IDBI Interest Certificate for Education Loan: Process, Tax Benefits

IDBI Interest Certificate
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IDBI Bank is one of the most trusted banks offering education loans. Securing funds for higher studies from the bank helps students cover their tuition fees, accommodation expenses, and other study-abroad-related expenses. However, amid the loan process, the IDBI education loan interest certificate gets overlooked. This document provides a detailed breakdown of interest paid on education loans during the specified period.

It helps in financial planning and allows students to avail tax benefits. But how? Let us help you with all the important details related to the education loan interest certificate from IDBI Bank. Continue reading to find out.

IDBI Education Loan Interest Certificate

An interest certificate is a document that provides detailed information about the debit and credit of education loan interest. A savings or FD account interest certificate shows the amount of interest gained by the customer. An education loan interest certificate issued by the bank shows the amount of interest paid by the borrower on the education loan availed.

An IDBI interest certificate includes details like-

  • Name of the borrower
  • Type of loan (Home loan/ Education Loan)
  • Education loan number
  • Total principal amount
  • Amount of interest paid during a financial year
  • Amount of interest proposed to be paid

Also Read: Check out all the details on IDFC First Bank EMI Payment for Education Loans. This blog will give you an insight into the modes of EMI payments of IDFC First Bank and how to make payments.

An interest certificate from IDBI Bank can be availed by visiting the nearest bank branch or by downloading it online. Read on to see how you can avail it. If an education loan is availed from a bank other than IDBI, the following links can be useful-

ICICI Bank Interest Certificate
SBI Interest Certificate
Axis Bank Interest Certificate

How to get an Interest Certificate from IDBI Bank?

The easiest way to secure an IDBI interest certificate on an education loan is by visiting the IDBI bank branch. Connect with the bank representative and tell them you want an interest certificate on your education loan. Provide them with the education loan number (which can be found on the loan sanction letter). You will be handed the same within a few minutes.

However, if you’d like to avoid going to the bank and are finding the answer to – How can I download my IDBI interest certificate on education loan, then here are the steps. Follow them for hassle-free ways to obtain an education loan interest certificate online-

  • Log in to the IDBI Bank’s online portal/ net banking/ mobile banking using your credentials.
  • Navigate to the section dedicated to ‘Loan’ details.
  • Look for the ‘Statements’ or ‘Documents’ section.
  • Select on ‘Interest Certificate’.
  • Click on ‘Download’ or ‘Generate’.
  • Verify whether the details mentioned like the loan amount, interest rate, repayment period, and others are accurate.
  • Download the IDBI interest certificate and save it digitally or print a hard copy as per your need.

Also Read: Know all about the full form of NPA and check out what happens with NPAs when the borrowers of education loans stop making payments.

Benefits of Interest Certificate

An interest certificate is an invaluable document that students and families in planning their finances effectively. Besides, it acts as a tracker of loan repayment. The best use of it comes while availing tax benefits. Let’s have a look at the uses and benefits of an interest certificate on education loan-

  • An interest certificate provides the amount of interest paid and accrued on an education loan. This information helps students to manage their finances more effectively.
  • Interest paid can be claimed for tax rebates on education loans under Section 80E of the Income Tax Act. The amount of interest paid during the financial year as per the interest certificate will be deducted from the total taxable income.
  • Borrowers can track their loan repayment progress accurately. It helps in understanding the amount of education loan that has been repaid and how much interest is outstanding.
  • The interest certificate acts as an essential document for various purposes like applying for top-up education loans for specialised programs and other financial transactions where proof of loan repayment is required.

This was all about the IDBI interest certificate. Make sure to know about the details of it and how it is beneficial in availing tax benefits every year.

FAQs on IDBI Interest Certificate

What is an IDBI interest certificate?

An interest certificate from IDBI Bank is a document that contains the debit and credit details of IDBI accounts. An education or home loan interest certificate issued by the bank shows the amount of interest paid by the borrower on the education loan availed. A savings or FD account interest certificate shows the amount of interest gained by the customer.

Can I get an IDBI interest certificate online?

Absolutely. You can get an IDBI interest certificate online. To download it you need to log in to the IDBI Bank’s online portal/ net banking/ mobile banking using your credentials.

How can I download my IDBI interest certificate on my education loan?

You can download the IDBI interest certificate by logging in using your credentials. Navigate to the ‘Loans’ section and look for ‘Statements’ or ‘Documents’. You will find an option to generate an interest certificate. Click on ‘Download’ to obtain the IDBI interest certificate.

Why is the IDBI Interest Certificate on Education Loan Important?

An interest certificate is an invaluable document that students and families in planning their finances effectively. Besides, it acts as a tracker of loan repayment. The best use of it comes while availing tax benefits.

How can I avail of tax benefits using an interest certificate?

As per section 80E of the Income Tax Act, the interest paid on education loans can be claimed for deduction. So, a student who has availed of an education loan can avail of tax benefits by submitting the interest certificate during the ITR filing. The amount of interest paid during the financial year as per the interest certificate will be deducted from the total taxable income.

To know more about education loans, 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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About Shubhika Garg

Hey there! I'm Shubhika- a proud graduate in English Literature and Language from Delhi University. My journey as a content writer transitioned from online teacher into the world of words. Stepping into the domain of blogs and articles, I discovered my passion for writing growing deeper and stronger. Having said that, I have experience of writing for diverse industries in automobile, technology, ed-tech, finance and mental-health; crafting details to help you find the solution to what you are looking for. Join me as I invite you all explore and learn together.

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