ICICI bank has launched a new scheme where customers will get instant approval of education loans up to Rs 1 crore. The most important thing is to know that the loan would be disbursed only to those who have FDs with the bank. And it would be amounting to a maximum 90 per cent of the value of the FD.
ICICI Bank has become India’s first bank to offer such a facility. It has made the process far more convenient, where people would be able to generate the sanction letter themselves in just a few clicks using the bank’s internet banking platform.
Sudipta Roy, Head-Unsecured Assets, ICICI Bank, said, “This facility will bring down the turnaround time for getting the sanction letter from days to a few minutes. We believe that this facility surely brings in exceptional convenience to customers as they can avail of finance for higher studies without breaking their fixed deposit saving.”
How is the instant education loan different from other loans?
The facility stands out from the rest as you can get an approval of your loan and an instant sanction letter through email, without visiting any bank branches. If you are a customer of ICICI bank then you can apply for loans up to 90 per cent of your fixed deposits with the bank. And your FDs will serve as collateral for the loan.
This loan is meant for students seeking admission in international institutes, and the loan amount ranges between Rs 10 lakh and Rs 1 crore. The amount varies between Rs 10 lakh and Rs 50 lakh for students seeking admission to domestic institutes.
Usually getting sanction letters takes a few working days, but now borrowers can generate within minutes and can furnish that sanction letter to the educational institution to confirm their admission.
There are some benefits in tax deduction as well, the interest payment on the amount of ‘Insta Education Loan’ up to 8 years is allowed as a deduction from annual taxable income, as per the Section 80E of Income Tax Act of 1961. The documents required for availing this loan are mark sheet of 10th, 12th, graduation and entrance exam and admission letter. Most importantly the interest rate of the loan will start from 10.50 per cent and varies to 11.50 per cent.
How to avail the sanction in a few simple steps:-
To avail the sanction, firstly, customers can log in to the bank’s internet banking platform and check the pre-approved offer. Then, you will have to enter details like loan amount, repayment tenure, name of the college or university, and cost of study. The calculator will automatically display the details of EMIs. Once you enter all the details, agreeing to terms and conditions, and verifying via an OTP number, a sanction letter will be generated instantly. Following this process, you will have to get in touch with a relationship manager mentioned in the email sanction letter. After collecting all documents, the bank will disburse the loan amount to your educational institution.