IDFC First Bank School Fee Financing

About the IDFC First Bank School Fee Financing

The IDFC First Bank School Fee Financing plan, which is also known as the K12 education loan, allows parents and guardians of children from kindergarten to class 12 to get a school fee loan. Also, it makes sure that schools get paid in full at the start of the school year, which makes the process easier for institutions.

IDFC First Bank School Fee Financing Rate of Interest

The interest rate for IDFC First Bank School Fee Financing starts from 9.5%* per annum. The repayment tenure is flexible, ranging from a minimum of 3 months to a maximum of 12 months.

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 School Fee Financing

The IDFC First Bank school fee financing scheme comes with several user-friendly benefits:

• Collateral-free financing up to ₹9 lakhs: IDFC First Bank provides unsecured school fee loans, so you don’t need to pledge assets or provide security to access funds.

• Digital-first application process: Apply through IDFC First Bank’s website, app, or phone banking, with minimal paperwork and an instant eligibility check.

• Flexible repayment options available: Choose a convenient repayment tenure ranging from 3 to 12 months, tailored to suit your monthly budget.

• Prepayment and foreclosure at no extra cost: IDFC First Bank does not charge any penalty for early repayment or full loan closure for individual borrowers.

• School or skill-based education covered: The scheme supports school education (K–12) as well as recognised skill development programmes.

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Eligibility Criteria of IDFC First Bank School Fee Financing

To apply for the IDFC First Bank School Fee Financing, you must:

• Indian nationality is mandatory: The applicant (parent or guardian) must be an Indian citizen with valid identification documents.

• The student must be enrolled in a recognised institution: The loan applies only if the student has confirmed admission in a school or skill-learning institute recognised by the authorities.

• Applicants must be parents or legal guardians: IDFC First Bank School Fee Financing is designed for parents or guardians responsible for the child’s education.

• Working professionals eligible for skill loans: If the financing is for vocational or skill-based education, working professionals may also apply.

• Minimum age of 21 years for applicants: Applicants must be 21 or older at the time of applying for the school fee financing loan.

Documents Required for IDFC First Bank School Fee Financing

Applicants are required to provide the following documents to apply for the IDFC First Bank School Fee Financing:

• Valid photo ID (Aadhaar, PAN, Passport, etc.)

• Address proof

• Admission letter or school confirmation

• The fee structure provided by the school

• Income proof (salary slips, ITRs, etc.)

• Latest bank statements

You may also consider building a long-term child education plan to better prepare for future educational expenses.

Most Important Terms and Conditions

Here are some essential terms to keep in mind:

• Loan tenure: Depending on their budget, borrowers can choose a repayment term of three to twelve months.

• Processing fee of the loan amount: IDFC First Bank may charge a processing fee, but it is capped at 1.5% of the loan amount, which varies for each plan.

• Penalty for bounced EMIs: Bounce charges are 7.5% of the EMI amount, with a fee of a minimum of ₹400 and a maximum of ₹1000.

• Prepayment fee for individuals: If you are an individual user, you can pay back the full amount at any time without having to pay extra fees.

• 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.

• Administrative charges: You might have to pay ₹500 per request to get a copy of your statement, document retrieval, or switch repayment instruments.

Parents planning for long-term savings might also want to check out various child investment plan options alongside fee financing for complete financial coverage.