Know Feature and Benefits of ICICI Bank Education Loan

    Updated on: 24 May 2022


    An education loan is the silver lining in the dark cloud for every student who wishes to pursue higher education but has to shelf his/her dreams for lack of funds. It is common knowledge that the cost of higher education, both in India and abroad, is on the rise and meeting this is not every student's cup of tea. It is at this stage then that education loans come in picture. Most leading banks today provide education loans to deserving students and ICICI Bank is one of them. In this blog, we take a closer look at the ICICI education loans offered by ICICI bank and discuss the key features and benefits of ICICI education loan. Let us get started without any delay then.

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    What are the different types of education loans offered by ICICI bank?

    ICICI bank offers education loans for studying in India as well as abroad. Based on the course the student is pursuing and its location, ICICI bank offers both secured as well as unsecured loans. An education loan from ICICI covers most of the expenses related to studying, such as student exchange travel, study equipment like laptops, etc. Some more details regarding the kind of education loans offered by ICICI bank are as follows:

    • ICICI Bank Education Loan for Studying in India
      1. ICICI bank offers education loans for Undergraduate degree, Postgraduate degree as well as Postgraduate diploma in India. The bank mandates that the institute where the program is being pursued should be recognized by UGC or AICTE or Government or AIBMS or ICMR etc.
      2. The maximum loan amount for studying in India is 50 lakh.
      3. An education loan from ICICI bank for studying in India covers the expenses that are payable at the college as well as the hostel. It also covers examination fee, library fee, laboratory fee; insurance premium for the borrowing student; the cost of books, uniforms, equipment, instruments; caution deposit, refundable deposit, and building fund. It should be remembered that caution deposit, building fund, and refundable deposit should be supported by receipts from the institution. The loan also covers the cost of a computer (if needed for completion of the course) at a reasonable cost along with other expenses (like project work, study tour, and thesis) that are mandatory to complete the course.
      4. ICICI bank offers both secured as well as unsecured loans for studying in India. Students can avail collateral free loans (for select institutes) of up to INR 20 lakh for undergraduate courses and up to INR 40 lakh for postgraduate courses.
    • ICICI Bank Education Loan for Abroad Study
      1. ICICI bank offers education loans for job oriented Undergraduate and Postgraduate degree as well as a diploma in a foreign country. The bank mandates that the institute where the program is being pursued should be a reputed college or university.
      2. The maximum loan amount for studying abroad is INR 1 crore.
      3. An education loan from ICICI bank for studying abroad covers the tuition fee as well as the hostel charges. The loan also covers other expenses associated with the program such as examination fee, library fee, laboratory fee; the cost of books, uniforms, equipment, and instruments. Any insurance premium for the borrowing student is also covered under this loan as caution deposit, refundable deposit, and infrastructure fund. Applicants should note that caution deposit, building fund, and refundable deposit will only be covered if they are supported by receipts from the institution. Other expenses such as the cost of a computer at a reasonable price along with other expense like project work, study tour, and the thesis that are mandatory to complete the course will also be covered under this loan.
      4. ICICI bank offers both secured as well as unsecured loans for studying abroad. Students can avail collateral free loans (for select institutes) of up to INR 20 lakh for undergraduate courses and up to INR 40 lakh for postgraduate courses.

     

    Check Your Education Loan Eligibility Apply Here

    What are the features of an ICICI bank education loan?

    1. Education loan amount limit by ICICI bank

    The quantum of finances sanctioned by the bank are capped at INR 50 lakhs for studying in India and INR 1 crore for studying abroad. A student with an exceptionally good profile can apply for a bigger limit. This is, however, decided on a case-to-case basis.

    2. Margin money on education loan by ICICI bank

    There is no margin money for education loans up to INR 20 lakh for ICICI bank education loan. For education loans above INR 20 lakhs, the bank mandates 15% as margin money. Students should remember that any scholarship received by them during the course of their money can be considered as margin money by the bank.

    3. Eligibility criteria for getting an education loan from ICICI bank

    The eligibility criteria for sanctioning the loan is based on the bank’s policies at the time of the loan application. However, some common eligibility criteria that students should meet while applying for the education loan are as follows:

    • Personal Details - Students applying for an education loan at ICICI bank should be an Indian citizen and must have completed their 12th standard. They should also have secured confirmed admission to a recognized institute in a degree or diploma program.
    • Co-applicant’s Details - Parents, sister, brother, spouse, grandparents, and parents-in-law can be the student’s co-applicant. The bank requires that the co-applicant should have a regular source of income and would need proper documents to support the claim of income. The bank makes an exception for applicants to postgraduate courses. Those applicants who have more than 3 years of experience are eligible to apply for a loan even without a co-applicant.
    • Target Program - As mentioned above, ICICI bank sanctions education loans for job oriented Undergraduate and Postgraduate degree as well as a diploma in India and abroad.
    • Accepted Collateral - The bank accepts both residential as well as commercial property as collateral. It also accepts agricultural plots and fixed deposits as collateral.

    4. ICICI bank education loan interest rate

    The rate of interest for education loan by ICICI bank is linked to their benchmark rate. It currently starts at 11.5% per annum for studying in India as well as abroad. During the moratorium period, the bank calculates a simple interest on the loan amount.

    5. Documents required

    ICICI Bank requires a number of documents that have to be submitted along with the loan application. GyanDhan provides a customized checklist of the document needed to our students so that our students do not face any problems later. Listed below are the documents without which getting an education loan from ICICI Bank would not be possible.

    • The student applicant must submit KYC (Know Your Customer); their marksheets of 10th, 12th, graduation and entrance exam; admission letter from the Institute; and fee structure.
    • The co-applicant must submit their KYC and income proof (only for some specific courses).
    • In case collateral is required, the bank may ask for additional documents.

    6. Loan tenure

    • The loan tenure for students who have taken a non-collateral loan for undergraduate study is the moratorium period + 5 years. For students pursuing an undergraduate course with a secured loan, the loan tenure is the moratorium period + 8 years.
    • For students pursuing a postgraduate course with an unsecured loan, the loan tenure is the moratorium period + 7 years and for students who have taken a secured loan, the loan tenure is moratorium period + 10 years.
    • The bank gives a repayment holiday of 6 months after the course completion.

    7. Additional loan charges when taking an education loan from ICICI bank

    • Processing Fee - ICICI bank usually charges 1% of the loan amount + GST as the processing fee on the education loan that it sanctions. This is negotiable.
    • Prepayment Charges - There are no pre-payment charges for education loan by ICICI bank.

     

    Check Your Education Loan Eligibility Apply Here

    What are the benefits of an education from the ICICI bank?

    1. Loan coverage

    The education loans provided by the bank finances all the possible expenses of an overseas education. The bank may also approve the loan beyond the loan amount limit in exceptional cases.

    2. Wider coverage and greater pool of courses and colleges

    Students often face rejection because their target college is not on the lender’s list of eligible courses and colleges. This conundrum is solved with the ICICI Education loan. The bank has a longer list of courses and colleges they support. In the case of unsecured loans, students do not have to worry about the eligibility of their target course/college.

    3. Tax benefits

    Students taking an education loan from ICICI bank are eligible for tax benefits under section 80E of the Income Tax Act, 1961 on the interest paid.

    4. Easy loan disbursal

    Once the applicant has submitted all the required documents, the bank takes 7 working days to sanction the loan.

    5. Government schemes and subsidies

    ICICI Bank is a scheduled bank. This means that all government schemes aimed at helping students (such as CSIS, Padho Pardesh, Ambedkar Scheme, etc.) are available when taking an education loan from this bank.

    Other features and benefits of ICICI education loan

    The bank offers pre-visa disbursal for education loan to students applying for overseas education. It also offers preferential forex rates for international loan disbursements.

    The bank offers pre-visa disbursal for education loan to students applying for overseas education. It also offers preferential forex rates for international loan disbursements. Additionally, the bank accepts non-financial co-applicants if the student has 3+ years of experience and is going for a postgraduate course. Students can repay the loan early without the tension of prepayment penalty.

    How can GyanDhan help you apply for the ICICI bank education loan?

    Now that our readers know everything about ICICI education loan, the next question is - “how to apply for it”? Well, students can certainly apply directly to the bank but the process is lengthy and requires multiple visits to the bank. It is at this stage that GyanDhan helps its students. We help our students at every step of their loan application - from providing them a customized checklist of required documents to home pick up of documents, low turnaround time and higher chances of approval and that too for free! No more multiple visits to the bank or following up bank officials to know the status of your loan application. GyanDhan will take care of everything and will help get your education loan approved in just 7 days. What are you waiting for then? Just apply online here.

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