ICICI Bank, like many other financial institutions, offers education loans to students to help them pursue higher education in India or abroad. Education loans from ICICI Bank may or may not require collateral, depending on various factors. ICICI Bank extends education loans tailored for overseas studies, providing a maximum loan amount of 2 crores for loans secured by collateral and up to 50 lakhs for unsecured loans. Established in 1994, ICICI Bank stands as a prominent private-sector bank in India. Recognizing the exorbitant costs associated with higher education, ICICI Bank is committed to supporting individuals pursuing advanced studies.
ICICI Bank typically offers two types of education loans
- ICICI Bank Education Loan With Collateral: This type of loan requires collateral such as property, fixed deposit, or other assets. The presence of collateral usually results in more favorable terms, including lower interest rates and higher loan amounts.
- ICICI Bank Education Loan Without Collateral: This type of loan does not require collateral. However, unsecured loans may have higher interest rates compared to secured loans, and the loan amount may be limited.
Advantages of ICICI Bank Education Loan
An education loan from ICICI Bank, a leading public bank in India comes with several notable advantages.
- Pre-Approved Instant Sanction: Applicants can conveniently access their online pre-approved education loan sanction letter from the comfort of their homes.
- Tax Benefits: Education loans offer tax advantages under SEC(80E), covering the entire interest paid (100%) with no upper limit. This feature effectively reduces the rate of interest. Further details can be explored using the Tax Benefit Calculator.
- Easy Application Process: Customers can effortlessly apply for an education loan through the Bank’s Internet banking facility, requiring just a few clicks.
- Quick Turnaround Time: The instant approval feature significantly reduces the time required for education loan approval, bringing it down from a matter of days to just a few minutes.
- Processing Fees: There are no processing fees when applying for an ICICI Bank education loan without collateral.
Eligibility Criteria of ICICI Education Loan
To secure approval for an abroad education loan from ICICI Bank, it’s crucial to meet specific eligibility criteria. By fulfilling these eligibility criteria, prospective borrowers can enhance their chances of obtaining approval for an abroad education loan from ICICI Bank. These requirements are:
- Indian Citizenship: The applicant must be an Indian citizen.
- Approved Institution: The educational institution (university or college) to which the applicant has gained admission must be on the list approved by ICICI Bank.
- Co-Applicant: The co-applicant for the loan must be one of the following individuals – Father, Mother, Brother, Sister, Spouse (Husband/Wife), and Maternal/Paternal Uncle.
- Age: The applicant’s age should fall within the range of 16 to 35 years.
In addition to offering standard abroad education loans, ICICI Bank provides a distinctive product tailored for individuals with professional work experience who aspire to pursue higher education abroad. Key features of this experience-based loan product from ICICI Bank include:
- Professional Experience Requirement: This product is specifically designed for individuals with a minimum of 3 years or more of professional work experience.
- No Co-Applicant Required: Unlike traditional loans, this product does not necessitate the presence of a co-applicant.
- Minimum Salary Requirement: Applicants should have a minimum monthly salary of 35,000 INR, although this requirement may vary based on the requested loan amount.
- Eligible Institutions: The scheme is applicable only to universities/colleges falling within the A1 or A2 category on ICICI Bank’s approved institute list.
- Moratorium Period: During the moratorium period, borrowers are not required to make any payments. Instead, they are required to create a Fixed Deposit (FD) as security. The benefit of this arrangement is that the borrower earns regular interest on the FD, and the locked amount becomes accessible after the repayment period.
Note: The applicant must create a Fixed Deposit (FD) equivalent to the simple interest to be paid during the moratorium period with ICICI Bank as security.
Documents Required for an Education Loan via ICICI Bank
When applying for an abroad education loan with ICICI Bank, it’s important to ensure you have all the necessary documents ready to facilitate a smooth process. Below is a list of the mandatory documents required:
- Academic documents – Copy of exam mark sheets of 10th/12th or the latest education certificate. Admission letter from the educational institution, including details of the cost of education if available.
- Identification and Address Proof – Aadhaar Card and PAN card of both the student and the Parent/Guardian. Passport of the student.
- Residence Proof – Electricity bill as residence proof.
- Co-applicant documents – Co-applicant KYC documents.
- Financial Documents for Salaried Co-applicant – Most recent salary slips and Form 16.
- Financial Documents for Self-Employed Co-applicant –
- Updated Income Tax Returns (ITR) of the last 2 years.
- ITR of the last 2 years.
- Proof of Margin Money (wherever applicable) – Provide documentation to support the availability of margin money, if it is a requirement for the loan.
It’s important to note that these documents may be subject to change, and it is advisable to check with the bank or visit the official ICICI Bank website for the most up-to-date and specific information related to education loan documentation. Additionally, the bank may request additional documents based on individual circumstances or specific loan requirements.
ICICI Bank’s Education Loan is a ray of hope for students aspiring to pursue higher education but facing financial constraints. By eliminating the need for collateral, the bank is enabling countless students to fulfill their academic dreams. The competitive interest rates, flexible repayment options, and quick approval process make ICICI Bank a preferred choice for those seeking financial assistance for education. Remember, investing in education is an investment in one’s future, and ICICI Bank is committed to making this journey accessible and affordable for every deserving student.