ICICI Bank Education Loans Overview
ICICI Bank is one of India’s largest banks, and has a fairly new education loans division. While the loans are much larger than many other banks, interest rates can be high, as can be denial rates
No collateral requires for education loans up to Rs. 40 lakhs (if approved)
High interest rates - lower rates are available elsewhere
1% Processing Fee
Eligibility for ICICI Bank Education Loan
If you are looking to get an ICICI education loan, you must:
- Be an Indian citizen, including your co-borrower
- Show proof of admission from an approved university
Enjoy unlimited no fee ATM withdrawals with a student account
ICICI Bank Education Loan Interest Rates
It is an essential part of every loan application process to check the interest rates - after all, nothing could be more important than knowing how much the loan will cost you. ICICI Bank education loan has a variable rate of interest - in essence, it is ICICI’s benchmark rate plus a variable rate based on your creditworthiness. This rate can vary between 11-15%. .
One thing to note is that Axis Bank has education loans for 15-20 years, a longer tenure than many other banks we’ve reviewed.
ICICI Bank Education Loan Processing Fee
If you’re getting an ICICI Bank education loan, the processing fee is 1% (plus 18% GST). This means that a loan of Rs. 50 lakhs can cost you an additional Rs. 64,000 in processing fees. Additionally, ICICI Bank requires you pay a margin of 15% of the sanctioned loan amount that you are requesting. Thus, an education loan of Rs. 50 lakhs will require a margin of Rs. 7.5 lakhs.
Which expenses are covered by education loan
ICICI Bank Education Loan covers 100% of all your study abroad expenses, from tuition fees to living and travel expenses.
ICICI Bank Education Loan Lending Limits
The smallest loan available is for Rs. 1 lakh, and the maximum amount is Rs. 1 crore, much larger than many other banks are offering. Remember, the loan amount will depend on two factors: 1) your requirement and 2) your creditworthiness.
ICICI Bank Education Loan Collateral Requirements
ICICI Bank can provide (depending on how they determine your creditworthiness and ability to pay back the loan) an education loan up to Rs. 40 lakhs without requiring collateral. For loans higher than that amount, or for applicants who aren’t approved for an unsecured loan, you or your co-borrower will be required to pledge certain types of collateral as security to the bank - this may be fixed deposits, houses etc.
Education Loan Co-applicant Requirements
If you are applying for a loan with a co-applicant such as a family member, the co-applicant must be an Indian resident with sufficient income. They will be required to show proof of income, as well as any assets or liabilities.
How to apply for ICICI Bank education loan
The first step in the application process is to fill in an application form. You can do this by either visiting ICICI’s website or visiting a branch that has an education loans office. Along with the form, you’ll be required to submit a variety of documents. Once ICICI has received these documents, they will make a decision on your loan application. If your loan gets approved, you will be required to sign a loan agreement, after which the funds are disbursed..
Documents required– Axis Bank education loan
You will need to provide the following following documents to apply for an education loan at Axis Bank:
- Completed and Signed Application Form
- 2 Passport Photos – Applicant and Co-Borrower
- Photo ID (Applicant and Co-Applicant)- Provide any one of the following: PAN card, Aadhaar card, Driving license, Passport or Voting ID
- Proof of Address (Driving Licence/Passport/Electricity bill/Telephone bill)
- Proof of Admission
- PAN Card of the student and Parent/ Guardian
- Statement on the cost of study
- Student/Co-borrower/Guarantor's bank account statement for the last 6 months
- Co-Applicant’s Income Proof
- Brief statement of assets & liabilities of Parent/ Guardian/Co-borrower
- AADHAR Card of the student and Parent/ Guardian
North Loop Education Loans
When you apply for an education loan through a North Loop partner, you can get up to $500 back in discounts! Click here
to learn more.