On similar lines, ICICI Bank has started offering facility through which customers can get instant sanction letter for education loans up to Rs 1 crore to finance higher studies for themselves or their children siblings and grandchildren in accredited colleges and university across the world.coronavirus – led restrictions are making companies look for innovative ways to reach their needy customers. Most of the companies are trying their best to use digital medium to engage their prospective customers. Unsecured loans were first to go fully digital as they required minimum paper processing. However, in case of other traditional loans, including home loans or auto loans, the digital process has been limited to sanction letter.
However before you plan a loan you should understand how it works. This facility is only for pre – approved customers. This is be available only against a fixed deposit that you hold with the bank.
You can get a loan up to 90 per cent of your fixed deposits with the Bank. The amount varies between Rs 10 lakh and Rs 50 lakh for students seeking admission in domestic Institutes, the loan amount ranges between Rs10 lakh and Rs 1 crore. You can opt for a repayment period of to 10 years.
In terms of tax implication, full interested payment on the amount of ‘ insta interested loan’ up to 8 years is allowed as deduction from annual taxable income, as per the section 80E of income Tax Act, 1961.
Sudipta Roy, Head – unsecured Assets, ICICI Bank, said, “ This facility will bring 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.