Make college memories that last a lot longer than your student loan payments.

ICICI Bank Education Loan

The Education Loan Scheme from ICICI Bank, or Shiksha Sarthi, as it is also called, offers financial aid to meritorious and deserving students who wish to pursue professional/technical higher education, be it in India or overseas. The main aim of the scheme is to ensure that each meritorious student, no matter how poor, has the opportunity to pursue education using the financial support on simple/liberal terms and conditions.

Eligibility Criteria for Applying ICIC Student Loan

Individuals who wish to avail an education loan from ICICI Bank must meet the following requirements:

  • Must be an Indian national.
  • Must be a minimum of 16 years old and a maximum of 40 years old.
  • Must have secured admission to a technical or professional course, whether in India or overseas, through a merit based selection process or an entrance test after completing 10 plus 2.
  • Should be undertaking an approved course that results in a graduate or post graduate degree or post graduate diploma offered by a university or college recognized by the government/UGC/ICMR/AIBMS/AICTE etc.
  • Must be undertaking a regular diploma or degree course such as shipping, pilot training, aeronautical etc., conducted by NID, XLRI, IITs, NIFT, IIMs, IISs etc., and approved by Director General of Shipping/Civil Aviation, in case the course is undertaken in India.
  • Must be an approved course conducted in India by recognised international universities.
  • Teacher nursing/training/B.Ed. courses can be eligible for a student loan only in case the training centres are approved by the State or Central Government, and the completion of the course must result in a diploma or degree course and not to a certification course.
  • In case of job oriented technical/professional courses offered by recognised universities post-graduation, such as MS, MBA, MCA, etc., must be conducted by CPA in USA, CIMA – London, etc., and diploma/degree courses such as shipping, pilot training, aeronautical, etc. recognised by authorised regulatory bodies be it in India or overseas, for the purpose of employment in India or overseas.

Expenses covered by ICICI Bank Education Loan Schemes

Following is a list of expenses that can be covered using the finance from the ICICI Bank Education Loan:

  • Fee payable to the institution, i.e. school/college fees as well as hostel fees.
  • Examination/laboratory/library fees.
  • Passage money/travel expenses for international studies.
  • Insurance premium for student borrowers, if applicable.
  • Purchase of uniforms/instruments/equipment/books.
  • Building fund, caution deposit/refundable deposit supported by receipts/bills from the institution.
  • Purchase of computers – necessary to complete the course.
  • Any other expenses needed to complete the course, such as thesis, project work, study tours, etc.

Quantum of Finance and Margin in ICICI Bank

The maximum amount of money that can be borrowed for education in India through an ICICI Bank Education Loan is Rs.10 lakhs, and the maximum amount granted to students who wish to undertake a course of study overseas is Rs.20 lakhs. The margin for amounts up to Rs.4 lakhs is nil, and the margin for amounts borrowed in excess of Rs.4 lakhs is 5% for studies in India and 15% for international studies.

Security Policies of ICICI Bank Educational Loan

In case the loan amount is under Rs.4 lakhs, the security will be a co-obligation of the parents of the student. In case the student has no parents, grandparents may be considered as co-obligators to the loan after their net worth has been taken into account.

In case the loan amount is between Rs.4 lakhs and Rs.7.5 lakhs, the parents of the students will be co-obligators while collateral will also have to be placed in the form of an acceptable third party guarantee, proportionate to the whole amount borrowed.

In case the loan amount exceeds Rs.7.5 lakhs, the parents will be co-obligators and collateral security will have to be placed, proportionate to the total value of the loan. The collateral security may be any one NSCs, Mortgage of Immovable Property, Bank Deposits and Government Securities.

The co-obligator of a student must ideally be their parent or guardian, and in case of married borrowers, the co-obligator may be either their spouse or parent or parent-in-law.

ICICI Bank Education Loan Interest Rates

The rate of interest applicable to an education loan from ICICI Bank is as charged or prescribed by the bank. The rate is subject to change from time to time, and the current rate of interest is 11%.

Repayment Structure of ICICI Education Loan

The education loan from ICICI Bank can be repaid five to seven years following the commencement of repayment in equal monthly instalments based on the repaying capacity of the borrower and the quantum of finance. Repayment will start after six months following the completion of the course, or one month from the date on which the student starts earning, whichever happens earlier.  

NEWS

  • ICICI Bank launches instant education loan offering up to Rs.1 crore

    ICICI Bank has announced the launch of their instant education loan which provides a facility for students to get instant sanction letters for up to Rs.1 crore. The ‘Insta Education Loan’ is the first-of-its-kind and helps to finance higher studies for students looking to get educated in various accredited colleges and universities all over the world.

    This facility allows students to get their education loan in a completely digital process against their fixed deposits against the bank. The applicants will have to furnish the sanction letter to the institute to confirm their admission. With the facility of the ‘Insta Education Loan’, customer experience is a priority as they can generate the sanction letter by themselves using the internet banking platform of ICICI Bank.

    The applicants need not go to a branch of the bank and go through the formalities of submitted documents and application forms in hand and the complete process can be done online.

    The customers will need to contact the relationship manager of the bank mentioned in the sanction letter for the final disbursement of the loan amount. The bank will disburse the loan amount to the educational institution after the documents such as the admission letter, signatures, etc. are submitted and verified.

    13 July 2020

  • Education loan can be availed by ICICI Bank customers against their FDs

    A new facility has been introduced by ICICI Bank where its customers can get an instant education loan of up to Rs.1 crore. Under the new facility, pre-approved customers can get an education loan against their FDs in a completely digital process.

    Customers can avail an education loan for the purpose of higher education. The loan can be availed for themselves, their siblings, children, and grand-children. However, the loan can be availed for education at accredited universities or colleges anywhere in the world. The admission letter must be provided in order to avail the loan. According to a press release provided by the bank, the Insta Education Loan improves the convenience of getting a loan as the sanction letter can be received by following a few simple steps via internet banking. Customers need not visit the bank as well to submit the documents. Some of the important features offered by the loan are flexibility, simple process to apply, a high loan amount, and tax benefits. Individuals may avail a loan ranging between Rs.10 lakh to Rs.1 crore. Up to 90% of the amount available in the FD may be availed as a loan. Tax benefits are provided as well under Section 80E of the Income Tax Act.

    26 June 2020

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