IDBI Bank — Education Loans (India)

1. Bank Overview

IDBI Bank, originally established in 1964 as a development finance institution, now operates as a large commercial public-sector bank backed by LIC and the Government of India. It serves a broad base of retail and corporate borrowers through over 2,100 branches.

2. Loan Schemes & Eligibility

IDBI offers multiple loan variants tailored to domestic, international, vocational, and premier institutional needs, including CA/CS-specific loan options. It also supports subsidy schemes like CSIS and “Padho Pardesh” and allows loan enhancements and takeovers.

Eligibility Highlights:

• Indian nationals (residing in India), age 18+ (minors must have co-signing parent/guardian).
• Admission into a recognized full-time course (based on merit or entrance).
• Co-applicant (parent/guardian) with stable income and Indian bank account is mandatory.

3. Loan Amounts & Coverage

• Domestic Study: Up to ₹20 lakh.
• Abroad Study: Up to ₹30 lakh.
• Premier Institutes (e.g., IIT/IIM/ISB): Up to ₹40 lakh or full cost.
• Vocational Courses: Loan amounts structured based on course duration (e.g., up to ₹1.5 lakh for longer programs). Expenses covered include tuition, hostel, library/lab fees, books, equipment, travel, and laptops/computers.

4. Interest Rates & Concessions

Rebates (cumulative up to 50 bps):

• Female students
• Existing bank customers
• Physically challenged applicants
• Students from ST/SC or minority communities
• 1% interest reduction if interest is serviced during moratorium

5. Margin & Security Requirements

• Up to ₹4 lakh: No collateral.
• ₹4–7.5 lakh: Third-party guarantee required.
• Above ₹7.5 lakh: Collateral required (non-agricultural land, financial assets valued at specific multipliers).
• Margin Money: 5% for education above ₹4 lakh; 15% for abroad loans.

6. Moratorium & Repayment Terms

• Moratorium: Course duration plus 1 year, or 6 months post-placement, whichever is earlier.
• Repayment Tenure: Up to 10 years (≤ ₹7.5 lakh), and up to 15 years (above ₹7.5 lakh) for both domestic and abroad loans. Rebates are offered for interest servicing during the moratorium.

7. Processing, Fees & Support Features

• Processing Fee:

  • Domestic: Nil (or refundable in some cases)
  • Abroad: ~1% + GST, sometimes refundable
• Loan Enhancements & Takeovers: Available to top up or refinance loans.
• Subsidy Access: Supports central interest subsidy (CSIS) for eligible students (family income ≤ ₹4.5 lakh).
• Application Channels: Branch, Vidya Lakshmi portal, or online via IDBI website.

Summary Table

Final Thoughts

IDBI Bank offers a well-structured, tiered education loan product suite with competitive rates—especially for premier institutions—and supportive features like takeover options. If margin avoidance is key, while IDBI offers some unsecured lending, many borrowers explore NBFCs or private banks for fully unsecured higher-value loans. Also, always verify CSIS subsidy implementation to reduce cost.