IDBI Bank Educational Loan

IDBI Bank is an Indian government-owned financial service company, formerly known as Industrial Development Bank of India, headquartered in Mumbai, India. It was established in 1964 by an Act of Parliament to provide credit and other financial facilities for the development of the fledgling Indian industry.

It is currently 10th largest development bank in the world in terms of reach, with 3350 ATMs, 1853 branches, including one overseas branch at Dubai, and 1382 centers. It is one of 27 commercial banks owned by the Government of India.

The Bank has an aggregate balance sheet size of INR 3.74 trillion as on 31 March 2016.IDBI Bank provides educational loans to students to pursue higher education in India and abroad. Deserving students, according to their eligibility and requirements, can choose from a number of financial loans and repayment options offered. IDBI educational loans help students procure financing options to secure their future.

Eligibility of the applicant

  • Up to 35 years for non-employed personnel’s
  • Up to 45 years in case of working employees/ executives
  • An Indian National having secured admission to professional/technical courses in recognized institutions
  • Students seeking admission for higher studies
  • Permanent employees who are employed for not less than three years with any organization and who intend to acquire higher professional qualifications and have secured admissions in a reputed institute

Eligible Courses

A) Studies in India:

  • Approved courses for graduation or post-graduation and PG diplomas by universities or colleges recognized by UGC, Govt., AICTE, AIBMS, IMCR, etc.
  • Job-oriented courses for technical or professional degrees, postgraduate, and diplomas in recognized institutions.
  • Technical diplomas after 10th standard, offered by approved polytechnic institutions (usually three years).
  • In the case of dual courses, where part of the course is abroad, the domestic course will be considered.
  • Approved courses offered by reputed foreign schools/universities in India.

B) Studies Abroad:

  • Graduation for job-oriented technical or professional courses offered by reputed universities.
  • Post-graduation for MBA, MS, MCA, etc., and approved diploma courses.
  • Courses by CPA in USA, CIMA-London, etc.

Expenses covered under the education loan

  • Fees payable to the school, college, hostel.
  • Fees for examination, laboratory, library.
  • Books, uniforms, equipment, instruments.
  • Expenses for any computers or laptops required for the course.
  • Travel expenses incurred during the course.
  • Building fund or caution deposit with institution bill. The amount should not exceed 10% of total tuition fees for the entire course.
  • Insurance premium for the student, if sought.
  • Any other expenses required to complete the course such as thesis, projects, and study tours.

Interest rates

  • The rate of interest is 13.50% (BR+3.50%).
  • In the case of change of institution before disbursement, a fee of Rs. 1,000 + taxes will be applicable. There will be no increase in the loan amount already disbursed.

Maximum Loan Amount

  • Typically up to Rs. 1,000,000 for studies in India; with minimum margin money (own contribution by student/ family) of 5% of total cost for loan above 4 Lakh. No Margin for loan less than 4 Lakh
  • Typically up to Rs. 2,000,000 for studies abroad with minimum margin money (own contribution by student/ family) of 15% of total cost for loan above 4 Lakh. No Margin for loan less than 4 Lakh
  • Up to Rs. 1,000,000 for studies at IIT’s, IIM’s and ISB’s with minimum margin money (own contribution by student/ family) of 5% of total cost


  • Up to Rs.4 Lakh – No security
  • From Rs.4 Lakh to Rs 7.50 Lakh: Collateral in the form of satisfactory third party guarantee
  • Above Rs.7.50 Lakh: Collateral security in the form of immovable property of value which will be 1.33 times of the amount of loan applied for, or, Govt. Bonds, PSU securities, NSC, LIC policy or gold etc. or, co-obligation of parents/ guardians/ third party along with the assignment of future income of the student for payment of installments.

Documents Required

  • IDBI Bank Educational Loan application form
  • Residence and age proof
  • Income proof of parents or guardians with income-tax proof for 2 years.
  • Income proof, proof of tax paid, security details of guarantors.
  • A copy of the certificate or prospectus from the principal/head of the institution to calculate expenses.
  • A copy of the statement of marks or certificates of the last examination passed.
  • A confirmation of student’s admission from the institution.
  • For loans which require security, details of security offered with advocate’s search and report about its marketability, mortgage ability, and so on, must be furnished.
  • Sources of margin – documents of proof are required.
  • For studies in the USA, I-20 form is required.
  • Consent for assigning LIC policy of the student to the bank, stating that the premium will be paid to continue to policy during the duration of the loan, if the loan exceeds specified amount.

Leave a Reply

Your email address will not be published. Required fields are marked *