Summary
- Their rates are based on repo rates (the rate at which the Reserve Bank lends to commercial banks) that change after a few months.
- The ICICI Bank education loan is perfect for students who wish to pursue higher education in Indian and foreign universities.
- In this article, we explore ICICI Bank education loan and discover the interest rates, loan terms, documents required, and more.
Incorporated in 1994, ICICI Bank is one of the largest private-sector banks in India. Among many financial products, it also offers education loans to Indian students pursuing higher studies at accredited institutions in India and abroad. The bank offers a hassle-free online application process and flexible repayment options to its customers. In this article, we explore ICICI Bank education loan and discover the interest rates, loan terms, documents required, and more.
About ICICI Bank Education Loans
The ICICI Bank education loan is perfect for students who wish to pursue higher education in Indian and foreign universities. The bank provides loans for a wide range of courses, including undergraduate, postgraduate, and doctoral programs across various disciplines.
ICICI Bank Education Loans: Standout Features
ICICI Bank education loans offer unique advantages that set them apart from similar financial products from competitors. Here is an overview:
- Loans available up to ₹3 crores for international studies and ₹1 crore for domestic studies
- No margin amount may be required for loans to study at premium institutions
- You can complete the loan application and approval process online without visiting a bank branch
- In some cases, loan approval is granted even before securing admission at your chosen institution
ICICI Bank education loan interest rates
ICICI Bank education loan interest rates are very reasonable.
The bank offers two education loan options to suit different needs:
- Non-Collateral Loan: Loan up to ₹1 crore without pledging any security. Interest rates range from 11.25% to 12.75%.
- Collateral Loan: Loans of up to ₹3 crore by providing collateral like property. You enjoy a lower interest rate of 10.25%.
Their rates are based on repo rates (the rate at which the Reserve Bank lends to commercial banks) that change after a few months.
The formula used by ICICI Bank is ‘Repo Rate + 3.75% onwards’.
For example, if the repo rate is 7.25%, the minimum interest rate charged by the bank would be 11%. Of course, financial charges like interest are currently subject to 18% GST.
Application process for ICICI Bank education loan for Indian students
ICICI Bank allows you to apply online and offline. Here are the steps to apply for your education loan:
Online Student Loan Application Process
- Go to the ICICI Education Loan page and choose ‘Apply Now’
- Declare whether you are transferring an existing education loan or applying for a new one
- Provide your residency address precisely to establish eligibility and loan conditions
- Enter your personal information like PAN, name, phone number, and address
- Enter the amount of loan and where you want to continue your higher education
- Prepare the necessary documents as mentioned in the application form and upload them
- Carefully review the ICICI Education Loan Terms & Conditions
- Click “Submit” after agreeing to the Terms & Conditions
- ICICI Bank will contact you once your application is approved
Offline Student Loan Application Process
- Visit your nearest ICICI Bank branch.
- Ask for the education loan application form.
- Fill out the form with your personal and academic details.
- Attach the required documents, including:
- Admission letter from the educational institution
- Mark sheets and certificates of previous education
- Income proof of co-applicant (salary slips, ITRs, etc.)
- Property documents (if applying for a secured loan)
- Submit the completed application form and documents at the branch.
For both online and offline applications, there will be an interview. The bank officials would like to know about your future objectives and if you fully understand the terms and conditions. The bank personnel will also interview the co-borrower.
If the bank is satisfied, then they would grant the loan. You would receive it in your account or it might be directly remitted to the institution. The time taken is about 2-3 weeks.
Also Read: Education Loan for Abroad Studies (Comprehensive Guide)
Eligibility for ICICI Bank education loan
When considering an ICICI Bank education loan, it’s essential to understand the eligibility criteria that applicants must meet. Below are the key particulars:
| Criteria | Details |
| Nationality | Indian |
| Age | Minimum: 16 yearsMaximum: 35 years |
| Academic Qualifications | Proven Academic Record: Applicants must demonstrate a good academic history.Qualification: Completion of 10+2 (12th Standard) or a Diploma is required for those pursuing a Graduate or Postgraduate Degree, or a PG diploma in professional education. |
| University Criteria | The loan can be sanctioned for studies at listed, recognized, and accredited institutes in India and overseas. |
| Loan Sanction Basis | Pre-admission sanctionEntrance exam scores (e.g., GRE, GMAT)
12th/HSC results Confirmed admission |
| Loan Amount | Domestic Studies: Up to ₹1 croreInternational Studies: Up to ₹3 crore* |
| Co-borrower Options | Eligible co-borrowers include:– Father
– Mother – Brother – Sister – Spouse (Husband/Wife) – Grandparents – Parents-in-law – Maternal/Paternal Uncle |
| Security Requirements | To secure the loan, the following may be required:– Property (House or Flat)
– Fixed Deposit (FD) – Existing ICICI Bank Home Loan for cross-collateralization |
Why choose ICICI Bank for a study abroad loan?
ICICI Bank student loans are tailor-made for students who want to pursue higher education abroad. The bank’s loan products follow a “Fair to Bank, Fair to Customer’ philosophy due to which it has won the ‘Best Retail Bank in India’ award multiple times.
The bank’s flexible repayment terms and affordable interest rates, make it an attractive option for those seeking education loans for studying abroad.
Moratorium Period
ICICI Bank gives a 12-month moratorium period before the repayment starts. The year-long gap after graduation allows you to search for jobs that pay you well instead of settling for the first offer to start repaying the education loan.
Conversion Between Fixed and Floating Rate
It is possible to switch between a fixed and floating-rate loan. For example, you might have chosen a fixed-rate loan since at that time the interest rate regime was lower. But a few years into repayment, interest rates rose much higher and a floating rate is cheaper. ICICI Bank allows you to make this change with minimum formalities.
Pre-Approved Education Loan
ICICI Bank offers a pre-approved education loan for premier institutions. This loan is designed to provide immediate financial support to students pursuing higher education. The bank ensures that the process is completed quickly and there is no need to visit the branch multiple times.
‘Refer a Friend’ Incentives
The bank provides incentives for referring friends who apply for an education loan. This program encourages word-of-mouth marketing and helps expand the market for ICICI bank education loans.
Loans of up to Rs 3 crore
ICICI Bank’s education loan offers a substantial upper limit on the loan amount, for candidates seeking admission to particularly expensive higher education programs. This makes the bank one of the limited options for students to fund their higher education when their expenses are particularly high.
Other Banks & NBFCs Offering Education Loan to Study Abroad:
- Union Bank of India Education Loan
- Yes Bank Education Loan
- IDFC Bank Education Loan
- Bank of India Education Loan
- State Bank of India Education Loan
ICICI Bank education loan EMI calculator
EMI stands for Equated Monthly Installment, a fixed amount of money that a borrower pays to a lender each month to repay a loan.
The EMI includes both the principal loan amount and the interest. EMIs are usually paid on a specific date each month and remain constant throughout the loan term as long as the interest and tenure remain the same.
EMI is calculated using a very complex formula. For easier understanding, you can use the ICICI Bank education loan EMI calculator here.
Here’s How to Use the ICICI Bank Education Loan EMI Calculator:
- Select the country where you plan to study. For example, in this case, the selected country is the United States of America.
- Choose your institution. Here, Bryant University is selected.
- Adjust the slider to set the duration of your course. For instance, 24 months.
- Enter the tuition fees for your course. The example shows ₹50,00,000.
- Enter the estimated cost of living. In the example, it is ₹5,00,000
- Click on Know Your EMI.
In this way, by entering accurate details in the ICICI Bank education loan EMI calculator, you can get a clear understanding of your monthly financial commitment. This helps you plan your finances better for your study abroad journey.
Documents required for an ICICI Bank education loan
To apply for an ICICI Bank education loan, you’ll need to provide several documents. Here’s a list:
| Document Type | Required Documents |
| Student-Applicant Identity Proof | – Aadhaar Card– PAN Card
– Passport (mandatory for international studies) |
| Student-Applicant Residence Proof | – Aadhaar Card– Passport
– Voter ID Card |
| Student-Applicant Academic Records | – 10th and 12th grade results– Graduation results
– Entrance exam results (e.g., GRE, TOEFL) |
| Student-Applicant Proof of Admission | – Admission letter from the institution abroad– Statement of cost of study/schedule of expenses |
| Student-Applicant Additional Documents | – Two passport-size photographs– Details of any other loans being repaid |
| Co-Applicant/Guarantor Identity Proof | – Aadhaar Card– PAN Card |
| Co-Applicant/Guarantor Residence Proof | – Aadhaar Card– Passport
– Voter ID Card – Utility bills |
| Co-Applicant/Guarantor Additional Documents | – Two passport-size photographs |
| Income Proof for Salaried Co-Applicant/Guarantor | – Salary slip– Copy of Form 16
– IT returns – Bank account statement for the last three months |
| Income Proof for Self-Employed Co-Applicant/Guarantor | – Business address proof– IT returns
– TDS certificate – Form 16A – Bank account statement for the last three months |
| Collateral Documents | – Title deed of house or property– Proof of ownership of other assets such as fixed deposits (FD) and securities |
Things to remember when applying for ICICI Bank Education Loans
An education loan is a significant sum of money. When you opt for an education loan from ICICI, here are a few essential things to keep in mind:
Research Loan Options
Before applying for an ICICI Bank education loan, it’s necessary to explore and compare different loan options. Research various loan products offered by ICICI Bank as well as other financial institutions to find the most favorable terms and conditions. Look at factors such as interest rates, repayment terms, and loan amount.
ICICI Bank offers both fixed and floating interest rates. Compare the rates and choose what suits you best.
Estimate the Total Cost
Before you sign, carefully calculate the full cost of education. Online tools like ICICI bank EMI calculator can help estimate expenses very accurately. You should compare loans of different tenures (8 years, 11 years, 14 years) and find how the EMI reduces. But keep in mind, the longer the tenure the more total interest you would pay.
Understand the Eligibility Criteria
Students need to be familiar with ICICI Bank’s eligibility requirements for education loans. Generally, you need to be an Indian citizen, have secured admission to a recognized educational institution abroad, and meet the age criteria.
Since education loans for studying abroad require collateral in most cases, ensure that you meet the financial criteria and have creditworthiness.
Understanding the Moratorium Period
During the moratorium period of an education loan, you are not required to make payments. This period typically covers the duration of your studies plus an additional time frame, such as 6 months to a year after completing your course.
Interest continues to accrue during this time and is added to the principal amount. Therefore the total loan amount includes the moratorium period interest.
Read the Fine Print
Thoroughly read and understand the fine print of the loan agreement. The fine print includes the detailed terms and conditions of the loan.
Pay close attention to prepayment penalties, and any other hidden charges. Understanding these details will help you cope with the potential costs associated with the loan. It also helps you avoid surprises and make informed decisions.
Collateral requirements for ICICI Bank education loans
Banks commonly require collateral for a loan. A collateral assures the bank that your loan will not turn into bad debt. If you or the co-borrower cannot repay, the bank will sell the collateral and recover the ICICI Bank education loan amount.
To secure an education loan from ICICI Bank, you may need to provide specific collateral documents. These typically include:
- Property Documents: Ownership papers for the property (house or flat) pledged as collateral.
- Fixed Deposit (FD): Fixed Deposit with ICICI Bank, may be used as security for the loan.
- Existing ICICI Bank Home Loan Documentation: If you have an existing home loan with ICICI Bank, it may be used for cross-collateralization.
ICICI Bank does not accept gold jewelry, gemstones, or shares as security.
So, it’s clear that students need to compare loans on several factors. This can be overwhelming, particularly at a time when they have so many other things related to their admissions on their minds. This is where FundRight can help.
FundRight offers a simple and effective solution to this problem.
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FundRight has helped over 60,000 students secure the best education loans for studying abroad. Some students have saved up to ₹23 lakhs with FundRight!
Ready to simplify your loan search for Spring 2025? Sign up on FundRight today and discover how much you can save.
Also Read: Collateral vs Non Collateral Education Loan for Abroad Studies
FAQs
1. What is a credit score?
A credit score is a three-digit number representing your creditworthiness. In India, the score ranges from 300 to 900.
This score is crucial for lenders and in India, the most trustworthy credit score is from CIBIL (Credit Information Bureau India Limited). There are other institutions also like Experian. A score of 700 and above is considered suitable for an ICICI Bank education loan.
2. How does my academic background impact my eligibility for an ICICI Bank education loan?
Your academic history plays a significant role in determining your loan eligibility. ICICI Bank officials will review your grades and determine whether you are likely to succeed in your studies and secure a job after graduation.
A strong academic record can persuade them to approve the loan.
