IDBI Bank Education Loans

When you cannot fund your education only one option remains for you, taking a loan from a bank. Then again there are some banks that are not flexible and will not give you many choices when you have to take a loan to pay your school fees. Due to the increased number of admissions to the university banks are seeing the need to loan students who want to pursue their education and one of these banks is IDBI Bank. As many meritorious students do not have the money to pursue higher education on their own, the banks come in to help them to achieve the higher education they have always wanted. This is a huge leap from the past, when there was nothing such students could do to reach the heights of education they have dreamt of.

If you are thinking of getting a studies loan from IDBI Bank, you have come to the bank which funds a lot of courses, so you will be considered eligible for a loan if you want to pursue a certificate, diploma undergraduate or postgraduate courses. You can get a student loan from IDBI Bank even if you are planning to pursue a course online. As with any other lending institution, IDBI Bank will only fund education in institutions that have been certified by the government. You can get funding to a foreign university in India and you will not have to pay any extra money for that. The diploma and degree courses have to be approved by the AICTE, UGC, AIBMS and ICMR as well so IDBI Bank does not only depend on government approval. For those looking to pursue studies abroad, funding can be provided for professional courses like MBA and regular undergraduate professional courses.

The maximum limit for loans for students studying abroad is twice as much as those studying in India for obvious reasons; those studying abroad have more expenses than those who are studying within India. An international student can borrow a loan of up to Rs. 20 Lakhs and an Indian student can borrow a loan of up to Rs. 10 Lakhs. An educational loan is a full package that includes tuition and all other fees that will be needed. This means that the loan will take care of your personal expenses, your boarding and travel fees as well as books, caution money, library and lab fees among others. The repayment period will start 6 months after employment or one year after the completion of the studies, whichever is earlier. As with many other Indian banks offering educational loans the period of repayment is 5 to 7 years and this is a period you will have discussed with the company upon the application of the loan.

The interest rates for these loans depend on the amount that has been borrowed but there is not much of a difference in interest when you compare the two groups of below and above Rs. 4 Lakhs. Any loan below Rs. 4 Lakhs will be paid on an interest rate of 12.25% while any loans above Rs 4.Lakhs will have to be paid for at an interest rate of 12.50%. If the borrower starts paying the loan immediately after his studies instead of waiting for the one year mandatory period the interest rate will be reduced by 1%. Any loan of up to Rs. 4 Lakhs does not need security but any loan that is between Rs. 4 Lakhs and Rs. 7.5 Lakhs will need a guarantor. For any loan that is above Rs. 7.5 Lakhs security is needed in the forms of physical property, so one will have to come with proof of ownership of the property.