IDBI Education Loan Disbursement process

Applicants applying for an abroad education often live in the misconception that the approval of the education loan is the last step of securing the education loan. Well, that is not the ground reality. In fact the last phase of your study abroad loan journey involves the disbursement of the education loan. During the disbursement process, the lender actually transfers funds in the borrower's or university’s account. Keep reading the blog to understand the disbursement process of IDBI Bank along with the required documents for an education loan disbursement.

IDBI Bank Abroad Education Loan 

IDBI Bank Disbursement Process

The process of disbursement of an education loan for studying abroad through IDBI Bank involves the following key steps.

1. 
   Sanction letter - IDBI Bank initiates the education loan process and approves the loan. Once the bank has verified all the details the bank approves the loan and issues a sanction letter to eligible applicants.
    
2. 
   Branch visit and documentation - Applicants and co-applicants have to visit the bank. The bank then provides a loan agreement that states the disbursement amount and the exact date of disbursement along with the preferred mode of payment.
    
3. 
   Tuition fee and living expenses payment - Applicants submit an education loan disbursement letter to the bank. The letter specifies the preferred method of paying tuition fees. Applicants communicate preferred payment methods for living expenses, especially for countries like Germany or Canada. Details are included in the education loan disbursement letter that is submitted after signing the loan agreement.
    
4. 
   Tuition fee disbursement - The IDBI Bank disburses the tuition fee portion of the education loan directly to the university through specified third-party payment services. Tuition fee disbursements occur based on student requests and align with the university's preferred intervals (yearly or semester-wise).
    
5. 
   FOREX card - The Bank further transfers living expenses to a FOREX card which is valid for a three-month period. applicants open a savings account in their country of study. Education loan disbursement follows the directions in the letter, continuing throughout the higher education course.

Documents required for IDBI Bank disbursement process 

To start the disbursement process with the IDBI Bank applicants have to submit the documents mentioned below.

1. 
   A demand letter from a university or college
2. 
   A self-attested final loan agreement
3. 
   Disbursement request form signed by the applicant and co-applicant
4. 
   Receipt of margin money paid to the college/university along with the bank statement reflecting the transaction
5. 
   Exam progress report, marksheet, bonafide certificate, etc
6. 
   Form A2 signed by the applicant or co-applicant 
7. 
   Submit the original KYC documents for the student, co-applicant, and guarantor (if applicable).
8. 
   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.
9. 
   Alternatively, the co-applicant can fill out a NACH form, providing account details for monthly interest payments deduction.
10. 
    As a security measure, the co-applicant must provide 9-12 post-dated cheques to cover potential lapses in interest payment for a specific month.

Find the complete list of documents required to apply for abroad education loan

How to apply for an education loan at IDBI Bank?

IDBI Bank is a leading private bank with attractive education loan schemes for higher education of Indians. To apply for an abroad education loan at IDBI Bank, applicants have the option of applying either online or offline based on their preference. IDBI is amongst GyanDhan’s esteemed partners hence, study abroad applicants can easily apply for an education loan at IDBI with GyanDhan in five simple steps.

Step 1: Check your loan eligibility.

Step 2: An expert education loan counselor will evaluate your profile.

Step 3: Team GyanDhan will provide you with a customized document checklist.

Step 4: Once the documents are uploaded, GyanDhan will proceed with the rest of the formalities.

Step 5: The bank will disburse the amount as per schedule.

For a hassle-free disbursement process, applicants need to get expert guidance that fits their education loan needs. With GyanDhan by your side, applicants can secure education loans easily. It is the go-to solution for students planning to study abroad. We help at every step of the education loan journey, from choosing the right option to getting the funds. Our team not only links students with different loan choices but also offers personalized financial advice and manages all services related to overseas education loans without any charges. If there are any challenges, our experts collaborate directly with banks to speed up the process efficiently.

Also go through:

• 
  SBI education loan disbursement process
• 
  BOB education loan disbursement process
• 
  HDFC Credila disbursement process

Frequently Asked Questions