IDBI Education Loans to study abroad are a preferred choice among students due to its streamlined and efficient loan disbursement process. Students who wish to pursue higher education abroad can avail education loans of up to 40 lakhs or 100% of the total program cost, whichever is lower. The bank understands students’ needs and provides student loans at competitive interest rates ranging from 8.50% p.a to 11.10% p.a. Let’s check the loan disbursement process of IDBI Bank, understand what documents are required, and important points to keep in mind when the loan amount is disbursed.
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Also Read: Know all about LLB education loans to study abroad
IDBI Education Loan Disbursement Process
Education loan disbursement refers to receiving the availed loan amount to cover the university’s tuition fees, accommodation expenses, and other study-abroad expenses. During this step, the banks transfer the tuition fees and on-campus accommodation funds directly to the university’s account on the student’s behalf. Only the amount for off-campus accommodation is transferred to the student’s account.
Note: Some banks consider transferring off-campus living expenses to the university only. In such a case, students have to coordinate with the university regarding receiving those funds to pay for rentals. However, this completely depends on the lender and the university where admission is secured.
Let’s first understand the steps involved in availing IDBI education loan to study abroad.
- The education loan process starts with a student filling out the application form and submitting the required documents to the IDBI Bank. The bank then discusses the terms and conditions like loan amount, interest rates, and repayment period.
- Based on the analysis of the student’s profile and verifying their eligibility, the IDBI Bank provides them with the loan sanction letter after the approval. This means that the bank officially agrees to transfer the loan availed and finance their study abroad dreams.
After signing the loan sanction letter, the IDBI education loan disbursement process begins. Three major steps are involved during this phase.
Step 1: Document Collection
The first is to collect all the required documents like the offer letter from the university, fee structure, and cost of living expenses. This is done to provide the bank with proof of all potential expenses that will be incurred in the future. Based on these documents provided, the IDBI Bank will ascertain the loan disbursal amount.
Step 2: Signing the Loan Disbursement Letter
IDBI Bank then shares the loan disbursement to the applicant which states the disbursement amount, date of disbursement, and the method of disbursement. The applicant is required to sign the loan disbursement letter.
Step 3: Loan Disbursement
This is the last step of the IDBI Education loan disbursement process. Once all the formalities are done and the terms and conditions have been successfully agreed upon, the IBDI Bank prepares a final loan agreement and transfers the necessary funds directly to the university.
Note: If you are travelling to Canada or Germany, then the proof of funds must be shown in GIC Account and Blocked Accounts respectively. In such cases, IDBI Bank education loan disbursement takes place accordingly.
- On providing a clear breakdown of expenses before the education loan disbursement process, students can also load funds in prepaid forex cards.
Documents required for IDBI Bank Education Loan Disbursement Process
From the above steps, it is clear that IDBI Bank needs certain documents to initiate the education loan disbursement process. Based on these documents, the bank ascertains the actual loan disbursement amount. So, here is the list of documents that students need to collect and submit as proof of study-abroad expenses-
- A demand letter from a university or college
- Accommodation fee breakup (in case of on-site accommodation)
- Rent agreement documents (in case of off-site accommodation)
- Guess estimate of average living costs like food, clothing, electronic gadgets, books, and other study materials
- Guess the estimate of miscellaneous expenses including health insurance, travel costs, study aids, and incidental expenses.
- The self-attested final loan agreement
- Disbursement request form signed by the applicant and co-applicant
- Receipt of margin money paid to the college/university along with the bank statement reflecting the transaction
- Submit the original KYC documents for the student, co-applicant, and guarantor (if applicable).
- Complete two copies of the ECS mandate form, ensuring it is signed and stamped by your bank. One copy should be submitted to the bank manager for record-keeping after determining the disbursement date.
Also Read: Check out our blog on one of the most flexible alternatives to finance your study abroad dreams- gold loan for education: benefits, criteria, documents & process.
Important Points to Consider During IDBI Education Loan Disbursement Process
International students studying abroad must be active in deciding the date of disbursement, method of disbursement, and whether the amount needs to be disbursed in lump sum or instalments. Let’s discuss these important points to ensure a smooth and hassle-free IDBI Education loan disbursement process.
- Based on your visa application, students must determine the exact date of disbursement. This requires actively coordinating with the university to align the final date for payment of tuition fees and other expenses.
- Make sure to gather all the required documents and provide ample proof of all living expenses including health insurance, travel costs, food, clothing, study aids (gadgets and study materials), and incidental expenses to determine the exact amount of disbursement. This will ensure well-organised and easier financial management.
- Another important point to consider is to determine the method of disbursement. This includes providing accurate details for funds transfer and specifying whether it can be done through wire transfer or forex transfer.
FAQs on the IDBI Education Loan Disbursement Process
Education loan disbursement refers to receiving the availed loan amount to cover the university’s tuition fees, accommodation expenses, and other study-abroad expenses. During this step, the banks transfer the tuition fees and on-campus accommodation funds directly to the university’s account on the student’s behalf.
The IDBI Bank has a streamlined and efficient education loan disbursement process, making it one of the preferred choices among students to avail of IDBI education loans to study abroad.
After submitting the disbursement-related documents, the bank will issue the disbursement letter. The applicant has to sign. Once done, the bank will disburse the tuition fee directly to the university’s account. The rest of the amount is disbursed to the student’s account.
The following documents must be provided by the students to ensure a smoother IDBI loan disbursement process– the university’s offer letter with a stated fee structure, accommodation fee break up, rent agreement documents, an estimate of average living costs and miscellaneous expenses.
Yes, IDBI Bank is one of the most preferred and reliable options amongst students when considering education loans to study abroad. It offers competitive interest rates against education loans and the education loan disbursement process is simple, streamlined and efficient.
This was all about the IDBI Bank Education Loan Disbursement Process. To know about education loans, the loan application process, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.
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