. 
9. Any other document as specified by the Sanctioning Authority. 

Balance Transfer: 

1. Facility available subject to compliance with applicable BT norms. 

Skill Loan Scheme

This education loan is available to Indian nationals for courses in Industrial Training Institutes (ITIs), Polytechnics, recognized schools, colleges affiliated with recognized universities, or training partners affiliated with NSDC/Sector Skill Councils.

Aligned with NSQF, it covers various courses with no minimum duration. The loan quantum ranges from Rs.5,000 to Rs.150,000, and no collateral or third-party guarantee is required.

The repayment terms have a moratorium period, with repayment starting 6 to 12 months after course completion. The tenor varies based on the loan amount. Eligible expenses include tuition fees, examination fees, caution deposits, and other reasonable course-related expenditures. 

1. Facility Purpose: 

1. The applicant must be an Indian national. 
2. Admission should be secured in a course offered by Industrial Training Institutes (ITIs), Polytechnics, or a school recognized by Central or State Education Boards. Alternatively, admission to a college affiliated with a recognized university or training partners affiliated with National Skill Development Corporation (NSDC)/Sector Skill Councils, State Skill Mission, State Skill Corporation, leading to a certificate/diploma/degree under National Skill Qualification Framework (NSQF). The Government of India/State Governments may notify institutes/organizations for this purpose. 

2. Facility Type: 

1. Courses aligned with the National Skill Qualification Framework (NSQF) offered by the mentioned training institutes are covered. 
2. No minimum course duration. 
3. State Level Banker’s Committee/State Level Coordination Committee may add other skill development courses/programs with good employability. 

3. Quantum of Finance: 

1. Minimum Loan Amount: Rs.5,000/- 
2. Maximum Loan Amount: Rs.150,000/- 
3. Skill loans can be availed by beneficiaries of other grant/reward-based Government schemes for skill training to cover costs not included in such grants/rewards
4. For courses up to 6 months: Up to Rs.50,000/- 
5. For courses above 6 months: Up to Rs.1,50,000/- 

4. Collateral Security: 

1. No collateral or third-party guarantee is required. The parent needs to execute the loan documents as a joint borrower with the student borrower. 

5. Balance Transfer (BT): 

1. BT is not allowed from other banks to IDBI Bank Ltd. 

6. Loan Margin: 

1. Nil if interest is serviced during the moratorium period. 
2. 10% of the total cost of the course in other cases. Margin may be brought in on a pro-rata basis if disbursement is made in stages. 

7. Repayment Terms: 

1. Moratorium period: Repayment behaviour is encouraged during the course period. However, specific courses or certain sections of students may be considered for a moratorium by the sanctioning authority. Repayment starts after the moratorium period: 
2. For courses up to 1 year: 6 months from course completion. 
3. For courses above 1 year: 12 months from course completion. 
4. Repayment tenor: 
5. Loans up to Rs.50,000: Up to 3 years. 
6. Loans between Rs.50,000 to Rs.1 Lakh: Up to 5 years. 

1. Loans above Rs.1 Lakh: Up to 7 years. 

8. Applicable Heads of Expenses: 

1. Expenses covered under the loan include tuition/course fees, examination/library/laboratory fees, caution deposit, purchase of books, equipment, and instruments, and any other reasonable expenditure necessary for course completion (considered on merit). 
2. Insurance premium for the student borrower, if insurance cover is sought. 
3. Boarding/lodging expenses may be considered on merit based on the cost of living in the particular area. 

How to Apply for IDBI Education Loan Offline?

Here is a step-by-step guide for applying for an Education Loan from IDBI Bank through the offline process: 

Step 1: Head to the nearest IDBI Bank branch and approach the loan officer to inquire about available education loan products. 

Step 2: Communicate with the loan officer to understand the required documents for the education loan application. Gather all the necessary documents as per the loan officer's instructions. This may include proof of identity, address, academic records, and any other relevant information. 

Step 3: Complete the education loan application form with accurate and necessary details. Ensure you provide all required information and check for any supporting documents that need to be attached. Submit these to the relevant department or officer to initiate the processing of your education loan. 

Step 4: Stay in touch with the bank for any additional information they may need during the processing of your application. Be responsive to any queries they may have.  Allow the bank some time to process your application. They may verify the information provided and assess your eligibility for the education loan. 

Step 5: Once your application is approved, the bank will disburse the education loan amount as per the agreed terms and conditions.  Understand the repayment terms and conditions provided by the bank. Familiarize yourself with the repayment schedule and ensure timely payments.  

IDBI Bank Education Loan EMI Calculator

You should have a rough notion of the monthly payment you will have to make before taking out a loan. On its website, IDBI Bank provides an online EMI calculator so that you may use it to determine how much loan you should take and whether you should take a loan at all.

To calculate your EMI, go to https://www.credenc.com/idbi-education-loan.

Bankbazaar also offers an online education loan EMI calculator which you can determine the EMIs

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