ICICI Bank Education Loan

Education Loan
The Educational Loan Scheme aims at providing financial support to deserving/ meritorious students for pursuing higher education in India and abroad.

Eligible Student:

• Should be an Indian National
• Secured admission to professional/ technical courses in India or Abroad through Entrance Test / Merit Based Selection process.

Courses Eligible

Studies in India:
Graduation courses, Post Graduation courses, Professional courses, Computer certificate courses, Courses like ICWA, CA etc, Courses conducted by IIM, IIT etc., Courses offered in India by reputed foreign universities, Evening courses of approved institutes, Other courses leading to diploma/ degree etc. conducted by colleges/ universities approved by UGC/ Govt etc., Courses offered by National Institutes and other reputed private institutions, Teacher Training Course/Nursing Course/B.Ed approved either by the Central Government or by State Government and such courses should lead to Degree or Diploma Course.

Studies abroad:
Graduation : For job oriented professional/ technical courses offered by reputed universities, Post graduation: MCA, MBA, MS, etc., Courses conducted by CIMA- London, CPA in USA etc.

Expenses considered for loan:

• Fee payable to college/ school/ hostel
• Hostel expenses (Wherever students have to stay outside the campus or avail private accommodation banks may consider reasonable lodging & boarding expenses)
• Examination/ Library/ Laboratory fee
• Purchase of books/ equipments/ instruments/ uniforms
• Caution deposit/ building fund/ refundable deposit supported by Institution bills/ receipts
• Travel expenses/ passage money for studies abroad.
• Purchase of computers - essential for completion of the course
• Any other expense required to complete the course - like study tours, project work, thesis, etc

Quantum of finance: Need based finance subject to repaying capacity of the parents/ students with margin and the following ceilings.

• Studies in India - Maximum Rs. 10.00 lacs
• Studies abroad - Maximum Rs. 20.00 lacs

Margin:

• Upto Rs 4 lacs : Nil
• Above Rs 4 lacs : Studies in India 5% Studies Abroad 15%

Security:

• Loans Upto Rs 4 lacs - Co obligation of parents.
• Further wherever parents are not there banks could consider grandparent as co obligator to the loans taking into account their net worth

• Above Rs 4 lacs and upto Rs. 7.5 lacs
• Co obligation of parents along with Collateral in the form of a suitable third party guarantee for 100% of the loan amount to be taken

• For cases above Rs 7.5 lacs
• Co obligation of parents along with Collateral security of 100% value of loan
• Assignment of future income of the student for payment of the loan instalments for all loans
• The co-obligator should be parent(s)/guardian of the student borrower. In case of married person, co-obligator can be either spouse or the parent(s)/parents-in-law

Rate of Interest:

• loans upto Rs 4 lacs shall be IBAR ( not exceeding BPLR)
• for loans above Rs. 4 lakhs shall be BPLR + 1%
• At least 0.50% concession in interest rates on Education Loans to girl students for pursuing higher education in India and abroad
• Penal interest @2%

Repayment / Holiday:

• The repayment holiday shall be a year more than the period of the course or 6 months after the borrower gets a job, whichever is earlier.
• The loan shall be repaid in 5-7 years after commencement of repayment.

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