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IDBI Bank Education Loan for Abroad

Last Modified : June 30, 2018

Providing Education loan amount up to INR 20 Lacs, IDBI Bank Education Loan is an initiative to provide financial assistance to students aspiring for studying abroad. With flexible repayment terms and no security asked for an amount up to INR 4 Lacs, IDBI Bank Education Loanprovides full financial backing to students

Why IDBI bank?

Flexible repayment terms and attractive rate of interests is one of the key factors to attract applicants. IDBI Bank charges 11.00% interest for priority sector lending and 12.00% for non-priority sector lending.

Interested students can avail for the interest subsidy scheme such as Central Scheme of Interest Subsidy and Padho Pardesh with Education Loan for India and Abroad

What makes you eligible for IDBI Education Loan?

  • Indian National
  • 10+2  pass
  • Graduation/ post-graduation courses
  • Entrance exam or merit-based admission
  • Recognized foreign university/ institute

Present Rate of Interest


Maturity Slab

Interest Rate (%)

Priority Sector Lending

Loan amount upto INR 20 Lacs

11.00% (BR+1%)

Not Priority Sector Lending

Loan amount above INR 20 Lacs

12.00% (BR+2%)

Quick Facts about IDBI Education Loan


Upto INR 4 Lacs: Zero Margin

Above INR 4 Lacs: 15%

Maximum Loan Limit

INR 20 Lacs


Upto 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

Moratorium Period

Course Period + 1 year

Repayment (Maximum)

Upto 7.5 Lacs: 10 years

Above 7.5 Lacs: 15 years

Prepayment Charges


Courses Approved under IDBI Education Loan

  • Graduation, Post-Graduation, Doctorate courses 
  • Technical, Professional or any other Job Oriented courses 
  • Degree/ Diploma courses like Aeronautical, Pilot Training, Shipping, etc. (approved by Director General of Civil Aviation/ Shipping in India) 
  • Post- graduation courses- MCA, MBA, MS, etc.
  • Post Graduate Diploma courses approved by reputed foreign universities or organizations.
  • Courses conducted by CIMA, London or CPA, USA etc.

Expenses Covered under IDBI Education Loan 

  • 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.
  • Reasonable cost of computer or laptop (if required)
  • Expenses for one way travel

NOTE: Proper bills and receipts have to be submitted for these expenses as proof.
            Cost of external coaching or tuition is not to be considered

Documents required for IDBI Education Loan 

  • Duly filled IDBI Application Form
  • Identify proof and Age proof
  • Residence Proof
  • Income Proof of parents/ guardians along with income tax statement of last 2 years
  • Copy of prospectus of institute to calculate total expenses
  • Mark sheets of last qualified examination
  • Confirmation of students’ admission to the institute
  • I-20 Form is required
  • Sources of margin

Padho Pardesh - Education loan scheme for overseas studies to minority community students

Prime Minister Launched the Padho Pardesh Scheme under the initiative of Prime Ministers new 15 point programme to benefit the minority community. Padho Pardesh scheme of Interest Subsidy on education loans for overseas studies aims to promote academic advancement of students belonging to minority communities. The scheme provides 100% interest subsidy to students belonging to minority community

Q. How to Avail IDBI Bank ‘Padho Pardesh’ Subsidy Scheme?

Answer: Students can yield benefits of the scheme by following the below-mentioned procedure:

  • 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 Sciences


Pure Science


Bio- technology/ Genetic Engineering

Industrial Environmental Engineering

Nano- technology

Marine Engineering

Petro-chemical Engineering

Plastic Technology

Cryogenic Engineering


Automation Robotics including artificial intelligence

Laser Technology

Low Temperature Thermal Dynamics

Art Restoration Technology


Dock and Harbour Engineering

Imaging System Technology

Composite Materials Engineering including Decentralized power

Packaging Engineering/ Technology

Nuclear Engineering

Information Technology including Computer Engineering, Software, Software Quality assurance, etc.

Industrial Safety Engineering


Agriculture & Agro Technology


Floriculture & Landscaping

Forestry & Natural Resources

Food Sciences & Technology

Plant Pathology


Energy Studies

Farm Power & Machinery

Veterinary Sciences

Soils & Water Management

Plant Breeding & Genetics

Small- scale Rural Technology

Ocean & Atmospheric Sciences


*The courses might change as per discretion of Ministry


Q. What schemes does IDBI Bank considers for its education loans?

Answer: 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

Q. In whose name is the loan granted?

Answer: The loan is granted in the name of the student

Q. Is the loan contract executed only in student’s name?

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

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

Answer: 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.

Q. Are minors eligible to apply for IDBI Bank Education Loan?

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

Q. What does margin on any loan mean?

Answer: 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.

Q. Should the student’s margin be paid upfront in the starting?

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

Q. Where can I avail IDBI Bank Education Loan?

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

Q. Is there any provision to apply for loan online?

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

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

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

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

Answer: 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

Q. What is the discount/ rebate offered by IDBI Bank?


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

Q. What all is included in tangible collateral security?

Answer: 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.

Q. Can I place my family property as collateral?

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

Q. Is scholarship or assistantship included in the margin?

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

Q. What is Moratorium Period?

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

Q. What is tenure of an education loan?

Answer: Tenure of education loan provided by IDBI Bank is maximum 15 years

Q. What does MCLR stands for?

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

Q. What all expenses are covered under this course?

Answer: 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.

Q. Will my travel expense will be covered if I take loan from IDBI Bank?

Answer: Yes, travel expenses are covered under this loan

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

Answer: This depends totally on bank’s discretion as whether a student meets other eligibility criteria or not.

Q. What do you mean by reputed or recognized institutes?

Answer: 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)

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

Answer: IDBI Bank does not provides any additional concession to students who have secured admission in top rated institutes abroad.

Q. What is the processing fee or prepayment charges?

Answer: The education loan offered by IDBI Bank does not carry any prepayment charges. 1% processing fee is charged that is refundable upon the acquisition of loan.

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

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

Q. Why is Pan Card necessary?

Answer: 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

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

Answer: 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.

Q. Is a co-borrower necessary for loan?

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

Q. Who can be my co-borrower?

Answer: 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.

Q. What all documents are required from the co-borrower?

Answer: 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).

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

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

Q. What is the KYC requirement in education loan?

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

Q. What are maximum term for repayment?

Answer: Maximum Term for repayment for Loan amount upto INR 7.50 Lacs is 10 years and maximum term for repayment is 15 years for loan amount above INR 7.50 Lacs

Q. How can I repay the loan?

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

Q. What is EMI? How are they calculated?

Answer: 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.

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

Answer: 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

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

Answer: 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.  

Q. What is method of application of interest on education loan?

Answer: 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. 

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

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

Q. What is interest rate of education loan?

Answer: The interest rate is:


Maturity Slab

Interest Rate (%)

Priority Sector Lending

Loan amount upto INR 20 Lacs

11.00% (BR+1%)

Not Priority Sector Lending

Loan amount above INR 20 Lacs

12.00% (BR+2%)

Q. What is interest subsidy on education loan?

Answer: IDBI Bank offers

  • Skill Loan Scheme for students who wish to pursue skill based courses
  • Padho Pardesh Scheme for minority sector students who wish to pursue their studies abroad.
  • Interest Subsidy scheme for economically weaker sections and to promote education amongst them

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

Answer: 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

Q. If I am availing loan for overseas studies, can I also avail interest subsidy scheme?

Answer: No, the interest subsidy scheme is available only for studies applying for studies in India. Padho Pardesh scheme is one interest subsidy scheme that is available for overseas studies. This scheme can only be availed by minority sector.

Q. What is employment verification in an education loan?

Answer: 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.

Q. Are there any tax benefits in education loans?

Answer: 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).

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

Answer: 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.

Q. Can I repay my loan in foreign currency even if my bank is in India?

Answer: Yes, you can pay the amount in foreign currency (Euro, Pound, Dollar, etc.) The bank might charge an additional currency conversion fee as per RBI regulations.

Q. Why do banks require insurance policy as security?

Answer: 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

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

Answer: There is no additional benefit mentioned by IDBI Bank. Students may contact the official website for the same.

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

Answer: 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.

Q. Are NRIs eligible for the education loan?

Answer: NRIs are eligible for the loan if they have Indian citizenship and are Indian passport holder.

Q. Is Visa a necessary document for studying abroad?

Answer: Visa is needed as a document proof but it is not a sole requirement.

Q. What all procedures do one have to go through while applying for abroad?

Answer: A student who is applying for studying abroad have to give necessary documents required by the bank. One needs to have a thorough knowledge of the course they are applying for and in which institute as it can be asked on the airport by the foreign officials.

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

Answer: 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