"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."

Loan Interest Rates:

For Non-Vocational Course:
Category of Academic Institution Max. Loan Amount Interest Rate
Priority Sector Lending (PSL) Up to Rs. 10 lakhs for studies in India and up to Rs. 20 lakhs for studies Abroad 11.00% (BR+1.00%)
Not Priority Sector Lending Above Rs. 10 lakhs for studies in India and above Rs. 20 lakhs for studies Abroad 12.00% (BR+2.00%)

"Rates for students in Premier Education Institutes (including ISB) is 10.00% (BR+0.00%).For those students who secured admission under Management Quota the rate of interest is 13.50% (BR+3.50%)."
For Vocational Course: "The rate of interest is 11.00% (BR+1.00%)."

Admission secured through management quota: "The rate of interest is 13.50% (BR+3.50%).In 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."
Education loan under financial inclusion: "The IDBI education loan rate of interest is 11.75% (BR+1.50%)."
Base Rates Are:

Loan Eligibility:

Courses Eligible For Loan:
Course Type Details
Non-Vocational Course
    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 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.
    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.
    Special courses:
  • Degree or diplomas for pilot training, shipping, aeronautical by recognized regulatory bodies for the purpose of employment in India or abroad.
Vocational Course Vocational or skill development courses, the duration of which is 2 months to 3 years.State Level Banker's Committee or State Level Coordination Committee may add other skill development courses leading to employment.
Admission secured through management quota Any job-oriented courses offered by educational institutions located in India approved by statutory authorities like UGC, AICTE, etc.
Education loan under financial inclusion
  • Certificate courses from ITI
  • Engineering diploma
  • Computer certificate course
  • Nursing / Teacher Training certificate courses and B.Ed.
  • Data entry operator course
  • Veterinary diploma
  • Agri diploma
  • Any job-oriented diploma or certificate course

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.
  • Copy of statement of marks or certificates of 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 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.

Candidate Education Loan Eligibility:

Processing Fees:
"There are no processing fees applicable for studies in India. Legal charges and stamp duty (if applicable) is as per actuals. For studies abroad, 1% of the loan amount up to a maximum of Rs. 5,000 plus taxes is applicable and will be refunded at the time of disbursement (including service tax), credited to the savings bank account with approval of the Branch Head, if and when availed by the borrower. For other Management quota students, 1% of the loan amount plus service tax up to a minimum of Rs. 1,000 plus taxes are applicable."

Expenses Covered under 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. Amount should not exceed 10% of total tuition fees for the entire course.
  • Insurance premium for student, if sought.
  • Any other expenses required to complete the course such as thesis, projects, and study tours.
  • The maximum expenditure under D, E, F, G and H should be no more than 50% of the total tuition fees for the course.

Loan Repayment:

1. Non-Vocational Course
Loan Amount Repayment Period
Up to Rs 7.50 lakh Within a maximum period of 10 years
Above Rs 7.50 lakh Within a period of 15 years after the repayment period begins

2. Vocational Course
Loan Amount Repayment Period
Loans up to Rs. 50,000 Up to 2 years
Loans between Rs. 50,000 to Rs. 1 lakh 2 to 5 years
Loans above 1 lakh 3 to 7 years

3. Admission secured through management quota
"The moratorium period is inclusive of the duration of the course + 6 months. Simple interest is charged during this period.The loan can be repaid at any time up to 120 months excluding the moratorium period."
4. Education loan under financial inclusion
Loan Amount Repayment Period
Loans up to Rs. 50,000 Up to 2 years
Loans between Rs. 50,000 to Rs. 1 lakh 2 to 5 years
Loans above 1 lakh 3 to 7 years

Security Required:

Course Type Security Required
Non-Vocational Course
  • No security required for loans up to Rs. 4 lakhs.
  • Third party guarantee is required for loans above Rs. 4 lakhs and up to Rs. 7.5 lakhs.
  • For above Rs. 7.5 lakhs:Building/land (not agriculture) - the minimum value should be 1.33 times the amount of the loan.Units of UTI, NSC, KVP, LIC policy, Govt. securities, Public Sector bonds, gold, share/mutual fund, debentures, and bank deposit in the name of the student, parent, guardian or third party - the minimum value should be 1.1 times or as per the respective margin limit against the security, whichever is lesser, of the amount of the loan.The bank may accept any other tangible security with suitable margin.
Vocational Course Collateral or third party guarantee is not required. The parent will be required to execute the loan documents jointly.
Admission secured through management quota For this loan, no guarantees are required but primary security is mandatory.Primary security can be in the form of tangible security such as building, land (not agricultural) and the value of which must be 1.33 times the amount of the loan sanctioned at the time.If opting for mortgaging immovable property, the process needs to be followed as per the home loan.In case the primary security is insufficient, collateral like NSC, LIC policy, FD and so on, could be considered to bring the loan ratio minimum to 1.33%.The surrender value of LIC policy will be considered at the time of sanctioning the loan. The residual maturity period of the policy should equal the tenure of repayment.Fixed deposits should be held with IDBI only. The residual tenure of the FD or NSC should equal the repayment tenure of the loan. It should also be in the name of the applicant or co-applicant.For any other security, it should adhere to the guidelines for loans against respective security.


1.How will IDBI decide the loan amount I am eligible for?
Ans. The loan amount you are eligible for is determined on a number of factors, namely the total cost of the course, your repayment ability, and security or collateral offered, if needed.

2.Can I repay the loan through the duration of the course?
Ans. No. The EMIs on loans will usually begin 1 year after course completion or 6 months after employment, whichever is earlier. You can pay the interest charged monthly during the moratorium period. You could also prepay the loan after the moratorium period is over. Sometimes there are charges on prepayment.

3.How is interest charged on education loans?
Ans. Interest is charged monthly on a simple interest basis from the time of disbursement as per the rate given by the bank on your particular loan. Interest calculations will start as and when amounts are disbursed to you and not on the entire loan amount at once.

4.What is an EMI? How many EMIs will I have to pay?
Ans. An Equated Monthly Instalment, or EMI, is the monthly payment due to the lender or bank towards the repayment of a loan or purchase. EMIs are charged on a fixed date. The EMI is calculated based on the principal loan amount, interest rate and the tenure of loan. The number of EMIs you have to pay depends on the loan amount you have applied for, the duration of the course and the loan tenure.

5.Are there any concessions available to students on educational loans?
ANs. Students from lower economic status can apply for subsidy schemes provided by the Government. This covers the interest charged during the moratorium period.

6.Can I apply online for an educational loan?
Ans. Yes, there are options to apply online.

7.Am I eligible for a loan if my course is both in India and abroad?
Ans. Yes, the course is considered for a loan, or a part of the course will be approved.

8.What is the process of educational loans?
Ans. For an educational loan, the general process to follow is first you need to fill out the application form and submit it to the bank. There will be a personal discussion. You will have to secure and provide validated supporting documents. After this is a stage of loan approval or denial. The bank will require the borrower's signature on a promissory note. The loan amounts will be disbursed on need basis.