Education Loan

IDFC First Bank Disbursement Process

IDFC First Bank Disbursement Process

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Read GyanDhan’s guide on IDFC First Bank disbursement process, documents required for disbursement & common problems during IDFC disbursement process.

GyanDhan
Anam Shams
Updated on:  21 Oct 2023  | Reviewed By: 
Aman 
| 3.65K | 8  min read

Did you know that the actual loan disbursed may vary from the amount sanctioned? Yes, it is true and the final disbursed amount depends on factors such as the type of loan, processing fees, upfront payments (if applicable), and service tax.

The sanction letter serves as a confirmation that the borrower's loan application has been approved. Disbursement on the other hand actually takes place upon fulfilling additional formalities after loan approval.

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IDFC First education loan for study abroad

Feature  Description

Loan amount

Upto 50 Lakh

Interest rate

Starting from 11.50% 

Loan Tenure

Upto 12 years 

Moratorium period 

Course duration + 12 months

Payment during the moratorium period

Simple interest, Partial simple interest, EMI

Margin Money

Nil

 

Check Your Education Loan Eligibility

 

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IDFC First Bank disbursement process

The entire loan disbursement process of IDFC First Bank takes less than 48 hours, with the money directly reaching the applicant’s bank account. By leveraging technology and a customer-centric approach, the bank streamlines the loan disbursal journey, from the initial application stage to post-disbursement services. 

  • list items Application and documentation:

The disbursement process at IDFC First Bank begins with the initial application stage. The application process is straightforward and user-friendly, enabling borrowers to submit their requests with ease. Along with the application, customers are required to provide relevant documents to establish their identity, address, income, and creditworthiness. The bank maintains a comprehensive list of necessary documents on its website, ensuring transparency and clarity for applicants.

  • list items Verification and credit assessment:

Once the application and supporting documents are submitted, IDFC First Bank initiates the verification process. The bank's diligent team conducts a thorough analysis of the applicant's credit history, income stability, and other relevant factors to assess their creditworthiness. By advanced technology and data analytics, the bank streamlines this process, enabling quicker turnaround times. In addition to traditional credit assessment methods, IDFC First Bank also considers alternative credit scoring models, catering to a wider range of customers.

  • list items Loan approval and sanction:

Upon successful completion of the verification and credit assessment, IDFC First Bank proceeds with the loan approval and sanction process. The bank promptly communicates its decision to the applicant, ensuring transparency and clarity throughout. IDFC First Bank strives to offer competitive interest rates and attractive loan terms, tailoring its offerings to suit the unique needs of customers. The bank's customer-centric approach is evident in its commitment to providing swift approvals and disbursals, aiming to fulfill financial requirements expeditiously.

  • list items Disbursement and fund transfer:

After the loan approval, the disbursement process at IDFC First Bank is designed to be seamless and efficient. The bank ensures that the funds reach the borrower's designated account at the earliest. Depending on the type of loan, disbursement can occur through various channels such as direct bank transfer, demand draft, or account payee cheque. IDFC First Bank's digital infrastructure enables swift and secure fund transfers, minimizing delays and ensuring customer satisfaction.

  • list items Post-disbursement services:

IDFC First Bank understands that its relationship with customers extends beyond the disbursement process. Therefore, the bank provides robust post-disbursement services to ensure a smooth borrowing experience. Whether it's providing access to online account management, enabling easy repayment options, or offering customer support for any queries or concerns, IDFC First Bank goes the extra mile to assist its customers throughout their loan tenure.

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Documents required for IDFC First Bank disbursement process

  • list items Self-attested final loan agreement.
  • list items Original KYC documents of the student, co-applicant, and guarantor (if any).
  • list items Two original copies of the completed ECS mandate form signed and stamped by your bank. 
  • list items After deciding the date of disbursement, submit one of the original copies to the bank manager for their records. Alternatively, the co-applicant can fill out a NACH form providing the details of the account from which monthly interest payments will be deducted. 
  • list items The co-applicant will have to submit 9-12 post-dated cheques as security, in case the co-applicant is unable to make an interest payment in a particular month. 

 

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Common problems faced by borrowers during education loan disbursement

 

During the education loan process, students may encounter several common problems that can cause delays in disbursement. Some of these issues include:

  • list items Loan amount discrepancies: The final loan amount disbursed may differ from the originally approved amount due to adjustments made by the lender or changes in the student's eligibility.

 

  • list items Loan servicing and communication: Students might face challenges in communicating with the lender or loan servicing agency regarding queries, changes in repayment terms, or other concerns.

 

To avoid or mitigate these issues, it is essential for students to be proactive, well-informed, and organized throughout the loan application and disbursement process. However, the disbursement process followed by IDFC First is simple and free from the above-mentioned concerns.

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Perks of IDFC First Bank education loan

Advantage Description

Tax benefits

IDFC First Bank education loan is eligible for tax benefits under section 80e.

Quick disbursement

IDFC First Bank may disburse the loan amount within one hour under special cases.

Foreclosure charges

No foreclosure charges if the borrower forecloses their account within 6 months of the sanctioning of the loan. 

 

Disbursement is the last and most crucial step in the education loan journey. It being the most crucial step requires utmost attention and proper guidance to avoid last minute rush. Therefore, our education loan experts advise students to make a well-informed decision. For a seamless disbursement process and to maximize the advantages, get in touch with GyanDhan for expert assistance in securing the most suitable education loan options tailored to your specific needs. We specialize in connecting students with a wide array of loan choices, offering professional financial advice, and providing end-to-end services for securing education loans for studying abroad, all at no cost. Take the first step in your journey toward your overseas education loan by checking your eligibility today!

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Frequently asked questions

What is disbursement?

Disbursement refers to the process by which the bank releases funds to the borrower’s account after the loan has been approved and all necessary documentation and formalities have been completed.

How long does it take for IDFC First Bank to disburse a loan?

The time taken for disbursement by IDFC First Bank can vary depending on factors such as the type of loan, the completeness of documentation, and the verification process. Typically, the disbursement process takes a 2 - 3 days.

What are the various modes of education loan disbursement offered by IDFC First Bank?

IDFC First Bank offers loan disbursement through multiple channels, including direct credit to the borrower's bank account, issuance of a demand draft, or providing a banker's cheque.

Can I choose the mode of disbursement for my loan from IDFC First Bank?

Yes, IDFC First Bank provides flexibility in choosing the mode of disbursement based on the loan product and your preferences. You can discuss the available options with the bank representative during the loan application process.

How can I track the status of disbursement with IDFC First Bank?

IDFC First Bank provides various channels to track the status of your disbursement process. You can use the bank's online banking portal, or mobile app, or contact their customer service helpline to get updates on the progress of your loan disbursement.

Are there any pre-disbursement conditions I need to fulfill for IDFC First Bank loans?

Yes, before disbursing the loan amount, IDFC First Bank may require you to fulfill certain pre-disbursement conditions. These conditions may include providing additional documentation, completing formalities, or meeting specific eligibility criteria. The bank representative will guide you through the requirements.

 

Can I get partial disbursement of my education loan from IDFC First Bank?

In some cases, IDFC First Bank may allow partial disbursement of the loan amount based on the terms and conditions of the loan agreement. 

What should I do if there is a delay in education loan disbursement from IDFC First Bank?

If you experience any delay in loan disbursement from IDFC First Bank, it is advisable to contact their customer service helpline or visit the nearest bank branch. The bank representatives will assist you in understanding the cause of the delay and provide the necessary guidance to resolve the issue. In such cases, GyanDhan can help in escalating your problem to the top management and resolve your issue as soon as possible.

Can I change the disbursement date of my education loan from IDFC First Bank?

The disbursement date of your loan from IDFC First Bank is typically agreed upon during the loan application process. However, if you need to change the disbursement date, you should reach out to the bank and discuss your request with the concerned department. They will guide you through the process and inform you about the feasibility of changing the disbursement date.

Is it possible to get immediate loan disbursement from IDFC First Bank?

IDFC First Bank generally provides timely education loan disbursement, but immediate disbursement may not always be possible. The bank follows a diligent process to ensure all necessary checks and verifications are completed before releasing funds. The timeline for disbursement can vary depending on the loan type and other factors.

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