UCO Bank Education Loan

UCO Bank Education Loans

What Is an Education Loan?

An Education loan is the loan or funds acquired by an individual to pursue higher studies in India or abroad. The loan repayment commences for the student after completing the education and a period of 6 months is given as grace period to students to get or join a job.

The repayment amount will be determined by your choice of interest, you need to decide how you want to repay the loan. That is if you want to start paying during the time of moratorium period itself or after the moratorium period. The Moratorium period is the time of your education plus 6 months or 1 year given to get a job. It is only after this time that you are expected to pay the loan.

The loan interest starts to accrue at the time of dispersal of funds, so at the time of your graduation you have a huge amount to repay. The other option is your parents or guardian can start paying the loan during the moratorium period itself where it is calculated as a simple interest.

This way your loan amount at the time of graduation is drastically reduced.

There are 4 types of education loans in India

1. Under Graduate education loan - These are given to students who have completed their secondary education and looking to do higher studies in the form of under graduation. It can be done in India or abroad.

2. Post graduate education loan - These are education loans given to individuals who want to pursue post-graduation after completing under graduation course from a reputed university/college. Here also the loan can be for studying in India or abroad.

3. Parents availing education loan - This is the case where the parents take loan for the education purposes of their children. This is an unsecured loan and need not be for graduate or post-graduation courses but also for elementary and higher secondary courses.

4. Career growth education loans - These are loans provided to young people who want to pursue courses or trainings, certifications that will benefit their career growth.

About UCO Bank

UCO Bank was founded in Kolkata in 1943. It is a major government-owned commercial bank in India. The bank has 4,000 plus service units 49 zonal offices spread all over India. It also has two overseas branches in Singapore  and  Hong Kong. UCO Bank's headquarters is on BTM Sarani, Kolkata. The bank provides a wide range of banking products and financial services.

An Introduction to UCO Bank Education Loans

Education is one area where everybody is willing to spend a lot of money to live a prosperous life in the future. Being one of the major education loan providers, UCO Bank understands the needs of the students and offers extremely competitive education loans at better interest rates. Every year, a large number of students secure admissions in top universities and colleges in India and abroad with UCO Bank education loans.

Advantages of UCO Bank Education Loan

Following are some of the advantages of applying for an educational loan with UCO Bank.

• Low interest rate
• Less paperwork
• No processing fees
• Faster Disbursal
• No prepayment charges
• 0.50% concession for girl students

Key Highlights of UCO Bank Education Loan

Features of UCO Bank Education Loan for Studies in India and Abroad

Objective: To provide term loan to Indian students for pursuing higher education in India and foreign universities

Quantum of Loan:Up to 10 Lakhs for studies in India and up to 20 Lakhs for studies overseas

Margin: No margin required for loans up to INR 4 Lakhs, 5% of margin for loans above INR 4 Lakhs for studies in India and 15% of margin for above 4 Lakhs for studies overseas

Repayment Period:The tenure is up to 15 years and the moratorium period is up to 12 months after completing the course.

Security The parents or the guardian will be the co-applicant or the loan and the primary debtor. Tangible collateral will be accepted as security by the bank with the third-party guarantee. No security required for loans up to 7.5 Lakhs.

Processing Fees: There are no processing fees for availing UCO Bank education loan.

Courses Covered

In India

Approved courses leading to graduate/post graduate (Masters & PhD. degree and PG Diplomas conducted by recognized colleges/universities, Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer, etc.) Computer Certificate courses of reputed institutes accredited to DoE, ICWA, CA, CFA, etc.

Abroad

• Graduation: Job oriented professional / technical courses offered by reputed Universities.
• Post-Graduation: MCA, MBA, MS, etc.
• Courses conducted by CIMA - London, CPA in U.S.A., etc.

Expenses Covered

Expenses covered under UCO Bank education loan are payment of course fees, purchase of books, equipments, instruments, uniform, payment of hostel fees, examination fees, study tools, and passage expenses, (for study abroad).

Eligibility Criteria: Who Can Apply?

• Must be an Indian Resident
• Applicant should have secured admission with the educational institution

Interest Rate of Syndicate Bank Education Loan for Studies in India and abroad:

Features of UCO Bank Premier Education Loan Scheme

Objective: To provide term loan to Indian students for pursuing higher education in premier educational institutions

Quantum of Loan:Up to 30 Lakhs

Margin: No margin required for loans up to INR 4 Lakhs, 5% of margin for loans above INR 4 Lakhs i.e. course fee and other expenses.

Repayment Period:The tenure is up to 15 years and the moratorium period is up to 12 months after completing the course.

Security The parents or the guardian will be the co-applicant or the loan and the primary debtor. Tangible collateral will be accepted as security by the bank with the third-party guarantee. No security required for loans up to 10 Lakhs for List C institutions, up to 15 Lakhs for List B and up to 20 Lakhs for List A institutions.

Processing Fees: There are no processing fees for availing UCO Bank education loan.

Courses Covered

Regular full-time Degree/ Diploma courses and Part-time courses offered by Institutes eligible under the scheme, admission in which is obtained through an Entrance Test/Selection Process/ Percentage of marks as prescribed by the Institute would be allowed.

Expenses Covered

Expenses covered under UCO Bank education loan are payment of course fees, purchase of books, equipments, instruments, uniform, payment of hostel fees, examination fees, study tools, and passage expenses, (for study abroad).

Eligibility Criteria: Who Can Apply?

• Must be an Indian Resident
• Applicant should have secured admission with the educational institution

Interest Rate

The interest rate on UCO Bank premier education loan scheme is MCLR of 1 year + 1.15%.

Features of UCO Bank Skill Loan

Objective:To provide term loan to Indian students who wish to take up skill development courses

Quantum of Loan:Minimum of INR 5000 and Maximum of INR 1,50,000.

Margin: No margin required.

Repayment Period:For loans up to INR 50,000 – 3 years, for loans between INR 50,000 and 1 Lakh – 5 years and for loans between 1 Lakh and 1.5 Lakhs – 7 years.

Security No security required, however, third-party guarantee will be taken.

Processing Fees: There are no processing fees for availing UCO Bank education loan.

Courses Covered

Course run by Industrial Training Institutes (ITIs), Polytechnics or in a school recognized by central or State Education Boards or in a college affiliated to recognized university, training partners affiliated to National Skill Development Corporation (NSDC)/Sector Skill Councils, State Skill Mission, State Skill Corporation, preferably leading to a certificate / diploma / degree issued by such organization as per National Skill Qualification Framework (NSQF) is eligible for a Skilling Loan.

Expenses Covered

Expenses covered under UCO Bank education loan are payment of course fees, purchase of books, equipments, instruments, uniform, payment of hostel fees, examination fees, study tools etc.

Eligibility Criteria: Who Can Apply?

• Must be an Indian Resident
• Applicant should have secured admission with the educational institution

Interest Rate

ROI at MCLR of 1 Year + 1.50% p.a. (simple interest during moratorium period).

• Simple Interest will be charged during the course period and up to commencement of repayment.
• Servicing of interest during study period and the moratorium period till commencement of repayment is optional for students.
• 1% interest concession may be provided by the Bank, if interest is serviced during the study period and subsequent moratorium period prior to commencement of repayment.

Documents Required

• Letter of admission
• Filled in Loan Application Form
• 2 passport size photographs
• Statement of cost of study
• PAN Card of the student and Parent/ Guardian
• AADHAR Card of the student and Parent/ Guardian
• Proof of identity (Driving Licence/Passport/Aadhar/ any photo identity)
• Proof of residence (Driving Licence/Passport/Electricity bill/Telephone bill)
• Student/Co-borrower/ guarantor's bank account statement for last 6 months
• IT return/ IT assessment order, of previous 2 years of Parent/ Guardian/ other co-borrower (if IT Payee)
• Brief statement of assets & liabilities of Parent/ Guardian/ other co-borrower
• Proof of income (i.e. salary slips/ Form 16) Parent/ Guardian/ other co-borrower

EMI Payment Methods

UCO Bank education loan can be repaid in following three ways.

Standing Instruction (SI): If you are an existing account holder with UCO Bank, Standing Instruction is the best mode of repayment. Your EMI amount will be debited automatically at the end of the monthly cycle from the UCO Bank account you specify.

Electronic Clearing Service (ECS): This mode can be used if you have a non-UCO Bank account and would like your EMIs to be debited automatically at the end of the monthly cycle from this account.

Post-Dated Cheques (PDCs): You can submit post-dated EMI cheques from a non-UCO Bank account at your nearest UCO Bank Loan Centre. A fresh set of PDCs will have to be submitted in a timely manner. Please note Post Dated Cheques will be collected non-ECS locations only.

It is recommended that you opt for either the SI or ECS mode of payment for faster and less prone to error than the use of PDCs.

How to Apply for UCO Bank Education Loan?

You can either apply online or visit a nearby UCO Bank branch for the application. You can also download the education loan application form from the UCO Bank official website, complete the form and submit it the bank representative.

You can also check your eligibility for an education loan through CreditMantri and apply for it.

UCO Bank Education loan FAQ