IDBI Bank Education Loan for Students Who Secured Admission Through Management Quota

Education Loan to Students Who Secured Admission Through Management Quota

This loan helps students who have gained admission into educational institutions for higher studies in India through Management Quota to pay for their course fees. The maximum loan amount that you can apply for is Rs. 10 lakh. Details are below.

Features of Education Loan to Students Who Secured Admission Through Management Quota

Why this Loan?

• The loan is meant for you if you have gained admission into a graduate, postgraduate, PhD, professional or any other course in an educational institution in India through Management Quota
• The bank disburses the IDBI Education Loan for Students Securing Admission Through Management Quota as a series of payments over the required number of terms or years to pay the course fees or other approved charges
• This loan is applicable for courses offered in India

Loan Amount

• The maximum loan amount one can get with security is Rs. 10 lakh
• This is a secured loan which means that tangible collateral is mandatory irrespective of the loan amount

Interest

• Loans up to Rs. 7.5 Lakh: The interest rate for this quantum of loan is 8.90%
• Loans Above Rs. 7.5 Lakh: The interest rate for this quantum of loan is 9.40%
• The bank charges a penal interest of 2% on overdue amount

Repayment

• The repayment period for this loan is 10 years
• The moratorium period for this loan is course duration + 12 months
• Simple interest is charged on the loan amount during the moratorium period
• The bank only accepts Standing Instructions (SI) as a mode of loan repayment

Security Needed

• Tangible collateral such as immovable property, fixed income security, LIC policy, FD, etc. is mandatory to avail this loan
• Fixed assets or immovable property must have a value of at least 1.33 times the value of the loan while movable property like shares, debentures, Govt. securities, public sector bonds, National Savings Certificates, Kisan Vikas Patra, LIC policy, fixed deposits etc. must be at least 1.1 times the value
• Fixed deposit must be with IDBI Bank
• Third party guarantees are not needed since the loan is backed by collateral

Eligibility

• The applicant must be an Indian national
• The student must have gained admission into a recognised higher education course through Management Quota at an educational institute in India
• The student’s age must be below 50 years at the time the loan is fully repaid. Co-applicants must be below 65 years if salaried and below 70 years if self-employed or engaged in farming

Eligible Courses

• Only courses in India are eligible
• Job-oriented courses offered by any educational institute located in India and having the approval of any statutory authority like AICTE, UGC, and so on

Borrower Contribution to Total Cost (Margin Money)

• 15% of total cost of the programme must be paid upfront by the borrower before each loan disbursement

Note: Margin money refers to the amount the borrower contributes to the overall amount required.

Processing and Other Charges

• The higher of 1% of the total loan amount or Rs. 1,000, must be paid by the applicant alongwith applicable taxes

Uses of the Loan

• College, school and hostel fees
• Examination, library and laboratory fees
• Caution deposit, building fund or refundable deposit supported by institution bills or receipts
• Cost of books, equipment, instruments, uniforms
• Purchase of computer, if required for the course
• Travel expenses
• Insurance premium for the borrower student, if applicable
• Other expenses needed for completing the course such as study tours, project work, thesis, etc.
• However, the loan cannot be used to pay off external coaching or tuition fees

Other Features to Know

• The borrowers can transfer the loan to any other bank
• The bank may ask for the student’s progress report to be submitted with the bank at regular intervals
• The loan is disbursed directly to the school, bookseller or publisher, computer seller, and so on and not to the applicant(s)
• The applicant must pay applicable margin money upfront for each disbursement
• Change of institution before disbursement is allowed by the bank subject to applicable charges

Documents Needed

• Application Form duly filled and signed by applicant and/or guarantor along with details of applicant and/or guarantor and family
• A declaration/ affidavit from the borrower confirming that, no educational loans have been availed from other banks
• Two Passport Size Photographs of student, applicant and/or guarantor
• Photocopy of PAN Card of the student that needs to be submitted at the time of application or during the course period
• Personal Identification Proofs (Any One): Electoral I-Card, Passport, Driving License, PAN Card or Aadhaar Card
• Residential Address Proof (Any One): Electricity Bill, Landline Telephone Bill, Electoral or Voter ID Card or Passport
• Admission Letter, Course Details and Prospectus as proof of admission
• Fee Details with Demand of Fee by the Institution
• All Proofs of Past Academic Record including Mark Sheets and Certificates
• Income proof for salaried, pensioned or self-employed people. For salaried it includes last 3 months salary slips and salary account statement with salary credits while for pensioners or those with rental income, income tax proofs, bank account statement, rent agreement, etc. will be needed. Self-employed borrowers need to show audited financial statements for the last 2 years. An income certificate will also be needed by civic authorities authorised to provide the same

Reference Facts

• IDBI Bank Website: www.idbibank.in and www.inet.idbibank.co.in (net banking)
• Headquarters: Mumbai, Maharashtra
• Call Centre Toll-Free Number: 1800 209 4324, 1800 22 1070