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    ICICI Bank customers can now take instant education loans against their FDs. Here's how

    Synopsis

    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.

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    ICICI Bank has launched a facility that will allow customers to get instant sanction letter for education loans up to Rs 1 crore. This facility enables lakhs of pre-approved customers to take education loans in a fully digital process against their fixed deposits with the bank. The Insta Education Loan facility can be used by the borrower to finance higher studies for themselves or their children, siblings and grand-children in accredited colleges and universities across the world. They can furnish the sanction letter to the educational institute to confirm their admission.

    "The 'Insta Education Loan' facility significantly improves customer convenience as they can now generate the sanction letter themselves in just a few clicks using the Bank's internet banking platform. Typically, it takes a few working days for a customer to get the sanction letter of an education loan. Also, it does away with the need of having to visit a bank branch and submitting a whole lot of documents," ICICI Bank stated in a press release.

    "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," said Sudipta Roy, Head - Unsecured Assets, ICICI Bank.


    Important features
    Here are some key features of the Insta Education Loan:

    • Flexibility: Customers can apply for loans up to 90 per cent of their fixed deposits for their children, siblings, grand-children or themselves.
    • Wide range of loan amount: 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.
    • Easy to apply: Customers can choose the loan amount and tenure of repayment up to 10 years through the Internet banking platform.
    • Tax benefits: 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.

    How to use this facility
    • Log in: Customers can log in to the bank's Internet banking platform and check the pre-approved offer
    • Enter loan details: They need to enter details like loan amount, repayment tenure, name of college / university and cost of study. The calculator automatically displays the details of the EMI.
    • Enter student details: They are required to enter details of the student like name, date of birth and relation with student. Further, they need to check final offer, agree to terms and conditions and authenticate via a one-time password (OTP) received on their registered mobile number. Thereafter, on payment of processing fee, a sanction letter is generated instantly.
    • Receive sanction letter: The provisional sanction letter is sent to the registered email ID along with details of the designated relationship manager.

    For the final disbursement of the loan, customers are required to get in touch with the relationship manager mentioned in the email of sanction letter. Post collecting required documents like admission letter, financial documents and signatures, the bank will disburse the loan amount to the educational institution. Customers can also visit the nearest branch for submission of the documents.

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    10 Comments on this Story

    Jay Boro48 days ago
    Who fool take loan against FD? Just simply break the deposit and pay off.
    Sushil Srivastava49 days ago
    loan against FD is not innovative idea but Bank.
    ersanjeev Koul49 days ago
    Another Paid news.Whats big deal in give any loan against FD ?
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