Last Modified : May 11, 2018
Industrial Credit and Investment Corporation of India or popularly known as ICICI Bank, established in 1994 is now India’s largest bank in terms of assets with total assets of INR 9,860.43 billion and fourth largest in terms of market capitalization. The bank have extended network of 4,850 branches and 14,404 ATMS in India. It has marked its presence in 19 countries including India.
ICICI Bank have been forward in taking up the initiative to extend financial support to students pursuing their higher education in India and Abroad. To ease the monetary burden and promote academic excellence in students, ICICI Bank came up with its Education loan initiative.
ICICI Bank provides education loan to meritorious students in need of financial support to pursue their studies in India and Abroad. The loan is extended to students who have secured admission to professional/ technical courses at graduation or post-graduation level in India and Abroad
It is a flexible loan scheme with easy documentation, affordable interest rates with faster processing to education in individuals.
Key Benefits of ICICI Bank Education Loan
Eligibility to avail ICICI Bank Education Loan
Upto loan 4 Lacs – No margin
Above 4 Lacs –
for India: 5%
for Abroad: 15%
Maximum Loan Limit
For India – INR 10 Lacs
For Abroad- INR 20 Lacs
No collateral or security for loan upto INR 7.5 Lacs
Course Period + 1 year or 6 months after getting job
Repayment will commence after 6 months of completion of course or one month after student starts earning (whichever is earlier)
Courses Covered under ICICI Bank Education Loan
Documents required for ICICI Bank Education Loan
Expenses Covered under ICICI Bank Education Loan
Q. What schemes does ICICI Bank considers for its education loans?
Answer: There is no scheme offered by ICICI Bank apart from the basic education loan.
Q. In whose name is the loan granted?
Answer: The loan is granted in the name of the student
Q. What is the age limit for availing loan in ICICI Bank?
Answer: Age limit for students applying for education loan from ICICI bank is minimum 16 years and maximum 40 years.
Q. What does margin on any loan mean?
Answer: 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.
Q. Where can I avail ICICI Bank Education Loan?
Answer: You can either contact your nearest branch for the application form or details regarding the loan or apply online.
Q. Is there any provision to apply for loan online?
Answer: : Yes, you can apply online through Vidyalakshmi portal to avail for this loan.
Q. Is there any minimum aggregate marks to meet the eligibility criteria to avail ICICI Bank education loan?
Answer: Yes, a student must have secured a minimum aggregate of 50% marks in their last qualifying examination (10+2 or Graduation)
Q. What is the discount/ rebate offered by ICICI bank?
Answer: There is no discount or rebate mentioned on the official website. Student can contact the nearest branch for the same.
Q. What all is included in tangible collateral security?
Answer: 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.
Q. What is Moratorium Period?
Answer: Course Period plus one year, or six months after getting a job
Q. What is tenure of an education loan?
Answer: Tenure of education loan provided by ICICI Bank is 7 years
Q. What does MCLR stands for?
Answer: MCLR stands for Marginal Cost of funds based Lending Rate. It refers to the minimum interest rate of bank below which it cannot lend.
Q. What all expenses are covered under this course?
Answer: Expenses covered by ICICI Bank education loan are:
Q. Will my travel expense will be covered if I take loan from ICICI Bank?
Answer: Yes, travel expenses are covered under this loan
Q. I have taken admission through management quota. Am I eligible?
Answer: Yes, even if you have taken admission through management quota, you are eligible for education loan by ICICI bank
Q. What do you mean by reputed or recognized institutes?
Answer: 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)
Q. Are there any special benefits if I have secured admission to one of the top premier institutes?
Answer: ICICI Bank provides no such provision or special benefit to the students who secure admission in top premier institutes
Q. What is the processing fee or prepayment charges?
Answer: 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.
Q. Will cost of my computer be covered under the loan sanctioned?
Answer: Reasonable cost for the computer or laptop well be covered under the loan if it is required to complete the course.
Q. Why is Pan Card necessary?
Answer: Pan Card is one of the mandatory document required by banks these days. It is mandatory because:
Q. Are diploma or certificate courses considered under ICICI Bank education Loan (both for India and Abroad)?
Answer: 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
Q. Is a co-borrower necessary for loan?
Answer: Yes, it is mandatory to have a co-borrower to avail loan from ICICI bank.
Q. Who can be my co-borrower?
Answer: 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.
Q. What all documents are required from the co-borrower?
Answer: Documents required from the co-borrower are:
Q. What is the KYC requirement in education loan?
Answer: KYC requirements are the documents as a proof of personal identification and residence proof of the applicant as well as the co-borrower.
Q. What are maximum term for repayment?
Answer: Maximum term for repayment is 7 years
Q. How can I repay the loan?
Answer: You can repay the loan after the moratorium period by mode of EMI or through post- dated cheques.
Q. What is EMI? How are they calculated?
EMI stands for Equated Monthly Installments. It can be calculated by using the formula given below
Q. Is the loan disbursed in name of individual applicant or to the institute/ university directly?
Answer: 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
Q. If I am unable to complete my course in given tenure, will my repayment term be extended?
Answer: It is completely on the banks discretion to extend the moratorium period or not. You can contact your nearest branch for the same.
Q. What is method of application of interest on education loan?
Answer: 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.
Q. What is interest rate of education loan?
Answer: The interest rate is charged only on the amount used by the borrower.
Q. What is interest subsidy on education loan?
Answer: ICICI Bank offers no interest subsidy on the education loan.
Q. What is employment verification in an education loan?
Answer: 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.
Q. Are there any tax benefits in education loans?
Answer: 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.
Q. Is it necessary to have bank account with the bank while availing loan from that particular bank?
Answer: 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.
Q. Can I repay my loan in foreign currency even if my bank is in India?
Answer: 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.
Q. Why do banks require insurance policy as security?
Answer: 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
Q. Are there any additional benefits on availing loan from ICICI Bank?
Answer: 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.
Q. What is credit score? Is it important for education loan?
Answer: 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.
Q. Are NRIs eligible for the education loan?
Answer: NRIs are eligible for the loan if they have Indian citizenship and are Indian passport holder.
Q. Is Visa a necessary document for studying abroad?
Answer: Visa is needed as a document proof but it is not a sole requirement.
Q. What all procedures do one have to go through while applying for abroad?
Answer: 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.
Q. If a student have any query, where or whom to contact?
Answer: student can reach out to the nearest branch in case of any query.
Customer Care Number: 011- 33667777/ 011- 44455000