Types of Education Loan in India - ICICI Bank

Education is a very important aspect of life, whether you are a student entering college or a working professional wanting to upgrade your skills. Choosing to pursue a higher degree can require a significant amount of funds. Instead of using up all your savings, you can use an Education Loan to fund your higher studies.

Before proceeding, it is important to know about the key Education Loan types and how they can be beneficial for students, professionals and others who require financial assistance related to their higher education. In this blog post, we will discuss the various types of Education Loans offered to applicants. We will also discuss the key expenses that are covered by an Education Loan.

Education Loan: Meaning

You can easily apply for an Education Loan from a bank and get all the financial assistance you need to pay tuition fees, hostel charges, books and other expenses. You can avail a loan from ICICI Bank and repay it through flexible repayment options after completing your course. When you opt for an Education Loan, you also help your family to stay away from the stress of borrowing money or breaking their long-term savings to pay for the costs of your course.

Important Expenses Covered Under an Education Loan

Education Loans are not just limited to tuition fees. They cover almost all the major expenses related to education. Here are the major inclusions:

• Tuition fees of the course

• Examination, library and lab charges

• Cost of books, study material, uniforms and laptops

• Hostel or accommodation fees

• Travel expenses (for loans for studies abroad)

• Other necessary expenses, like project work, study tours or thesis costs.

This wide coverage ensures that students and their families don’t need to worry about extra costs cropping up during the course.

Types of Education Loans in India

Here are the various types of Education Loans in India:

Education Loans Based on Location

1. Domestic Education Loan

A domestic Education Loan is meant for students who want to study in India. It helps them cover the expenses of pursuing courses in recognised schools, colleges or universities within the country. You can get a loan amount of up to ₹ 2 crore from ICICI Bank, depending on your eligibility, to pay for undergraduate, postgraduate, diploma or professional courses.

2. Study Abroad Education Loan

For students who dream of pursuing higher education in international universities, a Study Abroad Education Loan is the right choice. This loan is a popular option for Indian students who want to enrol in foreign universities located in the USA, UK, Canada, Australia and other countries. You can get a loan of up to ₹ 3 crore, subject to meeting the eligibility criteria of this loan type.

Education Loans Based on the Course

1. Education Loans for Undergraduates

Students who wish to pursue a bachelor’s degree after completing their 12th grade can apply for this loan. The loan can help you pay for expenses such as tuition fees, books, accommodation and other academic expenses.

2. Education Loans for Postgraduates

Postgraduate Education Loans are for students who want to pursue higher studies, such as a master’s degree (MBA, MSc, MA, MTech, etc.). To be eligible, the student must have completed their bachelor’s degree. These loans are especially useful for those aiming for career advancement or specialisation in their chosen field.

Education Loans Based on Collateral Type

1. Education Loan with Collateral

These loans allow students to borrow higher amounts by pledging assets like property or Fixed Deposits. They come with attractive interest rates, flexible repayment options and can cover tuition, accommodation and other educational expenses. You can get a loan of up to ₹ 3 crore for international universities and ₹ 2 crore for Indian universities under this type of loan.

2. Education Loan without Collateral

Education Loans without Collateral, also known as Unsecured Education Loans, provide funding without the need to pledge any assets. They are ideal for students who do not have collateral but still require financial support for tuition, books, hostel and other study-related costs. You may get up to ₹ 1 crore as an Education Loan without collateral from ICICI Bank, based on eligibility.

3. Third-Party Guarantee

Sometimes, banks might ask for a guarantor to co-sign the loan. This could be a relative, friend or well-wisher who agrees to take the responsibility of repayment of the loan if the borrower fails to do so. Such loans are helpful when students do not have significant assets to pledge as security.

Career Education Loan

Career Education Loans are designed for working professionals who want to upgrade their skills or pursue advanced courses. These loans can be used for professional certifications, executive programmes or even career-oriented undergraduate and technical courses. The aim is to enhance job opportunities and promote skill development. For example, ICICI Bank offers Education Loans specially designed for professionals with 2+ years of work experience.

Instant Education Loan

ICICI Bank offers instant Education Loans to eligible customers. Customers who are eligible for such a loan can apply for it using the online process through ICICI Bank Net Banking or the iMobile app. These loans offer attractive interest rates, minimal documentation and quick approvals.

Conclusion

Education Loans are a smart way to open doors to opportunities that might otherwise remain closed due to financial constraints. From funding a bachelor’s or master’s degree to supporting dreams of studying abroad or even financing professional skill upgrades, Education Loans from ICICI Bank in India are designed to fit every learner’s needs.

When choosing the right Education Loan, it’s important to know the interest rate, repayment terms and coverage of expenses. At the end of the day, education is an investment in yourself and an Education Loan is the bridge that helps you move towards a brighter, more successful future.

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