Education Loans from IDBI Bank
A brief intro for you to make a knowledgeable decision
The Industrial Development Bank of India, more popularly known as IDBI Bank, was established in 1964 to provide credit and other facilities to businesses in various industry sectors in India. It enjoyed the status of a public-sector bank until January 2019 when RBI announced that it would be re-categorised as a private-sector bank for regulatory purposes.
The bank offers consumer banking, commercial banking, investment banking and other services in addition to retail loans. Student loans are one of them.
Here are the types of education loans offered by the bank:
Education Loan for Non-Vocational Courses (on Merit-basis)
This loan is designed to help students who have secured admission in a non-vocational higher education course in a recognised institution in India or abroad through Entrance Test or Merit-based Selection Process pay for their higher education.
The maximum loan amount sanctioned by the bank under this loan scheme is Rs. 20 lakhs for studying in India and Rs. 30 lakhs for studying abroad. It must be repaid within 15 years.
This loan applies to students who have secured admission in higher education courses in recognised education institutions, premier educational institutions as well as courses offered by ICWAI, ICAI and ICSI.
Education Loan for Non-Vocational Courses (Management Quota)
This loan is designed to help students who have secured admission in a non-vocational higher education course in Management Quota in a recognised educational institution in India pay for their higher education. The maximum loan amount that may be sanctioned by the bank under this loan scheme is Rs. 10 lakhs. This loan must be repaid within 10 years.
Education Loan for Specialised Courses
This IDBI education loan helps students who have gained admission in job-oriented, skill enhancement or executive courses in India to finance their own education. The key feature of this study loan is students of part-time courses, executive programs and Open University courses can also avail this loan.
The maximum loan amount that you can apply for is Rs. 15 lakhs. The feature that differentiates this loan from other education loans is that there is no moratorium period for this loan which means that the repayment starts from the month after full disbursal of the loan amount.
Loan Scheme to Physically Challenged Persons Under NHFDC
National Handicapped Finance and Development Corporate (NHFDC) offers this loan scheme through IDBI Bank. It is designed to help students with a disability to the extent of 40% or more and who have secured admission in a recognised institute in India or abroad to pursue higher education. The admission must be through Merit-based Selection. The maximum loan amount that you can apply for is Rs. 10 lakhs for studying in India and Rs. 20 lakhs for studying abroad.
Udaan: Saving-cum-Education-Loan Scheme
This IDBI Bank savings-cum-loan scheme helps parents fund the future education of their children studying in Class 8 to Class 10. It helps them build a corpus to pay for undergraduate courses or other higher studies. Students can also avail this scheme with an earning parent as the joint accountholder.
A new Recurring Deposit (RD) account is opened under this scheme for a tenure of 36 months to 60 months depending on when the student will complete Class 12. The minimum instalment for this scheme is Rs. 1,000 and in multiples of Rs. 500 thereafter. It is a pre-approved loan with a maximum loan amount of 5 times the maturity value of the RD.
Skill Loan Scheme
This Skill Loan is designed to help students who have gained admission into technical courses offered by ITIs, polytechnics or schools and colleges affiliated with recognised universities or boards to pay for their course fees. The loan amount starts from Rs. 5,000 and can go up to Rs. 1.5 lakh depending on the duration of the course. All the guidelines provided under the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) are applicable to this scheme.
A Final Word
As you can see IDBI Bank offers quite a few different types of education loan schemes to students. In fact, the Udaan savings-cum-education-loan is unique to the bank and IDBI Bank is one of the few banks offering special loan scheme to Persons with Disability (PWD).
If you want to know more about education loans or check out the schemes offered by other Indian banks, please check out our education loans section. We have shared some detailed information and important tips about student loans.