ICICI Education Rate of Interest

ICICI Bank provides education loan to students through a hassle-free process with affordable interest rates.

  • ICICI Bank offers collateral-free loans for selected institutes
  • The maximum loan limit is 50 Lacs for India and 1 crore for Abroad
  • The bank charges interest only on the amount used

ICICI Bank charges rate of interest as per the RBI guidelines

  • The base rate fixed by ICICI Bank is 8.85%.
  • The bank charges 13.6% interest for loan amount up to INR 4 Lacs
  • For loan amount above INR 4 Lacs, the RoI charged is 14.6%.

CALCULATE YOUR EDUCATION LOAN EMI

Fill the Loan Amount
Fill the Interest Rate
Fill the Loan Tenure
EMI Payable

188 per month

Total Interest

1,280

Payable Amount

11,280

Total Interest
Principal Loan Amount

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ICICI Education Loan Eligibility

loan eligibility image
  • Indian National. The applicant should be an Indian citizen or must hold an Indian passport.
  • Co-Borrower. Student/parent/guardian are co-jointly borrowers.
  • Eligible Courses. The loan should be pursued for graduation or postgraduation professional/technical courses.

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Applicable Rate of Interest up to INR 4 Lacs: 13.6%
above INR 4 Lacs: 14.6%.
Up to INR 7.50 Lacs: 10.55%
Above INR 7.50 Lacs: 10.80%
up to INR 7.5 Lacs: MCLR + 2.00%
above INR 7.5 Lacs: 2.60%
Upto 4 Lacs- 16.50%
Upto 7.5 Lacs- 17.50%
Above 7.5 Lacs- 15.50%
Max Loan with Collateral For India:INR 50 Lacs
For Abroad: INR 1 crore
For India: 10 Lacs
For Abroad: 20 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs and beyond based requirement
Max loan without collateral For India:INR 50 Lacs
For Abroad: INR 1 crore
For India: 10 Lacs
For Abroad: 20 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs and beyond based requirement
Processing Fee Nil
Up to INR 4 Lacs: Nil
Above INR 4 Lacs: INR 5000
Nil
Nil
Repayment Period 5-7 years
15 years
15 years
7 years
Loan for top institutions No
Yes, SBI Scholar Loan Scheme
Yes, PNB Pratibha
No
Margin Upto loan 4 Lacs _ No margin
Above 4 Lacs _
for India: 5%
for Abroad: 15%
For loan above INR 4 Lacs
In India: 5%
In abroad: 15%
Up to INR 4 Lacs - NIL
Above INR 4 Lacs - 5%
Upto loan 4 Lacs: No margin
Above 4 Lacs: for India: 5%
for Abroad: 15%
Age Limit Minimum 16 years
maximum 40 years
no age limit
No age limit
No
Loan Security No collateral or security depending upon the Institute for loans up to 20 Lacs for UG courses and 40 Lacs for PG courses
Upto 7.50 Lacs: Only Parent/ Guardian as co-borrower. No Collateral Security or third party guarantee
Above INR 7.50 Lacs: Tangible security along with parents as co borrower
Upto INR 7.50 Lacs: Parent(s)/guardian be made joint borrower (s). No tangible Security and /or 3rd party guarantee is required.
Above INR 7.50 Lacs: Parent(s)/guardian be joint borrower(s). Tangible collateral security of suitable value acceptable to bank.
Third party guarantee
Collateral security
Additionally, assignment of LIC policy in favor of bank amounting 100% of education loan amount
Assignment of Future salaries in favor of Axis Bank
Eligibility concession for SC/ST No
No
50% for SC/ST, and;60% for General category.
No
Processing Time N.A.
20 days
15 days
14 Days
Prepayment charges Nil
Nil
Nil
Nil
Penal charges Nil
Penal interest @ 2% to be charged for loans above Rs.4 lacs for the overdue amount and overdue period
Nil
@ 2% per month on the overdue installment/s
Mandatory insurance cover No
Yes
yes
yes
Travel expeneses Yes
yes
yes
yes
Bank transfter allowance No such clause mentioned
available
available
No such clause mentioned
Top up loan availability unavailable
yes
available
unavailable
Interest Subsidy Schemes Skill Loan Scheme, CSIS
Padho Pardesh
CSIS
Skill Loan Scheme
Padho Pardesh
CSIS
Skill Loan Scheme
CSIS
Tax benifit Yes
yes
yes
yes
Concession/benefits No collateral or security for loan upto INR 7.5 Lacs
No Processing charges
No foreclosure penalty
Easy Documentation and faster processing
Interest charged only on the amount used
Concession to girl students
1% concession if interest is serviced during moratorium period including course period
0.5% concession to girl students
0.5% concession if interest is serviced during moratorium period including course period
Online application
There is no processing fee charged
No pre- payment charges are applied
No pre- closure charges are applied
Loan Disbursal period is 15 working days from the date of final submission of documents
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How to apply for ICICI Education Loan ?

ICICI Education loan application form can be available online or offline at Bank branches.

Visit the official website for ICICI Bank Education Loan.

Click on Apply Now

Fill out the form with all essential details

Upload the mandatory documents (if required.)

Submit the form and take out a print out of the application.

Visit the ICICI bank branch for further formalities.

Applicants can directly visit the nearest branch and ask for an application form. The bank representative will then guide them with all the necessary information regarding eligibility, documents required and also which loan is best suitable.

ICICI Education Loan Details

Loan Limit
For India: INR 50 Lacs
For Abroad: INR 1 Crore
Margin
Up to 20 Lacs: No margin
Above 20 Lacs: 15%
Processing Fee
Nil
Loan Security
No collateral or security depending upon the Institute for loans up to 20 Lacs for UG courses and 40 Lacs for PG courses.
Loan Repayment
commences 6 months of completion of the course or one month after the student starts earning (whichever is earlier).

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Expenses covered under ICICI Student Loan Scheme

  • College Fee
  • Examination Fee
  • Hostel Fee
  • Library/Laboratory Fee
  • Cost of Books, Uniforms or Stationery
  • Cost of Laptop or computer (if required)
  • Travel Expenses/ Passage money (for abroad)

Education Loan Documents Required ?

Admission letter with all essential details

Attested copies of Identity proof and residence proof

Two recent passport size photographs of applicant, co-applicant, and guarantor.

Mark sheet of recently qualified public exam for school, college in India.

Salary Proof including latest Salary slip, Form 16 and recent salary certificate.

Admission proof including transfer certificate.

Schedule of expenses and Passage expense.

Copy of passport and visa for abroad courses

Interest Subsidy Schemes

Skill Loan Scheme

The bank offers 'Skill Loan Scheme' for students who aspire to gain knowledge and specialized training in one specific field.

Central Scheme for Interest Subsidy

Formulated by the Govt. of India, a scheme to assist the students belonging to the economically weaker section. 

Padho Pardesh

Formulated under the Prime Minister’s 15 point programme, this subsidy scheme benefits the students of the minority community who want to study abroad. Such students are provided 100% interest subsidy.

Skill Loan Scheme

Some additional benefits of 'Skill Loan Scheme' include concession of 1% for the full tenure of the loan, if the interest charged is serviced promptly as and when applied during the period of the moratorium and including during the period of the course.

Central Scheme for Interest Subsidy
  • The gross annual parents’ income should be less than INR 4.50 Lacs
  • Repayment of the loan has to be done after 12 months of course completion or 6 months after getting the job (whichever is earlier).

This scheme is applicable for technical and professional courses from govt. recognized institutes for courses after class XII.

Under IBA education loan scheme, the maximum loan limit is INR 10 Lacs.

Eligibility:

The subsidy is provided for a moratorium period of 1 year after course completion or 6 months after getting a job (whichever is earlier). After this, the loan amount should be paid in accordance with the education loan scheme.

Scheme Applicable Year:

  • This scheme is implemented in the academic year 2009 – 2010 from April 1, 2009.
  • Loan disbursed after April 1, 2009, irrespective of the date of sanction shall only be covered under the scheme.
  • In case of loans sanctioned prior to April 1, 2009, for the courses beginning prior to the academic year 2009-10, the interest subsidy is available to the extent of disbursements made after April 1, 2009.

Canara Bank has been appointed as the nodal bank by the government to facilitate this scheme.

Padho Pardesh

How to apply for this scheme?

  • Students are supposed to inform their lending banks about the recently launched scheme of “Padho Pardesh” by the Ministry of Minority Affairs.
  • Then the students have to submit the proof of their eligibility for the particular scheme.
  • If the student is eligible, the lending bank will feed the students information into the portal of “Padho Pardesh”.
  • The portal will remain open for a period of two months in every quarter.

Courses covered under this scheme

Courses that are covered by the Government of India under this scheme are as follows:

Arts/ Humanities/ Social SciencesCommerce
Pure ScienceEngineering
Biotechnology/ Genetic EngineeringIndustrial Environmental Engineering
NanotechnologyMarine Engineering
Petrochemical EngineeringPlastic Technology
Cryogenic EngineeringMechatronics
Automation Robotics including artificial intelligenceLaser Technology
Low-Temperature Thermal DynamicsArt Restoration Technology
OptometryDock and Harbour Engineering
Imaging System TechnologyComposite Materials Engineering including Decentralized power
Packaging Engineering/ TechnologyNuclear Engineering
Information Technology including Computer Engineering, Software, Software Quality assurance, etcIndustrial Safety Engineering

*The courses might change as per discretion of Ministry

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Frequently Asked Questions

01

What schemes does ICICI Bank considers for its education loans?

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There is no scheme offered by ICICI Bank apart from the basic education loan.

02

In whose name is the loan granted?

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The loan is granted in the name of the student

03

What is the age limit for availing loan in ICICI Bank?

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Age limit for students applying for education loan from ICICI bank is minimum 16 years and maximum 40 years.

04

What does margin on any loan mean?

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Margin amount is the amount that a borrower has to pay through his/ her own sources in form of a down payment as his/ her contribution towards the education.

05

Where can I avail ICICI Bank Education Loan?

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You can either contact your nearest branch for the application form or details regarding the loan or apply online.

06

Is there any provision to apply for loan online?

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Yes, you can apply online through Vidyalakshmi portal to avail for this loan.

07

Is there any minimum aggregate marks to meet the eligibility criteria to avail ICICI Bank education loan?

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Yes, a student must have secured a minimum aggregate of 50% marks in their last qualifying examination (10+2 or Graduation)

08

What is the discount/ rebate offered by ICICI bank?

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There is no discount or rebate mentioned on the official website. Student can contact the nearest branch for the same.

09

What all is included in tangible collateral security?

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Mostly ICICI bank asks tangible security in lieu of the loan amount sanctioned along with assignment of future salaries in favour of ICICI Bank. There is no requirement of collateral security for loan amount upto INR 7.50 Lacs. Tangible security includes documents related to land/ building/ government security/ public sector bonds/ units of UTI, NSC, Life insurance policy/ bank deposits/ shares or debentures. The value of the security should be equal to the education loan amount.

10

What is Moratorium Period?

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Course Period plus one year, or six months after getting a job

11

What is tenure of an education loan?

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Tenure of education loan provided by ICICI Bank is 7 years

12

What does MCLR stands for?

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MCLR stands for Marginal Cost of funds based Lending Rate. It refers to the minimum interest rate of bank below which it cannot lend.

13

What all expenses are covered under this course?

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Expenses covered by ICICI Bank education loan are:

  • Tuition/ college/ hostel fee
  • Examination/ lab/ library fee
  • Books/ uniform/ instruments
  • Caution deposit
  • Passage money for studies abroad, etc.
14

Will my travel expense will be covered if I take loan from ICICI Bank?

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Yes, travel expenses are covered under this loan

15

I have taken admission through management quota. Am I eligible?

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Yes, even if you have taken admission through management quota, you are eligible for education loan by ICICI bank

16

What do you mean by reputed or recognized institutes?

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Institutes that are affiliated to state/ central universities and comes under UGC or AICTE are considered as recognized institutes. Reputed institutes are those which are well known and have standard course of repute. More often, banks provide the list of institutes they consider for loan. (You can contact nearest branch for the same)

17

Are there any special benefits if I have secured admission to one of the top premier institutes?

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ICICI Bank provides no such provision or special benefit to the students who secure admission in top premier institutes

18

What is the processing fee or prepayment charges?

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The education loan offered by ICICI Bank does not carry any processing fee or any other charges such as fore-closure penalty charge or documentation charges.

19

Will cost of my computer be covered under the loan sanctioned?

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Reasonable cost for the computer or laptop well be covered under the loan if it is required to complete the course. 

20

Why is Pan Card necessary?

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Pan Card is one of the mandatory document required by banks these days. It is mandatory because:

  • Easy to assess Income
  • Easy to trace borrowers
21

Are diploma or certificate courses considered under ICICI Bank education Loan (both for India and Abroad)?

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Yes diploma or certificate courses are eligible under ICICI Bank Education Loan. Regular degree or diploma courses like, shipping, pilot training, and aeronautical that are approved by Director General of Civil Aviation or Shipping

22

Is a co-borrower necessary for loan?

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Yes, it is mandatory to have a co-borrower to avail loan from ICICI bank.

23

Who can be my co-borrower?

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Your parent/ spouse/ guardian can be a co-borrower. A co-borrower should be your immediate family member, should have a steady source of income, and a good credit history.

24

What all documents are required from the co-borrower?

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Documents required from the co-borrower are:

  • Attested copies of age proof, residence proof and birth date.
  • Self-attested passport size photograph
  • Income proof and/or copy of income tax return file
  • Details of collateral security along with government approved valuation certificate (if any).
25

What is the KYC requirement in education loan?

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KYC requirements are the documents as a proof of personal identification and residence proof of the applicant as well as the co-borrower.

26

What are maximum term for repayment?

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Maximum term for repayment is 7 years

27

How can I repay the loan?

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You can repay the loan after the moratorium period by mode of EMI or through post- dated cheques.

28

What is EMI? How are they calculated?

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EMI stands for Equated Monthly Installments. It can be calculated by using the formula given below

  • EMI = [P x R x (1+R) ^n] / [(1+R)^ n-1]
  • Here, P is Amount of Education Loan, R is Rate of Interest, n is Tenure of the Loan.
  • Or simply you can use the EMI calculator provision available on ICICI Bank’s official website.
29

Is the loan disbursed in name of individual applicant or to the institute/ university directly?

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The loan is disbursed directly to the institute/ university that you have taken admission to. Hence, an applicant is supposed to submit institute brochure with proper division of the fee

30

If I am unable to complete my course in given tenure, will my repayment term be extended?

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It is completely on the banks discretion to extend the moratorium period or not. You can contact your nearest branch for the same.

31

What is method of application of interest on education loan?

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The interest will be charged at simple rate from the date of disbursement till commencement of repayment of loan. After that, compound interest is charged on reducing balance. 

32

What is interest rate of education loan?

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The interest rate is charged only on the amount used by the borrower.

The bank charges 13.6% interest for loan amount up to INR 4 Lacs.

For loan amount above INR 4 Lacs, the RoI charged is 14.6%.

33

What is interest subsidy on education loan?

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ICICI Bank offers no interest subsidy on the education loan.

34

What is employment verification in an education loan?

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The bank takes the responsibility to cross verify all the employment details of the applicant and co-borrower. If the banks fails to cross verify every detail provided, it might reject the loan application.

35

Are there any tax benefits in education loans?

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Under Section 80E of Income Tax Act, loan borrowers can avail the tax benefits. This benefit is only available over and above INR 1,50,000. Tax benefits can be availed once the borrower starts paying interest on loan. The deduction is available until borrower pays off full interest amount on loan or for maximum of 8 years (whichever is earlier). You can visit the official website of ICICI Bank to calculate your tax benefit through their tax benefit calculator.

36

Is it necessary to have bank account with the bank while availing loan from that particular bank?

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It is not necessary to have a bank account while availing the loan but it makes it easier for the borrower to get loan application approved.

37

Can I repay my loan in foreign currency even if my bank is in India?

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Yes, you can pay the amount in foreign currency (Euro, Pound, Dollar, etc.) The bank might charge an additional currency conversion fee as per RBI regulations.

38

Why do banks require insurance policy as security?

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The banks require insurance policy as security in lieu of education loan provided. The insurance policy should be equal or more to the amount of loan sanctioned. In case of untimely demise of the borrower, the bank recovers the amount from the insurance policy

39

Are there any additional benefits on availing loan from ICICI Bank?

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There are no such additional benefits on availing loan from ICICI Bank. Though, there are no processing or pre-payment charges applied by bank on education loan.

40

What is credit score? Is it important for education loan?

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Credit Score is inclusive of various factors such as credit history (Loan history or credit card). If a student does not have a credit score, banks calculate it by considering factors such as University, College and the Course of admission. Banks consider the academic background of student and credit history of co-borrower.

41

Are NRIs eligible for the education loan?

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NRIs are eligible for the loan if they have Indian citizenship and are Indian passport holder.

42

Is Visa a necessary document for studying abroad?

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Visa is needed as a document proof but it is not a sole requirement.

43

What all procedures do one have to go through while applying for abroad?

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A student who is applying for studying abroad have to give necessary documents required by the bank. One needs to have a thorough knowledge of the course they are applying for and in which institute as it can be asked on the airport by the foreign officials.

44

If a student have any query, where or whom to contact?

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student can reach out to the nearest branch in case of any query.

Customer Care Number: 011- 33667777/ 011- 44455000

faq image