Studying abroad is a major investment, and many Indian students turn to education loans to bridge the gap. The scheme from IDBI Bank (IDBI) specifically for overseas education is one of the stronger options available today. With loan amounts of up to ₹75 lakhs, floating interest rates tied to the RLLR, and a repayment tenure of up to 15 years, it can support ambitious students heading to top universities abroad.
In this guide, you will find everything you need, from eligibility criteria to costs covered and repayment options. By the end, you'll have a clear view of how an IDBI bank abroad education loan works and whether it's right for you.
Overview of IDBI Bank Abroad Education Loan
First, let's take a quick look at the big picture of what the scheme covers, including how much you can borrow, basic terms, and more.
Here's a summary table for quick reference:
Why does this scheme stand out?
- The loan amount is high compared to many other banks when the student plans to major in an overseas destination.
- Flexible repayment tenure helps reduce the monthly burden after you finish your course.
- The moratorium (course + 1 year) gives you breathing space to start earning before full repayments begin.
- Covering a wide range of costs (tuition, travel, living, equipment) means you aren’t just financing tuition print‑outs.
For students looking for easier loan options, check out Banks That Give Education Loans without Collateral for Abroad to explore alternatives beyond traditional collateral requirements.
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What Are the Expenses Covered Under the Loan?
When taking a study‑abroad education loan with IDBI, it's essential to know what you can finance under the loan - and what might need separate funding.
Here are the typical cost components covered:
Check currency‑variation risk. Living abroad means fluctuation can increase costs, so having a margin or buffer is wise.
IDBI Loan Interest Rates for Study Abroad
According to bank data, for education loans (overseas, non-vocational) above ₹7.5 lakhs for overseas study, interest rates can be ~ 10.10% per annum. For loans to "Premier Institutes" abroad or very top universities, slightly lower rates may apply (for instance, ~9.30–9.65%) according to IDBI's interest schedule.
Female students often enjoy a 0.50% interest rate concession. Existing bank customers, as well as SC/ST/minority/physically challenged applicants, may also be eligible for lower rates or better terms in certain cases.
So here’s how to compare & calculate in the right way:
- Ask the bank for the "effective interest rate", considering all charges.
- Use an EMI calculator (available online or provided by many banks) to estimate the monthly outflow after graduation.
- Plan for interest servicing during the course period, if possible. It can reduce total cost.
To explore more about loan options in India and compare rates, check out our detailed guide on Education Loan Interest Rate in India.
IDBI Bank Education Loan Abroad Eligibility
Before you apply, you must meet IDBI's eligibility criteria. Failing to meet them may lead to rejection or delays. Here's what you (and your co‑applicant) must satisfy:
- Must be an Indian national (including NRIs).
- Must have secured admission (via merit or entrance test) in a recognised institution abroad. The bank must approve the institution and course.
- Courses eligible: Full‑time professional or technical degrees abroad (MBA, MS, MCA, etc), or recognised diploma/degree programmes (including pilot training, shipping, etc), provided competent regulatory bodies approve them.
- The co‑applicant (often parent/guardian) should have a stable income and an adequate credit profile (for bank evaluation of repayment capacity).
- Students' and co-applicants' past academic records, entrance scores, admission letters, etc., will be assessed for employability post-study.
IDBI Bank Study Abroad Education Loan Process
According to the latest figures from the Ministry of External Affairs (MEA), over 1.8 million Indian students are currently pursuing education abroad in 2025. Understanding the IDBI loan application steps for foreign studies is crucial to ensure timely financial support.
Let’s walk through the detailed steps:
Learn more about eligibility, documents, and tips for funding your overseas studies in Education Loans for Studying Abroad in 2025.
IDBI Bank Educational Loan Documents: Complete Checklist
Getting your paperwork complete is key to quick approval. Any missing document can delay disbursement.
Prepare a checklist of all these documents in advance and keep their digital scan all for quick submission.
Education Loan - Min Docs. Max Approval. Min Hassle. Max Tenure.
IDBI Loan Repayment Options & Strategy
Once you finish your course and the moratorium ends, repayment begins. It’s essential to understand your options and plan ahead.
Here's what repayment looks like:
- You will make monthly EMIs covering principal + interest over your chosen tenure (up to 15 years).
- The size of your EMI depends on the loan amount, interest rate (floating), tenure, and the amount of interest that is capitalised during the moratorium.
- If you paid interest during the moratorium, less is added to the principal, so your EMI burden will be lower.
- If you deferred interest, that interest may have been capitalised (added to principal), increasing the total loan amount and possibly the EMI.
IDBI allows prepayment/foreclosure without extra charge (for overseas study loans), which means you can plan to clear sooner and save interest. If you get a job quickly, you can consider paying extra or refinancing the loan if better rates become available.
Here are some practical strategy tips for you:
- Once you get a job after graduation, let the bank know your income has increased so that you might restructure or negotiate better terms.
- Keep an emergency buffer because monthly EMIs abroad can be high (plus currency fluctuations).
- Consider paying the interest during the moratorium if possible. It's a small sacrifice for big long‑term savings.
- Don't stretch the tenure unnecessarily just to reduce EMI: longer tenure means more total interest. Balance EMI affordability with total cost.
- Monitor the floating rate: if RLLR falls significantly, enquire whether your rate will adjust and how to take advantage.
If you're planning to study abroad and need funding, the IDBI Bank Abroad Education Loan is definitely worth considering. It offers high loan limits, internationally relevant cost coverage, a sensible moratorium, and a long repayment window. But as with any major financial decision, you should proceed carefully,
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