IDBI Bank Education Loan

Education loans from IDBI Bank aim at providing financial support to deserving/ meritorious students for pursuing higher education in India and abroad.

Courses covered

An installment based loan for all courses are mentioned below:

Studies in India:

  • Graduation courses : BA, B.Com., B.Sc., etc
  • Post Graduation courses : Masters & Phd
  • Professional courses : Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer etc
  • Computer certificate courses of reputed institutes accredited to Dept. of Electronics or institutes affiliated to university
  • Courses like ICWA, CA, CFA etc
  • Courses conducted by IIM, IIT, IISc, XLRI. NIFT etc
  • Courses offered in India by reputed foreign universities
  • Evening courses of approved institutes
  • Other courses leading to diploma/ degree etc. conducted by colleges/ universities approved by UGC/ Govt./ AICTE/ AIBMS/ ICMR etc
  • Courses offered by National Institutes and other reputed private institutions. Banks may have the system of appraising other institution courses depending on future prospects/ recognition by user institutions.

Studies abroad:

  • Graduation: For job oriented professional/ technical courses offered by reputed universities. Post graduation: MCA, MBA, MS, etc. Courses conducted by CIMA- London, CPA in USA etc.

Special Courses:

  • Regular Degree/Diploma courses like Aeronautical, pilot training, shipping etc., approved by Director General of Civil Aviation/Shipping. In case the course is pursued abroad, the Institute should be recognized by the competent local aviation/shipping authority.

Loan Amount

Maximum loan amount :

  • Study in India – Rs.10 lakhs
  • Study Abroad – Rs.20 lakhs

Loan Margin:

  • Upto Rs. 4 lac – Nil

Above Rs. 4 lac

  • studies in India – 5% of the total course expenditure
  • studies abroad – 15% of the total course expenditure

Expenses Covered under Loan

  • Fee payable to college/ school/ hostel
  • Examination/ Library/ Laboratory fee
  • Purchase of books/ equipments/ instruments/ uniforms
  • Caution deposit/ building fund/ refundable deposit supported by Institution bills/ receipts
  • Travel expenses/ passage money for studies abroad
  • Purchase of computers – essential for completion of the course
  • Any other expense required to complete the course – like study tours, project work, thesis, etc.`
  • Insurance premium for student borrower

Interest Rates:


Maturity Slab

Interest Rate (% p.a.)

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%).

Repayment terms

The repayment of loan to begin after the course period + 1 year or 6 months after getting a job, whichever is earlier. The loan to be repaid within 5-7 years (maximum tenor 84 months) after commencement of repayment.

Repayment holiday / moratorium :

Duration of the course period + 1 year / 6 months after getting a job, whichever is earlier .
The loan to be repaid in 5-7 years (maximum tenor 84 months) after commencement of repayment.

Up to Rs 4 lacs No security
 Above Rs 4 lacs and up to  Rs. 7.5 lacs Collateral in the form of a third party guarantee
Above Rs 7.5 lacs

 Collateral security in the form of Land/ building, (The minimum value shall be 1.33 times the amount of loan sought).
 Govt. securities/ Public Sector Bonds/ Units of UTI, NSC, KVP, LIC policy, gold, shares/ debentures, bank deposit in the name of parent/ guardian or in the name of the co-applicant (The minimum value shall be 1.1 times of the amount of loan sought).

Wherever the land/ building is already mortgaged, the unencumbered portion can be taken as security on IInd charge basis provided it covers the required loan amount. In case the loan is given for purchase of a computer the same to be hypothecated to the Bank.

For details on education loans offered by IDBI, click here.