IDBI Education Rate of Interest

IDBI Bank offers education loan to meet financial needs of students for maximum loan amount upto 15 Lacs

  • EMI for a maximum of 7 years.
  • Maximum loan limit of INR 15 Lacs.
  • No margin.

Rate of Interest charge by the bank depends on the base rate set by IDBI Bank as per the guidelines set by RBI

  • The 1-year MCLR is 9.00%.
  • For loan up to INR 10 Lacs, the RoI is 1 year MCLR+0.85%.
  • For loan above INR 10 Lacs, the RoI is 1 year MCLR+1.45%.


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EMI Payable

188 per month

Total Interest


Payable Amount


Total Interest
Principal Loan Amount

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IDBI Education Loan Eligibility

loan eligibility image
  • Indian National. The applicant should be a citizen of India or should hold the Indian passport.
  • Course. The student should be seeking admission into a graduation or post-graduation course.
  • 10+2 pass. The student should have cleared 10+2 with a minimum passing criterion.
  • Admission basis. The admission should have been on the basis of an entrance exam or merit-based admission.
  • University. The admission should be in a well recognized foreign university/institute.

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Applicable Rate of Interest For loan up to INR 10 Lacs:1 year MCLR+0.85%
For loan above INR 10 Lacs: 1 year MCLR+1.45%.
1.70% above the base rate
up to INR 7.5 Lacs: MCLR + 2.00%
above INR 7.5 Lacs: 2.60%
Upto 4 Lacs- 16.50%
Upto 7.5 Lacs- 17.50%
Above 7.5 Lacs- 15.50%
Max Loan with Collateral 30 Lacs
For Abroad: 30 Lacs
For Abroad: 20 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs and beyond based requirement
Max loan without collateral 30Lacs
For Abroad: 30 Lacs
For Abroad: 20 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs and beyond based requirement
Processing Fee Nil
INR 10,000
Repayment Period 15 years
15 years
7 years
Loan for top institutions no
Yes, SBI Scholar Loan Scheme
Yes, PNB Pratibha
Margin Up to INR 4 Lacs: Nil
Above INR 4 lacs: 15%
Up to INR 4 Lacs - NIL
Above INR 4 Lacs - 15%
Upto loan 4 Lacs: No margin
Above 4 Lacs: for India: 5%
for Abroad: 15%
Age Limit No Minimum age limit
Maximum (at time of loan maturity)- 50 years
no age limit
No age limit
Loan Security Up to INR 4 Lacs: No security required
From INR 4 to 7.5 Lacs: Third Party Guarantee
Above INR 7.5 Lacs: Tangible security with suitable margin.
Building/ Land equal to 1.33 times of actual loan
Tangible collateral security is required
Collateral security by third party are also accepted
Upto INR 7.50 Lacs: Parent(s)/guardian be made joint borrower (s). No tangible Security and /or 3rd party guarantee is required.
Above INR 7.50 Lacs: Parent(s)/guardian be joint borrower(s). Tangible collateral security of suitable value acceptable to bank.
Third party guarantee
Collateral security
Additionally, assignment of LIC policy in favor of bank amounting 100% of education loan amount
Assignment of Future salaries in favor of Axis Bank
Eligibility concession for SC/ST No
50% for SC/ST, and;60% for General category.
Processing Time 15 days
20 days
15 days
14 Days
Prepayment charges Nil
Penal charges 2% p.a. for loans above 4 lakhs for the amount or period overdue.
Penal interest @ 2% to be charged for loans above Rs.4 lacs for the overdue amount and overdue period
@ 2% per month on the overdue installment/s
Mandatory insurance cover Not mandatory
Travel expeneses Yes
Bank transfter allowance No such clause mentioned
No such clause mentioned
Top up loan availability Available
Interest Subsidy Schemes Padho Pradesh
Padho Pardesh
Skill Loan Scheme
Padho Pardesh
Skill Loan Scheme
Tax benifit Yes
Concession/benefits Reasonable Rate of Interest. IDBI Bank offers around 9.45% of interest.
Loan for students who take admission in management quota
Zero Pre-payment or documentation charges
Concession to girl students
1% concession if interest is serviced during moratorium period including course period
0.5% concession to girl students
0.5% concession if interest is serviced during moratorium period including course period
Online application
There is no processing fee charged
No pre- payment charges are applied
No pre- closure charges are applied
Loan Disbursal period is 15 working days from the date of final submission of documents

How to apply for IDBI Education Loan ?

IDBI Education loan application form can be available online or offline at Bank branches.

Visit the official website for IDBI Bank Education Loan.

Click on Apply Now

Fill out the form with essential details.

Upload the mandatory documents required.

Submit the form and take out a print out of the application.

Visit the bank's branch for further formalities.

Applicants can directly visit the nearest branch and ask for an application form. The bank representative will then guide them with all the necessary information regarding eligibility, documents required and also which loan is best suitable.

IDBI Education Loan Details

Loan Limit
30 Lacs
Up to INR 4 Lacs: Nil
Above INR 4 lacs: 15%
Processing Fee
Loan Security
Up to INR 4 Lacs: No security required
From INR 4 to 7.5 Lacs: Third Party Guarantee
Above INR 7.5 Lacs: Tangible security with suitable margin.
Building/ Land equal to 1.33 times of actual loan
Loan Repayment
15 years.

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Expenses covered under IDBI Student Loan Scheme

  • Tuition Fee
  • Examination Fee
  • Library/ Laboratory Fee
  • Hostel Fee and other charges applicable like Hostel Mess etc.
  • Cost of Books, equipment, instrument or uniforms
  • Miscellaneous expenses- study tours, project work, thesis, etc.
  • Additional expenses like building fund, caution deposit, refundable deposit, etc.
  • A reasonable cost of computer or laptop (if required)
  • Expenses for one way travel

Education Loan Documents Required ?

Duly filled IDBI application form.

Attested copies of age proof, residence proof

Two recent passport size photographs of applicant, co-applicant and guarantor

Mark sheet of Mark sheets of last qualifying examination.

Income Proof of parents/ guardians along with income tax statement for the last 2 years.

Confirmation of admission to the institute

Copy of passport and visa and also an I-20 form.

Interest Subsidy Schemes

Padho Pardesh

Formulated under the Prime Minister's 15 point programme, this subsidy scheme benefits the students of the minority community who want to study abroad. Such students are provided 100% interest subsidy.

Padho Pardesh

Procedure for availing Padho Pradesh

  • Students are supposed to inform their lending banks about the recently launched scheme of Padho Pardesh by Ministry of Minority Affairs.
  • Then the students have to submit the proof of their eligibility for the particular scheme
  • If a student is eligible, the lending bank will feed the students information into a portal of Padho Pardesh.
  • The portal will remain open for the period of two months in every quarter.

Courses covered under Padho Pardesh Scheme

Courses that are covered by Government of India under this scheme are as follows:

Arts/ Humanities/ Social SciencesCommerce
Pure ScienceEngineering
Bio- technology/ Genetic EngineeringIndustrial Environmental Engineering
Nano- technologyMarine Engineering
Petro-chemical EngineeringPlastic Technology
Cryogenic EngineeringMechatronics
Automation Robotics including artificial intelligenceLaser Technology
Low Temperature Thermal DynamicsArt Restoration Technology
OptometryDock and Harbour Engineering
Imaging System TechnologyComposite Materials Engineering including Decentralized power
Packaging Engineering/ TechnologyNuclear Engineering
Information Technology including Computer Engineering, Software, Software Quality assurance, etc.Industrial Safety Engineering
MedicalAgriculture & Agro Technology
AgronomyFloriculture & Landscaping
Forestry & Natural ResourcesFood Sciences & Technology
Plant PathologyHorticulture
Energy StudiesFarm Power & Machinery
Veterinary SciencesSoils & Water Management
Plant Breeding & GeneticsSmall- scale Rural Technology
Ocean & Atmospheric SciencesMB/MCA

Frequently Asked Questions


What schemes does IDBI Bank considers for its education loans?

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There are multiple other schemes offered by IDBI Bank apart from the basic education loans viz. Education Loan for Vocational Courses, Education Loan for Non- Vocational Courses, Education Loan for students who secure admission through Management Quota, and Education Loan for Specialised Courses. The Scheme are: CSIS Scheme Padho Pardesh Skill Loan Scheme Udaan- Unique saving cum Education Loan

In whose name is the loan granted?

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The loan is granted in the name of the student

Is the loan contract executed only in student's name?

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No, the loan can be executed both in name of student and co-borrower as both are equally responsible for repayment of loan.

What is the age limit for availing loan in IDBI Bank?

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Education Loan for Vocational/ Non-Vocational Courses:There is no age restriction for the applicant applying for education loan from IDBI Bank. He/ she should only meet the other stated eligibility criteria’s. Education Loan for Students admitted through Management Quota:Minimum age limit for salaried and Self Employed is 21 years and maximum is 65 years and 70 years respectively.

Are minors eligible to apply for IDBI Bank Education Loan?

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Yes, Minors aspiring for further studies can apply for education loan with help of legal representation from parents/ guardians.

What does margin on any loan mean?

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Margin amount is the amount that a borrower has to pay through his/ her own sources in form of a down payment as his/ her contribution towards the education.

Should the student's margin be paid upfront in the starting?

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Margin can be paid on a year to year pro rata basis whenever bank disburses loan amount as per requirement.

Where can I avail IDBI Bank Education Loan?

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You can either contact your nearest branch for the application form or details regarding the loan or apply online from the official website.

Is there any provision to apply for loan online?

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Yes, you can apply online through Vidyalakshmi portal to avail for this loan.

Can I view my loan statement online if I am an existing education loan borrower?

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Yes, by creating a login on IDBI Bank web portal, you can view all details related to education loan online.

Is there any minimum aggregate marks to meet the eligibility criteria to avail IDBI Bank education loan?

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Yes, a student must have secured a minimum aggregate marks in their last qualifying examination (10+2 or Graduation). Relaxation in the marks is given to SC/ ST students

What is the discount/ rebate offered by IDBI Bank?

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0.50% concession is given to physically handicapped girl students Eligibility criteria and margin on education loan is relaxed for SC/ST students and physically handicapped students

What all is included in tangible collateral security?

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Mostly IDBI Bank asks tangible security in lieu of the loan amount sanctioned along with assignment of future salaries in favour of IDBI Bank. Tangible security includes documents related to land/ building/ government security/ public sector bonds/ units of UTI, NSC, Life insurance policy/ bank deposits/ shares or debentures. The value of the security should be equal to the education loan amount.

Can I place my family property as collateral?

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Yes, but it will need consent of all family members involved.

Is scholarship or assistantship included in the margin?

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Yes any scholarship or assistantship will be a part of margin charged on education loan.

What is Moratorium Period?

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Course Period plus one year, or six months after getting a job

What is tenure of an education loan?

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Tenure of education loan provided by IDBI Bank is different for different variant of loans it offers: Education Loan for Vocational Courses: 10- 15 years Education Loan for Non Vocational Courses: 2- 7 years Education Loan for students admitted through Management Quota: 10 years Education Loan for Specialised Courses: Maximum 7 years

What does MCLR stands for?

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MCLR stands for Marginal Cost of funds based Lending Rate. It refers to the minimum interest rate of bank below which it cannot lend.

What all expenses are covered under this course?

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Expenses covered by IDBI Bank education loan are: Tuition/ college/ hostel fee Examination/ lab/ library fee Books/ uniform/ instruments Caution deposit Passage money for studies abroad, etc.

I have taken admission through management quota. Am I eligible?

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Yes, The bank provides special loan variant for students who take admission through management quota.

What do you mean by reputed or recognized institutes?

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Institutes that are affiliated to state/ central universities and comes under UGC or AICTE are considered as recognized institutes. Reputed institutes are those which are well known and have standard course of repute. More often, banks provide the list of institutes they consider for loan. (You can contact nearest branch for the same)

Are there any special benefits if I have secured admission to one of the top premier institutes?

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IDBI Bank provides 1.5% concession to students who have secured admission in any premier institutes. The rate of Interest charged for students taking admission to top premier institutes is 6M MCLR + 0.05%

What is the processing fee or prepayment charges?

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The education loan offered by IDBI Bank have: Prepayment Charges: 2% on outstanding amount id loan is foreclosed/ part prepaid any time before the expiry of moratorium period. Processing Fee: No processing fee is charged for studies in India under Education Loan for Vocational/ Non Vocational Courses. 1% processing fee is charged for students who take admission through Management Quota.

Will cost of my computer be covered under the loan sanctioned?

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Reasonable cost for the computer or laptop well be covered under the loan if it is required to complete the course.

Why is Pan Card necessary?

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Pan Card is one of the mandatory document required by banks these days. It is mandatory because: Easy to assess Income Easy to trace borrowers

Are diploma or certificate courses considered under IDBI Bank education Loan (both for India and Abroad)?

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Diploma courses are eligible under IDBI Bank Education Loan. Regular degree or diploma courses like, shipping, pilot training, and aeronautical that are approved by Director General of Civil Aviation or Shipping.

Is a co-borrower necessary for loan?

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Yes, it is mandatory to have a co-borrower to avail loan from IDBI Bank.

Who can be my co-borrower?

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Your parent/ spouse/ guardian can be a co-borrower. A co-borrower should be your immediate family member, should have a steady source of income, and a good credit history.

What all documents are required from the co-borrower?

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Documents required from the co-borrower are: Attested copies of age proof, residence proof and birth date. Self-attested passport size photograph Income proof and/or copy of income tax return file Details of collateral security along with government approved valuation certificate (if any).

How many guarantors do I need to borrow loan from IDBI Bank?

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You need at least 2 guarantors to avail loan from IDBI Bank.

What is the KYC requirement in education loan?

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KYC requirements are the documents as a proof of personal identification and residence proof of the applicant as well as the co-borrower.

What are maximum term for repayment?

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Education Loan for Vocational Courses:For loan amount upto INR 7.50 Lacs- 10 years and for amount above INR 7.50 Lacs- 15 years Education Loan for Non Vocational Courses: Loan upto INR 50,000: upto 2 years; Loan from INR 50,000 to 1 Lac: 2 to 5 years; Loan Above INR 1 Lac: 3 to 7 years Education Loan for students admitted through Management Quota: Moratorium period + 10 years Education Loan for Specialised Courses: Maximum 7 years

How can I repay the loan?

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You can repay the loan after the moratorium period by mode of EMI or through post- dated cheques.

What is EMI? How are they calculated?

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EMI stands for Equated Monthly Installments. It can be calculated by using the formula given below EMI = [P x R x (1+R) ^n] / [(1+R)^ n-1] Here, P is Amount of Education Loan, R is Rate of Interest, n is Tenure of the Loan. Or simply you can use the EMI calculator provision available on IDBI Bank’s official website.

What are the charges for late EMI payment?

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24% per annum on outstanding amount is charged for the late EMI payment and INR 500 for every bounced cheque.

Is the loan disbursed in name of individual applicant or to the institute/ university directly?

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The loan is disbursed directly to the institute/ university that you have taken admission to. Hence, an applicant is supposed to submit institute brochure with proper division of the fee

If I am unable to complete my course in given tenure, will my repayment term be extended?

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It is completely on the banks discretion to extend the moratorium period or not. It can be extended for maximum 2 years based on student?s reason. You can contact your nearest branch for more details.

What is method of application of interest on education loan?

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The interest will be charged at simple rate from the date of disbursement till commencement of repayment of loan. After that, compound interest is charged on reducing balance.

If I am joining the course soon after current course, can I get an extension?

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Mostly, in such cases, you do not get an extension and even if you do there is a possibility that interest rates are higher

What is interest rate of education loan?

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The interest rate is different for different loan offered: Education Loan for Vocational Courses: Loan amount upto INR 10 Lacs 1 year MCLR + 0.85% Loan amount above INR 10 Lacs 1 year MCLR + 1.45% Education Loan for Non Vocational Courses: The rate of interest on all amounts is 11% (BR+1%) along with 1 year MCLR +1.35% Education Loan for students admitted through Management Quota: The present rate of interest is 13.50% (BR + 3.50%)

What is interest subsidy on education loan?

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IDBI Bank offers Interest Subsidy scheme for economically weaker sections and to promote education amongst them Skill Loan Scheme- for students who wish to pursue Skill based courses and enhance their skills and career prospects. Padho Pardesh scheme for students who wish to pursue studies abroad Udaan – For parents/ guardians of students studying in 8th or 10th class. It is a unique scheme formulated as saving cum education loan scheme.

What documents do I need to submit to avail interest subsidy scheme?

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The documents that need to be submitted are: Income certificate issued by authorised authorities Bonafide student certificate Letter of undertaking or declaration signed by borrower/ co-borrower

What is employment verification in an education loan?

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The bank takes the responsibility to cross verify all the employment details of the applicant and co-borrower. If the banks fails to cross verify every detail provided, it might reject the loan application.

Are there any tax benefits in education loans?

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Under Section 80E of Income Tax Act, loan borrowers can avail the tax benefits. This benefit is only available over and above INR 1,50,000. Tax benefits can be availed once the borrower starts paying interest on loan. The deduction is available until borrower pays off full interest amount on loan or for maximum of 8 years (whichever is earlier).

Is it necessary to have bank account with the bank while availing loan from that particular bank?

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It is not necessary to have a bank account while availing the loan but it makes it easier for the borrower to get loan application approved.

Why do banks require insurance policy as security?

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The banks require insurance policy as security in lieu of education loan provided. The insurance policy should be equal or more to the amount of loan sanctioned. In case of untimely demise of the borrower, the bank recovers the amount from the insurance policy

Are there any additional benefits on availing loan from IDBI Bank?

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There is no additional benefit mentioned on the official website while applying fro

What is credit score? Is it important for education loan?

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Credit Score is inclusive of various factors such as credit history (Loan history or credit card). If a student does not have a credit score, banks calculate it by considering factors such as University, College and the Course of admission. Banks consider the academic background of student and credit history of co-borrower.

If a student have any query, where or whom to contact?

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student can reach out to the nearest branch in case of any query. Customer Care Number: Toll Free: 1800 200 1947; 1800 22 2070 Non Toll Free: (+91 22) 6693 7000 Local rates apply on every call
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