IDBI Education Loans

Criterion

Details

How to Pay

Only by standing instruction

Prepayment Norms and Charges for Prepayment

Norms and rules for prepayment-

1. Rs. 25000 minimum for any number of times.

2. If the sum is prepaid before 6 months has passed from the exact date of commencement of the EMI, 2% fees shall be charged on the prepayment amount.

Norms for all other variants:-
Prepayment is allowed by IDBI Bank without foreclosure or prepayment charges.

Processing Fees

• Fees for students enrolled in courses in India- NIL

• Fees for students enrolled in courses abroad: 1% of the total loan amount, subject to a maximum fee amount of Rs. 5000+applicable taxes. This tax is collected for studying abroad, but is refunded when the amount is disbursed.

Charges

• The customer needs to bear charges, if any, for mortgage, stamp duty, and documentation charges.

• Charges for a change of institution is Rs. 500 + applicable taxes.

• Charges for an enhancement in the loan amount: Rs. 500 + applicable taxes.

Penal Charges

• Penal charges are of 2% per annum.

• It is charged for those loans that are above Rs. 4 lakhs, for the amount that is overdue, and also for the overdue period according to the rules for repayment.

Documents Required

General documents

1. The application form.

2. An affidavit or declaration from the student borrower that he/she has taken no other education loans from any other banks.

3. DPN.

Documents needed from the applicant

1. Age proof

2. ID proof

3. Address proof

4. Mark sheets

5. Proof document of admission is to be given before loan disbursement

6. Proof of scholarship when applicable

7. A schedule of all the expenses needed for the course

Documents needed from the co-applicant
Age proof
ID proof
Address proof
Income proof or proof of business or employment

For salaried employees:

• Salary slips of the last 3 months

• 3 months salary account statement along with salary credits

If there is income apart from rent, pension ,etc. then documentary evidence such as bank account statementS, ITR, or rent agreement is accepted.
SENP and SEP are accepted when they are audited or certified by a CA

Profit and loss statements for the last 2 years.
Other documents needed: income certificate provided by a competent authority.

For education loans for studies abroad, the following documents are required:
A self-attested valid passport
I20 form self-attested (when available) or other similar documents issued for visa purposes (even by the institute itself)

Co-Applicants of the Loan

1. It is mandatory to have a co-applicant for all loans.

2. Loan documents need to be executed by the co-applicant and the student.

3. Parents or guardians need to join the loan as co-applicants.

4. If parents are not able to do so for genuine reasons, relatives or guardians can do so as long as they can provide the required proof of relationship.

Age of Applicants

Age of the applicant:

1. There are no restrictions regarding the student’s age for loan eligibility.

2. In case the student in question is a minor, and his/her parent executes the loan documents.

3. The bank shall require a ramification letter from the applicant student who wishes to study abroad when he/she attains the age of maturity/majority, and it needed to be vetted duly by the Indian Consulate concerned.

Age of the  co-applicant

1. Salaried co-applicant: Minimum 21 years, and the maximum age is 65 years at loan maturity.

2. Self-employed co-applicant: Minimum 21 years, and the maximum age is 70 years at loan maturity.

3. Agriculturist co-applicant: Minimum 21 years, and the maximum age is 70 years at loan maturity.

Loan Margin

• The margin may include assistantship or scholarship.

• If the bank makes the disbursement in stages, the margin may be calculated based on pro-rata.

Loan Disbursement

The contribution of the applicant in terms of the margin needs to be paid upfront before each disbursement, which can be in stages or in full, according to the demand or requirement.
Disbursement shall be in favor of the institute or the vendor of instruments, books, and equipment, as and when applicable.

Augmentation of the Loan Amount

In case of an increase in the fees for the course for the tenure, the increased amount can be considered as an additional loan amount for the very same course, and shall depend on the overall loan amount the applicant is eligible for.

Top-Up of Loans

Top-ups are given to those students who are considered for pursuing their studies as long as the amount falls under the overall eligibility limit, given the course starts during the moratorium period of the very first loan.
The loan repayment starts after the second course’s completion (plus the second moratorium period). The maximum loan amount in such cases shall be Rs. 30 lakhs.

Criteria

Particulars

Description and Purpose of the Loan

This loan is provided to students who:

1. are Indian nationals

2. Have already secured admission to a course in a recognized institution

3. Have secured admission on the basis of a merit test after the completion of the 10+2 exam

4. Have got admission under the management quota even if the student is eligible to secure a seat by merit

Types of Courses

Courses and studies:

1. This includes approved courses at the end of which the student gets a UG or PG degree, and diplomas are recognized by the UGC, the Government, and organizations like AIBMS, AICTE, ICMR, and others. Also included are job-oriented courses that lead to professional and technical degrees, and which are offered by post-graduate institutions. The approved courses can be in India, abroad, or partly in India and partly abroad. In the case the course is in India, the institution’s and the course’s authenticity shall be taken into consideration.

2. Courses abroad: The loan covers job-oriented technical and professional courses provided by reputed institutions. In the case of PG courses, the loan covers MBA, MCA, MS, and others. PG Diploma courses, CIMA-London, and CPA-USA courses are considered as well.

3. Regular degree and diploma courses; special courses: This includes courses and training in shipping and piloting, as long as these are provided by competent regulatory bodies, for employment in India and abroad.

Quantum of Finance

The loan is need-based and depends heavily on the capacity of the student and their parents. Here are the ceilings,  however.

• Rs. 20 lakhs maximum for studying in India.

• A maximum of Rs. 30 lakhs for studying abroad.

• Executive programs entail a maximum of Rs 20 lakhs as loan.

Security

• No security needed till Rs. 4 lakhs, but parents need to be joint borrowers.

• Third-party guarantee apart from parents being joint borrowers when then loan amount is more than Rs. 4 lakhs, up to Rs. 7.5 lakhs.

• Parents need to be joint borrowers and tangible security needs to be given, along with an estimate of the student’s future income for the payment of the installments (when the loan is more than Rs. 7.5 lakhs).

1. Tangible security:
   For immovable property, its value needs to be 1.33 times the loan amount. This does not cover agricultural land, open land, and land for cultivation.

2. Funds as security:
   One can also provide fixed income documents or records as security, such as government securities, FDs, LIC policy, etc. The value of such securities needs to be at least 1.1 times more than the loan amount.

Moratorium and Repayment Term

Moratorium period: Course duration plus 1 year
Repayment tenor: After the moratorium period, the loan repayment shall be made in monthly installments within 15 years.

Applicable Expenses Covered

1. Fees for the institution or hostel

2. Exam fees and fees for lab and library use

3. Caution deposit, refundable security deposit, and building fund (supported by receipts).

4. Passage money and travel expenses.

5. Buying books, instruments, and equipment.

6. Buying a laptop (at a reasonable price).

7. Cost of uniforms.

8. All other expenses essential for completion of the course.

9. The student’s insurance premium, if and when applicable.

Criteria

Particulars

Purpose of the Loan

• This loan is offered to Indian national students.

• They need to have already secured admission in premier educational institutes like ISB, IITs, IIMs, the top medical institute, IIFT, top management colleges, etc.

Quantum of Finance

100% of the loan including the insurance cover, or Rs. 30 lakhs, whichever is lower

Security

Irrespective of the amount of the loan, there has to be a co-applicant.
Collateral security:
No security is needed when the loan amount is up to Rs. 20 lakhs as long as the applicant offers an adequate net worth, or the same is satisfied by the parent who acts as a joint borrower. The student needs to have gotten admission to a premier educational institution as well. When the loan is more than Rs. 20 lakhs, the parents need to be joint borrowers of the loan. Tangible security is needed apart from a statement of the future income of the student applicant for payment of the loan’s installments. 

Repayment Period

Moratorium period: Course duration plus 1 year
Repayment tenor: After the moratorium period, the loan repayment shall be in monthly installments for up to 15 years

Expenses Covered

• Fees for the institution or hostel

• Exam fees and fees for lab and library use

• Caution deposit, refundable security deposit, and building fund (supported by receipts)

• Passage money and travel expenses

• Buying books, instruments, and equipment

• Buying a laptop (within a reasonable price)

• Cost of uniforms

• All other expenses essential for completion of the course

• The student’s insurance premium, when applicable.

Criteria

Particulars

Purpose of the Loan

This loan is for Indian national students who have passed the course that is offered by ICAI, ICWAI, and ICSI.

Facility of the Loan

The Chartered Accountancy Course that is offered by The Institute of Chartered Accountants of India.

Quantum of Finance

Rs. 3 lakhs maximum

Security

There is no need to provide security, but the parents of the student need to be joint borrowers.

Repayment Period

• Moratorium period: Course duration plus 1 year.

• Repayment tenor: After the moratorium period, the loan repayment shall be in monthly installments for up to 15 years

Expenses Covered

• The loan is made available for the very first fee payable to the education institute or for covering the costs like exams and library fees at every step of the way. 

• The loan does not cover private coaching.

• Purchase of a tablet, laptop, or computer is allowed if it is essential for the completion of the course, but only after the student passes CPT. Its price is not to be more than Rs. 40,000.
  Expenditure on books and conveyance can be of a maximum value of the total registration fee of the course.

• Live Virtual Classes are supported as long as the institution gives you bills and/or receipts when the course is conducted by ICAI.

• Cost of the rent for PG and hostel can be a maximum of the course registration fees.

Criterion

Details

Eligibility and Target Clientele

1. The applicant needs to be residing in India and should be an Indian citizen.

2. The student should already have a seat confirmed under the Management Quota.

3. The applicant should have secured entry through Management Quota and not Merit Quota.

Courses Covered

• Courses that are offered within India only.

• Any course that is job-oriented in nature, is offered in India, is offered by an educational institution, and has the approval of a known statutory body like the UGC or AICTE.

Loan Amount

Max. Rs. 10 lakhs.

Maximum Repayment Period (including Moratorium)

1. Moratorium period is the duration of the course and 1 year.

2. During this time, simple interest shall be charged.

3. The repayment period is a maximum of 120 months, excluding the moratorium period.

Security

Irrespective of the amount of loan given or to be given, the applicants, co-applicants, or guarantors have to provide tangible security. Here are the details of the security to be given.

Tangible Security Collateral

1. For immovable property, its value needs to be 1.33 times the loan amount. This does not cover agricultural land, open land, and land for cultivation.

2. One can also provide fixed income documents or records as security, such as government securities, FDs, LIC policies, etc. The value of such securities needs to be at least 1.1 times more than the loan amount, keeping in mind the applicable margin requirement on the loan against the given security.

3. In case of development of mortgage of immovable property like a building or a land, the process for security creation shall be like that of a home loan.
   In the instance of an LIC policy, its surrendering value at the time of initiating the sanction of the facility shall be taken into account for the reassessment of the security’s value.

4. The residual maturity period shall be on par or equal to the repayment tenure.

5. In case it is an FD, the same FD needs to be with IDBI bank itself. The residual tenure of such a collateral should be on par with the repayment tenure of the loan created. Such security should be in the name of either the applicant or the co-applicant.

6. If other securities are given, the guidelines for loans against similar or same forms of security shall apply.

Guarantees: Not applicable.

Loan Margin

Loan margin is 15% of the total cost of the education program, and this is irrespective of the loan amount or the place of study. Furthermore, this needs to be paid upfront before every disbursement, which may be in full or in stages, according to demand or requirement.

Processing Fees

1% of the total loan amount, the minimum charge being Rs.1000+applicable taxes.

Age

Applicant

1. There is no minimum age bar for the Applicant.

2. The maximum age bar for the Applicant is 50 years at the time of maturity of the loan.

Co-applicant

1. Salaried co-applicant: Minimum 21 years and the maximum age is 65 years at loan maturity.

2. Self-employed co-applicant: Minimum 21 years and the maximum age is 70 years at loan maturity.

3. Agriculturist co-applicant: Minimum 21 years and the maximum age is 70 years at loan maturity.

Charges

• Rs. 1000 shall be charged for changing the institution before loan disbursement.

• There shall be no increase in the loan amount that is already disbursed.

Penal Charges

2% on the overdue period and on the overdue amount

Balance Transfer

Not allowed.

Criteria

Details

Purpose

This loan is given to students who are: 

1. Indian citizens

2. Enrolled in diploma, degree and certification courses in India

3. Enrolled in courses offered by reputed educational institutions, private agencies, or companies

4. Enrolled in part-time and part-time executive programs

5. Enrolled in customized programs designed for employees by their employing company in collaboration with institutions such as ISB, IIM, and other similar management universities, or NITs, IIT, OEM, and others.

6. Enrolled in course that results in an increase in job opportunities and career growth

Courses Covered

• Skill development courses

• Job-oriented courses

• Career advancement courses

• Management programs for professionals and executives

Amount of Loan

Rs. 15 lakhs maximum

Security

• No security needed till Rs. 4 lakhs, but parents need to be joint borrowers.

• Third-party guarantee apart from parents being joint borrowers, when the loan amount is more than Rs. 4 lakhs and till Rs. 7.5 lakhs.

• Parents need to be joint borrowers and tangible security needs to be given, along with an estimate of the student’s future income for the payment of the installments, when the loan is more than Rs. 7.5 lakhs.

Tangible security:

For immovable property, its value needs to be 1.33 times the loan amount. This does not cover agricultural land, open land, and land for cultivation.

Funds as security:

One can also provide fixed income documents or records as security, such as government securities, FDs, LIC policy, etc. The value of such securities needs to be at least 1.1 times more than the loan amount.

Repayment Term

There is no moratorium period

The loan shall be repaid over 7 years in equated monthly installments

The interest servicing option during the period of the course is available. During such times, the pre-EMI option is available but is restricted to the duration of the course or till 24 months, whichever comes earlier. The repayment period shall be 7 years after the pre-EMI period is over.

Balance Transfer

Balance transfer from other banks is not allowed.

Expenses Covered

1. Fees for the institution or hostel

2. Exam fees and fees for lab and library use

3. Caution deposit, refundable security deposit, and building fund (supported by receipts)

4. Passage money and travel expenses

5. Buying books, instruments, and equipment

6. Buying a laptop (within a reasonable price)

7. Cost of uniforms

8. All other expenses essential for completion of the course

9. The student’s insurance premium, when applicable.

10. Service Cess and Tax.

Criteria

Details

Purpose of the Loan

This loan is for students who: 

• Are an Indian National.

• Have already secured admission for a course offered by ITIs, Polytechnics, and schools that are run by State or Central Boards of Education.

• Have already gotten admission in a college that is under a recognized university. 

• Have already gotten admission in courses under training partners who are affiliated to NSDC, Sector Skill Councils, State Skill Mission, or Skate Skill Corporation, which lead to a diploma, degree, or certificate issued by organizations similar to the NSQF.

Courses Covered

Courses run by the bodies mentioned above and which are aligned to the NSQF shall be covered.

There is no minimum course duration.

Skill development programs and courses may be added from time to time by the State Level Bankers Committee or the State Level Coordination Committee.

Amount of the loan

• The Minimum Loan Amount is Rs. 5,000.

• The Maximum Loan Amount is Rs. 150,000.

The course fees estimated per month, which is based on the NSQF and sector level shall be made available with the NSDC. 

Applicants can get loans given by various beneficiaries of reward or grant-based schemes from the Government for the purpose of skill training. This is to cover costs of skill training that are not covered by grants or rewards.

• If the course is of 6 months, the loan amount is Rs. 50000.

• For courses of more than 6 months, the loan amount is Rs. 150000.

Collateral security

Third-party guarantee or collaterals are not required. However, the student’s parent needs to sign the loan documents as a joint borrower while the ward shall be the student borrower.

Balance Transfer

BT from other banks is not allowed

Loan Margin

1. No loan margin if the interest is repaid during the moratorium period. Otherwise, it becomes 10% of the total course cost.

2. If disbursement is made by the bank in stages, the margin may be calculated on the basis of pro-rata.

Terms of Repayment

Moratorium period 

For this loan, the repayment period begins from the course period itself.
However, there can be a moratorium for certain courses or for certain sections of the students as sanctioned by the concerned authority.

After course completion and the moratorium period, the repayment period begins as given below:

• For 1 year course duration, the repayment period is 6 months from course completion

• If the course is of more than one year, the repayment period is 12 months from course completion

Repayment tenure
The maximum time for loan repayment is:

• Till 3 years if the loan is up to Rs. 50000

• Till 5 years if the loan is between Rs. 50000, and Rs. 100000

• Till 7 years if the loan is above Rs. 100000

Expenses covered

1. Fees for the institution or hostel

2. Exam fees and fees for lab and library use

3. Caution deposit, refundable security deposit, and building fund (supported by receipts)

4. Passage money and travel expenses

5. Buying books, instruments, and equipment

6. Buying a laptop (within a reasonable price)

7. Cost of uniforms

8. All other expenses essential for completion of the course

9. The student’s insurance premium, when applicable.

Criteria

Details

Purpose

It is granted to students and their parents.

Eligibility

1. The student should be studying in between 8th and 10 class.

2. The student needs to open a joint RD account in his or her name and in the name of one’s earning parent(s).

3. The student should be paying installations for RD without fail or default.

Scope of Finance

The maximum amount shall be at five times the RD’s maturity value. However, the actual amount shall be determined by the education loan guidelines.

Security

According to education loan guidelines

Repayment Term

According to education loan guidelines

Special Features

1. One does not need to make an account if the student has a Savings a/c with IDBI bank.

2. The student’s savings a/c needs to have an earning parent as its joint account holder.

3. The student and his/her parent shall open a new Recurring Deposit account with IDBI bank in the student’s name for at least 36 months minimum and 60 months maximum. This depends on which standard or class the student is in.

4. The RD’s tenor ends when the student’s 12th standard school education is over.

5. The contribution of the RD needs to be Rs.1000 per month minimum, and after that it needs to be in multiples of Rs. 500 according to the student’s, parent’s, or guardian's convenience.

6. The Return on Investment shall be according to the extant card rate.

7. The payments to the Recurring Deposit account should only be made through the student’s SB account.

8. When the RD a/c is open, an in-principle RL letter of approval is given to the student.

9. The actual amount to be given as loan shall be decided according to the extant EL guidelines, and the student is welcome to seek greater amounts as long as the extant EL regulations are fulfilled.

10. The RD account’s PTR or payment track record shall be taken into account for determining the student’s and his/her parent’s credibility.

11. According to the KYC guidelines, all related KYC documents shall be collected.

12. The customer is free to use the RD’s maturity value for any purpose.