Know the Features and Benefits of ICICI Bank Education Loan

• 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.

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.