9% of Education Loans go in Default. Know How to Prevent it.

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Pranjal Singhal

Content Curator

According to research data published by the Indian Bank’s Association (IBA) in January this year, nearly 9% of the education loans provided by the banks of different sectors in India are declared as non-performing assets (NPAs). NPA or non-performing asset is a term used for those loans which are considered to be in default or might be in default in the near future.

So, when so many education loans are getting defaulted, it becomes your responsibility to choose an education loan scheme wisely for yourself which you can repay when the time comes. IDBI Education Loan offers 5 different kinds of schemes according to the students’ needs.

The tuition costs of different universities are constantly rising and thus it becomes necessary for many families to take up an education loan. CARE Ratings reports also give the same insights. IDBI Education Loan comes to the rescue by offering 5 different schemes.

  • Non-Vocational Course Loan Scheme: For those who want to study in recognized institutes.
  • Vocational Course Loan Scheme: For students pursuing vocational courses.
  • Management Quota Loan Scheme: For students securing admission through management quota.
  • Specialized Courses Loan Scheme: Loan scheme for job-oriented courses.
  • IDBI for Abroad Loan Scheme: For students aspiring to study abroad.

IDBI offers education loans up to INR 30 Lakhs through these schemes, but it depends on you to choose your loan amount wisely. In the case of non-vocational courses, the bank offers education loans at interest rates as low as 9.85%. Such low-interest rates are very attractive and people often get lured into buying large amounts.

Large amounts require collateral security to be submitted by the applicants. When people fail to make their repayments on time and the loans go in default, the most probable thing banks plan is to confiscate this collateral which can be a property or anything else holding value.

But How Do I Apply To These Schemes?

Now when you have carefully planned which scheme you should choose and how much loan amount you should avail, it’s the time to apply. Applying to IDBI Education Loan is a very simple and hassle-free process. The application forms can be filled both online and offline.


While going for the online mode, ensure that you keep all the documents prepared with yourself. This you can check by clicking on this link. The steps involved are:

  • Visit the IDBI website and select the scheme you have chosen.

  • Click on the “Apply Now” button.

  • The form will ask your details. Fill them properly.

  • Now, upload all the documents which the bank asks you for.

  • Submit the form and do remember to take out a printout.

  • Visit the nearest IDBI branch for more details.


Offline mode is the simplest one. Just visit the nearest IDBI branch with all your important documents. The bank representatives will guide you with the entire process and help you fill the required forms.

Applications are approved within days and soon enough you can get your first installment. After that, it becomes your responsibility to take care of your EMIs. The bank will immediately start charging you interest and it’s better you pay it on time to prevent any future mishappenings.