Education Loan Interest Rates 2020409 views
- IDBI Bank Education Loan offered above INR 7.5 lakh
- Lowest interest rate with benefits like repayment holiday and more up for grabs
You can borrow a loan from IDBI Bank and secure your child’s education future with affordable installments. The bank offers the loan to the customers based on their educational qualification. The university and institution in which you are getting an admission can influence IDBI Bank while sanctioning the loan and setting its interest rate. Because as per the course duration and the job prospects resulting from the course, the bank offers the rate of interest. Read and know about the details of IDBI Bank education loan schemes.
Table of Contents
- 1 IDBI Bank Education Loan Non-Vocational Courses
- 2 IDBI Bank Education Loan Management Quota
- 3 IDBI Skill Development Education Loan
- 4 IDBI Bank Education Loan for Specialised Courses
- 5 Central Scheme of Interest Subsidy on IDBI Bank Education Loan
- 6 How to Apply for IDBI Bank Education Loan?
IDBI Bank Education Loan Non-Vocational Courses
You can apply for higher studies in India or abroad at IDBI Bank. The interest rate on your IDBI education loan is based on your borrowed amount. If you take a loan up to Rs.7.5 lakhs, then the interest rate to your loan is 9.75%. On the other hand, loans above Rs. 7.5 lakh will come with an interest rate of 10.25% per annum. The rate of interest remains the same during the tenure. The bank provides you a maximum of 15 years to pay the borrowed amount at the agreed rate of interest. You also get a 1-year repayment holiday in which you don’t have to pay your loan, but it still collects the interest rate to your outstanding balance.
Which course can I opt for using the IDBI education loan? Following is the list of courses that you can avail of using the loan.
Studies in India
- Approved courses for graduate, post-graduate degree
- And PG diploma conducted by recognized colleges or universities recognized by UGC, Govt., AICTE, AIBMS, ICMR, etc.
- Job oriented courses which lead to technical and professional degrees
- Post-graduate degrees or diplomas from recognized institutions.
- Technical Diploma courses of 3 years from offered from approved polytechnic institutions after completion of the 10th standard.
- Approved courses offered in India by foreign universities.
- In case the institution offers the course in India or abroad, the authenticity of domestic courses and institutions is taken into consideration.
- Graduation course with job possibility in professional or technical courses from reputed universities.
- Post-graduation courses like MCA, MBA, MS, etc.
- Approved Post Graduate Diploma courses are also eligible.
- Courses conducted via CIMA- London, CPA in USA, etc.
Regular Degree and diploma courses in Aeronautical, pilot training, shipping and others recognized by competent regulatory bodies in India for the purpose of employment in India or abroad after course completion.
IDBI Bank Education Loan Management Quota
The applicant should be an Indian citizen to apply for a loan under this scheme. Students who have confirmed their admission through Management Quota are eligible for the loan. Any job-oriented courses offered by educational institutes or organizations in India with approval from statutory authorities like AICTE, UGC, etc. After knowing about the scheme details, have a look at the loan details mentioned in the table below.
|Loan Quantum||INR 10 lakh|
|Interest Rate||7.15% - 9.15%|
|Tenure||10 years + 12 months moratorium|
|Processing fee||1% of the loan amount|
|Collateral||IDBI Bank Fixed deposit, LIC insurance policy, immovable property, etc.|
Margin to your education loan is 15% including all the expenses of your course from examination to hostel fees. The age of the student must not exceed 50 years during the tenure and the co-borrower needs to be salaried or self-employed to pay the loan in equated monthly installments (EMI). If the borrower makes a default during the loan tenure, a penalty interest of 2% applies to the due EMI.
IDBI Skill Development Education Loan
You can borrow up to INR 1.5 lakh from IDBI Bank by having a secured admission for the desired course from Industrial Training Institutes (ITIs), Polytechnics or Central and State recognized education boards. National Skill Development Corporation (NSDC) affiliated courses from the institutes are also eligible. The following expenses are covered by the IDBI Skill development loan.
- Tuition or course fees as mentioned by the institution
- Examination, Library and Laboratory fee.
- Caution Deposit fee
- Purchase of books, equipment and other instruments
- Any other reasonable expenditure found necessary for completion of the course is considered such as a personal computer or Laptop
- Insurance premium for students
|Loan Quantum||INR 5,000 to 1.5 lakh|
|Interest Rate||10.15% per annum|
|Margin||10% if disbursement is in Pro-Rata basis|
IDBI Bank Education Loan for Specialised Courses
This loan is granted to students enrolled in ISB, IIMs and other reputed management institutions, open and central universities like IITs, NITs franchises or OEMs of IT related Hardware & Software institutions. If you secure your position in any of the mentioned institutes, you don’t need to worry about funds to get the admission there. Because IDBI Bank offers a loan up to INR 15 lakh to the students. The loan amount you get can help you pay your institution fee and other expenses involved in studies. IDBI Bank education loan interest rate for the special course starts from 8.25% per annum.
Look at the table below to know about the security of your education loan for a special course.
|Loan Quantum (INR)||Security|
|Up to 4 lakh||No Security|
|> 4 lakh to 7.5 lakh||3rd Party Guarantee|
|Above 7.5 lakh||Tangible collateral like FD, Bonds, LIC securities or insurance, immovable property, etc.|
Note: The joint borrowers for the IDBI bank education loan can be the student parent, guardian, sister, brother, in-laws or spouse (if married). The borrower doesn’t get a repayment holiday in this specialized course scheme and has a maximum repayment period of 7 years.
Central Scheme of Interest Subsidy on IDBI Bank Education Loan
To take care of the lower income groups, IDBI Bank provides education loans to EWS students. The applicant annual income can be up to INR 4.5 lakh to apply for an education loan under the credit subsidy scheme. You can finance your higher education in India with the help of the scheme and can secure your admission in the following university for under graduate or postgraduate degree.
- University of Delhi
- Jawaharlal Nehru University
- Jamia Millia Islamia
- Indira Gandhi National Open University(IGNOU)
- Banaras Hindu University
- Aligarh Muslim University
- Hyderabad University
- Pondicherry University
- North-Eastern Hill University
- Assam University
- Tezpur University
- Nagaland University
- Babasaheb Bhimrao Ambedkar University
- Maulana Azad National Urdu University
- Mahatma Gandhi Antar Aashtriya Hindi Vishwavidyalaya
- Mizoram University
- University of Allahabad
- The Institute of Chartered Accountants Of India (ICAI)
- The Institute Of Company Secretaries Of India (ICSI)
- The Cost And Works Accountants Of India (ICWAI)
- You can claim the subsidy benefit on education loan only once for an undergraduate or a postgraduate degree or diploma course.
- If the student is a dropout and leaves the course in mid-semester, the bank won’t provide any subsidy benefit.
|Loan Amount||INR 10 Lakh|
|Interest Rate||9.75%-10.25% per annum|
|Tenure||15 years + 1-year Moratorium Period|
How to Apply for IDBI Bank Education Loan?
To apply for the loan, you just need to follow a simple procedure to meet your fund requirements as quickly as possible. Visit the Vidya Lakshmi portal which is the official online portal for education loan application for public sector banks in India including IDBI Bank. Follow the steps below to apply for the loan.
- Fill in the online application form
- Mention your mobile number and email address
- Select the bank from the mentioned list
- Click to ‘Submit’ and wait for the approval
After the loan approval, pay the processing fee and the necessary documents as mentioned by IDBI Bank. And the loan can be disbursed in stages or one go as per your fund requirements.