Looking for an Education Loan for Students with Disabilities to Study in India or Abroad?

Look no further. This page summarises the information you will need on IDBI Bank’s Education Loans under NHFDC for students belonging to the Person With Disability (PWD) category to study in India or abroad

IDBI Bank Education Loan Scheme for Physically-challenged Persons under NHFDC

This loan helps Persons With Disabilities (PWD) category students having a disability to the extent of 40% or more who have secured admission into a recognised institute in India or abroad through Merit-based selection. The maximum loan amount that you can apply for is Rs. 10 lakh for studying in India and Rs. 20 lakh for studying abroad.

Features of Education Loan Scheme for Physically-challenged Persons under NHFDC

Why this Loan?

  • The loan is meant for you if you are a PWD category student and have gained admission into a recognised educational Institution in India or a foreign country through Merit Quota
  • The bank disburses the IDBI Education Loan Scheme for Physically-challenged Persons as a series of payments over the required number of terms or years to pay the course fees or other approved charges
  • Eligible students can also apply for interest subsidy schemes, if applicable

Loan Amount

  • The maximum loan amount one can get with security is Rs. 10 lakh for studying in India and Rs. 20 lakh for studying overseas


  • 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 depends on the type of course selected by the student
  • 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
  • The bank only accepts Standing Instructions (SI) as a mode of loan repayment

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 and third-party guarantee is 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 income is also 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
  • Must have physical disabilities of at least 40% or more as certified in a prescribed format by a competent medical officer
  • The student should have gained admission into a recognised institution in India or abroad 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

  • Graduate or Postgraduate (PG) degree or PG diploma courses from colleges and universities approved by the government, UGC, AICTE, AIBMS, ICMR, etc.
  • Job-oriented technical or professional courses from reputed universities in India or abroad
  • Technical diploma courses of usually 3 years offered by approved polytechnic institutions after Class 10
  • Degree and Diploma courses in aviation and shipping approved by the Director General of Civil Aviation or Director General of Shipping
  • Courses in India from foreign universities
  • MCA, MBA, MS, etc. or other approved postgraduate diploma courses abroad
  • Professional courses from CIMA- London, CPA in the USA, etc.

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

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.

Other Features to Know

  • 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, book seller or publisher, computer seller, and so on and not to the applicant(s)
  • The applicant must pay applicable margin money upfront for each disbursement

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
  • 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
  • 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

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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