Financing higher education abroad remains a major challenge for Indian students and their families. More than 7.6 Lakhs Indian students moved overseas for higher studies in 2024, and a significant share relied on education loans. Among these, unsecured loans are increasingly in demand as students often cannot pledge collateral.
IDFC FIRST Bank addresses this gap by offering unsecured loans of up to ₹75 lakh and secured loans up to ₹1 crore. The loan sanction depends on university ranking, entrance exam scores (GRE, GMAT, SAT), and the applicant’s profile. This blog covers IDFC FIRST Bank education loan abroad features, eligibility, repayment options, interest rates, and approved universities to help you decide.
Are you parent of a JEE/NEET aspirant?
Need guidance on funding your MBA College Fees?
Why Choose IDFC FIRST Bank Education Loan Abroad?
Many banks and NBFCs offer education loans, but IDFC FIRST Bank has become a preferred option due to its student-centric lending model.
1. Higher unsecured loan amounts
Few lenders provide unsecured loans of ₹75 lakh, making IDFC FIRST Bank one of the most attractive choices for students admitted to top-ranked institutions.
2. Faster disbursals
Loans are typically processed within 7–20 days, ensuring students do not face delays in fee payments or visa filing.
3. Academic merit-based approval
GRE, GMAT, and SAT scores play a significant role, rewarding students with strong academic credentials.
4. Global university coverage
Loans are sanctioned for institutions in the USA, UK, Canada, Australia, Germany, France, Singapore, New Zealand, and many more.
5. Flexible repayment
Repayment terms extend up to 12 years, helping students manage EMIs once they begin earning abroad.
7. No prepayment penalty
Borrowers can reduce their financial burden by closing the loan early without extra charges.
8. Tax savings
Interest repayment qualifies for Section 80E deduction, reducing overall costs for the borrower or co-applicant.
For students aiming for premier universities but lacking collateral, this scheme is particularly valuable.
Want to understand the basics first? Check this complete guide on IDFC education loan for detailed insights on eligibility, features, and benefits.
Get Education Loan 10X Faster than Banks
Key Features of IDFC FIRST Bank Abroad Education Loan
This structure ensures comprehensive financial support that goes beyond just tuition, covering nearly all aspects of overseas education.
Wondering if your dream college qualifies? Explore the full IDFC education loan college list to check approved universities and categories.
IDFC FIRST Bank Loan Categories for Abroad Education
The IDFC abroad education loan categorizes students based on the ranking and reputation of their target university. These categories directly affect the maximum loan amount and repayment conditions.
This tiered structure allows IDFC FIRST Bank to provide tailored support while rewarding students admitted to high-ranked universities.
Confused between IDFC and other lenders? Here’s a detailed comparison of IDFC FIRST Bank vs ICICI Bank education loans to help you make an informed choice.
Minimal Docs, Maximum Approval - Apply Now.
IDFC FIRST Bank Education Loan Abroad Eligibility
Applicants need to meet specific criteria to secure approval:
- Nationality: Must be an Indian citizen. NRI students are also considered.
- Admission: Should have secured an admission offer from a recognized international institution.
- Academic Performance: A Strong academic record is preferred for unsecured loans.
- Age Limit: Generally between 18 and 35 years.
- Co-applicant: A parent, spouse, or close relative with a stable income is mandatory.
- Credit Score: Co-applicant’s credit score of 700 or higher improves approval chances.
- Minimum Balance: Applicant should maintain ₹25,000 in a savings account for 6 months with a consistent transaction record.
- Income Tax & Business Proofs: For Platinum and Titanium categories, income tax returns may not be needed, but proof of business registration is required.
ICICI vs IDFC Abroad Education Loan? Here’s What Reddit Users Discuss
Reddit User in r/personalfinanceindia shared:
“I'm planning to take an education loan and have narrowed it down to ICICI Bank and IDFC First Bank as my top options. Here’s what they’re offering:
- ICICI Bank: 11.25% ROI, no insurance, ₹35K processing fee.
- IDFC First Bank: 11% ROI, but comes with a hefty ₹2.5L insurance and ₹65K processing fee.
I’ve heard that IDFC requires maintaining an NRI account with ₹25K MAB, has high forex charges, delays in disbursal, and sometimes hidden fees. On the other hand, I haven’t seen as many negatives about ICICI.
If you’ve taken an education loan from either of these banks, I’d love to hear your experiences.”
Insight:
While IDFC FIRST Bank offers a lower ROI (11% vs 11.25%), the hidden costs, such as mandatory insurance, account maintenance, and forex fees, can increase the effective borrowing cost. ICICI Bank, despite a slightly higher ROI, may provide a more transparent structure with fewer add-ons.
What Do We Infer?
- ROI alone shouldn’t drive the decision; effective APR (interest + fees) matters more.
- IDFC is better for students seeking higher unsecured limits (up to ₹75 lakh), but borrowers must budget for add-on costs.
- ICICI may be a simpler, predictable option if the loan requirement is smaller and transparency is a priority.
Tip:
Before finalizing a lender, always compare:
- Effective APR vs just ROI
- Net disbursed amount after fees and insurance
- Ongoing charges like forex markups and account maintenance
How to Apply for IDFC FIRST Bank Education Loan Abroad?
Applying for this loan involves a simple but structured process:
- Loan Application: Available online via the bank’s website or at branches.
- Document Submission: Includes admission letter, academic transcripts, KYC documents, and the co-applicant’s income proof.
- Processing Fee Payment: Mandatory to initiate evaluation.
- Evaluation: Bank assesses the student’s academic profile and the co-applicant’s financial stability.
- Loan Sanction Letter: Issued upon approval.
- Agreement Signing: Terms of the loan, interest, and repayment finalized.
- Disbursal: Funds are released directly to the university in tranches or as required.
For faster approvals, students can also apply through platforms like Propelld, which simplify documentation and follow-up.
IDFC FIRST Bank List of Approved Foreign Universities for Education Loan
IDFC education loan college list includes an extensive list of over 4000 approved universities.
- United States: Universities across the Ivy League, public, and top-ranked private institutions.
- United Kingdom: Russell Group universities and other globally ranked colleges.
- Canada: Leading public universities and select colleges.
- Australia & New Zealand: Group of Eight and top-ranked public universities.
- Germany, France, Singapore, Ireland: Comprehensive coverage across technology, management, and STEM fields.
Loan category (Platinum, Titanium, etc.) varies depending on the specific university and the applicant’s standardized test scores.
IDFC FIRST Bank Education Loan Abroad Interest Rate & Repayment Terms
- Interest Rate: Starts at 11% and increases based on loan category and applicant risk profile.
- Repayment Period: Up to 12 years, ensuring EMI affordability after graduation.
- Moratorium: Course period plus 6–12 months of grace.
- Prepayment: Allowed anytime without penalty.
- Tax Benefits: Under Section 80E, interest repaid is tax-deductible for up to 8 years.
For example, a student borrowing ₹40 lakh at 11.5% interest over a 10-year period would pay EMIs of approximately ₹55,000 post moratorium.
Still exploring options? Compare Credila vs IDFC FIRST Bank education loan to see which lender suits your needs best.
IDFC FIRST Bank’s study abroad loan is a strong option for students seeking high-value unsecured loans without collateral. With generous funding limits, global coverage, and flexible repayment, the bank offers one of the most student-friendly loan products in India.
Students admitted to top-ranked foreign universities can secure larger loan amounts with minimal processing hurdles, making IDFC FIRST Bank a practical choice for those pursuing international education.
Looking for faster processing and guided support? Propelld can help you get your IDFC FIRST Bank education loan abroad sanctioned 10X faster with minimal documentation. Apply with Propelld today and focus on your dream university while we handle the paperwork.
.svg)
