Important Notices for Education Loan | ICICI Bank

In compliance with Rule 9B of the Prevention of Money Laundering (Maintenance of Records) Rules, you must inform us of any changes in your KYC details along with updated documents (i.e. address, contact details, profile, etc.) within a period of 30 days from the date the change was made. Post that, we will make necessary changes in our records. You can update your KYC by visiting any ICICI Bank Loan Servicing Branch

For regulatory guidelines on floating rate loans, please click here

The RBI through its Circular No. RBI/2023-24/53 dated Aug 18, 2023 on ‘Fair Lending Practice - Penal Charges in Loan Accounts’, has advised banks that penalty if charged, for non-compliance with the material Terms and Conditions of the loan contract will be treated as penal charges and not be levied in the form of penal interest that is added to the rate of interest charged on the loans/ advances. The RBI has further advised that there will be no capitalisation of penal charges i.e. no further interest will be computed on such penal charges. However, the above mentioned shall not affect the normal procedure for compounding of interest in the loan account.

The above guidelines are effective from Apr 01, 2024 and applicable for all fresh loan facilities executed from Apr 01, 2024. In case of an existing loan facility, the switchover to the new penal charges regime shall take place by the next review or renewal date or before Jun 30, 2024, whichever is earlier. The revised charges are as below:

Existing penal interest	Applicable penal charges
24% per annum	5% per annum

*Goods and Services Tax and other government taxes, levies, etc. applicable as per the prevailing rate will be charged over and above the mentioned penal charges.

Click here to know the list of Service Charges.

Handover of Property Documents in Case of Death of the Property Owner

In case of the death of a borrower or co-borrower, who is also the property owner, the Bank will hand over the property documents after the loan closure depending on the different scenarios listed below:

The original property documents should be handed over in the presence of all surviving owners/legal heirs/nominees of the deceased owner of the property and guardians, in case of minors, subject to adherence to the conditions mentioned below:

Handover of documents in cases where the nominee is registered including where the legal heir or nominee is a minor

State Co-operative Societies Acts provide property owners with nomination facility. Under such State Acts, on the death of a member of a society, the society shall transfer the share or interest of the deceased member to a nominee(s) in this regard. On the basis of the nomination certificate under the respective state acts, the Bank may return the title documents to the nominees.

Handover of documents in cases where no nominee is registered

State Co-operative Societies Acts provide property owners with nomination facility. However, if the property is not situated in co-operative society or the property is situated in co-operative society and the nominee is not registered, the following documents need to be collected from the claimant for handing over the original property documents after the loan closure.

Documents required in case any of the property owners are missing

As per Section 108 of the Indian Evidence Act, presumption of death can be raised only after a lapse of 7 years from the date of a person being reported missing, i.e. the date when the FIR/non-traceable report was lodged. Section 107 deals with presumption of continuance. As such, the nominees/legal heirs have to raise an express presumption of death of the borrower under Section 107/108 of the Indian Evidence Act before a competent court. If the court presumes that the borrower is dead, then the claim of a missing person can be settled on the basis of the same.

Handover of documents where a Will has been left behind by the deceased owner

In case the Will has been executed by the borrower, after his/her death the title documents must be handed over to the executors as mentioned in the Will.

Handover of documents where a person dies intestate (i.e. without a Will)

When a person dies intestate i.e. without a Will then the original property documents can be handed over on the basis of documents mentioned in the table below being taken from the legal heir/s in addition to the common documents

The below table depicts the scenarios and the types of documents that will be required to be submitted for the purpose of processing the handover of property documents after the loan closure.

Requirement type	Types of documents	Scenarios
Mandatory	Request letter from the claimant/nominee as specified in Annexure 39.	Handover of documents in cases where the nominee is registered Handover of documents in cases where no nominee is registered Where a Will has been left behind by the deceased owner
Mandatory	Copy of death certificate: Municipal authorities/ registrar of births and deaths generally issue death certificates. Certificates issued by hospitals should not be accepted as proof of death. In cases where a death has happened abroad, death certificate issued by the government department of the country where the death has occurred is required. The death certificate has to be certified by an Indian Notary or Indian Embassy or under the Hague Convention an apostille certificate should be issued. Photocopy of the death certificate should state very clearly verification of the original death certificate by the branch under the Branch Manager’s full signature.
Mandatory	Self-attested copies of identity and address proof of the legal heirs/nominees as per the applicable KYC norms documented for resident KYC and reKYC
Mandatory	Self-attested copies of bank statements of nominees
Additional documents required	Copy of the FIR and non-traceable report filed with the police – 7 years must have lapsed from the date when the FIR/non-traceable report was lodged. Court order (presuming the death of the missing Loan Account holder (property owner)) - In case the court order is received directly from the court, the branches would process the claim immediately. However, if the court order is brought to the branch by the claimant, the same needs to be verified through the Bank’s panel of advocates	Documents required in case any of the property owners are missing
Additional documents required	A certified copy of the nomination certificate issued by the co-operative society	Handover of documents in cases where the nominee is registered
Additional documents required	For the state of Maharashtra, the nomination certificate would be in the form of a Nomination Form as provided in Appendix 14 of the Maharashtra State Co-operative Societies Act, 1960. The form shall be signed in triplicate and stamped. In case the person registers a nominee by giving a statement, the same shall be signed by a member of the society and also by 2 witnesses and shall be on a stamp paper.
Additional documents required	For other states, the nomination certificate should be shared with the regional legal team for confirmation.
Additional documents required	If the legal heir(s) or nominee is a minor, the property documents should be handed over to the guardian on behalf of the minor legal heir/nominee after the collection of the following additional documents: Identity proof of guardian as per the existing KYC norms documented for resident KYC and reKYC Declaration from guardian (Annexure 31) In case of a natural guardian, proof of a relationship with the minor as per the existing KYC norms. In other cases, a copy of the Will or other instrument authorised by the court.
Additional documents required	Notarised copy of the Will duly certified (OSV) by the Branch Manager or DBM Notarised copy of the Probate of the Will issued by the High Court of competent jurisdiction duly certified (OSV) by the Branch Manager or DBM.	Where a Will has been left behind by the deceased owner
Mandatory	Copy of Letter of Administration or Succession certificate. All legal heirs need to be present at the time of handover of property documents along with other owners. In case any of the legal heirs relinquish their rights in favour of one/more nominee/surviving owners, the following additional documents need to be collected from the claimant. Legal heirs relinquishing their rights need not be present at the time of collection of documents. Letter of relinquishment signed by legal heirs relinquishing their rights in favour of one/more legal heirs/surviving owners (Refer to Annexure 40 for the format of the letter). Self-attested copies of identity proof, address proof and signature verification proof of legal heirs relinquishing their rights also need to be provided.	Where a person dies intestate (i.e. without a Will)
	Copy of death certificate of the deceased borrower. Indemnity bond executed by a spouse in favour of ICICI Bank and the indemnity bond must be adequately stamped as per applicable stamp duty in respective states as specified in Annexure 6. Consent letter from legal heirs as specified in Annexure 5. Copy of identity proof of the claimant(s) as per KYC documented for resident KYC and reKYC for Loan Accounts	Where a person dies intestate (i.e. without a Will) If the spouse is co-owner/co-applicant (but not the owner) of the property and his/her wife/husband has died intestate (i.e. without a Will)
Mandatory	Copy of the death certificate of the deceased borrower. Copy of the death certificate of the deceased borrower. Consent letter from legal heirs as specified in Annexure 5 Copy of identity proof of the claimant(s) as per KYC documented for resident KYC and reKYC for Loan Accounts. Certified copy of the legal heir certificates.	Where a person dies intestate (i.e. without a Will) If the owner of the property is other than a spouse

Note:

For any further information, the claimant(s) need/s to visit the branch with the applicable documents to initiate the process.

All the mentioned Annexures will be made available at branches.

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