ICICI Bank has launched an instant sanction letter facility for education loans upto Rs 1 crore to finance higher studies for customers themselves or children, siblings and grandchildren in accredited colleges and universities across the world.
Called ‘Insta Education Loan’, this facility enables pre-approved customers to take education loans in a fully digital process against their fixed deposits (up to 90%) with the bank. They can furnish the sanction letter to the educational institute to confirm their admission.
ICICI Bank said in a statement that customers will get the sanction letter instantly through email, without visiting a branch. For students seeking admission in international institutes, the loan amount ranges between Rs 10 lakh and Rs 1 crore. The amount varies between Rs 10 lakh and Rs 50 lakh for student seeking admission in domestic institutes. The repayment tenure would be up to 10 years.
“Full interest payment on the amount of ‘Insta Education Loan’ up to 8 years is allowed as deduction from annual taxable income, as per the Section 80E of Income Tax Act, 1961,” ICICI Bank said in a statement.
To avail a loan, customers can log in to the bank’s internet banking platform and check the pre-approved offer, enter loan details, calculate their EMI, enter student details, then check the final offer. Thereafter, on payment of processing fee, a sanction letter is generated instantly and sent to the registered email ID along with details of the designated relationship manager.
For the final disbursement of the loan, customers would be required to get in touch with the relationship manager. Post collecting required documents like admission letter, financial documents and signatures, the bank will disburse the loan amount to the educational institution.
“Students can now complete the application process of colleges/universities without worrying for their financial requirements. They along with their parents can avail this facility with digital convenience and without any hassle of paper work. This facility will brings 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 finance for higher studies without breaking their fixed deposit/ savings,” Sudipta Roy, Head - Unsecured Assets, ICICI Bank, said.