IDBI
Education Loan

Margin amount is the amount that a borrower has to pay through his/ her own sources in form of a down payment as his/ her contribution towards the education.

Margin can be paid on a year to year pro rata basis whenever bank disburses loan amount as per requirement.

You can either contact your nearest branch for the application form or details regarding the loan or apply online from the official website.

Yes, you can apply online through Vidyalakshmi portal to avail for this loan.

Yes, by creating a login on IDBI Bank web portal, you can view all details related to education loan online.

Yes, a student must have secured a minimum aggregate marks in their last qualifying examination (10+2 or Graduation). Relaxation in the marks is given to SC/ ST students

• 0.50% concession is given to physically handicapped girl students
• Eligibility criteria and margin on education loan is relaxed for SC/ST students and physically handicapped students

Mostly IDBI Bank asks tangible security in lieu of the loan amount sanctioned along with assignment of future salaries in favour of IDBI Bank. Tangible security includes documents related to land/ building/ government security/ public sector bonds/ units of UTI, NSC, Life insurance policy/ bank deposits/ shares or debentures. The value of the security should be equal to the education loan amount.

Yes, but it will need consent of all family members involved.

Yes any scholarship or assistantship will be a part of margin charged on education loan.

Course Period plus one year, or six months after getting a job

Tenure of education loan provided by IDBI Bank is different for different variant of loans it offers:

• Education Loan for Vocational Courses: 10- 15 years
• Education Loan for Non Vocational Courses: 2- 7 years
• Education Loan for students admitted through Management Quota: 10 years
• Education Loan for Specialised Courses: Maximum 7 years

MCLR stands for Marginal Cost of funds based Lending Rate. It refers to the minimum interest rate of bank below which it cannot lend.

Expenses covered by IDBI Bank education loan are:

• Tuition/ college/ hostel fee
• Examination/ lab/ library fee
• Books/ uniform/ instruments
• Caution deposit
• Passage money for studies abroad, etc.

Yes, The bank provides special loan variant for students who take admission through management quota.

Institutes that are affiliated to state/ central universities and comes under UGC or AICTE are considered as recognized institutes. Reputed institutes are those which are well known and have standard course of repute. More often, banks provide the list of institutes they consider for loan. (You can contact nearest branch for the same)

IDBI Bank provides 1.5% concession to students who have secured admission in any premier institutes. The rate of Interest charged for students taking admission to top premier institutes is 6M MCLR + 0.05%

The education loan offered by IDBI Bank have:

• Prepayment Charges: 2% on outstanding amount id loan is foreclosed/ part prepaid any time before the expiry of moratorium period.
• Processing Fee: No processing fee is charged for studies in India under Education Loan for Vocational/ Non Vocational Courses. 1% processing fee is charged for students who take admission through Management Quota.

Reasonable cost for the computer or laptop well be covered under the loan if it is required to complete the course.

Pan Card is one of the mandatory document required by banks these days. It is mandatory because:

• Easy to assess Income
• Easy to trace borrowers

Diploma courses are eligible under IDBI Bank Education Loan. Regular degree or diploma courses like, shipping, pilot training, and aeronautical that are approved by Director General of Civil Aviation or Shipping.

Yes, it is mandatory to have a co-borrower to avail loan from IDBI Bank.

Your parent/ spouse/ guardian can be a co-borrower. A co-borrower should be your immediate family member, should have a steady source of income, and a good credit history.

Documents required from the co-borrower are:

• Attested copies of age proof, residence proof and birth date.
• Self-attested passport size photograph
• Income proof and/or copy of income tax return file
• Details of collateral security along with government approved valuation certificate (if any).

You need at least 2 guarantors to avail loan from IDBI Bank.

KYC requirements are the documents as a proof of personal identification and residence proof of the applicant as well as the co-borrower.

• Education Loan for Vocational Courses:For loan amount upto INR 7.50 Lacs- 10 years and for amount above INR 7.50 Lacs- 15 years
• Education Loan for Non Vocational Courses: Loan upto INR 50,000: upto 2 years; Loan from INR 50,000 to 1 Lac: 2 to 5 years; Loan Above INR 1 Lac: 3 to 7 years
• Education Loan for students admitted through Management Quota: Moratorium period + 10 years
• Education Loan for Specialised Courses: Maximum 7 years

You can repay the loan after the moratorium period by mode of EMI or through post- dated cheques.

EMI stands for Equated Monthly Installments. It can be calculated by using the formula given below

• EMI = [P x R x (1+R) ^n] / [(1+R)^ n-1]
• Here, P is Amount of Education Loan, R is Rate of Interest, n is Tenure of the Loan.
• Or simply you can use the EMI calculator provision available on IDBI Bank’s official website.

24% per annum on outstanding amount is charged for the late EMI payment and INR 500 for every bounced cheque.

The loan is disbursed directly to the institute/ university that you have taken admission to. Hence, an applicant is supposed to submit institute brochure with proper division of the fee

It is completely on the banks discretion to extend the moratorium period or not. It can be extended for maximum 2 years based on student?s reason. You can contact your nearest branch for more details.

The interest will be charged at simple rate from the date of disbursement till commencement of repayment of loan. After that, compound interest is charged on reducing balance.

Mostly, in such cases, you do not get an extension and even if you do there is a possibility that interest rates are higher

The interest rate is different for different loan offered:

Education Loan for Vocational Courses:

Education Loan for Non Vocational Courses: The rate of interest on all amounts is 11% (BR+1%) along with 1 year MCLR +1.35%

Education Loan for students admitted through Management Quota: The present rate of interest is 13.50% (BR + 3.50%)

IDBI Bank offers

• Interest Subsidy scheme for economically weaker sections and to promote education amongst them
• Skill Loan Scheme- for students who wish to pursue Skill based courses and enhance their skills and career prospects.
• Padho Pardesh scheme for students who wish to pursue studies abroad
• Udaan – For parents/ guardians of students studying in 8^th or 10^th class. It is a unique scheme formulated as saving cum education loan scheme.

The documents that need to be submitted are:

• Income certificate issued by authorised authorities
• Bonafide student certificate
• Letter of undertaking or declaration signed by borrower/ co-borrower

The bank takes the responsibility to cross verify all the employment details of the applicant and co-borrower. If the banks fails to cross verify every detail provided, it might reject the loan application.

Under Section 80E of Income Tax Act, loan borrowers can avail the tax benefits. This benefit is only available over and above INR 1,50,000. Tax benefits can be availed once the borrower starts paying interest on loan. The deduction is available until borrower pays off full interest amount on loan or for maximum of 8 years (whichever is earlier).

It is not necessary to have a bank account while availing the loan but it makes it easier for the borrower to get loan application approved.

The banks require insurance policy as security in lieu of education loan provided. The insurance policy should be equal or more to the amount of loan sanctioned. In case of untimely demise of the borrower, the bank recovers the amount from the insurance policy

There is no additional benefit mentioned on the official website while applying fro

Credit Score is inclusive of various factors such as credit history (Loan history or credit card). If a student does not have a credit score, banks calculate it by considering factors such as University, College and the Course of admission. Banks consider the academic background of student and credit history of co-borrower.

student can reach out to the nearest branch in case of any query.

Customer Care Number:

Toll Free: 1800 200 1947; 1800 22 2070

Non Toll Free: (+91 22) 6693 7000

Local rates apply on every call