IDFC First Bank Education Loan: Complete Guide on Interest Rate, and How to Apply

Education is the most important part of our life at this time. Every student dreams of studying in the best college and university in India or abroad, but the financial problem makes them vulnerable. Here education loan comes like a sunrise for students who dream of studying abroad, but the problem is where can we get a reliable education loan without stress and hassle? In this blog, we will give you a clear solution and guide you on how you can apply for a study loan abroad.

What is the Work of IDFC First Bank or IDFC Bank and their Journey?

IDFC First Bank is a private-sector bank. It was founded in 2018 by merging IDFC Bank and Capital First and then it became IDFC First Bank. Here is the journey:

IDFC Bank Beginning (2015)

• IDFC Limited was established in 1997 as a financial institution of the Indian government to support the development of infrastructure in India.
• IDFC received a bank license from the Reserve Bank of India (RBI) in 2014, with that license he can open savings accounts and deposit from the public, and issue credit cards, loans, and other lending products.
• The IDFC bank was focused on retail and wholesale banking on October 1, 2015, in addition to focusing on infrastructure financing.

Capital First (Founded in 2012)

• The capital was first a major financial institution, that specialized in retail and small businesses, which was established by V. Vaidyanathan, the then chairman of the board and the CEO.
• It offered services such as individual loans, commercial loans, and finance for MSMEs (micro, small and medium-sized businesses).

The Merger (2018)

• The merger of the first IDFC bank and capital in December 2018 combined the strength of both organizations:
• IDFC Bank's infrastructure financing expertise.
• Strong lending portfolio and technology-driven operation of capital first.
• After the merger, the bank was renamed IDFC FIRST Bank.

Types of Services Which are IDFC First Bank Providing

• Savings & Current Accounts: High-interest savings accounts and specialized current accounts for businesses.
• Loans: Personal, home, car, education, business, and MSME loans with flexible repayment options.
• Fixed & Recurring Deposits: Attractive interest rates on deposits with flexible tenures.
• Credit Cards: Cashback, rewards, and travel benefits tailored for different lifestyles.
• Wealth Management: Investment advisory, mutual funds, and portfolio management.
• Insurance: Life, health, motor, travel, and home insurance.
• Corporate Banking: Working capital loans, project finance, and structured finance for businesses.
• Digital Banking: Mobile app, internet banking, UPI, and WhatsApp banking for seamless transactions.

Complete Guide on IDFC First Bank Education Loans and their Interest Rates

IDFC FIRST Bank offers Collateral-free education loans up to ₹75 lakhs, depending on the category of institution and country of study. Applicants should be an Indian citizen aged 18-30 years without previous work experience. The IDFC First Bank loan interest rate is a floating starting from 10.5% per year, with a repayment tenure of up to 12 years. A moratorium period is provided, covering the course duration plus an additional 12 months, offering flexibility for students during their studies.

Document Required to Apply for IDFC First Bank Education Loan

Benefits of IDFC First Bank Education Loan

• Education loans are available up to INR 1 Cr.
• Up to INR 75 lakh loan without collateral.
• Up to 100% financing.
• Repayment tenure of up to 12 years.
• Income tax benefits under section 80E
• Additional college-related expenses (travel, laptops/books/uniforms, insurance costs, etc.)

What are the Benefits of an IDFC Education Loan When You Apply Through Student Cover

Same as Above:

• Education loans are available up to INR 1 Cr.
• Up to INR 75 lakh loan without collateral.
• Up to 100% financing.
• Repayment tenure of up to 12 years.
• Income tax benefits under section 80E
• Additional college-related expenses (travel, laptops/books/uniforms, insurance costs, etc.)

Additional Benefits:

• Discount on Processing Fees.
• 10-12 days (after document submission).
• Multiple lender options are available in one place (For Collateral and Non Collateral).
• Complete transparency with the best guidance.
• Hassle and stress-free Loan Disbursal.

How to Apply for an Education Loan through Student Cover

Step-by-step process:-

Step 1:- Check the Eligibility Criteria Before Applying for an IDFC First Bank Education Loan:

Make sure you meet the following eligibility criteria before applying for a study loan from IDFC  First Bank, The bank will consider factors such as the age of the applicant, course of study, and details of the co-applicant to approve the loan. Fill out this education loan form and check your eligibility.

• Applicant must be an Indian citizen aged between 18 and 30 years.
• Should have secured admission to a recognized institution in India or abroad.
• Applicable for undergraduate, postgraduate, or professional courses.
• A parent, guardian, or spouse with a stable income is required as a co-applicant.
• The co-applicant must provide financial documents, including income proof and bank statements.
• Consistent academic performance is preferred to improve approval chances.
• Loans are prioritized for courses in STEM, business, medical, and professional fields from reputed institutions.

Step 2:- Application Process-

Student Cover Education Loan Counselor will explain the loan process and provide a personalized document checklist based on your profile. Once you submit your application, IDFC FIRST Bank will process your loan application with the required documents.

Step 3:- Document Submission Process-

IDFC FIRST Bank education loan application involves submitting all required documents through Student Cover for a seamless process. Applicants need to provide their admission letter, academic records, ID proof, address proof, and the co-applicant's income proof. Student Cover will collect These documents from the applicant and verify them before submission to the bank student cover ensure that all the documents are clear, valid, and up to date. Once submitted, student cover will coordinate with the bank for verification and ensure a smooth loan approval process.

Step 4:- Loan Approval-

Once all submitted documents are verified and meet the eligibility criteria, the bank provides notification of loan approval to the applicant or co-applicant with the loan amount.

What are the Charges of IDFC First Bank Student Loan?

The bank will issue a sanction letter after approval of an education loan and outline the loan amount, interest rate, repayment terms, and other conditions. IDFC First Bank charges processing fees of 1% of the loan amount plus GST before releasing the loan amount. Which must be paid by the applicant. Once the processing fee is clear, the loan is directly disbursed to the educational institution in installments to cover tuition fees and other approved expenses.  Additional amounts for accommodation, travel, or living expenses, if included, may be credited to the applicant’s or co-applicant’s account. With Student Cover guidance, the disbursal process is seamless, ensuring timely payments and hassle-free coordination with the bank.

Repayment Options Provided by IDFC Bank

You have several flexible repayment options with the education loan from IDFC FIRST Bank, as listed below: 

• EMI: Begin loan repayment right away. 
• Pay only simple interest while you are studying. 
• No payment is necessary during the moratorium while you are a student.

Frequently Asked Questions (FAQs)

1:- What is the maximum loan amount I can get from IDFC First Bank for education without collateral?

IDFC First Bank offers education loans up to ₹75 lakhs without collateral, depending on the student’s requirements, course, and institution.

2:- What is the interest rate for an IDFC First Bank education loan?

The interest rate varies based on the course, loan amount, and repayment tenure. IDFC First Bank education loan interest rate starts at 10.5% without collateral.

3:- Is a co-applicant mandatory for an IDFC First Bank study loan?

Yes, a co-applicant is required. This could be a parent, guardian, or spouse who acts as a guarantor for the loan.

4:- What expenses does the IDFC First Bank student loan cover

 The loan typically covers:

• Tuition fees
• Accommodation and living expenses
• Travel expenses
• Cost of books and study materials
• Other related costs (e.g., lab fees, examination fees)