ICICI Bank Education Loan

ICICI Bank Education Loans

What Is an Education Loan?

An Education loan is the loan or funds acquired by an individual to pursue higher studies in India or abroad. The loan repayment commences for the student after completing the education and a period of 6 months is given as grace period to students to get or join a job.

The repayment amount will be determined by your choice of interest, you need to decide how you want to repay the loan. That is if you want to start paying during the time of moratorium period itself or after the moratorium period. The Moratorium period is the time of your education plus 6 months or 1 year given to get a job. It is only after this time that you are expected to pay the loan.

The loan interest starts to accrue at the time of dispersal of funds, so at the time of your graduation you have a huge amount to repay. The other option is your parents or guardian can start paying the loan during the moratorium period itself where it is calculated as a simple interest.

This way your loan amount at the time of graduation is drastically reduced.

There are 4 types of education loans in India

1. Under Graduate education loan - These are given to students who have completed their secondary education and looking to do higher studies in the form of under graduation. It can be done in India or abroad.

2. Post graduate education loan - These are education loans given to individuals who want to pursue post-graduation after completing under graduation course from a reputed university/college. Here also the loan can be for studying in India or abroad.

3. Parents availing education loan - This is the case where the parents take loan for the education purposes of their children. This is an unsecured loan and need not be for graduate or post-graduation courses but also for elementary and higher secondary courses.

4. Career growth education loans - These are loans provided to young people who want to pursue courses or trainings, certifications that will benefit their career growth.

About ICICI Bank

ICICI Bank is one of the leading private sector banks in India. ICICI Bank was founded in 1994 and provides a wide range of banking products and financial services. It offers an array of credit products designed to suit the many differing needs of its customers.

An Introduction to ICICI Bank Education Loans

Education is one area where everybody is willing to spend a lot of money to live a prosperous life in the future. Being one of the major education loan providers, ICICI Bank understands the needs of the students and offers extremely competitive education loans at better interest rates. Every year, a large number of students secure admissions in top universities and colleges in India and abroad with ICICI Bank education loans.

Advantages of ICICI Bank Education Loan

Following are some of the advantages of applying for an educational loan with ICICI Bank.

• Low interest rate
• Less paperwork
• No processing fees
• Faster Disbursal
• No prepayment charges
• No pre-closure charges

Key Highlights of ICICI Bank Education Loan

Features of ICICI Bank Education Loan for Studies in India and Abroad

Objective: To provide term loan to Indian students for pursuing higher education in India and foreign universities

Quantum of Loan: Up to 10 Lakhs for studies in India and up to 20 Lakhs for studies overseas

Margin: No margin required for loans up to INR 4 Lakhs, 5% of margin for loans above INR 4 Lakhs for studies in India and 15% of margin for above 4 Lakhs for studies overseas

Repayment Period: The moratorium period is 1 year after completing the course. Repayment starts in 6 months after getting a job.

Security: The parents or the guardian will be the co-applicant or the loan and the primary debtor. Tangible collateral will be accepted as security by the bank with the third-party guarantee. No security required for loans up to 4 Lakhs.

Processing Fees: There are no processing fees for availing ICICI Bank education loan.

Courses Covered

Studies in India:

• Graduation courses – BA, B. Com, B.Sc. etc.
• Post-Graduation courses - Masters & Phd.
• Professional courses – Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer, ICWA, CA, CFA etc. Courses conducted by IIM, IIT, IISc, XLRI, NIFT etc.
• Computer certificate courses of reputed institutes accredited to Dept. of Electronics or Institutes affiliated to University.
• Regular Degree/Diploma courses like Aeronautical, Pilot Training, shipping etc. approved by Director General of Civil Aviation/Shipping, if the course is pursued in India. In case the course is pursued abroad, the Institute should be recognized by the competent local aviation / shipping authority.
• Courses offered in India by reputed foreign universities.
• Evening courses of approved institutes.
• Other courses leading to diploma / degree etc. conducted by colleges / universities approved by UGC / Govt. / AICTE / AIBMS / ICMR / etc.
• Courses offered by National Institutes and other reputed private Institutions - depending on future prospects / recognition by the user Institutions.
• Courses leading to certification are not to be considered

Studies abroad:

• Graduation – for job oriented professional / technical courses offered by reputed universities.
• Post-graduation – MCA, MBA, MS etc.
• Courses conducted by CIMA – London, CPA in USA etc.

Expenses Covered

Expenses covered under ICICI Bank education loan are payment of course fees, purchase of books, equipments, instruments, uniform, payment of hostel fees, examination fees, study tools, and passage expenses, (for study abroad).

Eligibility Criteria: Who Can Apply?

• Must be an Indian Resident
• Applicant should have secured admission with the educational institution

Interest Rate of ICICI Bank Education Loan for Studies in India and abroad:

The rate of interest is decided by the bank and the girl students get 0.50% concession on the interest rate.

Documents Required

• Letter of admission
• Filled in Loan Application Form
• 2 passport size photographs
• Statement of cost of study
• PAN Card of the student and Parent/ Guardian
• AADHAR Card of the student and Parent/ Guardian
• Proof of identity (Driving Licence/Passport/Aadhar/ any photo identity)
• Proof of residence (Driving Licence/Passport/Electricity bill/Telephone bill)
• Student/Co-borrower/ guarantor's bank account statement for last 6 months
• IT return/ IT assessment order, of previous 2 years of Parent/ Guardian/ other co-borrower (if IT Payee)
• Brief statement of assets & liabilities of Parent/ Guardian/ other co-borrower
• Proof of income (i.e. salary slips/ Form 16) Parent/ Guardian/ other co-borrower

EMI Payment Methods

ICICI Bank education loan can be repaid in following three ways.

Standing Instruction (SI): If you are an existing account holder with ICICI Bank, Standing Instruction is the best mode of repayment. Your EMI amount will be debited automatically at the end of the monthly cycle from the ICICI Bank account you specify.

Electronic Clearing Service (ECS): This mode can be used if you have a non-ICICI Bank account and would like your EMIs to be debited automatically at the end of the monthly cycle from this account.

Post-Dated Cheques (PDCs): You can submit post-dated EMI cheques from a non-ICICI Bank account at your nearest ICICI Bank Loan Centre. A fresh set of PDCs will have to be submitted in a timely manner. Please note Post Dated Cheques will be collected non-ECS locations only.

It is recommended that you opt for either the SI or ECS mode of payment for faster and less prone to error than the use of PDCs.

How to Apply for ICICI Bank Education Loan?

You can either apply online or visit a nearby ICICI Bank branch for the application. You can also download the education loan application form from the ICICI Bank official website, complete the form and submit it the bank representative.

You can also check your eligibility for an education loan through CreditMantri and apply for it.

ICICI Bank Education loan FAQ