Shiksha Sarthi an education loan scheme from ICICI for Indian students

ICICI Bank one of the leading private sector banks offers educational loan to deserving candidates for higher studies in India and in reputed institutions abroad. The loan is offered for various study courses at competitive rates and terms and conditions. Come explore the ICICI education loan scheme.

ICICI ranks among the top private sector banks in India. The bank provides 'Shiksha Sarthi', an education loan for higher studies abroad and also within India. The bank offers loan to cover the tuition fee and additional payments that need to be paid to the educational institution. The bank does not charge a processing fee or closure charges for education loans.

Eligibility for education loan

The following is the eligibility criterion for education loan from ICICI bank –

  • Only Indian citizens are eligible for the loan
  • The applicant should be aged between 16-40 years
  • A confirmed admission in a UG/PG course is mandatory
  • Admission into technical courses should have been through an entrance examination or a merit based selection method
  • Applicants should have an excellent academic record
  • Income of co-applicant and employment scope of applicant are considered
  • In case of study abroad copy of UIN (Unique Identification Number) issued by the university will need to be submitted
  • The applicant should not have another education loan running

Study programmes eligible for loan

Education loan is offered for a wide range of study programmes –
  • UG, PG and Diploma courses recognised under Central and State Government
  • Professional courses like Management, Engineering, Law and Agriculture etcetera
  • Courses conducted by IIM, NIFT, IISC and XLRI
  • Education programmes overseas
  • Evening classes offered by reputed institutions
  • Degree and diploma courses recognised by Civil Aviation or Director General of Shipping or similar courses in a foreign institution recognised by their regulatory body

Applicants planning on higher studies at a university abroad or in India are provided loan to cover the following expenses:
  • Admission fee
  • Course fees
  • Living expenses, including accommodation
  • Travel expenses for students going abroad
  • Library, laboratory and examination fees
  • Caution deposit, refundable deposits and other miscellaneous charges that are billed
  • Expenses incurred for purchase of study material, apparatus and uniform etcetera
  • Purchase of computing device essential for the course
  • Expenses to cover thesis, research, project work and study tours
  • Insurance premium for the applicant to cover the loan amount

Quantum of loan

Students pursuing studies in India can avail a maximum loan of ten lakh rupees. Students who have gained admission in a university abroad are entitled to a maximum loan sum of twenty lakh rupees.
These are the maximum amounts that are granted as a loan by ICICI. The final loan amount is decided based on the following factors –
  • Repayment capability of the applicant and co-applicant
  • Precise breakdown of expenses by the educational institution
  • Any funding the applicant receives will be subtracted from the overall loan amount

Margin money

  • There is no margin money for loan amounts lower than four lakhs
  • For studies within the country the margin amount is set at 4% for the amount exceeding four lakhs
  • For study abroad the margin jumps to 15% for the amount above four lakhs
  • Funding in the form of assistantship, fellowship or scholarship cannot be clubbed in the margin


  • Education loan amounts of up to four lakhs do not require security
  • Parents must be the co-applicant and must provide third party guarantee for loan amounts between four lakhs and seven and a half lakhs
  • Education loans of more than seven and a half lakh rupees require parents as co-applicant along with a collateral security in their name, such as mortgage of immovable property, bank deposits, NSC, KVP and LIC Policy etcetera

Rate of interest

At present, the rate of interest charged on education loan stands at 11%. However, this is subject to change at any time.

Repayment of loan

The repayment of the loan amount begins six months after the course is completed or a month after the applicant becomes employed, whichever occurs earlier. The education loan is to be repaid within five to seven years in Equated Monthly Instalments (EMI), depending on the loan amount and the repaying capacity of the borrower. The interest on the loan is charged immediately and is to be paid in EMIs before the repayments of the actual loan amount starts. In case an applicant fails to complete the course within the stipulated period then the bank has a provision to extend the holiday period to a maximum of two years.

Disbursement of loan amount

ICICI disburses the loan directly to the institution as and when an invoice is raised. The bank will reimburse any amount that the applicant may have already paid to the institution provided it falls within the expenses that the loan is applicable for.


Applicants have to submit copies of education-related documents, along with a copy of admission letter and the invoice for fees and other charges. Birth certificate, 10th and 12th standard mark sheet and pass certificate and school leaving certificate also need to be submitted. If the applicant is pursuing a PG course then the transcripts of the UG course and pass certificate will need to be submitted as well. Originals will have to be presented to the bank for verification. The co-applicant which can be a parent or a spouse will have the provide the following documents when applying for the loan –

If the co-applicant is a salaried professional

  • Completed application form, with a passport sized photograph attached, signed across
  • Identification proof – any government issued document such as passport, driver's license, PAN card etcetera
  • Address proof – Aadhar card, bank passbook, ration card etcetera
  • Bank statement for the last six months
  • Salary slips for the last three months
  • IT Returns and/or Form 16
  • Title documents for collateral mortgage

If the co-applicant is self-employed professional

All documents that are required to be submitted by the salaried co-applicant, other than copies of salary slip. Instead of salary slip, the co-applicant will need to submit CA Certified Audited Balance Sheet, along with Profit & Loss Account for the last three months.

If the co-applicant is a non-professional self-employed

All documents required for self-employed professionals along with proof of existence of business and business profile
For more information check the ICICI education loan page

You may also want to read up on education loans offered by some other banks –

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