IDFC First Bank Higher Education Loan for Studying Abroad

About IDFC First Bank Education Loan for Studying Abroad

IDFC FIRST Bank’s education loan for overseas studies offers financing solutions to help Indian students. With loans up to ₹1.5 crore, it covers tuition, travel, accommodation, and other essential costs. The loan can be availed for a variety of recognised courses at undergraduate, postgraduate, and doctoral levels across countries like the US, UK, Canada, Australia, Germany, and more. 

IDFC First Bank Education Loan for Studying Abroad - Rate of Interest 

IDFC First Bank offers competitive interest rates and flexible repayment plans for students' education at recognised premier institutions.

• Interest Rate: The education loan interest is linked to the RBI repo rate plus a spread. Currently, rates start from approximately 9.5% per annum.

Note: The rate is updated as per IDFC Bank’s latest terms as of 17 June 2025. This may change based on RBI Repo Rate movements or updates to the bank’s lending policies.

Features of the IDFC First Bank Education Loan for Studying Abroad

The education loan scheme is designed to offer child education allowance and comprehensive financial support along with the following features:

• 100% Financing: You can enjoy a smooth loan process with minimal paperwork and quick approvals. The loan covers all major expenses, including tuition fees, accommodation, travel, insurance, books, laptops, and other study-related costs.

• Fast Processing: Loan applications are typically processed and approved within 2 to 7 working days, helping students avoid delays in planning.

• Digital Convenience: Students can apply through the IDFC FIRST Bank website, the FIRST UNI mobile app, or by visiting a branch, ensuring accessibility and ease.

• Income Tax Benefit: You can claim a tax deduction on the interest paid towards your IDFC FIRST Bank education loan under Section 80E of the Income Tax Act.

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Secure your child’s future with or without you

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₹10,000/Month

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₹1 Crore^*

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Eligibility of the IDFC First Bank Education Loan for Studying Abroad

To apply for an education loan from IDFC FIRST Bank, students and co-applicants must meet the following basic eligibility criteria, especially if the loan is part of a long-term child education plan for overseas education.

• Nationality and Age: The applicant must be an Indian citizen (including NRI) and at least 18 years old at the time of application.

• Admission Requirement: A confirmed admission offer is generally required. However, students may also apply for a loan before final admission under the pre-admission sanction facility.

• Co-applicant Requirement: A co-applicant is mandatory. Income documents and financial strength of the co-applicant are reviewed on a case-by-case basis to determine loan eligibility.

• Collateral Criteria: Loans up to ₹75 lakhs are generally collateral-free. However, if the loan amount exceeds ₹75 lakhs, collateral is mandatory.

Documents Required for IDFC First Bank Education Loan for Studying Abroad

Applicants must submit a set of personal, academic, and financial documents to complete the loan application process.

1. Documents Required from the Student

   • Photo ID proof, proof of residence, and a passport-sized photograph

   • Proof of admission, visa copy, and academic documents

   • Fee structure document, salary slips (if applicable), and a filled application form

2. Documents Required from the Co-applicant

   • Photo ID proof, proof of residence, and a passport-sized photograph

   • Income-related documents and a filled application form

3. Collateral Documents 

   • Property documents or Fixed Deposit (FD) documents

Most Important Terms and Conditions

Key charges, repayment details, and tax benefits to consider before applying for the loan.

• Processing Fee: Charged up to 1.5% of the loan amount at the time of sanction.

• Stamp Duty & Cancellation: Stamp duty is charged as per actuals; cancellation fee is 1% of the loan amount plus interest from the disbursal date to the cancellation date.

• Interest Calculation: Interest is linked to the RBI repo rate and may vary with rate changes.

• EMI Structure: EMI is calculated based on the principal, interest rate, and tenure. Interest accrued during the moratorium is added to the principal before EMI starts.

• Repayment Tenure: Up to 15 years, including the moratorium period.