student loan: ICICI Bank clients can now take out instant student loans against their FDs. here’s how
“The ‘Insta Education Loan’ feature greatly improves customer convenience as they can now generate the sanction letter themselves with just a few clicks using the Bank’s online banking platform. Typically, it takes a few business days for a client to get the letter of sanction for an education loan. In addition, it avoids having to go to a bank branch and submit a lot of documents, ”ICICI Bank said in a press release.
“We believe this facility certainly brings exceptional convenience to clients as they can benefit from funding for higher education without breaking their fixed deposit / savings,” said Sudipta Roy, Head of Unsecured Assets, ICICI Bank.
Here are some key features of the Insta Education loan:
- Flexibility: Customers can apply for loans up to 90 percent of their term deposits for their children, siblings, grandchildren or themselves.
- Wide range of loan amount: For students wishing to be admitted to international institutes, the loan amount varies between Rs 10 lakh and Rs 1 crore. The amount varies between Rs 10 lakh and Rs 50 lakh for students wishing to be admitted to national institutes.
- Easy to apply: Customers can choose loan amount and repayment term of up to 10 years through the online banking platform.
- Fiscal advantages: Full payment of interest on the “Insta Education Loan” amount for up to 8 years is allowed as a deduction from annual taxable income, in accordance with Section 80E of the Income Tax Act 1961.
How to use this facility
- Connection: Customers can connect to the bank’s Internet banking platform and view the pre-approved offer
- Enter loan details: They need to enter details like loan amount, repayment term, college / university name, and cost of studies. The calculator automatically displays the EMI details.
- Enter student details: They are required to enter student details like name, date of birth and relationship with the student. In addition, they must verify the final offer, agree to the terms and conditions, and authenticate via a one-time password (OTP) received on their registered cell phone number. Subsequently, upon payment of the processing fee, a sanction letter is generated instantly.
- Receive the sanction letter: The provisional sanction letter is sent to the registered email address with the contact details of the designated relationship manager.
For the final disbursement of the loan, the client is required to contact the account manager mentioned in the sanction letter email. After collecting the required documents such as admission letter, financial documents and signatures, the bank will pay the loan amount to the educational institution. Customers can also go to the nearest branch to submit the documents.