IDBI Bank Education Loan for Abroad Studies | GyanDhan
Updated on: 25 May 2021
Looking for an abroad education loan? We know that getting an education loan sanctioned is not a walk in the park. Especially when you are unaware of the options available. Education loans can help you seize your education dreams. Studying abroad is, no doubt, expensive, but has equally great returns on investment. There are many banks in India that can help you get funds for your foreign studies. One such public-sector bank is IDBI Bank. In this blog, we have listed down the features, details, and eligibility criteria for IDBI Bank education loans.
What are the loan eligibility criteria for the IDBI Bank Education loan?
The IDBI Bank Education loan eligibility criteria are as follows -
The applicant must be an Indian citizen.
The applicant must be above the age of 17 but below the age of 35.
The applicant must have secured admission to a recognized overseas university/college/school.
The applicant must have a valid admission confirmation letter from the concerned university.
The applicant must have a valid passport and visa.
Which courses and universities are eligible for the IDBI Bank abroad Education Loan?
IDBI Bank offers education loans for all the recognized courses from the recognized universities abroad. However, before approval, the expected future earning is kept under consideration by the bank.
What are the expenses covered in the IDBI Bank overseas Education Loan?
The expenses covered by an education loan from IDBI Bank are -
Tuition fees
Examination fees
Study tours, project work
Cost of books, stationery
Equipment essential for the course
Caution Deposits/ Building Funds/ Refundable Deposits supported by institution bills/receipts.
The cost of Hostel fees, air passage, and maintenance of health insurance are also included.
How much loan amount is possible from the IDBI Bank education loan for abroad studies?
The maximum amount that you can borrow for studies overseas is INR 20 lakhs. The student will have to pledge collateral to support the loan amount. The bank offers the loans only on the basis of collateral security. For studies in India, the maximum amount that can be borrowed from IDBI Bank is INR 10 Lakhs.
What is the IDBI Bank Education loan interest rate?
The interest rate offered by the IDBI Bank depends on the loan amount. If the quantum of finances is up to INR 7.5 lakhs, the interest rate is 8.65%. If the quantum of finance is above INR 7.5 lakhs, the interest rate is 9.15%.
IDBI Bank Education Details
Maximum Loan Amount
INR 20 lakhs
Eligibility
Must be an Indian citizen
Should have secured admission to a recognized and a reputed institute.
Must have a valid passport and visa.
Student’s age should not be below 17 years and not be above 35 years.
Interest Rate
For loan amount up to INR 7.5 lakhs - 8.65%
For loan amount above INR 7.5 lakhs - 9.15
Margin Money
For loan amount up to INR 4 lakhs - NIL
For loan amount above INR 4 lakhs - 15%
Repayment Period
Up to INR 7.5 Lakhs: 10 Years
More than INR 7.5 Lakhs: 15 Years
Moratorium Period
Course period + 6 months
What are the documents required for IDBI Bank Student Loan for Study Abroad?
The list of documents required for the IDBI Bank overseas education loan depends on a case-to-case basis. However, an indicative list of documents is as follows -
General Documents
Completed application form
A declaration/ affidavit from the borrower confirming that no educational loans have been availed from other banks.
Collateral documents
Documents required from applicant:
Age Proof
ID proof
Address proof
Mark sheets of last qualifying examination
Proof of admission (before disbursement), scholarship, etc.
Schedule of expenses for the specified course
Documents required from co-applicant:
Age proof
ID proof
Signature proof
Address Proof
Employment or Business or Income Proof
Co-applicant’s income proof requirements
Salaried (Any one of below)
last 3 month salary slip
Salary Account statement for last 3 months with salary credits.
If income in addition to salary like pension, rent, etc. is considered - documentary evidence viz. ITR or bank account statement or rent agreement, etc. to be obtained.
SEP and SENP – Audited/ CA Certified P & L and BS for last 2 years.
Others –
Income Certificate by Competent Authority (Tahasildar and above, BPL Card issuing authority, etc.)
In case of education loan for studies in abroad, following documents are mandatory –
Self attested valid passport;
self attested I-20 form (wherever applicable)
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What is the margin money in the IDBI Bank education loan?
The margin money for loan amount up to INR 4 lakhs is NIL for IDBI Bank study loans, whereas for a loan amount above INR 4 lakhs is 15%. It means that the student’s contribution to the entire expenses incurred would be 15%.
What collateral is accepted by the IDBI Bank for abroad education loans?
Types of collateral accepted by IDBI Bank are -
Immovable property - house, flat, apartment, or a plot with boundary.
Liquid assets - LIC Policy, Fixed Deposit, government bonds, etc.
What is the maximum possible repayment tenure of IDBI Bank education loans?
For loan amount up to INR 10 Lakhs, the maximum possible repayment tenure is 10 years, whereas for amount more than that, the maximum possible loan tenure is 15 years.
What is the prepayment penalty on IDBI Bank education loans?
There is no prepayment penalty on the loans taken through IDBI Bank.
Which subsidiary schemes are applicable on IDBi Bank education loans?
Following 3 subsidiary schemes of the Indian government are applicable on IDBI Bank study loans:
Central Interest Subsidy Scheme on Education Loan
Padho Pardesh Scheme on Education loan
Dr. Ambedkar Central Sector Scheme of Interest Subsidy
Get in touch with GyanDhan and get overseas education loans from top government banks- SBI & BOB, private-sector banks- Axis Bank & ICICI Bank, and NBFCs- HDFC Credila. Our study loan assistance service is totally free of cost. We have partnerships with popular financial lenders in India to provide the best deals on overseas education loans. For both with and without collateral abroad education loans, you can check your loan eligibility and get a callback from us.
This is a companion discussion topic for the original entry at https://www.gyandhan.com/blogs/idbi-bank-education-loan