IDFC First Bank Higher Education Loan

About the IDFC First Bank Higher Education Loan

The IDFC First Bank Higher Education Loan is a type of education loan for Indian students aspiring to pursue higher education within the country. This loan assists in covering expenses such as fees, housing, books, travel, insurance, and even electronics like computers while they are in college for a professional course like engineering, medicine, MBA, or any other course. 

IDFC First Bank Higher Education Loan Rate of Interest

The interest rate for the education loan starts from 9.5% per annum*. This rate is applicable depending on various factors like the course, loan amount, and the applicant’s profile. 

Note: *The rates are updated as per IDFC First Bank's latest terms as of 19 June 2025. These may change based on RBI Repo Rate movements or updates to the bank’s lending policies.

Features of the IDFC First Bank Higher Education Loan

Here are the main features of the IDFC First Bank Higher Education Loan, along with some important information and loan benefits:

• Simple Digital Process: Apply and receive disbursal entirely online through the bank’s website, app, or phone banking.

• Flexible Repayment Options: Choose from customised EMI plans based on your financial comfort, with repayment terms extending up to 15 years for ease and convenience.

• Tax Benefits on Interest Paid: Enjoy income tax deductions under Section 80E of the Income Tax Act for the interest amount paid on your education loan. You can also use an Income tax calculator to estimate your tax savings with this loan.

• No Charges for Foreclosure or Part Payment: You can repay your loan early or make part payments at any time without any additional charges or penalties.

Investment

Secure

Secure your child’s future with or without you

Start Investing

₹10,000/Month

& Get

₹1 Crore^*

VIEW PLANS

*Standard T & C Apply

Eligibility for the IDFC First Bank Higher Education Loan

To apply for the IDFC First Bank education loan, you must meet the following criteria:

• Nationality: You must be an Indian citizen or a Non-Resident Indian (NRI) to apply for the loan, ensuring the scheme is available only to eligible Indian applicants.

• Minimum Age Requirement: The applicant must be at least 18 years old at the time of applying, confirming legal eligibility to enter into a financial agreement.

• Admission Confirmation: You should have secured admission in a recognised Indian institution after completing the required qualifications for the chosen academic or professional course.

Documents Required for IDFC First Bank Higher Education Loan

Here’s a quick list of documents that are needed before applying for the IDFC First Bank Higher Education Loan:

1. Student Documents:

   • Photo ID (Aadhaar/PAN/Passport)

   • Proof of residence

   • Passport-size photograph

   • Proof of admission (Offer Letter or Admission Letter)

   • The fee structure of the institution

   • Salary slips (if applicable)

   • Academic documents

   • Filled loan application form

2. Co-applicant Documents:

   • Photo ID and residence proof

   • Income-related documents (ITR, Salary slips, etc.)

   • Property/FD documents (if applicable)

   • Filled application form

Most Important Terms and Conditions

Before applying for the IDFC First Bank education loan, make sure you understand the main terms related to approval, repayment, and fees:

• Co-applicant Requirement: You must have a co-applicant in order for the loan to be approved.

• Rate Conversion Option: For a small fee, borrowers can move from floating to fixed interest rates, which lets them plan better and is similar to a secure child investment plan.

• Processing Fees: A fee of up to 1.5% of the total loan amount is applicable at the time of loan processing.

• EMI Bounce Charges: If an EMI fails due to insufficient funds, charges will range between ₹400 and ₹1000, depending on the amount and frequency.

• Penal Charges: A penalty of 2% per month on the overdue EMI amount or ₹300, whichever is higher, will be levied in case of delayed payments.