Know the Features and Benefits of ICICI Bank Education Loan

ICICI bank offers education loans for studying in India as well as abroad. Based on the course the student is pursuing and its location, ICICI bank offers both secured as well as unsecured loans. An education loan from ICICI covers most of the expenses related to studying, such as student exchange travel, study equipment like laptops, etc.

Some more details regarding the kind of education loans offered by ICICI bank are as follows:

1. Education loan amount limit by ICICI bank

The quantum of finances sanctioned by the bank are capped at INR 50 lakhs for studying in India and INR 1 crore for studying abroad. A student with an exceptionally good profile can apply for a bigger limit. This is, however, decided on a case-to-case basis.

2. Margin money on education loan by ICICI bank

There is no margin money for education loans up to INR 20 lakh for ICICI bank education loan. For education loans above INR 20 lakhs, the bank mandates 15% as margin money. Students should remember that any scholarship received by them during the course of their money can be considered as margin money by the bank.

3. Eligibility criteria for getting an education loan from ICICI bank

The eligibility criteria for sanctioning the loan is based on the bank’s policies at the time of the loan application. However, some common eligibility criteria that students should meet while applying for the education loan are as follows:

• Personal Details - Students applying for an education loan at ICICI bank should be an Indian citizen and must have completed their 12th standard. They should also have secured confirmed admission to a recognized institute in a degree or diploma program.
• Co-applicant’s Details - Parents, sister, brother, spouse, grandparents, and parents-in-law can be the student’s co-applicant. The bank requires that the co-applicant should have a regular source of income and would need proper documents to support the claim of income. The bank makes an exception for applicants to postgraduate courses. Those applicants who have more than 3 years of experience are eligible to apply for a loan even without a co-applicant.
• Target Program - As mentioned above, ICICI bank sanctions education loans for job oriented Undergraduate and Postgraduate degree as well as a diploma in India and abroad.
• Accepted Collateral - The bank accepts both residential as well as commercial property as collateral. It also accepts agricultural plots and fixed deposits as collateral.

1. Loan coverage

The education loans provided by the bank finances all the possible expenses of an overseas education. The bank may also approve the loan beyond the loan amount limit in exceptional cases.

2. Wider coverage and greater pool of courses and colleges

Students often face loan rejection because their target college is not on the lender’s list of eligible courses and colleges. This conundrum is solved with the ICICI Education loan. The bank has a longer list of courses and colleges they support. In the case of unsecured loans, students do not have to worry about the eligibility of their target course/college.

3. Tax benefits

Students taking an education loan from ICICI bank are eligible for tax benefits under section 80E of the Income Tax Act, 1961 on the interest paid.

4. Easy loan disbursal

Once the applicant has submitted all the required documents, the bank takes 7 working days to sanction the loan.

5. Government schemes and subsidies

ICICI Bank is a scheduled bank. This means that all government schemes aimed at helping students (such as CSIS, Padho Pardesh, Ambedkar Scheme, etc.) are available when taking an education loan from this bank.

Now that our readers know everything about ICICI education loan, the next question is - “how to apply for it”? Well, students can certainly apply directly to the bank but the process is lengthy and requires multiple visits to the bank. It is at this stage that GyanDhan helps its students. We help our students at every step of their loan application - from providing them a customized checklist of required documents to home pick up of documents, low turnaround time and higher chances of approval and that too for free! No more multiple visits to the bank or following up bank officials to know the status of your loan application. GyanDhan will take care of everything and will help get your education loan approved in just 7 days. What are you waiting for then? Just apply online here.