All About IDFC FIRST Bank EMI Payment for Education Loans

IDFC FIRST Bank EMI Payment for Education Loan

IDFC FIRST Bank offers a range of education loans to help students finance their higher education for in India and abroad. For students wishing to study abroad, IDFC FIRST Bank offers loans with collateral and without collateral too. The following points highlight the benefits of getting an education loan from IDFC FIRST Bank:

• Flexible Payment Options: IDFC FIRST Bank offers flexible repayment terms, allowing borrowers to choose a tenure that suits their financial situation. 
• Competitive Interest Rates: The bank provides competitive interest rates, often with options for fixed or floating rates. 
• Quick and Easy Processing: The loan application process is streamlined and efficient, with minimal paperwork and quick approval times, especially for pre-approved loans.
• Tax Benefits: Borrowers can avail tax benefits on the interest paid on education loans under Section 80E of the Income Tax Act, which can help reduce the overall cost of the loan.

Read More – TCS on Outward Remittance Under LRS

How to Make IDFC FIRST Bank EMI Payments for Education Loans?

There are multiple methods to make IDFC FIRST Bank EMI payments for education loans including online mode, offline mode, or payment through navopay retailer. Understand more about these methods in detail below:

Online Payment

There are several online payment methods for your education loan EMIs:

• Net Banking: Log in to your IDFC FIRST Bank net banking account. Navigate to the “Loan Payments” section and select the education loan you wish to pay. Enter the EMI amount and confirm the payment. You can also set up auto debit.
• Mobile Banking App: Open the IDFC FIRST Bank mobile app. Go to the “Loan Payments” section under the “Payments” tab. Choose your education loan account, enter the EMI amount, and complete the payment. Choose auto debit, if convenient.
• NEFT/RTGS: Use NEFT or RTGS services through your bank’s online platform. Enter IDFC FIRST Bank’s loan account number, IFSC code, and the EMI amount to make the payment.

Offline Payment

For those who prefer offline methods, IDFC FIRST Bank offers the following options:

• Branch Visit: Visit any IDFC FIRST Bank branch and provide your loan account number and EMI amount at the counter. The bank staff will process the payment for you.
• Cheque Payment: You can issue a cheque for the EMI amount in favor of IDFC FIRST Bank. Drop the cheque in the designated drop box at any IDFC FIRST Bank branch or hand it over to the bank staff.
• Demand Draft: Obtain a demand draft for the EMI amount and submit it at any IDFC FIRST Bank branch. Make sure the draft is made out to IDFC FIRST Bank and includes your loan account number.

Also Read – EMI Full Form

Payment with Navopay Retailer

Navopay offers a convenient way to make EMI payments through its network of retail locations:

• Visit a Navopay Retailer: Locate a Navopay retailer near you. Provide them with your IDFC FIRST Bank loan account number and the EMI amount you wish to pay.
• Payment Processing: The retailer will process your payment and provide you with a receipt. Make sure to keep the receipt as proof of payment.
• Verification: After making the payment, verify with IDFC FIRST Bank that the EMI has been credited to your loan account to ensure there are no discrepancies.

Modes of IDFC FIRST Bank Education Loan Repayment

IDFC FIRST Bank offers 3 different modes of education loan repayment including- Equated Monthly Installments (EMIs), paying simple interest during the study course, and repayment after the moratorium period. Let’s understand each of these in detail.

Equated Monthly Installments (EMIs)

• This is the most common repayment mode. Under this option, the borrower repays the loan in fixed monthly installments, which include both principal and interest components.
• The EMI amount remains constant throughout the tenure of the loan, making it easier to budget and plan finances. 
• EMIs start after the moratorium period or immediately, depending on the loan terms.

For instance: You take an IDFC FIRST Bank Education Loan to study abroad of INR 40 Lakhs at 10.25% per annum for 15 years and your course duration is 2 years. If you choose the EMI mode of repayment, your monthly installment will be INR 43,598 per month.

SI- Pay Only Simple Interest While You Study

• With this mode, borrowers pay only the interest on the loan during the study period.
• This helps in reducing the financial burden while the student is still pursuing education and does not have a steady income.
• The principal amount is repaid through EMIs once the study period is over or after a designated moratorium period.

For instance: Considering the above-mentioned example, if you choose the SI payment method, you will be required to pay INR 48,383 monthly.

Repayment after Moratorium Period

• A moratorium period is the time during which borrowers are not required to make any loan repayments.
• After the completion of the moratorium period, borrowers begin repaying the loan in EMIs, which include both principal and interest.
• The length of the moratorium period can vary depending on the loan terms and the borrower’s needs.
• This option allows students to complete their studies and secure employment before starting to repay the loan.

For instance: Keeping the example same as mentioned above, if you choose to repay after the moratorium period, you will be required to pay INR 65,715 monthly.

Read More – Transfer Money From India to the USA

Interest Rates and Processing Fees

IDFC FIRST Bank offers both secured and unsecured loans depending on the eligibility criteria. The table below highlights the interest rates and processing charges for education loans.

Processing Fees	Up to 1.5%* of the Loan Amount + GSTOr as per any special scheme run by the bank
Interest Rates (per annum)	Ranges from 9.5 to 15%

IDFC FIRST Bank Education Loan For Indian Students

IDFC FIRST Bank also offers education loans for higher education in India. Read the following table to know more details.

Maximum Loan Amount	INR 30 Lakhs
Interest Rates	1. Collateralized: 8.5% 2. Non-Collateralised: 10-12%
Expenses Covered	1. College-related expenses 2. Travel expenses 3. Purchase of computer/laptop 4. Insurance costs
Co-applicant	Co-applicant is required to avail of education loans
Eligibility	1- An Indian National (Including NRI) 2- 18 years old or above at the time of loan commencement 3- Admitted to the desired institution after completion of the pre-requisite qualifications

IDFC FIRST Bank Education Loan Margin

The loan margin in an education loan refers to the portion of the total expenses that the borrower needs to cover themselves.

Simply put, it’s the difference between the total cost of education (including tuition, fees, living expenses, etc.) and the amount of the loan provided by the lender.

For example, if the total cost of education is INR 50 Lakhs and the lender offers a loan of INR 47.5 Lakhs, then the margin is INR 2.5 Lakhs. This means the borrower would need to arrange for the remaining INR 2.5 Lakhs from other sources, such as personal savings, scholarships, or grants. The margin helps ensure that the borrower has some financial stake in their education and that the lender is not covering the entire cost.

IDFC FIRST Bank incorporates a loan margin ranging from 0% to 5% in education loans.

IDFC FIRST Bank Loan Eligibility Criteria

IDFC FIRST Bank has very simple criteria to broaden the accessibility of education loans:

• The applicant must be a resident of India (Including NRI) 
• The applicant must be 18 years old or above at the time of loan commencement.
• The applicant must be admitted to the desired institution after completion of the pre-requisite qualifications.
• If the admission is not secured, the sanction could be subjective based on the type of course, country or the institute student has applied for.

IDFC FIRST Bank Education Loan Application Process

Below is the step-by-step guide for applying for an IDFC education loan, covering both offline and online processes:

Offline Process:

• Step 1 – Gather documents including admission letter, Proof of identity, address proof, academic records, etc.
• Step 2 – Visit the IDFC FIRST Bank Branch and fill out the application form.
• Step 3 – Submit the completed form along with all required documents.
• Step 4 – The bank will review your application and documents. They may ask for additional information or clarification.
• Step 5 – Once approved, you will receive a sanction letter detailing the loan amount, terms, and conditions.

Online Process:

• Step 1 – Visit IDFC Bank’s Official Website and go to the education loan section.
• Step 2 – Fill Out the Online Application Form and provide personal details, educational details, and financial information.
• Step 3 – Upload scanned copies of required documents (ID, proof of residence, academic records, etc.).
• Step 4 – Review and submit the application form.
• Step 5 – The bank will review your application and documents online and If approved, you will receive a sanction letter electronically.

IDFC FIRST Bank Education Loan Documents Required

For IDFC FIRST Bank education loans, you will typically need the following document:

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
• Fully filled application form

Co-applicant:

• Photo ID proof
• Proof of residence
• Passport sized photograph
• Income-related documents
• Fully filled application form

Collateral documents:

• Property documents
• FD documents

Conclusion

Managing EMI payments for your education loan from IDFC FIRST Bank is a crucial aspect of your financial planning. By understanding the repayment terms, utilizing various payment methods, and employing effective financial management strategies, you can ensure smooth repayment of your loan. Regular payments, budgeting, and financial discipline will not only help you stay on track but also contribute positively to your credit profile. 

FAQ of IDFC First Bank EMI Payment