IDFC First Bank Education Loan for Study Abroad

The IDFC First Bank is an RBI-authorized and leading private bank that provides education loans with suitable policies. 

For Masters, they provide an Unsecured Loan of up to Rs 75 Lacs, depending on the University and Course category. There is a moratorium period of study and an additional grace period of 1 year to settle and prepare for Full EMI. 

It is one of the banks that provides UnSecured and Secured Education Loans for Bachelors abroad. There is no moratorium in either case, and full EMI will be deducted from the first month onwards. So, the Co-Applicant must have enough monthly income to pay the EMI smoothly. The requirement of Collateral is optional unless the University's Ranking is required. 

IDFC First Education Loan Products

In comparison to other Banks and NBFCs, IDFC First Bank provides Education loans based on University and Course categories. There are 5 categories as follows

1. Platinum Plus
2. Platinum
3. Titanium
4. Gold
5. Bronze

The category of University and Course is decided based on University Ranking and job opportunities in that particular course. For example, the Master of Data Science at The University of Adelaide has a Platinum category, and MSc Management at Nottingham Trent University has a Gold category. The maximum loan amount, interest rates, repayment methods and Co-Applicant financials are set based on the category and country. The document and procedure requirements are based on category, so the higher category comes with an easy and relaxed process, and the lower category corresponds to Higher restrictions and more documentation. Contact our Education Loan Expert to learn about your Product Category before applying at IDFC First Bank.

The Bachelor's program in all Universities is considered under the Bronze and Gold categories only. Hence, to apply for an UnSecured Education Loan for Bachelor, ensure that the Co-Applicant has sufficient monthly income to pay the regular EMI or Simple Interest. 

Check out the data below to learn more about each category, including the maximum limit for unsecured loans and repayment modes. Please note that the below-mentioned amounts are valid for Post-Graduation courses only.

Expenses Covered by IDFC First Education Loan

To make the process hassle-free and provide maximum ease, the IDFC Bank Education Loan covers the following expenses.

1. The University or College tuition fees, as mentioned on the admission letter
2. Living Expenses include your Hostel expenses, Accommodation, Food, & Travel. 
3. If required, a Guaranteed Investment Certificate (GIC) for Canada and a Blocked Account for Germany. 
4. Insurance Expenses as applicable.
5. Traveling Expenses such as Flight Ticket
6. Purchase of laptop/books/uniform as required

Eligibility criteria for IDFC First Bank Education Loan

Here is the basic Eligiblity Criteria for Study Abroad Education Loan by IDFC First Bank. 

Student

• must be an Indian Citizen
• must be a minimum of 18 years of age
• must have a good CIBIL history

University

• must be approved by the concerned regularities
• can be a Graduate/Post-Graduate/technical course
• must have a good world and national ranking
• must be SDS & PGWP approved (for Canada only)

Academics

• must have a minimum of 60% in Class 10th, Class 12th, Bachelors and Masters
• must have a sufficient language proficiency exam scores

Co-Applicant / Co-Borrower

• must be an Indian citizen
• should be a father, mother, brother, sister, maternal-uncle or paternal-uncle.
• must be a financial earner (Salaried, Self-Employed, Farmer, or Pensioner)
• must have a savings bank account in India that allows them to sign cheques
• must be the primary debtor
• must have a good CIBIL history

Collateral

• must be a fixed deposit or property such as a house, or shop
• property must be approved by the concerned authorities
• property must be located in an Urban or City area

Charges of IDFC First Bank Education Loan

Here is the list of basic charges involved in IDFC First Bank Study Abroad Education Loan

The Charges may vary depending on the application*

IDFC First Education Loan Repayment Process

The IDFC First has three repayment methods for education loans, namely, direct EMI, simple interest (SI), and partial simple interest (PSI). These options are offered based on University and Course category or Product Category. Here are the following available options based on Product Category. 

To get the maximum savings, you are recommended to pay using the Direct EMI method if affordable. However, if you don't want to put any burden of Education Loan on your parents or co-applicant, you can choose partial simple interest. The partial simple interest ranges between Rs 2000 and Rs 10,000 monthly, and it will adjusted in the repayment amount. 

IDFC First Bank Interest Rates for Education Loan

The IDFC First Bank offers competitive interest rates starting at 9.5% for Secured Education Loans and 11% for UnSecured Education Loans. It varies based on the Application Category. 

*The Interest Rates may vary

IDFC First Bank Processing Fees for Education Loan

IDFC First Bank has a standard processing fee of 1.5% plus GST, which is an effective rate of 1.77% of the sanctioned loan amount. However, it varies based on the Application Category. If you apply for a Study Abroad Education Loan at IDFC First Bank through Abroad Cube, our experts can assist you in negotiating a discounted processing fee as low as 0.50% plus GST, depending on the specifics of your application. This means you can save significantly without any extra effort on your part.

IDFC First Education Loan Disbursement Process

Once your IDFC First Education Loan gets approved, you must pay the processing fees and obtain a Sanction Letter. To proceed with the disbursement process, you must sign the agreement and submit the other required documents in physical format. 

You have to open a savings account in IDFC First Bank in the name of Applicant or Co-Applicant to receive the disbursed amount. The tuition fee will be transferred to your institution, and living expenses will be to the newly opened account. If you already paid the expenses through other means, the amount will be reimbursed to your account upon providing the relevant documents. Our team will help you smoothen the process and ensure it is completed on time.