There are a lot of abroad education loan lenders in India. Every lender has built their significance in the market over the years. Among which IDFC First Bank and Bandhan Bank offer competitive loan rates. Comparing the loan terms can help you select which bank fits you best. This blog compares Bandhan Bank Vs. IDFC First Bank abroad education loan key features, eligibility, and interest rates. Stay tuned!
Difference Between Bandhan Bank & IDFC First Bank Education Loan Features
IDFC First Bank offers abroad education loans for studying in the USA, Germany, UK, Canada, Australia, and Ireland supporting over 18000 courses across 32000+ universities in 25 countries! On the other hand Bandhan Bank has introduced the Sushiksha loan for higher education in India and overseas.
Let’s compare their education loan interest rates, margin money, loan limits, etc. in the table given below:
| Key Features | IDFC Bank Education Loan | Bandhan Bank Education Loan |
| Loan Upper Limit | INR 1.5 Cr. | INR 25 Lakhs |
| Interest Rates | 9.5-12.75% | 10.25% |
| Processing Fees | 0.5%-1% | 1% |
| Margin Money | 15% | 10% |
| Collateral | Property, Investments, Bonds, Gold, etc. | Property, Investments, Bonds, Gold, etc. |
| Moratorium Period | Course Duration + 1 Year | Course Duration + 1 Year |
| Repayment Period | 12 years | 5 years |
| Co-applicant | Parents | Parents |
Eligibility Criteria For Bandhan Bank Vs. IDFC First Bank Abroad Education Loan
Bandhan Bank and IDFC Bank education loan have a set eligibility criteria that you must know. Understanding the loan terms and conditions will help for a smoother loan application process. Go through the list given below:
- You must be an Indian citizen above 18 years of age.
- You should have secured an admission in a premium or accredited college abroad, through an entrance exam like GRE, TOEFL, IELTS, etc.
- You must have a co-applicant with a stable income source.
Documents Required
Documents required for Bandhan Bank Vs. IDFC First Bank education loan can differ on a case-by-case basis as their loan terms differ in terms of education loan margin money, repayment etc. However, the following documents are mandatory for the initial application process.
| Document | Description |
| Completed Loan Application Form | Provided by the lender, includes personal and academic details |
| Proof of Admission/Enrollment | Admission letter or current enrollment proof from the institution |
| Academic Records | Transcripts, mark sheets, degree certificates (if applicable) |
| Identity Proof | Passport, Aadhaar card, PAN card, Voter ID, etc. |
| Residence Proof | Utility bills, rental agreement, etc. |
| Income Proof (for co-applicant/guarantor) | Salary slips, Income Tax Returns, Bank Statements |
| Fee Structure | Detailed breakdown of fees and expenses from the institution |
Application Process For Bandhan Bank & IDFC First Bank Education Loan Through UniCreds
All the top banks in India offer competitive loan terms. However, it can be confusing at times. UniCreds has partnered with the top financial institutions including IDFC First Bank, to get you the best deal on your study loans. We compare loan terms for you, offer you customised loan plans, and even negotiate with the lenders for lower processing fees. Follow the steps below for a better loan journey:
Step 1: Fill up your contact details in the form on the UniCreds Website.
Step 2: Our loan experts will get in touch with you to understand your loan requirements, eligibility, country you are planning to study, collateral type you are ready to pledge etc.
Step 3: After deeply scrutinising your loan requirement, we will get back to you with a customised loan plan from the top lenders.
Step 4: Once you finalise your lender, we will send across the customised list of documents.
Step 5: You just have to submit the application form given by the bank and the list of documents.
That’s it! You just have to wait worry-free for your loan to get approved within days!
Repayment Plan
Repayment of education loan for Bandhan Bank and IDFC Bank differ. Go through the points below to understand them:
Repayment Period: Bandhan Bank offers a repayment period of 5 years. Whereas, IDFC First Bank offers a repayment period of 12 years.
Moratorium Period: Both the banks offer an education loan moratorium period of course duration + 12 years.
Prepayment Penalty: There are no prepayment penalties on both the bank’s education loans.
Bandhan Bank Or IDFC First Bank Which Is Better
IDFC Bank Education Loan may be better suited for pursuing higher education abroad with higher tuition fees due to its higher loan limit and longer repayment period, while Bandhan Bank Education Loan could be a more suitable option for domestic or more affordable international education programs with its fixed interest rate and processing fee.
Ultimately, the choice between the two would depend on individual requirements, budget, and repayment preferences. It’s advisable to carefully evaluate all terms and conditions before deciding on an education loan.
FAQs
Q1. Which bank is better, Bandhan Bank or IDFC First Bank?
IDFC First Bank appears to be a better option for education loans due to its higher loan limit, lower interest rates, and longer repayment period.
Q2. Which bank offers better interest rates for education loans?
IDFC First Bank offers better interest rates for education loans, ranging from 9.5% to 12.75%, compared to Bandhan Bank’s fixed rate of 10.25%.
Q3. Can you compare the processing fees for education loans at IDFC First bank and Bandhan Bank?
IDFC First Bank charges processing fees between 0.5% to 1%, while Bandhan Bank has a fixed processing fee of 1%.
Q4. What is the maximum loan amount offered by IDFC First Bank and Bandhan Bank for education purposes?
The maximum loan amount offered by IDFC First Bank is INR 1.5 crores, and Bandhan Bank offers up to INR 25 lakhs for education loans.
Q5. Are there any specific eligibility criteria that differ between IDFC First Bank and Bandhan Bank education loans?
The eligibility criteria for both banks are similar, with the requirement of being an Indian citizen above 18 years, securing admission through an entrance exam, and having a co-applicant with a stable income source.
Q6. How do the repayment terms vary between IDFC First Bank and Bandhan Bank education loans?
IDFC First Bank offers a repayment period of up to 12 years, while Bandhan Bank’s repayment period is 5 years for education loans.
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