IDBI Bank is providing educational loans to deserving merit students for pursuing higher education in India and abroad. A move that IDBI believes is both a Corporate Social Responsibility initiative to an important sector and a practical business proposition. By providing educational loans to various sections of the future generation IDBI aims at building an infrastructure that is skilled and educated and that will help India prosper further.
The main goal of IDBI is to help poor students with good merit get an opportunity to pursue higher education with the help from the bank with affordable terms and conditions. This belief emphasizes the construct and conduct of IDBI Bank’s education Loan scheme. IDBI also believes that the education loan scheme prepared on the basis of Model Education Scheme of Indian Bank Association (IBA) will be a practical business proposition.
The educational loan from IDBI Bank is for students who have secured admission in recognized institution in India or abroad for higher education. They should be selected on the basis of Entrance Tests or merit after the completion of HSC. Admission through management quota is not covered.
The loan will typically cover the following expenses
- College/school/hostel fee
- Lab/library/examination fee
- Caution Deposit/ Building Fund/ Refundable Deposit supported by Institution Bills/ Receipts subject to the condition that the amount does not exceed 10% of total tuition fees for the entire course.
For studying abroad the loan will cover
- Travel Expenses/ passage money
- Purchase of computers essential for course completion.
- Other expenses required for course completion such as Project Work, Thesis, Study Tours etc
- If applicable. Insurance premium for student borrower. The maximum expenditure under the heads e, f and g is to be restricted to 20% of the total tuition fees payable for completion of the course.
Maximum loan provided:
The maximum loan amount is restricted to Rs10 lakh for studying in India except in cases of fulltime courses offered by all IIMs and ISB. For higher course fees the loan amount for students studying in IIMs and ISBs can be increased to Rs 20 lakh. IDBI will also offer top-up loans to students for pursuing their studies further with overall eligibility limit. The top-up loan repayment will start after the completion of the second course and moratorium period of the top-up loans. IDBI Bank’s Education Loan facility is provided both in secured and unsecured form. The Bank’s Education loan portfolio comprising loans up to Rs. 10 lakh qualifies for Priority Sector Lending (PSL) as per the recently revised Priority Sector Guidelines issued by RBI on July 20, 2012. The loan facility up to Rs. 4 lakh is unsecured in nature whereas facility above Rs. 4 lakh and up to Rs. 7.5 lakh is secured in the form of third party guarantee and loan amount above Rs. 7.5 lakh is secured by way of collateral security in the form of land/ building, shares, units of mutual fund, debentures, bank deposit, LIC policy, etc.
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