What Makes an Education Loan from IDBI Unique?

What Makes an Education Loan from IDBI Unique?

Looking for an international student loan? We know that getting an education loan sanctioned is not a cakewalk. Studying abroad is undoubtedly expensive but has equally great returns on investment. Many banks in India can help you get funds for your studies abroad. One such public-sector bank is IDBI Bank. 

Education loans from a nationalized financial institution like IDBI for overseas education also have many significances and benefits. IDBI Bank gives deserving or excellent students financial support to pursue higher education domestically and overseas. IDBI Bank provides financial support by offering various services and easy repayment options. 

Let us dive in, get some insight into IDBI, and understand why it is a better financial institution for education loans.

Industrial Development Bank of India

IDBI (Industrial Development Bank of India) Bank is an Indian government-owned financial service corporation. It was established in 1964 as per the Parliament Act to provide credit and other financial facilities for developing the fledgling Indian industry and the citizens of India. IDBI is the 10th largest development bank in the world, with 3000 ATMs and 1900 branches, including one overseas branch in Dubai.

Benefits of taking an education loan from IDBI Bank

Let us look at some benefits of taking an education loan from IDBI bank for domestic and overseas education.

Financial aid for girl education

Being a country with an age group of 18-35, a financial institution like the IDBI focuses on providing complete financial assistance for girl education. Therefore, the bank provides a 0.5% concession on the Return on Investment for girl education.

High Loan Margin

IDBI Bank has high loan margins compared to other government-owned financial service corporations. The bank provides education loans for up to 4 lakhs. However, the case may vary depending on the candidate’s eligibility to meet the requirements. The bank provides loans above four lakhs with 5% interest for domestic education and 15% for overseas education.

Education expenses covered

The IDBI bank education loan schemes cover education-related expenses, including college fees, book purchases, electronic device purchases, travel expenses, and other education-related expenses.

Interest Rates

The IDBI bank interest rate depends on the loan amount required for education. If the quantum of education loans is up to 7.5 lakhs, the interest rate is 8.65%. If the quantum of education loans is above 7.5 lakhs, the interest rate is 9.15%.

General documents required for education loan from the IDBI Bank

The documents required for the IDBI Bank overseas education loan depend on a case-to-case basis. However, an indicative list of documents is as follows – 

General Documents:

  • Completed application 
  • Affidavit from the borrower confirming that no educational loans have been availed from other public or private banks.
  • The borrower must provide the security documents if the borrower takes a collateral education loan.

The Applicant’s documents:

  • Age Proof
  • ID proof
  • Residential Address proof
  • Mark sheets of the last qualifying examination
  • Proof of admission, such as scholarship, acceptance letter, etc.
  • Schedule of expenses for the selected course.

Co-applicant’s Documents:

  • Age proof
  • ID proof
  • Signature 
  • Address 
  • Employment or Business or Income Proof.

Co-applicant’s income proof: 

  • Last three-month salary slip.
  • Salary Account statement for last three months with credits.

Final Remark

Borrowing education loans from government-owned lenders like the IDBI Bank might provide the financial coverage you seek in other public or private financial institutions. The bank has significant margins for excellent students and ensures the loan does not burden parents. At EduLoans, our counselors cater to your requirements, assist in preparing documentation, and help you easily connect with IDBI Bank representatives for education loans. Contact us today to connect with our representative.