IDBI Bank Education Loans for Specialised Courses in India

IDBI Bank Education Loan Scheme for Specialised Courses

This loan helps students who have gained admission into a specialised course to finance their own education. The maximum loan amount that you can apply for is Rs. 15 lakh. The key feature of this study loan is that in addition to full-time course, it also covers fees for part-time courses, executive programmes and Open University courses.

Features of Education Loan Scheme for Specialised Courses

Why this Loan?

  • The loan is meant for you if you are want to pursue a specialised course in India
  • The bank disburses the IDBI Education Loan for Specialised Courses as a series of payments over the required number of terms or years to pay the course fees or other approved charges
  • All specialised courses, whether full-time or part-time are eligible for this study loan. This includes job-oriented courses, skill enhancement courses, career advancement courses such as technical courses, executive management programmes, etc.

Loan Amount

  • The maximum loan amount for this loan is capped at Rs. 15 lakh


  • Loans up to Rs. 7.5 Lakh: As of November 2020, the interest rate for this quantum of loan is 8.65%
  • Loans Above Rs. 7.5 Lakh: As of November 2020, the interest rate for this quantum of loan is 9.15%
  • The bank charges a penal interest of 2% on overdue amount if the loan amount is over Rs. 4 lakh


  • The repayment period for this loan is 7 years
  • The loan amount for each year is repayable in 12 equated monthly instalments (EMIs)
  • There is no moratorium period for this loan
  • The bank only accepts Standing Instructions (SI) as a mode of loan repayment
  • Interest servicing option, known as Pre-EMI is available during the course period. The Pre-EMI period is restricted to course period or 24 months whichever is earlier. The repayment period is 7 years after the completion of Pre-EMI period

Security Needed

  • Loans up to Rs. 4 Lakh: No security required but parents must be co-borrowers
  • Loans Above Rs. 4 Lakh to Rs. 7.5 Lakh: Parents must be co-borrowers with the student. A third-party guarantee is also required
  • Loans Above Rs. 7.5 Lakh: Parents must be the joint-borrowers of the loan. Tangible collateral as well as future assignment of the student is required to avail the 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. The fixed deposits must be with IDBI Bank


  • The applicant must be an Indian national
  • The co-borrower must be in the age group of 21 – 70 years

Eligible Courses

  • Degree, diploma or certificate courses offered by reputed institutions, private agencies or companies jointly with institutions like ISBs, IIMs, other reputed management institutions, Open and Central Universities, IITs, NITs, franchises or OEMs of IT related Hardware and Software, which lead to significant enhancement in job opportunities
  • Part-time, executive and customised programmes are allowed
  • These courses can be designed by companies or industry and don’t have to be approved by competent authorities. Should have significant standing in the job market
  • Job oriented courses, skill enhancement courses and career advancement courses such as SAP, .net, C-DAC, management programmes for executives and professionals, and so on

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 or 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.
  • Taxes and cesses, as applicable

Other Features to Know

  • Balance transfer option is not available under this loan
  • 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 institution, book seller or publisher, computer seller, and so on and not to the applicant(s)
  • There is no moratorium period for this loan

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 of the student
  • For the co-borrower, documents as age, ID, signature, address, employment/business/income proofs are required

Reference Facts

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