In today’s globalised world, education has become a crucial investment for a successful career. However, the cost of education, whether in India or abroad, can be quite substantial. To bridge this financial gap, many students turn to education loans offered by various banks in India. Two of the prominent players in this space are Axis Bank and ICICI Bank. In this blog, we will provide you with a detailed overview of Axis Bank vs ICICI Bank focusing on key aspects like interest rates, country-specific loans, repayment tenure, and more.
Axis Bank vs ICICI Bank Education Loan
The below table consists of a comparison of Axis Bank vs ICICI Bank comparison
| Aspect | Axis Bank Student Loans | ICICI Bank Student Loans |
| Interest Rates | Starting at 9.9% | Starting at 9.85% |
| Loan Amount Range | INR 50,000 to INR 75 lakhs | INR 50,000 to INR 1 crore |
| Collateral Requirement | May be required for higher amounts | May be required for higher amounts |
| Repayment Tenure | 7 to 15 years | Up to 10 years for < INR 7 |
Axis Bank Education Loans
Axis Bank is one of India’s leading private sector banks, known for its wide range of financial products and services. Their education loan scheme aims to make quality education accessible to all by offering competitive interest rates and flexible repayment options.
Key Features of Axis Bank Education Loans:
- Interest Rates: Interest rates vary depending on the loan amount and the borrower’s profile. Typically, they start at around 9.85% and can go up to 15.2%.
- Loan Amount: Axis Bank provides loans ranging from INR 50,000 to INR 75 lakhs, making it suitable for various educational needs.
- Collateral: For loans below INR 7.5 lakhs, no collateral or third-party guarantee is required. However, for higher amounts, collateral or a co-applicant may be necessary.
- Repayment Tenure: The bank offers a flexible repayment tenure ranging from 7 years to 15 years, allowing borrowers to choose a comfortable repayment plan.
- Margin Money: Axis Bank typically requires a margin of 15% for studies in India and 25% for studies abroad. This means the bank covers up to 85% – 75% of the total education expenses.
ICICI Bank Education Loans
ICICI Bank, another leading private sector bank in India, is known for its customer-centric approach and comprehensive range of financial solutions. Their education loan offerings are designed to support students in pursuing their academic aspirations.
Key Features of ICICI Bank Education Loans:
- Interest Rates: ICICI Bank offers competitive interest rates, starting at around 9.85%. The rates may vary based on the loan amount and the applicant’s profile.
- Loan Amount: ICICI Bank provides loans ranging from INR 50,000 to INR 1 crore, ensuring that students can fund education both in India and abroad.
- Collateral: Loans below INR 20 lakhs generally do not require collateral. However, for higher amounts, collateral or a coapplicant may be necessary.
- Repayment Tenure: ICICI Bank offers a repayment tenure of up to 10 years for loans up to INR 7.5 lakhs and up to 15 years for higher loan amounts.
- Margin Money: Similar to Axis Bank, ICICI Bank may require a margin money contribution, usually around 5% to 15% of the total education expenses.
Axis Bank vs ICICI Bank: Interest Rates
One of the most critical factors to consider when applying for an education loan is the interest rate, as it significantly impacts the overall cost of borrowing. Let’s compare the interest rates offered by Axis Bank and ICICI Bank.
Axis Bank Interest Rates:
- Interest rates typically start at around 9.9%.
- Rates may vary based on the loan amount and the applicant’s profile.
- Interest rates can go up to 15.2%, especially for loans with higher risk profiles.
- Special interest rates may be offered for female students, certain courses, and premier institutions.
ICICI Bank Interest Rates:
- ICICI Bank offers competitive interest rates, starting at approximately 9.85%.
- Like Axis Bank, the interest rates are subject to variations based on the loan amount and applicant’s profile.
- Special interest rate concessions may be available for female students, selected courses, and premier institutions.
Comparison: Both Axis Bank and ICICI Bank offer competitive interest rates, with only a marginal difference between them. However, it’s essential to compare the specific rates offered to determine which bank provides a better deal for your education loan needs.
Documents Required For Education Loans: Axis Bank Vs ICICI Bank
ICICI Bank and Axis Bank are prominent financial institutions in India, offering a range of financial products and services, including education loans. When seeking education loans from these banks, it’s essential to understand the specific document requirements for your application:
| Document Category | ICICI Bank | Axis Bank |
| KYC | KYC documents | KYC documents |
| Academic Qualifications | Mark sheets & entrance exams | Mark sheets |
| Admission | Admission letter | Admission letter, fee schedule |
| Financial | Fee structure | Last 6 months’ bank statement |
| Co-applicant | Co-applicant KYC, income proof | Optional Guarantor Form |
| Collateral (if needed) | Additional documents may apply | Collateral-related documents (if applicable) |
| First Disbursement | N/A | Loan agreement, demand letter, and more |
| Subsequent Disbursement | N/A | Demand letter, various disbursement docs |
Axis Bank vs ICICI Bank: Repayment Tenure
The repayment tenure of an education loan plays a vital role in managing your finances during and after your education. It’s crucial to choose a tenure that suits your financial capabilities without causing undue stress. Here’s how Axis Bank and ICICI Bank differ in terms of repayment tenure:
Axis Bank Repayment Tenure:
- Axis Bank offers a flexible repayment tenure, typically ranging from 7 years to 15 years.
- Borrowers can select a tenure that aligns with their financial situation and future career prospects.
- The bank allows borrowers to commence repayment after a moratorium period, which covers the course duration and an additional grace period.
ICICI Bank Repayment Tenure:
- ICICI Bank offers varying repayment tenures based on the loan amount.
- For loans up to INR 7.5 lakhs, the repayment tenure can extend up to 10 years.
- For higher loan amounts, the bank provides a longer tenure of up to 15 years.
Comparison: Both banks offer flexible repayment tenure options, with ICICI Bank providing a slightly longer tenure for higher loan amounts. However, the choice of repayment tenure should align with your financial goals and capacity, as well as the overall cost of the loan.
Conclusion
In the pursuit of quality education, securing the right financing is a critical step for many students. Axis Bank and ICICI Bank, two prominent players in the Indian banking sector, offer comprehensive education loan solutions tailored to the unique needs of students. After a thorough examination of their education loan offerings, it is evident that both banks have their strengths and advantages.
FAQs
1. What is the processing fee for Axis Bank vs ICICI Bank education loans?
The processing fee for education loans from both Axis Bank and ICICI Bank typically falls within the range of 1% to 2% of the loan amount, depending on the specific terms and conditions.
2. How many days does it take to get an education loan from Axis Bank and ICICI Bank?
Both Axis Bank and ICICI Bank usually notify their decision within 15 working days of receiving the complete education loan application.
3. Which lender has a higher chance of accepting my education loan application: Axis Bank or ICICI Bank?
The likelihood of your education loan application being accepted depends on several factors, including your creditworthiness, the loan amount, and the specific eligibility criteria of each bank. It’s recommended to check with both banks and compare their requirements.
4. What is the minimum salary requirement of the co-applicant for Axis Bank and ICICI Bank education loans?
In some cases, lenders do accept co-applicants with lower monthly incomes, but a recommended minimum monthly salary of INR 30,000 is advisable.
5. Which countries are eligible for Axis Bank education loans?
Axis Bank offers pre-visa disbursement of education loans upon the university’s request for countries including Australia, the United States, the United Kingdom, New Zealand, Germany, and Canada, among others.
6. Which countries are eligible for ICICI Bank education loans?
ICICI Bank extends education loans to students aspiring to study in these eligible countries: USA, Australia, UK, Switzerland, Ireland, Canada, Italy, New Zealand, Netherlands, France, Singapore, Sweden, Germany, and Dubai.
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