IDBI Bank Indian and Foreign Education Loan – IDBI Bank provides educational loans to students to pursue higher education in India and abroad. Eligible students, bestowing to their suitability and necessities, can choose from a number of monetary loans and reimbursement options accessible. IDBI enlightening loans help candidates acquire financing options to secure their future.

Features and Benefits:

The IDBI Educational Loan scheme consists of four types:

  1. Non Vocational Courses:

This is accessible for candidates of Indian nationality having secured admission through merit-based selection or entrance examination procedure after accomplishment of HSC (10+2) for higher education in documented associations in India and abroad. This comprises studying in Premier Education Institutes, including IIMs, IITs, ISB, and for the ICAI Chartered Accountancy course and for special courses.

It is also accessible for learners who have secured admission under Management Quota although suitable under merit, meaning the candidate has secured marks above the cut-off level required for merit-based admission according to the General/Girls/SC/ST/OBC specifications for that institute.

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Type of courses

  1. A) Studies in India:
  • Accepted courses for graduation or post-graduation and PG diplomas by campuses or institutions documented by UGC, Govt., AICTE, AIBMS, IMCR, etc.
  • Job-oriented courses for technical or professional degrees, postgraduate and diplomas in renowned establishments.
  • Technical diplomas after 10th standard, offered by sanctioned polytechnic institutions (usually three years).
  • In case of dual courses, where part of the course is abroad, the domestic course will be deliberated.
  • Accepted courses offered by reputed foreign schools/universities in India.


  1. b) 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, aerospace by approved regulatory bodies for the purpose of employment in India or abroad.

 Expenses Covered

  1. Fees payable to the school, college, hostel.
  2. Fees for scrutiny, laboratory, and library.
  3. Books, uniforms, equipment, instruments.
  4. Expenditures for any computers or laptops necessary for the course.
  5. Travel expenditures incurred during the course.
  6. Building fund or caution deposit with establishment bill. Amount should not exceed 10% of total tuition fees for the entire course.
  7. Insurance premium for student, if sought.
  8. Any other expenditure necessary to complete the course such as thesis, projects, and study tours.

The maximum disbursement under D, E, F, G and H should be no more than 50% of the total tuition fees for the course.

Amount given for education loan:

According to the reimbursing capacity of the parents or students, the loan amount is decided subject to a maximum of Rs. 10 lakhs for studies in India and Rs. 20 lakhs for studies in abroad. In case of executive programme, the maximum loan amount should not exceed Rs. 20 lakhs in India or abroad.

IDBI Bank Indian and Foreign Education Loan Interest rates

The IDBI educational loan interest rate for non-vocational courses qualifying as per Priority Sector Lending (PSL)

Qualifications Maturity Slab Interest Rate (% p.a.)
Priority Sector Lending (PSL) Up to Rs. 10 lakhs for studies in IndiaAnd up to Rs. 20 lakhs for studies abroad 11.00% (BR+1.00%)
Not Priority Sector Lending Above Rs. 10 lakhs for studies in Indiaand above Rs. 20 lakhs for studies Abroad 12.00% (BR+2.00%)

Rates for students in Premier Education Institutions (including ISB) are 10.00% (BR+0.00%)

For those students who secured admission under Management Quota the rate of interest is 13.50% (BR+3.50%).

IDBI Bank Indian and Foreign Education Loan Repayment tenure

As per the IDBI educational loan procedure, the moratorium period is up to 1 year after the duration of the course or 6 months after getting a job, whichever is earlier. After this period, the duration repayment tenure is:

Loans up to Rs. 7.5 lakhs Up to 10 years
Loans above Rs. 7.5 lakhs Up to 15 years


  • No security necessary for loans up to Rs. 4 lakhs.
  • Third party assurance is obligatory 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 must 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 appropriate margin.


For loans above Rs. 4 lakhs, 5% of the total cost of the course is appropriate.

Expenses considered

  1. Tuition or course fees.
  2. Fees for examination, laboratory and library.
  3. Books, equipment, instruments.
  4. Caution deposit
  5. Insurance premium for student, if sought.
  6. Any other expenses required to complete the course to be considered on merit.

Vocational courses:

Educational loans accessible to Indian nationals having secured admission in a course run or supported by an organization or department of the Government. Or an organization supported by State Skill Corporations, State Skill Mission, or National Skill Development Corporation. It is preferable if it leads to a certificate, diploma or degree issued by an institute documented by the Government or a Government institute itself.

Type of courses

  • Vocational or skill development courses, the period of which is 2 months to 3 years.
  • State Level Banker’s Committee or State Level Coordination Committee may add other skill development courses foremost to employment.

 Expenses considered:

  1. Tuition or course fees.
  • Fees for examination, laboratory and library.
  • Books, equipment, instruments.
  • Caution deposit.
  • Insurance premium for student, if sought.
  • Any other expenses required to complete the course to be considered on merit.

Amount given for education loan

Finance is based on the duration of the course and is given on need basis:

Course duration Amount
Up to 3 months Up to Rs. 20,000/-
3 months to 6 months Up to Rs. 50,000/-
6 months to 1 year Up to Rs. 75,000/-
Above 1 year Up to Rs. 1, 50,000/-

IDBI Bank Indian and Foreign Education Loan Interest rates

The rate of interest is 11.00% (BR+1.00%).


Repayment tenure

The moratorium duration for courses up to the period of 1 year is 6 months after the accomplishment of the course.

For courses above 1 year period, it is 12 months after the completion of the course.

After this period, the duration reimbursement tenure is:

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


Collateral or third party assurance is not necessary. The parental will be obligatory to implement the loan brochures jointly.

Admission secured through management quota

This loan is accessible to Indian citizens or candidates residing in India who have secured admission through management quota, or secured admission under this as he/she did not succeed for merit quota.

Type of courses

Any job-oriented courses accessible by educational institutes located in India sanctioned by statutory authorities like UGC, AICTE, etc.

Age eligibility

As per the IDBI education loan suitability, there is no minimum age limit, but the maximum age should be 50 years at the time of loan maturity. For the co-applicant, listed below are the age requirements:

Type of employment Minimum age Maximum age (at the loan maturity)
Salaried 21 years 65 years
Self-employed 21 years 70 years
Agriculturist 21 years 70 years

Amount given for education loan

The maximum amount of loan given is up to Rs. 10 lakhs.

Interest rates

The rate of interest is 13.50% (BR+3.50%).

In case of change of institute before payment, a fee of Rs. 1,000 + taxes will be appropriate. There will be no increase in the loan amount already paid.

Repayment tenure

The moratorium duration is inclusive of the period of the course + 6 months. Simple interest is charged during this period.

The loan can be reimbursed at any time up to 120 months excluding the moratorium period.

 For all loans further details are furnished below:

Documents required

  • IDBI Bank Educational Loan submission 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 brochure from the principal/head of the institute to calculate expenditures.
  • Copy of statement of marks or certificates of last scrutiny passed.
  • A confirmation of student’s admission from the institute.
  • 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 equipped.
  • Sources of margin – documents of proof are required.
  • For studies in USA, I-20 form is compulsory.
  • Consent for assigning LIC policy of the candidate 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.
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Hello this is Sneha Dsouza! I am happy to help you and to clear your questions and deliver valid info concerning edification matter you can check my other articles as well if you like this :)


  1. Hey… Nitin here,
    I want to study in Canada in business administration diploma….can i get education loan for this diploma from IDBI bank.

    • Hello Nitin,
      Yes sure you can get education loan for the same, you need to contact the bank (you mentioned) for your query, all the best

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