Education loans from IDBI Bank aim at providing financial support to deserving/ meritorious students for pursuing higher education in India and abroad. IDBI offers loan for an array of courses to choose from and easy repayment options.

Eligibility

• Foreign Universities:
  Proof of TOEFL, GMAT, GRE score card, and 1-20 admit card
• Indian Universities:
  For Graduate courses: at least 75% in the +2 stage.
  For Post Graduate Courses: first class graduates.
• Age of the applicant should not be more than 35 for Foreign Universities and 30 years for Indian Universities. Age of the parent / Guarantors should be below 55 Years. The annual income of the family should not be less than Rs. 3 lac.

Courses Eligible

Studies abroad:

• Graduation: For job oriented professional/ technical courses offered by reputed universities. Post graduation: MCA, MBA, MS, etc. Courses conducted by CIMA- London, CPA in USA etc.

Studies in India:

• Graduation courses : BA, B.Com., B.Sc., etc
• Post Graduation courses : Masters & Phd
• Professional courses : Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer etc
• Computer certificate courses of reputed institutes accredited to Dept. of Electronics or institutes affiliated to university
• Courses like ICWA, CA, CFA etc
• Courses conducted by IIM, IIT, IISc, XLRI. NIFT etc
• Courses offered in India by reputed foreign universities
• Evening courses of approved institutes
• Other courses leading to diploma/ degree etc. conducted by colleges/ universities approved by UGC/ Govt./ AICTE/ AIBMS/ ICMR etc
• Courses offered by National Institutes and other reputed private institutions. Banks may have the system of appraising other institution courses depending on future prospects/ recognition by user institutions.

Special Courses:

• Regular Degree/Diploma courses like Aeronautical, pilot training, shipping etc., approved by Director General of Civil Aviation/Shipping. In case the course is pursued abroad, the Institute should be recognized by the competent local aviation/shipping authority.

Maximum Loan Amount

• Study Abroad -Rs.20 lakhs
• Study in India-Rs.10 lakhs

Expenses Covered under Loan

• Fee payable to college/ school/ hostel
• Examination/ Library/ Laboratory fee
• Purchase of books/ equipments/ instruments/ uniforms
• Caution deposit/ building fund/ refundable deposit supported by Institution bills/ receipts
• Travel expenses/ passage money for studies abroad
• Purchase of computers - essential for completion of the course
• Any other expense required to complete the course - like study tours, project work, thesis, etc.
• Insurance premium for student borrower

Security

• Up to Rs 4 lacs
  No security
• Above Rs 4 lacs and up to Rs. 7.5 lacs
  Collateral in the form of a third party guarantee
• Above Rs 7.5 lacs
  Collateral security in the form of Land/ building, (The minimum value shall be 1.33 times the amount of loan sought).
  Govt. securities/ Public Sector Bonds/ Units of UTI, NSC, KVP, LIC policy, gold, shares/ debentures, bank deposit in the name of parent/ guardian or in the name of the co-applicant (The minimum value shall be 1.1 times of the amount of loan sought).

Rate of Interest

• Up to Rs. 4 lakhs - 12.00% (BPLR - 1%)
• Above Rs. 4 lakhs - 13.00% (BPLR )

Simple interest to be charged during repayment holiday and moratorium Accrued interest during the repayment holiday period should be added to the EMIs. Where the borrower has not opted for the repayment holiday or is willing to service the interest during the repayment holiday (for principal) the interest rate should be 1% lower than the applicable rate.

• 50 basis points reduction for girl applicants
• 50 basis points reduction for physically challenged applicants (subject to submission of certificate from a medical practitioner)

Repayment
The repayment of loan to begin after the course period + 1 year or 6 months after getting a job, whichever is earlier. The loan has to be repaid within 5-7 years (maximum tenor 84 months) after commencement of repayment.