The world is evolving and so are the ways we live. Education has become an important part of our lives and we want to make sure that our children get the best education possible. Education loans play a crucial role in helping students finance their abroad studies and in fact, it is one of the most feasible options. There are many banks that provide student loans and ICICI Bank is one of them. In this article, we will tell you all about getting an ICICI Bank Education loan without Collateral, how to apply for this loan, and what benefits it offers you!
Know About Abroad Education Loan
ICICI Education Loan Without Collateral For Abroad Studies
ICICI Bank provides education loans for studying abroad, offering a maximum loan amount of 2 crore for collateralized loans and up to 50 lakhs for non-collateralized loans.
Below are the details specifically applicable to an ICICI Bank education loan without collateral for studying abroad:
| Parameter | Details |
|---|---|
| Loan Limit | Up to 50 lakhs for non-collateral or unsecured loans Up to 2 crores for collateralized loans (Higher loan amount possible based on applicant/co-applicant profile) |
| Accepted Co-applicants | Father, Mother, Brother, Sister, Spouse (Husband/Wife), Grand Parents, Parents-in-law, Brother-in-law, Maternal/Paternal Uncle |
| Interest Rates | Collateral Loans: 9% to 11% Non-collateral Loans: 12% to 14% |
| Moratorium Period | Course period plus 6 months |
| Repayment Duration | Undergraduate (Post-Moratorium Period): Up to 8 to 10 years Postgraduate (Post-Moratorium Period): Up to 10 to 12 years |
| Repayment Policies | Full simple interest will be charged during the moratorium period |
Eligibility For An ICICI Bank Study Abroad Loan
Nowadays, any student can get an Education Loan. ICICI Bank makes it simple to apply for a loan. Depending on your needs, the bank offers loans ranging from Rs 50 lakh to Rs 1 crore. It is critical to understand the eligibility requirements before applying for a loan. The eligibility for an Education Loan varies by bank. The following are the eligibility requirements for applying for an ICICI Education Loan without collateral:
- Applicants can apply for an ICICI Bank Education Loan Without Collateral provided they are a citizen of India.
- They should also be below the age of 30 years at the time of applying.
- The minimum age limit is 20 years and the maximum age limit is 35 years.
Countries Eligible For An ICICI Bank Student Loan
ICICI Bank provides education loans for studying abroad in the following countries:
- United States (USA)
- Australia
- United Kingdom (UK)
- Switzerland
- Ireland
- Canada
- Italy
- New Zealand
- Netherlands
- France
- Singapore
- Sweden
- Germany
- Dubai
ICICI Bank Educational Loan Interest Rate
ICICI Bank, founded in 1994, is a leading private-sector bank in India. The bank provides a variety of banking and financial services, as well as credit products, to meet the needs of its customers. The bank understands students’ career goals and has designed its ICICI education loan without collateral for abroad in such a way that each student is successful in his or her journey toward the future.
These loans help students realize their dream of obtaining a world-class education in premier institutions abroad by providing a collateral-free loan of up to Rs.40 lakh, tax savings on interest paid u/S 80(E), flexible tenure and repayment options, and competitive ICICI Bank education loan interest rates. The interest rate of ICICI Education Loan without collateral is not fixed. It depends on the loan amount and duration of the loan. For loans above Rs. 1 crore, it is 12%. For loans below Rs. 1 crore, it is 9%.
Documents Required
- Applicant’s Identity Proof (Passport copy or Driving License copy or Voter ID card copy)
- Latest Salary Slip (At least one-year-old)
- Utility bills (Gas, Electricity, and Water bills issued within the last three months in applicant’s name)
- Bank Statement (Last six months bank statement in applicant’s name)
- Address Proof (Passport copy or Driving License copy or Voter ID card copy)
- CA Certificate/Chartered Accountant certificate
- Residence Proof (Passport copy or Driving License copy or Voter ID card copy)
Benefits Of ICICI Bank Student Loan
The ICICI Bank Education Loan Without Collateral offers a wide range of benefits when compared to other private banks.
- Interest rate is lower than other private banks
- Loan amount is flexible and can be used for any purpose
- Payment period can be over a longer period of time, making it easier to pay off the loan within your budgeting plan
- Loans are available for students studying abroad as well as in India
The ICICI Bank Education Loan Without Collateral application process is quite simple. You just need to fill out the form located on the website, attach all necessary documents and submit the same to get approved.
Features Of ICICI Education Loan
- Objective: To provide ICICI Bank abroad education loan without collateral to international students pursuing higher education.
- Quantum of Loan: Up to ten lakh rupees for studies in India and up to twenty lakh rupees for studies abroad
- Margin: No margin is required for loans up to INR 4 Lakhs, 5% margin for loans above INR 4 Lakhs for studies in India, and 15% margin for studies abroad.
- Repayment period: After completing the course, the moratorium period is one year. After getting a job, repayment begins six months later.
- Security: The parents or guardians will be the loan’s co-applicant and primary debtor. The bank will accept tangible collateral as security in exchange for a third-party guarantee. There is no need for security for loans up to 4 lakhs.
- Processing fees: There are no processing fees when applying for an ICICI Bank education loan without collateral.
Processing Fees For ICICI Education Loan
When applying for an education loan with ICICI Bank to pursue studies abroad, it’s important to be aware of the processing fees involved. The processing fee is a charge levied by the bank for the loan application and approval process. While the exact fee amount is subject to change and may vary, typically it ranges from 1% to 2% of the loan amount. It’s essential to note that the processing fees for ICICI Bank education loans for abroad studies are subject to revision, and it’s recommended to verify the current rates directly with the bank.
EMI Payment Methods
The ICICI Bank abroad education loan without collateral can be repaid in three ways:
- Standing Instruction: Standing Instruction is the best mode of repayment if you already have an account with ICICI Bank. Your EMI will be deducted automatically from the ICICI Bank account you specify at the end of the monthly cycle.
- Electronic Clearing Services: If you have a non-ICICI Bank account and want your EMIs to be debited automatically at the end of the monthly cycle, you can use this mode.
- Post-dated Cheques: Post-dated EMI cheques from non-ICICI Bank accounts can be submitted to your local ICICI Bank Loan Centre. A new set of PDCs must be submitted in a timely manner. Please keep in mind that Post Dated Cheques will only be accepted at non-ECS locations.
ICICI Bank Education Loan Insurance
ICICI Bank provides a loan insurance option for education loans, typically amounting to 1% to 1.5% of the loan amount. This loan insurance acts as a protective measure, offering reassurance that your education loan will be repaid in unexpected situations like disability or unfortunate demise. The insurance coverage is extended by a partnering insurance company affiliated with ICICI Bank, ensuring added security for borrowers.
Loan Margin For ICIC Bank
Banks often require borrowers to contribute a certain percentage of the required loan amount, known as the loan margin. ICICI Bank follows a similar approach, where the loan margin varies based on the category of the university the student is planning to attend. It’s important to note that the loan margin requirement is applicable only for loans above 20 lakhs.
The loan margin percentages for different categories of universities in ICICI Bank are as follows:
| Category of the University | Loan Margin |
|---|---|
| A1 | 95% |
| A3 | 90% |
| A4 | 85% |
By understanding the loan margin requirements based on university categories, borrowers can plan their finances accordingly when applying for education loans from ICICI Bank. This approach helps ensure a smooth loan process while pursuing higher education dreams.
How To Apply For An ICICI Bank Student Loan?
To apply for an ICICI education loan, you can follow the steps outlined below:
Offline Application Process:
- Gather the necessary documents as mentioned & visit the nearest ICICI Bank branch.
- Present the list of documents to the bank representative.
- Follow the instructions provided by the bank staff to initiate your education loan application.
- Cooperate and provide any additional information or documentation required by the bank.
- The bank will assess your application and, upon successful processing, sanction your loan.
- Keep in mind that the offline application method may take a bit longer compared to the online process, but it ensures personal interaction and assistance from the bank employees.
By following these steps, you can apply for an ICICI education loan offline, allowing you to receive guidance and support directly from the bank staff during the application process.
Apply For ICICI Bank Education Loan With UniCreds
- After verifying eligibility, you can apply online or request a callback from our expert loan consultants at UniCreds.
- UniCreds allows online document upload, avoiding the need for in-person visits to the bank.
- UniCreds provides a customized document checklist based on your profile and loan requirements.
- Free door-to-door document collection services are available in Tier 1 and Tier 2 cities (check availability with UniCreds).
- ICICI Bank then reviews your application and provides real-time approval upon document submission.
- You will be required to pay processing fees, as specified to obtain the sanction letter once your loan is approved.
- You can then complete the loan agreement within the sanction letter’s validity period (six months).
- Loan disbursal is initiated after signing the agreement, either to your bank account or directly to the university.
- UniCreds ensures timely disbursements and provides ongoing support throughout the loan term.
ICICI Bank Study Loan Repayment
During the moratorium period, ICICI Bank charges full simple interest on education loans. Once this period ends, students typically have 8 to 12 years to repay the loan. However, they also have the option to close the loan before the designated tenure through various methods, including:
- Prepayment: Students can choose to make early repayments, reducing the overall duration of the loan and potentially saving on interest costs.
- Opting for a shorter repayment duration: By selecting a shorter repayment period, students can expedite the loan repayment process and become debt-free sooner.
- Loan transfer to another bank: Students may explore the option of transferring their education loan to another bank, which could offer more favorable terms and conditions, potentially alleviating any issues they might face during repayment.
While in the repayment phase, students may encounter challenges such as sudden increases in the rate of interest, which can significantly impact their financial situation. It’s essential for borrowers to stay informed about any changes in the rate of interest and evaluate their options to mitigate potential difficulties.
Conclusion
ICICI bank is one of the most respected banks in India. It has been offering educational loans to students since 1981. ICICI Bank finances all graduate and postgraduate programmes and courses in India and around the world. For an ICICI Bank education loan without collateral, you can apply online at a nearby Bank branch. You can also download the education loan application form from the ICICI Bank website, fill it out, and submit it to a bank representative.
FAQs
1. What is the maximum loan amount I can avail under ICICI Bank Education Loan without collateral?
The maximum loan amount available under ICICI Bank Education Loan without collateral is up to 50 lacs (50,00,000 INR).
2. What is the repayment period for an ICICI Bank Education Loan without collateral?
The repayment period for an ICICI Bank Education Loan without collateral is typically up to 8 to 10 years after the moratorium period, depending on the terms and conditions of the loan.
3. Can I get an ICICI Bank Education Loan without collateral for studying abroad?
Yes, ICICI Bank provides education loans without collateral for studying abroad, subject to meeting the eligibility criteria and providing the required documents.
4. Can I prepay the loan amount before the end of the repayment period?
Yes, you can choose to prepay the loan amount before the end of the repayment period. However, prepayment terms and conditions, including any applicable charges or penalties, may vary and should be verified with ICICI Bank.
5. What happens if I fail to repay the loan on time or default on payments?
If you fail to repay the loan on time or default on payments, it may negatively impact your credit score and creditworthiness. It is important to contact ICICI Bank as soon as possible to discuss any difficulties you may be facing and explore potential solutions or alternative repayment options.
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