IDBI Bank Education Loan for Abroad Studies

    Updated on: 16 Jan 2023

     


    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. 

    Check Your Education Loan Eligibility Apply Here

    What are the loan eligibility criteria for the IDBI Bank Education loan?

    The IDBI Bank Education loan eligibility criteria are as follows - 

    1. The applicant must be an Indian citizen. 
    2. The applicant must be above the age of 17 but below the age of 35. 
    3. The applicant must have secured admission to a recognized overseas university/college/school.
    4. The applicant must have a valid admission confirmation letter from the concerned university. 
    5. 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


    Check Your Education Loan Eligibility Apply Here

    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)

    1. last 3 month salary slip
    2. 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 –

    1. Self attested valid passport;
    2. self attested I-20 form (wherever applicable)

    Looking for an abroad education loan?

    Fill the form and get free expert help

    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.

    Check Your Education Loan Eligibility Apply Here

    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:


    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.

    Read Also:

    First published date:


GyanDhan is India's first education financing marketplace.

Upcoming Events

How to Smartly Plan Education Loan Repayment?

  Fri, February 03, 2023    18:00 IST

Surviving on a Budget in US: How to Thrive as an International Student

  Fri, February 17, 2023    19:00 IST

How to Smartly Plan Education Loan Repayment?

  Fri, February 03, 2023    18:00 IST




Looking For Help in Foreign Education Loan? Arrange a Call From an Expert:

Enter Mobile no. Without Any Prefix.
By entering my phone number here, I hereby authorize GyanDhan to contact me through call, message or WhatsApp. It will override my registry on the NCPR/NDNC