IDBI Bank Education Loan: Application, Eligibility, Interest Rate, Documents & Much More.

IDBI Bank Education Loan
IDBI Bank Education Loan

The IDBI Bank is Development Bank was established in the year 1964. IDBI bank is a Nationalised Bank. the services provided by IDBI bank are Consumer Banking, CorporationBanking, Investment Banking, Mortgage loans, Private Banking etc. If you want Education Loan to complete your education or pursue higher studies from India/Abroad, You are at the right place to collect every aspect of information related to Education Loan in India.

IDBI Bank Logo

Read this full post on IDBI Education Loan for information Like Eligibility, How to apply, Interest Rates, Documents Needed, Different aspects of Education Loan, Interest Rates, Return Policy, General Instructions etc. Throughout the article, we will share information regarding IDBI Education Loan it’s Process to Apply and full detailed Information.


IDBI Bank Education Loan


The major aim of the bank is to ensure anywhere and any time banking for the customer with the latest state-of-the-art technology. The Bank is very serious about its Education Loan Facility and by developing an effective customer-centric relationship it promises to emerge as a world-class education Loan provider. Before we share further, let us first have a brief review of the Bank.

Brief Review

Profile Description
Name of Bank  IDBI
Founded on 1964
Headquarter Mumbai
Type of Bank  Nationalised Bank
Number of Employees 27,570
CEO Name Rakesh Sharma
Maximum Loan Amount  Rs. 30 Lakhs
Timeline for Loan Disposal Maximum 15 Working days
Annual Revenue ∇ ₹28,043.10 crore (US$ 3.9 billion) (2016)
Processing Fees No Processing Fee will be charged
Other Subsidiaries
  • IDBI Intech Ltd
  • IDBI Capital
  • IDBI Asset Management limited
  • IDBI Bank Limited, UAE Branch
  • IDBI Mf Trustee Company Limited
  • IDBI Trusteeship Services Limited
  • IDBI Capital Market & Securities Ltd.
  • Kerala Industrial and Technical Consultancy Organisation Ltd.
  • IDBI Bank Limited, Asset Management Arm
Category  Education Loan in India

Types of Student Loan

S.no. Scheme Description
1. Education Loan scheme for Non-Vocational Courses This loan is for Students who have secured admission to a higher education course in recognized institutions in India or Abroad through Entrance Test /Merit Based selection processOne can avail a loan amount up to Rs. 20 lakh for studies in India and Rs. 30 lakh for studies abroad.
2. Education Loan scheme for Admission through Management Quota This Scheme is for students confirmed Admission Through Management Quota in any job oriented Courses offered by any educational institute/organization located in India. One can avail a loan of the Maximum amount up to Rs. 10 lakhs
3. Skill Loan Scheme Skill Loan Scheme aims at providing a loan facility to individuals. who intend to take up skill development courses as per the Skilling Loan Eligibility Criteria. One can avail a loan amount from Rs 5000 to Rs 1.5 lakhs.
4. Udaan – a unique Saving-cum- Education Loan Scheme Under this Scheme, Loan is Granted to Students studying between 8th and 10th standard or Parents of Student.
5. Central Interest Subsidy Scheme on Education Loan. This Scheme is to provide full interest subsidy for moratorium Period on Education Loan to the students from Economically Weaker Section (EWS) with a total parental income upper limit of Rs. 4.50 lakhs for pursuing approved technical/professional courses in India after class XII.

How to Apply

Online

  • Visit official Web Site of IDBI (Click Here)
  • Find the Education Loan Section (Apply Now Button)
  • Fill online Application Form.

Offline

  • Visit the nearest branch of IDBI Bank to get offline Education Loan form.
  • You may also download the form from official web handle.
  • Submit the Application Form to Nearest Branch along with document needed.

Eligibility

  • The applicant should be an Indian national.
  • Applicant must have secured admission in a recognized educational institution.
  • Applicant should have obtained admission in a government certified training institute.

Documents Needed

  • Mark sheet of last qualifying examination for school and graduate studies in India
  • Academic Records: 10th Result, 12th Result, Graduation result-semester Wise (if Possible) Entrance Exam Result through which admission is being taken
  • Proof of admission: Offer Letter or Admission Letter from the Institution.
  • Schedule of expenses for the course
  • Copies of the letter confirming scholarship, etc.
  • Copies of foreign exchange permit, if applicable.
  • 2 passport size photographs.
  • Statement of Bank accounts for the last six months of the borrower.
  • Income tax assessment order not more than 2 years old.
  • A brief statement of assets and liabilities of the borrower.
  • If you are not an existing bank customer you would also need to establish your identity and give proof of residence.

Expenses Considered

  • Tuition and course fee
  • Examination, library and laboratory fees
  • Caution deposit
  • Cost of books, Uniforms, Equipment and other instruments.
  • Travel Expenses

Return Policy

  • In the case of IDBI Education loan, repayment will start after the completion of course period +1 Year or Moratorium period.
  • Repayment Tenor is up to Maximum of 15 years

EMI Calculator

EMI Calculator is used for calculating the periodic payment amount due on a loan. For calculating EMI one must input data like Amount, Interest Rate, tenure, Processing Fee etc.

  • If you want to calculate EMI for IDBI Education LoanClick Here

IDBI Education Loan Security

  •  Up to Rs. 4 Lakhs
    • No security.
    •Parent(s) to be joint borrower(s)
  •  Above Rs. 4 Lakhs and up to Rs.7.50 Lakhs
    • Third Party Guarantee besides Parent(s) being joint borrower(s)
  • Above Rs.7.5 Lakhs
    • Parent(s) to be joint borrower(s). Tangible collateral security, along with the assignment of future income of the student for payment of instalments.
    • Any Fixed Income Security viz. Govt. securities/ Public Sector Bonds, NSC,

Contact Details

Head office  7-e, Rustom Sidhwa Marg, Borabazar Precinct, Ballard Estate, Fort, Mumbai, Maharashtra 400001
Official website www.idbi.com
Apply for Loan  Click Here
Contact Number 18002001947

 

IDBI Bank Student Loans FAQs

We hope that the information furnished above will guide you to get the best educational loan for your studies. In case of any doubt regarding the loan procedure and other related terms, read our FAQ’s session.

Q1. Who can be my co-borrowers?

Ans. Your parents/guardian can be a co-borrower as well as the spouse in case of a married applicant. The co-borrower should have a steady source of income and a good credit history in order to improve the applicant’s chances of a successful loan application.

Q2. How long does it take to process Education Loan?

Ans. Generally, the time taken for the education loan to process is somewhat between 7-10 working days. Often, the whole process can be easily completed within 3 to 5  Working days, once the student fulfils all documentation.

Q3. What all expenses will be covered by education loans?

Ans. Apart from the tuition fees, other aspects of expenses such as hostel charges, equipment purchases and other course-related expenses may also be covered by the education loan.

Q4. What are the courses for which an Education loan can be availed?

Ans. An education loan can be availed for all courses recognized by the UGC in case of India and all regular courses abroad. Each lender has its own list of educational institutions and courses that they would provide a loan for whether overseas or within India.

Q5. Can a student avail another loan for further studies?

Ans. Yes, this is possible. You can borrow a loan for a bachelor’s degree followed by one for master’s without repaying the first loan. This loan can be taken as a top-up loan against the already existing loan; however, it is subject to the lending bank’s discretion and the internal rules and regulations of the lender.

Q6. Do education loans have any Income Tax benefits?

Ans. Loan borrowers can avail tax benefits on interest paid on education loan under Sec 80E of the Income Tax Act. This benefit is available over and above the Rs. 150,000 deduction allowed under Section 80C. Tax benefits can be availed once the borrower starts paying the interest on the education loan. Further, the deduction is available until the borrower pays off the full interest amount on the loan or for a maximum period of 8 years, whichever is earlier.

Q7. Why do banks require an insurance policy?

Ans. Banks usually prefer that students avail a life insurance policy equivalent to, or more than, the loan amount. The policy acts as a security feature and forms a part of the collateral. In case of the untimely demise of the borrower, the bank recovers the outstanding loan amount from the student’s life insurance policy and the remaining amount, if any, is paid out to the beneficiary of the policy.

Q8. Is any incentive available for a girl student applying for education loan?

Ans. Banks generally provide a 0.5% concession on the applicable education loan interest rate to girl students pursuing higher education in India and abroad.

Q9. Are there any special privileges for students of SC/ST category who avail education loans?

Ans. Yes, eligibility criteria and loan margins on education loan are relaxed for Scheduled Caste/Scheduled Tribe students availing education loans in India. The eligibility criteria are lowered from first/second class to pass class for SC/ST category students seeking education loan for graduate and postgraduate studies, while, margin money is sometimes lowered than the regular percentage or nil.

Q10. Where can I avail on IDBI Education loan?
Ans. The loan is available from all branches in metro/urban areas as well as those having personal banking divisions.

Best of Luck..!!

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