EDUCATION LOAN

Created By – Backbenchers
Group - 4
 INTRODUCTION
 In This Presentation we are going to see and learn About Education loan In Deep
manner. Like its Features , Advantages , Benefits and Etc.
 This presentation created by the Help of All Members of BACKBENCHERS
-Group – 4.
 There are 11 members in Backbenchers ( group – 4 ) and these are :
Deepak Punnu , Dushmanta Lenka , Mayank Kumar , Niku Das , Pawan
Gujjar , Priyanka Sheoren , Satyam Sidharth , Swapnil Dhane , Umika
Garg , Vikky Singh , Himanshu Kumar Mehta.
 The Leader of This Group is Himanshu Kumar Mehta.
 What is an Education Loan

 An education loan is a loan that students apply for, in order to fund their
education in India or abroad. Different banks and financial institutions offer
Education Loans to aspirants at competitive rates, to help them make
quality education affordable. There are two key features of ICICI Bank
Education Loans:
 Unlimited Income Tax benefits under Section 80(E) on full interest paid
 Collateral free loan, up to Rs lakh, for select institutes and courses
What Are the Benefits Of Taking An
Education Loan?
 The loan amount can vary from minimum Rs 1 lakh to Rs 1 crore, depending
upon your area of study. ICICI Bank offers loan up to Rs 50 lakh for
education in India and up to Rs 1 crore for education abroad. ICICI Bank
offers education loans for both Undergraduate and Postgraduate courses
 In certain cases, even 100% financing is available
 The financing covers other expenses such as the cost of laptop or travel
expenses
 The bank offers a flexible repayment option. The education loan
repayment tenure can exceed up to 12 years, after the completion of the
course
 Parents and siblings can be co-applicant(s) in an Education Loan
 Education Loans are easily available.
 Education loans are typically offered by banks, financial
institutions, and government agencies. The terms and
conditions of these loans may vary depending on the lender
and the country. However, some common features of
education loans include: -

Loan Amount –
ICICI Bank offers substantial loan amounts to cover tuition
fees, living expenses, and other educational costs. The loan
amount can vary depending on the course, institution, and
country of study.
Interest Rates:-
 Education loans generally accrue interest, which is the
cost of borrowing the money. The interest rates can be
fixed or variable and may vary depending on the
lender, the type of loan, and the borrower's
creditworthiness.
Repayment Terms :-

Education loans typically have a specified

repayment period, which is the time given to
repay the borrowed amount along with the
accrued interest. The repayment terms may
vary, but they often allow for a grace period
after graduation before the borrower is required
to start repaying the loan.
Loan Security:-

In some cases, education loans may require

collateral or a guarantor who agrees to
repay the loan if the borrower fails to do so.
However, many student loans are unsecured,
meaning they do not require collateral.
Documents Required For Applying
For Education Loan :-
 To be eligible for an Education Loan, students need to submit the following
documents:
 Mark sheet and passing certificate of 10th and 12th exams
 Admission Letter from the respective college/university
 Fee structure
 KYC document of the applicant and co-applicant
 Income proof in some cases.
 Furthermore, in the case of an Education Loan below Rs 4 lakh, no collateral is
required. For a loan above Rs 4 lakh to Rs 7.5 lakh, a third-party guarantor is
required, while for loans above Rs 7.5 lakh, collateral becomes mandatory.
When it comes to a loan for studying abroad, insurance is mandatory.
How Education loan works?

 For those students who apply for an Education Loan, it is not necessary to
pay the amount immediately; the repayment tenure starts from months or
year, after the completion of the course. And in some cases, it can be
extended from 5 to 7 years.
 The interest rate varies as per the banks. The loan amount is directly paid to
the institution/university at the start of the semester by the bank. Education
Loans also include all other expenses, such as library fees, hostel fees, cost
of books, laboratory fees etc., thus assuring that the student does not have
to pay any expenses from their pocket.
Key Features
 No charges or restriction on part or prepayment of ICICI Bank education loan
abroad.
 Student exchange travel, equipment like laptops, etc. and such expenses also
included.
 Pre-Visa option is also available.
 Preferential forex rates offered to students availing ICICI Bank education loan for
abroad studies.
 Quick disbursal.
 Loan without co-applicant for PG course for applicants having 3+ year of
experience.
 Tax benefit on interest paid u/S 80(E) of the IT Act, 1961
Frequently Asked Questions
1. What is the maximum loan amount one can get for overseas studies?

The max. education loan amount offered by ICICI Bank is INR 40 Lakhs

without collateral and INR 1 Cr. with collateral.

2. What is the interest rate on ICICI education loan?

Interest starts @ 11.5% p.a.

3. What is the tenure of an ICICI education loan?

The tenure of an ICICI education loan ranges between 5 to 10 years.

4. Do education loans have any Income Tax benefits?

Yes, education loans from ICICI Bank have tax benefits.

5. Is there a prepayment penalty on ICICI Bank education loan?

No, there is no prepayment penalty on ICICI Bank education loans.

6. Is the loan disbursed in favour of the borrower or the institute/college/university?

Tuition fees and on-campus housing fee is transferred to the university, whereas other living expenses are

transferred to the borrower’s account.

Conclusion

 ICICI Bank is one of the leading private sector banks in India. ICICI Bank was
founded in 1994 and provides a wide range of banking products and
financial services. It offers an array of credit products designed to suit the
many differing needs of its customers.
 Education is one area where everybody is willing to spend a lot of money
to live a prosperous life in the future. Being one of the major education loan
providers, ICICI Bank understands the needs of the students and offers
extremely competitive education loans at better interest rates. Every year,
a large number of students secure admissions in top universities and
colleges in India and abroad with ICICI Bank education loans.
Thankyou
Backbenchers