Looking for a College Education Loan from IDBI Bank to Study at a Premier Institute in India?

Look no further. This page summarises the information you will need on IDBI Bank’s Education Loans for Non-Vocational Courses for Studying in Premier Education Institutes in India

IDBI Education Loan for Non-Vocational Courses for Studying in Premier Education Institutes

This loan is meant for students pursuing non-vocational courses from premier educational institutes in the country. The maximum loan amount is capped at Rs. 30 lakh or the 100% cost of the programme whichever is lower.

Features of Education Loan for Non-vocational Courses in Premier Education Institutes

Why this Loan?

  • The loan is meant for you if you have gained admission into a Bachelors, Masters, Doctorate (PhD) or a professional studies programme at a premier institute in the country
  • The IDBI Education Loan for Non-Vocational Courses in Premier Education Institutes is disbursed to the institution as required to pay the fees or other approved charges
  • Balance transfer is allowed from other banks to IDBI Bank subject to compliance with norms for balance transfer

Loan Amount

  • The maximum loan amount is capped at Rs. 30 lakh or 100% of the cost of the programme including the insurance premium (if any) whichever is lower


  • As of November 2020, the interest rate for this loan is 7.15%
  • The bank charges a penal interest of 2% on the overdue amount if the loan amount is over Rs. 4 lakh


  • The repayment period for this loan is 15 years
  • The loan amount for each year is repayable in 12 equated monthly instalments, with the first instalment becoming due after the end of moratorium period
  • The moratorium period for this loan is course duration + 12 months


  • Prepayment is accepted by the bank subject to a minimum of Rs. 25,000
  • No prepayment or foreclosure charges are levied by the bank

Security Needed

  • 6 IIMs and ISB Hyderabad and ISB Mohali: For students of IIM Ahmedabad, IIM Bangalore, IIM Kolkata, IIM Kozhikode, IIM Indore, IIM Lucknow, ISB Hyderabad and ISB Mohali, no security is required for loans up to Rs. 30 lakh. Parents must be joint borrowers. The quantum of loan depends on the net-worth of the joint-borrowers
  • Students of all Other Premier Institutes
    • Loans up to Rs. 20 Lakh: No security is required for loans up to Rs. 20 lakh provided the parents are joint borrowers and the applicant provides satisfying proof or net worth or income of parents (joint borrowers)
    • Loans Over Rs. 20 Lakh: The parents must be joint borrowers with satisfying proof of their net worth. Tangible collateral security and future assignment of income of the student must also be submitted
  • A co-applicant is mandatory for all loan amounts


  • The applicant must be an Indian national
  • The student should have gained admission into a recognised higher education course in one of the listed premier educational institutes in India through Entrance Test or Merit-based selection process
  • If the student is a minor, parents can execute the loan. Once the student turns 18, a ratification letter is obtained by the bank from the student
  • The co-borrower must be in the age group of 21 – 70 years

Eligible Courses

  • All full-time executive courses and regular higher education programmes at premier institutes including IIMs, IITs, ISB Hyderabad, ISB Mohali, IIFT and other top medical and management colleges

Borrower Contribution to Total Cost (Margin Money)

  • Loan up to Rs. 4 Lakh: Students do not have to pay any margin money
  • Loans above Rs. 4 Lakh: Students studying in India have to pay 5% of total course expenses as margin money while those studying overseas need to pay 15% of total course expenses as margin money

Note: Margin money refers to the amount the borrower contributes to the overall amount required. Suppose a course costs Rs. 20 lakh in which case the borrower will have to offer Rs. 1 lakh (5% of Rs. 20 lakh) for domestic studies and Rs. 3 lakh (15% of Rs. 20 lakh) for foreign studies while IDBI Bank offers the rest.

Processing and Other Charges

  • The borrower is required to pay mortgages charges, documentation charges and stamp duty wherever applicable
  • For change of institution and enhancement in loan, the borrower is required to pay Rs. 500 + 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 including passage money for foreign studies
  • 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

  • During application, the borrowers should provide an affidavit that they have not taken an education loan from another bank for the same child. In case they have, balance transfer is allowed
  • The student’s progress report may have to be submitted with the bank at regular intervals
  • The loan is disbursed directly to the college, bookseller or publisher, computer seller, and so on and not to the applicant(s)

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
  • For studying abroad, a self-attested copy of the passport is also required along with a self-attested form issued by the institute for visa purposes
  • All Proofs of Past Academic Record including Mark Sheets and Certificates
  • For the co-borrower, documents as age, ID, signature, address and employment, business or income proofs are required. Income proof for salaried 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

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