ICICI Education Loan
Presently one of ‘The Big Four’ banks of India, ICICI Bank was established as a wholly owned subsidiary / arm of ICICI Limited (Industrial Credit and Investment Corporation of India) in the year 1994. It is now India’s one of the largest private sector commercial banks in terms of outreach, total assets, market capitalization and revenues generated. With more than 84,000 employees presently under its fold, ICICI Bank is has its presence across the length and breadth of the country – more than 5,275 branches. Internationally, ICICI Bank has major presence in more than 17 countries.
Overview of variants in education loan schemes offered by ICICI Bank
|iSMART ICICI Education Loan
- Loan facility for Indian national students who have secured admission to higher education in India or abroad.
|Insta Education Loan
- Instant loan facility for India national students wanting to pursue higher education
Further details of the schemes mentioned in above table
1. iSMART ICICI Education Loan
ICICI Bank does not offer various kinds of education loan with different features. It has only one scheme which very well covers all features and is student / applicant friendly.
The loan facility provided by the bank is for Indian national students who wish to pursue and have secured admission to higher education courses in either India or overseas. The applicant must have also completed his / her HSC.
The courses that can be covered under the scheme are – Graduation / PG / Technical / Professional / MBA / MCA / MBBS / MD / Diploma / Doctoral / any other Professional courses etc. provided that these courses are offered by recognized universities / colleges / institutes and approved by the academic bodies such as UGC / AICTE / ICMR etc.
In the case of Overseas education – the courses covered can be graduation / PG / MBA / MS / Medical studies / STEM or any job-oriented courses, provided that these are offered by reputed institutes.
The quantum of finance for studies in India is up to a maximum of ₹50 lacs and is up to ₹1 crore for studies abroad.
Margin – No margin is applicable for loan amount of up to ₹20 lacs. Above ₹20 lacs, the margin can range in between 5% and 15%. The margin amount can be in the form of scholarships or first instalment fees paid or any fixed deposit the applicant or the co-borrower holds.
Processing Charges – A processing fee of 1% of loan amount is applicable along with taxes. The link click here provides the necessary details with regards to the fee and charges applicable for the education loan at ICICI bank.
Tax Benefits are also applicable under Section 80E of the Income Tax Act. Follow the link to calculate your tax benefits https://www.icicibank.com/Personal-Banking/loans/education-loan/tax-benefit-calculator.page?#toptitle
Interest Rates –
For Under Graduate Courses (Domestic and Overseas) – at 11.75% per annum (Subject to Repo Rate changes; Institute category and course taken)
For Post Graduate Courses (Domestic and Overseas) – at 11.25% per annum (Subject to Repo Rate Changes; Institute category and course taken)
Almost all expenses of the course (including study tours, hostels, library, laboratory, equipment, books, project work, examination, Insurance premium for the borrower, caution deposit, purchase of computer / laptop, travel expenses for studies in abroad, etc.) are covered under the scheme.
Collateral Security – The bank’s loan scheme allows collateral free loans only for select few institutes / universities. For the under-graduate courses, no collateral security is required for loan amount up to ₹20 lacs and for PG courses, no collateral security is applicable for loan amount of up to ₹40 lacs.
The accepted security by the bank would include any tangible immovable property that is not in use or any non-agricultural plots not in use or any financial investments. The security must be equivalent in value of the loan amount availed.
It is, however, mandatorily required that the parents / guardian sign up as co-borrowers for the applicant / student.
Moratorium Period – The moratorium period for the loan scheme covers the entire course period and provides for an additional 6 months.
Repayment Tenure –
For Under Graduate Courses (Domestic and Overseas) –
- For all non-collateralized loans, the repayment tenure is up to 5 years post the completion of moratorium period.
- For all collateralized loans, the repayment tenure is up to 7 years post completion of moratorium period
For Post Graduate Courses (Domestic and Overseas) –
- For all non-collateralized loans, the repayment tenure is up to 7 years post the completion of moratorium period.
- For all collateralized loans, the repayment tenure is up to 10 years post completion of moratorium period.
Disbursement – For overseas applications, the loan amount is disbursed prior to the student sitting for visa process.
2. Insta Education Loan
The loan is availed by students wanting to pursue higher education either in India or abroad.
The Insta Education loan is to be collateralized against Fixed Deposits. However, this Fixed Deposit need not be broken or withdrawn.
The minimum loan amount under this scheme is ₹10 lacs and the maximum being ₹1 crore.
The one major speciality of this loan is that it is instantly sanctioned and does not involve paper work as the application and the entire procedure of the loan is digitally enabled.
However, to avail of this facility, the applicant will need to open a savings account with ICICI Bank.
The Rest of the features are the same as that of the above detailed description of the ICICI Education loan.
This would include the repayment and moratorium periods, the interest rates, expenses covered, margin and processing charges
Documents Required for the above loan schemes
- Copies of SSC, HSC, Graduation (if applicable) marksheets
- Copy of entrance exam scorecard sheet (JEE / NEET / CAT / XAT / GMAT / GRE etc)
- Admission proof copy (offer letter / admission letter)
- Copies of any scholarship certificates
- Passport size photographs of applicant (student), co-borrower (parent), third party guarantor (if any)
- Copy of fee structure of the Institute / University for the course applied to.
- In case of salaried persons – (Co-borrowers – in the case of specified courses from specific institutes)
- Latest salary slips
- Copy of Form 16 / recently filed Income Tax Return
- In case of non-salaried persons – (Co-borrowers – in the case of specified courses from specific institutes)
- Address proof of business (if applicable)
- Copy of latest Income Tax Returns
- Copies of bank account statements for the 6 months of Parent / Co-borrower/ guarantor
- Copies of documents relating to collateral and tangible security
- Copies of PAN (Permanent Account Number) Card for identity proof of applicant and Co-borrower (parent)/ Guarantor (self-attested)
- Copies of Aadhar (UID) Card student and co-borrower (parent) / guarantor for address proof (self-attested)
- Passport Copy (mandatory for overseas education)
- Copy of Voter’s ID card issued by Election Commission of India
How to Apply for the loan
Online process – The above-mentioned ICICI Bank Education loan schemes can be applied via online from Vidya Lakshmi Portal, which is a centralized portal specifically catering to students wanting to explore multiple options offered by various banks before choosing the appropriate loan scheme which is in tandem to the applicants’ needs.
The applicant can also directly apply through the website – APPLY NOW
Offline process – The applicant will have to visit the nearest branch of ICICI Bank and apply for iSMART Education loan by filling out the required forms and submitting the copies of mandatory documents or else you can also avail doorstep facilities which are offered by the bank.
The offline process is however, not applicable to Insta Education Loan facility, which is purely an online mode of service.
ICICI Bank has not yet included insurance cover in the standard procedures of education loan application as of now, they may as well make it mandatory in the near future, especially where collateral security is not applicable.
Nevertheless, the applicant / co-borrower is free to opt for an insurance cover out of his / her own will.
Few reasons for inclusion of insurance cover are –
- Covering of default risk rising due to poor job markets
- Exchange rate risks in the case of overseas education loans
- Below satisfactory campus placement records
- Possibility of discontinuation of course by student or debarring by institutions on disciplinary or academic grounds.
Note – At the time of enquiring about the iSMART Education Loan scheme, kindly confirm with the bank officials regarding the opening of savings bank account for loan disbursement.