ICICI Education Loan

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ICICI Education Loan

Getting admission in a top university abroad is not easy as you have to go through a lengthy process of admission and sometimes you do not have sufficient funds to pursue the desired course in the university of your choice. Well, that is the moment of despair for students. This is the point where students can seek an education loan to prevent financial constraints from coming in their way of the admission process to their dream university. Almost all the banks facilitate education loans to students but choosing the right one is a matter of concern. ICICI Education Loan provided by the ICICI Bank is one of the most suited options available for you. Let’s have a look at this education loan in detail.

Name of Loan ICICI Education Loan 
Eligibility Criteria Students who have secured admission
Loan Tenure Up to 15 years
Loan Amount Up to 20 Lakhs
Interest Rate 10.50% Secured
10.75% Unsecured
Processing Fees Nil

Understanding the ICICI Education Loan

ICICI Bank, an Indian multinational banking and financial services company under the ICICI Education Loan can lend a student up to ₹50 lakh for education in India and up to 1 crore for studies abroad.  Residential and commercial properties can be kept as collateral while applying for an education loan. Non-Agricultural plots and fixed deposits will also work. ICICI Bank also offers a collateral-free loan of up to ₹40 lakh in which the borrower does not have to offer any asset or pledge any collateral to get the loan. However, this loan has to be paid 6 months after the completion of the degree. 

Why ICICI Education Loan?

Though it is preferred to get an education loan from banks of public sector due to low-interest rates but they may take you through a lengthy process of loan application. Private banks, on the other hand, offer hassle-free loans to the students in comparatively lesser time.

ICICI being one of the leading banks in the country offers loans with competitive lesser interests. Making your admission to universities overseas seamless, ICICI offers quick remittance to international institutes. It also gives you the choice of flexible payment and tenure options to suit your requirements. With ICICI Education Loan, you can save income tax on the interest paid. 

Also Read: Education Loan without Collateral and How to Get an Education Loan for Studying Abroad

ICICI Bank Education Loan Details

Stated below are the features of the ICICI education loan for domestic as well as international studies- 

ICICI Education Loan in India

Details Postgraduate Undergraduate
Interest Rate Starts at 11.5 % Starts at 11.5 %
Loan Tenure Without Collateral Up to 8 years post course period with additional 6 months Up to 5 years post course period with additional 6 months
Loan Tenure with Collateral Up to 10 years post course period with additional 6 months Up to 7 years post course period with additional 6 months
Maximum Loan Amount ₹ 50 Lakh ₹ 50 Lakh
Collateral Requirement As per the institute. Collateral-free loans for select institutes: Up to ₹ 20 lakh for UG and up to ₹ 40 lakh for PG courses. As per the institute. Collateral-free loans for select institutes: Up to ₹ 20 lakh for UG and up to ₹ 40 lakh for PG courses.
Moratorium Period As per the course and institute. As per the course and institute.
Margin 15% margin (Margin/ FD/ Scholarship) only for loans above ₹ 20 Lakh. 15% margin (Margin/ FD/ Scholarship) only for loans above ₹ 20 Lakh.

ICICI Education Loan Abroad

Details Postgraduate Undergraduate
Interest Rate Starts at 11.5 % Starts at 11.5 %
Loan Tenure Without Collateral Up to 8 years post course period with additional 6 months Up to 5 years post course period with additional 6 months
Loan Tenure with Collateral Up to 10 years post course period with additional 6 months Up to 7 years post course period with additional 6 months
Maximum Loan Amount ₹ 1 Crore ₹ 1 Crore
Collateral Requirement As per the institute. Collateral-free loans for select institutes: Up to ₹ 20 lakh for UG and up to ₹ 40 lakh for PG courses. As per the institute. Collateral-free loans for select institutes: Up to ₹ 20 lakh for UG and up to ₹ 40 lakh for PG courses.
Moratorium Period As per the course and institute. As per the course and institute.
Margin 15% margin (Margin/ FD/ Scholarship) only for loans above ₹ 20 Lakh 15% margin (Margin/ FD/ Scholarship) only for loans above ₹ 20 Lakh

Check out These Loans by Government:

ICICI Bank Education Loan: Maximum Amount

If you have sufficient collateral security, you can obtain the maximum secured loan amount of Rs. 1 Cr. The maximum amounts for an ICICI education loan without collateral are as follows:

Category A1 Category A2 Category A3
Maximum Unsecured Amount: INR 40 lakhs  Maximum Unsecured Amount: INR 20 lakhs  Unsecured Loans: not possible

Note: The fact that you can take a partially secured loan is a very unique feature of the ICICI Bank education loan policy. Assume you need a Rs. 45 lakhs education loan from ICICI bank. If your university is in the A2 category on ICICI’s Prime University List, you can apply for a maximum ICICI unsecured education loan of Rs. 20 Lakhs.

Eligibility Criteria

To avail this education loan, the applicant must fulfil the following eligibility criteria set by the ICICI Bank:

  • The applicant must be a resident of India.
  • The applicant must have completed the admission to a university.
  • Age should not be more than 35 years.
  • The applicant must have an Indian passport.
  • The applicant should have received the admission letter from the university.
  • A good credit/CBIL score is essential.

What does the Education Loan Covers?

Other inclusive features are-

  • Examination, library, and laboratory fees.
  • Hostel fees, travel expenses, and passage money for overseas
  • Books, equipment, uniforms, instruments, etc.
  • Caution deposit, building fund or refundable deposit supported by institution bills and receipts.
  • Insurance premium for student borrowers.

Also Read:

Courses Covered

As we are discussing all the important details pertaining to ICICI education loan, let us also take into account the courses to which this loan is applicable- 

Studies in India

  • Graduation courses – BA, B.Com, B.Sc. etc.
  • Post-Graduation courses – Masters & PhD.
  • Professional courses – Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer, ICWA, CA, CFA, etc. Courses conducted by IIM, IIT, IISc, XLRI, NIFT, etc.
  • Evening courses of approved institutes.
  • Computer certificate courses of reputed institutes accredited to Dept. of Electronics or Institutes affiliated to University.
  • Regular Degree/Diploma courses like Aeronautical, Pilot Training, shipping, etc. approved by the Director-General of Civil Aviation/Shipping if the course is pursued in India. In case the course is pursued abroad, the Institute should be recognized by the competent local aviation/shipping authority.
  • Courses offered by National Institutes and other reputed private Institutions – depending on future prospects/recognition by the user Institutions.
  • Courses offered in India by reputed foreign universities.
  • Other courses leading to diploma / degree etc. conducted by colleges / universities approved by UGC / Govt. / AICTE / AIBMS / ICMR / etc.
  • Courses leading to certification are not to be considered

Studies Abroad

  • Graduation – for job-oriented professional/technical courses offered by reputed universities.
  • Post-graduation – MCA, MBA, MS, etc.
  • Courses conducted by CIMA – London, CPA in the USA, etc.

ICICI Education Loan: Prime University List

A1 Category A2 Category A3 Category
Harvard University National University of Singapore Purdue University
Massachusetts Institute of Technology (MIT) University of Texas at Austin Grenoble Ecole de Management
London Business School University of Amsterdam Swinburne University of Technology
HEC Paris University of Warwick Loyola University, Chicago
Princeton University University of Tokyo University of Colorado, Denver

ICICI Education Loan- How to Apply

Students should ensure that they have the below-mentioned documents to avail for the education loan.

  • KYC
  • Marksheets of 10th, 12th, graduation and entrance exams
  • Admission letter of the university or college
  • Fee structure of the course applied for
  • Co-applicant KYC and income proof (needed for specific courses only)

Once you are ready with all the documents, you can start your application process. For this, you may either visit the nearest ICICI Bank branch and fill in the ICICI Education Loan application or simply apply online wherein the bank executive will contact you to help you complete the process.

Documents Required 

Here are all the important documents that you will need for the ICICI Education Loan 2021:

  • Admission Letter
  • Know your Customer (KYC) documents of both the student and co-borrower.
  • Mark sheets of 10th, 12th standard, graduation, and entrance exams.
  • Fee structure
  • Income Proof of co-borrower*
  • Residential, commercial property plots (Non-agricultural). **
  • Fixed deposits. **

*Income proof required only for specific courses.

** Only asked for when ICICI Bank seeks security/collateral from the borrowers.

ICICI Education Loan Modes for EMI of Loan

ICICI education loan can be repaid through:

Standing Instruction (SI) 

The best mode for repayment is Standing Instruction if you are an existing account holder with ICICI Bank. Your EMI amount will be debited automatically at the end of the monthly cycle from the ICICI Bank account you specify.

Electronic Clearing Service (ECS)

For all the non-ICICI bank account holders, this mode can be used to deduct the EMIs automatically at the end of the monthly cycle from the account.

Post-Dated Cheques (PDCs)

Students can submit post-dated EMI cheques from a non-ICICI Bank account at their nearest ICICI Bank Loan Centre. Then, a fresh set of PDCs will have to be submitted in a timely manner. Please note Post Dated Cheques will be collected at non-ECS locations only.

ICICI Education Loan: Important Points to Note

Here are some critical points to consider when applying for an ICICI Education Loan for study abroad:

  • The ICICI Education Loan Scheme is extremely versatile, allowing for secured, unsecured, and partially secured education loans for international studies.
  • The ICICI Education Loan eligibility criteria are quite stringent. ICICI has a very specific list of colleges, universities, and courses that are loan-eligible. 
  • An ICICI education loan is not available if your institution is not on their list.
  • The terms and conditions of the ICICI Education Loan Policy are entirely dependent on your university’s ranking.
  • Even Bachelor’s programmes are eligible for an ICICI Unsecured Education Loan. This point deserves special emphasis because no other financial institution will provide collateral-free education loans for Bachelor’s degree programmes.

Comparing the Loans From Different Banks

Below is a table for you to compare education loans from different banks in India:

Name of the
Bank
Loan
Amount
Interest
Rates
Margin
Money
Collateral
Required
Payoff
Period
ICICI Up to 1
crore
11% No amount
up to
20 lakh
Above
40 lakh
5-10 years
SBI Up to 20
lakhs
8.85%
and 10.75%
No amount
up to
4 lakh
Above
7.5 lakh
15 years
after the
degree
HDFC No
upper
limit
9-11% 1.5% of
sanctioned
amount+charges
Above
35 lakh
15 years
including
moratorium
period
Bank of
Baroda
Up to 80
lakh
8.50% No amount up to
4 lakh
Above
4 lakh
10-15
years

Other Funding Options

You can also look for several scholarship options such as HDFC ScholarshipCanara Bank Scholarship and Inspire Scholarship amongst others. that provide funding for studies in India and abroad. These have been given a run-down below.

FAQs

Which bank is best for education loan?

5 Best education loan banks in India are as follows:
SBI Education Loan 
Axis Bank Education Loan 
ICICI Bank Education Loan
HDFC education loan
Canara Bank Education Loan

Can I get education loan upto 50 lakhs?

Yes, one can get an educational loan in India which can vary between Rs. 1 lakh to upwards of Rs. 30-50 lakhs. For this, you will be required to have a third-party guarantor.

Can I get 1 crore education loan?

ICICI Bank, a private sector lender, has launched ‘Insta Education Loan,’ which allows customers to get an instant approval for education loans of up to one crore rupees. This first-of-its-kind facility will allow thousands of customers to take education loans against their bank’s fixed deposits in a fully digital process.

Can I get education loan without security?

Collateral is the security pledged against a loan. You can, however, obtain an education loan without pledging any security. However, if you take out a loan for more than Rs 7.5 lakh, the bank may require collateral to cover the loan amount. The bank may also require you to deposit margin funds and obtain third-party guarantees.

Who can get an Education Loan?

Any student can apply for an education loan with the help of guardians or parents who act as co-applicants. The repayment of your education loan will begin one year after the completion of your course, or within six months of landing a job following your course, whichever comes first.

Is it possible to get an ICICI Education Loan Subsidy?

Yes. The applicant or co-applicant will be eligible for tax exemption under Section 80E of the Income Tax Exemption Act of 1961, according to ICICI Bank education loan details. Depending on your income, you may be able to reduce your ICICI Education loan interest payment by up to 30%.

Whether you are looking to study in India or abroad, ICICI Education Loan helps you with a hassle-free loan application to fulfill your dreams of pursuing your desired course. You can reach out to our experts at Leverage Edu for more information on loan consultation as well as career-related guidance. For more entertaining and informative content, follow us on Facebook, Instagram, and LinkedIn.

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