Education Loan Interest Rates 2020545 views
- What Makes One Go for ICICI Bank Education Loan?
- Variety of education loan schemes aided with attractive interest rates make it appealing for borrowers
Education is important for all and ICICI Bank knows the same that is why it provides financial support to the customers with loans up to INR 1 crore. You can get a loan from ICICI Bank and pay for your graduate and post-graduate courses. ICICI Bank can offer you the desired loan as per your fund requirement and help you get admission to a university or institution. ICICI Bank offers you a payment duration of 5 years with 6 months of the moratorium period. The bank doesn’t levy any margin on loans up to INR 20 lakh. That implies you can borrow upto INR 20 lakh without any hassle and pay the fees to college or university and secure your admission.
Table of Contents
- 1 ICICI Bank iSmart Education Loan
- 2 Security for ICICI Bank Education Loan
- 3 Margin on ICICI Bank Education Loan
- 4 Course & Expenses Covered Under ICICI Bank Education Loan
- 5 Documents for ICICI Bank Education Loan
- 6 Apply for ICICI Bank Education Loan
ICICI Bank iSmart Education Loan
|Loan||INR 1 crore|
|Processing Fee||1% of the loan amount|
|Late Payment fee||2% on EMI|
|CIBIL fee||INR 100 + GST|
The bank offers a loan up to INR 1 crore to the borrower for the foreign education that covers all your overseas educational expenses from Travel to University fee. Students can apply for their undergraduate or postgraduate courses without worrying about the funds because ICICI Bank is here to solve your financial problems related to your education. The student parent or guardian is the one who pays for the loan, the student is just a co-applicant. So, you don’t need to provide the student income source, because a co-applicant in an education loan is not required to earn. You just need to submit the qualification details, KYC proof your passport to get the loan application processed.
ICICI Bank charges the interest rate to your borrowed amount depending on your University or Institution. It means if an applicant has secured his admission in a renowned university or college, ICICI Bank helps him further with the lowest interest rate. And loan becomes affordable later for customers as ICICI Bank doesn’t charge prepayment fee for early payment of the loan. But, if you do part payment for your ICICI Bank Education Loan, you need to pay INR 1,500+GST to the bank.
Security for ICICI Bank Education Loan
It is the borrower’s decision purely whether they need to secure the loan by offering collateral to the bank. And to secure the loan, you need to mortgage the property, land, house or fixed deposit. Only the non-agricultural lands are acceptable for the loan security, any property that comes under construction or agriculture area is not valid for the ICICI Bank education loan. It means that the borrower needs to be careful while providing collateral to ICICI Bank. And the FD value should be high so that the bank can claim it later if the borrowers default on the loan.
The effect of collateral on Loan tenure is mentioned in the below table.
|Course||Tenure (in years) with collateral||Tenure (in years) without collateral|
|UG Domestic course||7||5|
|UG International course||7||5|
|PG Domestic Course||10||8|
|PG International Course||10||8|
The moratorium period on your ICICI Bank Education Loan is based on your course duration. So, if your course is for 3 to 4 years, the moratorium must be for 6 to 12 months.
Margin on ICICI Bank Education Loan
ICICI Bank provides you the desired loan with a zero margin on loans up to INR 20 lakh. But, if your loan exceeds the limit, you are required to pay the applicable margin for your education loan. And the margin on your loan ranges from 5%-15% depending on the loan amount. You can afford the margin on your loan with the help of Fixed Deposit, scholarship or initial fees that you have deposited to the university or institution. The margin doesn’t affect your loan payment; it is just for the bank to know your capacity to make the payment. So your education shouldn’t face the hurdle of lack of funds. With ICICI Bank, you can borrow up to INR 50 lakh for Indian education and INR 1 crore for abroad studies.
Course & Expenses Covered Under ICICI Bank Education Loan
Course to Study in India:
- Graduation courses such as B.A, B.Com, B.SC, B.E.D, B.B.A, etc.
- Post-Graduation courses of Masters & PhD. in any specialization
- Professional courses like Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer, ICWA, CA, CFA, etc.
- Courses conducted by IIM, IIT, IISC, XLRI, NIFT etc.
- Computer certificate courses from reputed and recognized institutes.
- Degree or Diploma courses like Aeronautical, Pilot Training, shipping, etc, approved by Civil Aviation in India.
- Courses offered in India by reputed foreign universities
- Evening courses from the approved institutes.
- Additional approved courses for diploma and degree by UGC, Govt., AICTE, AIBMS, ICMR, etc.
- Courses offered by National Institutes or reputed private Institutions that depend on prospects of Institutions.
- Graduation with placement enabled courses or technical courses from reputed universities.
- Post-graduation courses like MCA, MBA, MSC, etc.
- Cover overseas examinations fees such as SAT, LSATS, GMAT, etc.
- Courses conducted by CIMA in London or CPA in USA
Expenses covered by ICICI Bank
- College, Hostel or Tuition fees as per the norms
- Examination, Library, Laboratory and other essential service fees
- Travel expenses or the passage money overseas study
- Insurance premium inclusive of the loan EMI) for the student
- Caution deposit, building fund or refundable deposit supported by institution bills
- Purchase of books, equipment, uniforms, instruments, etc.
- Purchase of personal computer at a reasonable price if required it for the completion of the course
- Other expenses like study tour, project work, thesis are also combined in the ICICI bank education loan
Documents for ICICI Bank Education Loan
You need to submit a few of the documents to the bank during the loan procedure, and these are mentioned below.
- Aadhar card
- PAN Card
- Driving Licence
- Visa approval ( Abroad studies)
- Voter-ID card for Indian citizenship proof
Income Proof: (Only for Parent/Guardian)
- Bank Statement
- Salary slip
- Salary Certificate
- Form 16
- ITR report
- FD receipt
- Property documents
- Approval letter from the owner
- Land papers if house not constructed
Apply for ICICI Bank Education Loan
To apply for the loan to educate your child, you can visit the ICICI Bank website. You are required to fill up the form and submit it to the bank by providing name, email, mobile number, residence state, course, and loan amount. Once the bank receives your loan request, the representative will get in touch with the customer care and provide the details of the education loan. After the confirmation of the loan, you need to pay the processing fee for it, but it applies to international courses only. If you are applying for a course within India, the bank won’t require a processing fee for the education loan.
You can opt for any of the following methods to repay the ICICI Bank Education Loan.
- ECS: You can pay for the EMI automatically from your bank account using the ECS service. And to activate this service, you need to fill up an ECS form and submit it to the bank branch along with other documents.
- SI: The existing ICICI customer can make use of its standing instruction service to pay the loan via ICICI savings or current account. You can do the request for SI online with net banking services.
- PDCs: Also, the customers can pay their loan using cheques by submitting it to the bank branch. Just set a post-dated cheque with the EMI date on it and submit the same to your ICICI Bank branch.