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Education Loan Fees & Service Charges
Explore tenure and interest Rates related information
Education Loan Interest Rates
| Interest rates | Starting from <Repo* + 3.75% (Spread)> onwards |
|---|---|
|
Loan tenure |
Up to 10/ 12 years for undergraduate courses Up to 12/ 14 years for postgraduate courses |
|
Maximum loan amount |
Up to ₹1 crore for courses in India Up to ₹3 crore for courses abroad |
|
Collateral requirement |
- Fixed Deposit - Fresh Property - Cross-collateralisation with existing Mortgage Loans |
|
Unsecured loan requirement |
Only for premium institutes: Up to ₹1 crore for both undergraduate and postgraduate courses |
|
Moratorium period |
Course period + up to 12 months grace period** |
|
Margin |
No margin for premier institutes |
|
15% margin for institutes in other categories Margin can be FD/ Scholarship/ Initial fee paid to the institute |
*Interest rates are linked to the Repo Rate.
**Note: Moratorium period will be offered on the basis of the Bank’s policy and is not applicable to all loans.
Interest rate range for Education Loan for the period between July 2024 and Sept 2024:
| Type of credit | Minimum | Maximum | Mean |
|---|---|---|---|
|
Education Loan -iSMART interest rates |
9.50 % per annum |
14.25 % per annum |
11.26 % per annum |
Note:
Mean rate = Sum of the rate of interest for all loans/ Total number of loans  Â
Education Loan Fees & Service Charges
| Description of Charges | Charges Applicable |
|---|---|
| Service Charges | |
|
Loan Processing Fee (Non-refundable) |
Up to 2% of the loan amount |
|
CERSAI charges: Non-refundable charges under the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) |
₹100 |
|
Administrative Charges |
₹5000 or 0.25% of the loan amount, whichever is lower. (The Administrative charges are one-time non-refundable charges collected by the lender for appraising the valuation and for legal verification of the property to ascertain suitability for mortgage. The same is independent of the outcome /result of such appraisal) |
|
Repayment Mode Swap Charges |
₹500 |
|
Charges for Statement of Account |
₹200 for a printout at the Branch |
|
Charges for Amortisation Schedule |
₹200 for a printout, nil for online |
|
Charges for Prepayment or Foreclosure Statement |
₹200 for a printout at the Branch |
|
Charges for Duplicate No Objection Certificate (NOC) |
₹250 |
|
Charges for Revalidation of NOC |
₹250 |
|
Cash Transaction Charges (for repayment of EMI due in cash at the Branch) |
₹100 |
|
Loan/ Property Document Retrieval Charges |
₹500 |
|
Loan Cancellation Charges |
1. Digital Lending - Nil cancellation charges within free look/ cooling off period. Cancellation charges post the cooling off period & before the 1st EMI date (i.e. from the 16th day till the 1st EMI date) - ₹2,500 2. Non Digital - ₹2,500 |
|
Conversion charges (From floating to fixed interest rate and vice versa) |
a. For switchover from floating to fixed interest rate - ₹3,000 b. For switchover from fixed interest rate to floating, conversion charges given below will be applicable: i. Fixed interest rate tenure of up to 37 months - 0.50% of the principal outstanding ii. Fixed interest rate tenure above 37 months - 2.00% of the principal outstanding |
|
Prepayment Charges |
1. Nil prepayment charges under floating interest rate 2. Prepayment charges under fixed interest rate: a) Fixed interest rate within 37 months from the loan origination date - 2.00% of the principal prepaid (outstanding) b) Fixed interest rate post 37 months from the loan origination date - Nil |
| Penal Charges | |
|
Penal charges in the event of default/ delay in payment/ repayment of any part of the loan amount on due date |
5% per annum on the overdue sum from the due date to the payment date |
|
Dishonour of Cheque/ default of Auto Debit (AD)/ Electronic Clearance Services (ECS)/ National Automated Clearing House (NACH) mandate per transaction |
₹500 |
|
Non-Maintenance of Mode of Payment Charges (NMMP) |
₹800 |
| Loan Related Recovery Charges (If Applicable) | |
|
Charges incurred forSARFAESI proceedings |
At Actuals |
|
Charges incurred for sending different notices |
At Actuals |
|
Enforcement Charges |
At Actuals |
|
Paper Advertisement Charges |
At Actuals |
|
Repossession Charges |
At Actuals |
|
Security Guard Charges |
At Actuals |
Note: Goods and Services Tax (GST) and other government taxes, levies, etc. applicable as per the prevailing rate will be charged over and above these charges. The charges or fees mentioned in the table above are subject to change. For secured loan cases, charges pertaining to stamp duty on loan and security documents as applicable to respective states, shall be borne by the borrower.
ANNUAL PERCENTAGE RATE
The Annual Percentage Rate (APR) is a method to compute annualised credit cost which includes interest rate and Processing Fee. The APR Calculator does not include charges such as prepayment charges etc.
To calculate the same, please click here to download the APR calculator.
Why should I opt for an ICICI Bank Education Loan?
Collateral free loan up to ₹1 crore for premium institutes
Loan up to ₹3 crore for studying abroad and ₹1 crore for studying in India
Loan up to ₹3 crore for studying abroad and ₹1 crore for studying in India
Special offerings for government employees, Chief Experience Officers (CXOs) and professionals with 2 years of work experience
Special offerings for Canada & the UK
No margin for premium institutes
No Branch visits for applying
Pre-admission sanction.
Documentation and Eligibility
Education Loan Interest Rate FAQs
How does interest rate work for an Education Loan?
ICICI Bank offers competitive interest rates for an Education Loan. The interest rate is linked to the Repo Rate, ensuring transparency and affordability. With interest rates starting from <Repo* + 3.75% (Spread)> onwards, borrowers benefit from the flexible tenure options and attractive terms, making higher education financially accessible without compromising on the quality.
Are there any tax benefits that can be availed on an Education Loan?
Yes, with an Education Loan, you get tax benefits under Section 80E of the Income Tax Act, 1961 under the old tax regime. A borrower can enjoy interest deduction on the loan repayment, reducing the taxable income. This provision encourages investment in education, easing financial burdens for students and their families.
What factors determine the EMI for an Education Loan?
The amount of the Equated Monthly Instalment (EMI) for your Education Loan is determined by several factors. These include the interest rate, loan amount and the duration of repayment.
