Published date: 25 Nov 2020 Updated on: 25 Nov 2020 Education loans are a boon to students who find personal funds to be less than adequate at most times. With several benefits, they are the best choice for funding abroad education. You should search and explore various education loan options so that you can settle on the best-suited loan product that helps you with your overseas journey. There are many lenders in the market, each with a different loan product. We have a whole series of blogs on different loan products and disbursement processes to help you. In this blog, we are exploring the disbursement process, features, and benefits of the ICICI Bank education loan. What steps are to be taken before the ICICI Bank Education Loan disbursement process? The ICICI Bank education loan process is plain and simple. All you need to do is as follows - Apply for the loan - You can apply for the loan online on the GyanDhan portal after understanding the features and benefits of the ICICI Bank education loan. The entire loan application can be completed online, including submission of the required documents. Submit the required documents - The loan application form requires various documents such as the admission letter, fee structure, KYC documents, collateral documents (if applicable), course-specific documents, etc. GyanDhan will send your case-based document checklist to the registered email of the student, which can be easily uploaded on the portal. ICICI Sanction letter - Once the documents are submitted and verified, the ICICI Bank education loan sanction letter will be sent to the registered email of the applicant. Students are advised to read this letter carefully. Final Loan agreement - On accepting the terms and conditions mentioned in the sanction letter, applicants are required to submit further documents. After which, the bank sends the final loan agreement to be signed by the applicant and the co-applicant(s). The loan amount is disbursed as per the student’s request. What are the ICICI Bank Education loan documents required? The documents required for the ICICI Bank education loan process are as follows - Applicant’s KYC documents - Aadhar card PAN card Valid passport Driver’s license Applicant’s proof of address Tax paid receipt Telephone bill/Electricity bill/Water bill of not more than 3 months old Ration card Academic transcripts - 10th, 12th, and undergraduate mark sheets Test scorecards of GRE/GMAT/TOEFL/IELTS/PTE, if required. Admission letter Fee structure Applicant’s signature proof - Banker’s signature verification Passport copy PAN card Documents required from co-applicant(s) 3 months payslips and proof of any other additional source of income 6 months updated bank statement of salary account Latest Form 16 and ITR Relationship proof (with the applicant) The co-applicant will also have to submit 9-12 post-dated cheques, in case s/he is unable to make an interest payment in a particular month. NACH form There may be additional case-based documents that the applicant will have to submit to complete the application process and to initiate the disbursement process. The documents have to be notarized on stamp paper. Want To Apply For An ICICI Bank Abroad Education Loan? Fill this form and get in touch with an expert What is the ICICI Bank education loan disbursement process? The ICICI Bank education loan disbursement process does not require any additional steps. Once the bank has presented the sanction letter, the applicant has to submit all the above-mentioned documents, as well as any other mentioned in the letter. The applicant can request disbursement of the loan amount after the documents are submitted and verified by the bank. The time taken for disbursal is 15 working days. The process is quick and hassle-free for timely disbursement of loans. Tuition fees - The tuition fee is directly transferred to the university account or the student’s account. Living expenses - Expenses for accommodation, hostel, travel, etc, are transferred to the student’s account for ease of processing. Other expenses - All expenses incurred during studies abroad are covered under the ICICI Bank education loan. The loan amount for the same is transferred to the student’s account. Students should remember to request disbursement at least 2 to 3 weeks before the deadline for fee submission to provide ample time for the bank to process it and to avoid any delays in submitting the fee. What are the features of the ICICI Bank education loan? The ICICI Bank education loans are student-friendly with various features that aid students to pursue abroad education without breaking into a sweat. Some of them are as follows - Loan amount - ICICI Bank offers education loans up to INR 1 crore (with collateral) for overseas education. For education loans without collateral, the bank offer loans up to INR 40 lakhs for postgraduate courses and up to INR 20 lakhs for undergraduate courses. Interest rate - The ICICI Bank education loan interest rate for international studies starts at 11.25% for postgraduate courses. For undergraduate courses, the interest rate starts at 11.75%. The interest rate, however, can differ based on the course and the institute. If the student has secured admission in a top-ranking college, the interest rate can be negotiated. Simple interest is calculated on education loans. Margin Money - The bank does not charge any margin money on loan amounts up to INR 20 lakhs. Margin money for loans above INR 20 lakhs ranges from 5% to 15%. Any scholarship amount or initial fee paid to the university can be included in the margin money. Eligibility - The ICICI Bank education loan eligibility criteria is rather simple - The student should be an Indian national. The student should have secured admission in a recognized university to a degree or diploma course. The student should have successfully completed 10+2 education. Processing fee - The ICICI Bank processing fee is 1% of the loan amount plus applicable taxes. Repayment tenure - The bank offers up to 8 years after the moratorium period ends to repay the loan amount. If the student has pledged collateral, the loan tenure is 10 years post the holiday period. Moratorium period - The loan repayment starts after the completion of the course + 6 months. What are the benefits of the ICICI Bank education loan? The benefits of an ICICI education loan are as follows - Loan coverage - The education loans by the bank will cover any and every expense that is incurred in overseas education. Students can also pledge collateral to get a higher loan amount limit. Wider course and college coverage - Most lenders keep a list of eligible courses and colleges for abroad education. ICICI Bank, on the other hand, gives education loans to practically every course and college provided it is a recognized institute. Instant Education loan - The bank facilitates instant education loans that enable students to get an instant Sanction letter. The ICICI Bank Abroad loan Sanction letter is accepted as a source of funds for student’s admission confirmation. The student can avail of the Instant Education Loan by pledging Fixed Deposit with the bank. The instant loans are pre-approved, and therefore, the sanction letter is sent on the registered email ID of the customer. Interest rates - The ICICI Bank education loan interest rate is dynamic. On securing admission to a reputed and top-ranked college, the rate of interest can be negotiated to a lower figure. Pre-Visa disbursal - The bank offers the option to get the loan amount disbursed as a way to show proof of funds during the visa interview. The bank also has preferential forex rates for international disbursements. Margin money - There is no margin money on loan amounts up to INR 20 lakhs. Tax benefits - Under Section 80E of the Income Tax Act of India, the interest paid on an education loan is tax-deductible. Students can avail of this benefit by taking a loan from the ICICI Bank, as well as any other scheduled bank in India. In addition to this long list of benefits, the bank accepts non-financial co-applicants if the applicant has 3+years of experience and is going for a postgraduate course. There is also no penalty on prepayment of loans. What are the advantages of opting for the GyanDhan Gateway for your education loan? GyanDhan is a one-stop-shop for education loans and abroad studies. We provide services to students that we know would not only benefit the students but also make their abroad journey easy and hassle-free at zero cost to the students. Our Education Loan Counselors (ELC) will discuss the loan options with you before initiating the loan application. After a thorough discussion, the loan process is started with the lender that suits your profile and needs. We have partnered with ICICI Bank and several other major lenders in the market. While approaching a lender might be the first choice of the students, they should consider the benefits of channels like GyanDhan. The loan process is swift and with zero hiccups. The chances of any hindrance are negligible, and if faced, will be resolved immediately by your assigned ELC by contacting the concerned bank official. The ICICI Bank loan application status can be easily tracked on the dashboard of your GyanDhan account. The education loan process with GyanDhan is nothing short of a walk in a park. Just check your loan eligibility here and finance your dream education!
This is a companion discussion topic for the original entry at https://www.gyandhan.com/blogs/icici-bank-loan-disbursement