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Zero Charges on 28 Commonly Used Savings Account Services
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As per amendment in the Income Tax Rules, PAN or Aadhaar are to be mandatorily quoted for cash deposit or withdrawal aggregating to Rupees twenty lakhs or more in a FY. Please update your PAN or Aadhaar. Kindly reach out to the Bank’s contact center on 1800 10 888 or visit the nearest IDFC FIRST Bank branch for further queries.
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Education Loan Interest Rate
Education is the foundation of a successful future. With affordable & hassle free loans from IDFC FIRST Bank, you can achieve your goals faster. We offer customized repayment plans, flexible tenures and income tax benefits that will help you in financing your academic dreams without worries.
| Repo Rate | Spread | Effective ROI | |
| Min. | Max. | (Linked to Repo Rate) | |
| 6.50% | 3.50% | 8.50% | 10% - 15%* |
1. The Repo Rate is decided by the Reserve Bank of India (RBI)
2. Currently, it is 6.50%
3. It can change frequently and affect your interest rates
4. Terms & Conditions Apply
Education Loan EMI Calculator
Use our Education Loan EMI calculator to estimate the EMIs you need to pay on your loan
Education Loan Fees & Charges
Charges
| Types of Charges | Charges |
| Processing fees | Up to 1.5%* of the Loan Amount or as per any special scheme run by the bank |
| Stamping Charges | As per actuals |
| Cancellation charges | 1%* of the loan amount + interest accrued from date of disbursal till receipt of cancellation request Cancellation request to be received within 30 days or 1st EMI presentation date, post which cancellation will be treated as foreclosure |
| Foreclosure / Prepayment charges** | NIL |
| Loan re-scheduling charges (per re scheduling) | NIL |
| Part Payment charges | NIL |
| Initial Money Deposit Charges | NA |
| ** Applicable only for individual borrowers | |
EMI related charges
| Types of Charges | Charges |
| EMI Bounce charges per presentation | INR 500* |
| Penal charges (per month) | 2%* per month of the unpaid EMI or INR 300* whichever is higher |
| EMI Pickup/ Collection Charges | INR 500* |
| Cheque swap charges (per swap) | INR 500* |
Other charges
| Types of Charges | Charges |
| Duplicate No Objection Certificate Issuance Charges | INR 500* |
| Physical Repayment Schedule | INR 500* |
| Physical Statement of Account | INR 500* |
| Document retrieval charges (per retrieval) | INR 500* |
| List of Documents | INR 500* |
| Switching charges(Switch from Floationg to Fixed Rate) | 0.1% of sanctioned loan amount or Rs.10,000/- whichever is lower,excluding applicable taxes |
GST, as applicable, will be levied on all service charges. The above Schedule of Charges is subject to be revised from time to time by the Bank, as will be updated on the official website of the Bank.
*Terms & Conditions Apply
Factors Influencing Education loan EMI
Interest rate
Loan tenure
Loan amount
Repayment terms
ELIGIBILITY
Who can apply?
IDFC FIRST Bank’s eligibility criteria for student education loan:
- You should be an Indian citizen.
- You should be 18 years old or above.
- You should have secured admission in the desired institution/course.
- In case secured admission is not available, you can get a pre-admission sanction.
Documentation
Student
- Photo ID proof
- Proof of residence
- Passport sized photograph
- Proof of admission
- Fee structure document
- Salary slips of experienced candidates
- Visa copy
- Academic documents
Co-applicant
- Photo ID proof
- Proof of residence
- Passport sized photograph
- Income related documents
Collateral documents
- Property documents
- FD documents
FREQUENTLY ASKED QUESTIONS
How is Education Loan interest rate calculated?
IDFC FIRST Bank’s Education Loans are benchmarked to the Repo rate. Repo rate is the interest rate at which government lends money to the commercial banks. Banks charge a spread over the repo rate to arrive at the interest rate in order to cover the various costs involved. Education loan interest rates that are linked to repo rate are subjected to change, whenever there is a change in the repo rate.
What are the expenses covered under student loans?
The education loan amount includes the following expenses:
1. College-related expenses:
• Tuition and fees payable to the institute
• Examination/ library/ laboratory fees
• Purchase of books/ equipment/ uniforms
• Living expenses (including hostel fees)
2. Additional expenses:
• Travel expenses
• Purchase of computers/laptops
• Overseas insurance
• Cost of health insurance
Can I apply for a loan if I do not have an earning co-applicant?
At IDFC FIRST Bank, we believe in your potential and provide loans based on your future income. However, co-applicants’ income is required for assessment on a case-to-case basis as per the IDFC FIRST Bank’s policy.
Is there a moratorium period provided? If yes, how will my repayments be determined?
The maximum moratorium period offered is the course duration and additional 12 months as a grace period. It is subject to the institute classification done in IDFC FIRST Bank’s policy. The interest accrued during the moratorium period will be added to the outstanding loan amount at the time of repayment commencement. The EMI will be determined on the combined amount.
Who is eligible to avail of tax exemption under Section 80E?
According to Section 80E:
• Individuals can claim tax emption under Section 80E. Hindu Undivided Families (HUFs) and companies cannot use the feature.
• Parents can also claim deduction for loans taken for their children’s higher education.
What are the advantages of IDFC FIRST Bank student loans?
There are several advantages in availing of student loans from IDFC FIRST Bank. You can enjoy:
• Income tax benefits under section 80E
• Flexible repayment options
• Customized solutions tailored to your needs
• Up to 100% financing
• Hassle-free education financing fulfilled at your doorstep
How to apply for IDFC FIRST Bank’s education loan?
You can apply for an education loan with IDFC FIRST Bank offline and online. You can visit the bank’s branch or apply on the website or mobile application. The online process is faster, as you can apply and verify your documents within hours.
How to calculate your EMI on Education Loans?
The calculation of education loan EMI depends on the repayments terms, based on which the lending institution has sanctioned the loan. This is subject to the lending institution’s policy. Repayments terms are broadly categorized in two segments. Inone, the repayment begins immediately after the disbursement and in the other the repayment does not start during moratorium period, i.e., the duration of the programme/course with an additional grace period of 6-12 months. In the latter option, lenders also offer repaying only the interest component during the moratorium period either fully or partially
The unpaid interest amount accrued during the moratorium or in the partial interest payment period will be added to the outstanding principal loan amount once repayment starts.. Then the EMI will be determined on the combined amount. In case of full interest payment period, the EMI will be determined on the outstanding principal amount.
Sample Calculation for Immediate repayment commencement -
The calculation of your education loan EMI amount is -
EMI = [P x R x (1+R)^N] / [(1+R)^N-1]
Where:
P = Principal amount of the loan
R = Monthly interest rate
N = Number of monthly installments (tenure)
For example, if the parameters are -
Principal (P) = Rs 25,00,000 (25 lakhs)
Rate of Interest (R) = 8% per annum
Tenure (N) = 10 years
Then,
Monthly Interest Rate = (8/12) / 100 = 0.0067
EMI = [25,00,000 x 0.0067 x (1+0.0067)^120] / [(1+0.0067)^120-1] = Rs 30,332 per month
