UCO Bank Education Loan

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UCO Bank Education Loan

INTRODUCTION:

The UCO Bank, which is also known as United Commercial Bank and it was established in 1943 at Kolkata. It is a major government-owned Commercial Bank in India with a staff strength of 23,133 (as of 2019) posted in more than 4000 Branches and 49 Zonal offices. During the financial year of 2013-14, the total business of the bank was of Rs. 4.55 lakh crores. When it comes to the Education Loan, the UCO Bank is one of the best banks in India. Any investment in the knowledge is the best investment in this world and therefore, the Education Loan policies of this bank are developed under the guidelines of Department of Financial Services, Department of Higher Education, and Indian Bank Association (IBA).

OVERVIEW OF LOAN SCHEMES:

The UCO Bank gives the facility of various types of Educational Loans according to the need of the students, an overview of the different schemes offered by UCO Bank is mentioned below:

S.NO. NAME OF THE SCHEME DETAILS
1 Education loan This scheme is mainly a helping hand for those students who are desirous for pursuing higher study after HSC or Intermediate in India or Abroad.

The maximum amount of loan can be Rs. 10 Lakhs for study in India and Rs. 20 lakhs for Abroad.

2 UCO Premier Educational Loan Scheme This scheme is designed to provide financial support to the study who were going to pursue their higher education in premier Educational institutions of India and Abroad. The maximum amount of loan can be Rs. 30 Lakhs.
3 UCO Super Premier Educational Loan Scheme This scheme is designed to help the students financially, who are taking admission in the 8 Premier institutions of India as listed by the UCO Bank. The maximum amount of the loan can be Rs. 30 Lakhs.
4 UCO Skill Loan This scheme provides loan facility to the students who are taking admission in Skill Development Courses. The amount of loan can be in between Rs. 5000 to Rs. 1,50,000 only.

DETAILS OF EACH SCHEME:

The UCO Bank offers 4 different types of Education loan schemes, the details of all the scheme is mentioned below:

  1. Education Loan:

This is the basic scheme of Education loan, it can be avail by any student who is going to pursue an Undergraduate or Postgraduate program in the field of Law, Management, Agriculture, etc from any recognised University.

  • Eligibility:

The student must be a citizen of India.

He/ She must secure the admission in India or Abroad after passing HSC or Intermediate.

For study in India, the student secured the admission in any UG/ PG program in any recognised university.
For study in Abroad, the loan will be approved only in case of admission to Professional/ Job oriented courses offered by reputed universities like MCA/ MBA/ MS or course from CIMS – London, CPA – U.S.A., etc.

  • Rate of interest:

The rate of interest for the loan up to Rs. 7.50 lakhs will be MCLR of 1 year + 2.00%.

The rate of interest for the loan above Rs. 7.50 lakhs will be MCLR of 1 year + 2.40%.

  • Expense Covered:

The expenses covered in this scheme are Tuition fee, Examination fee, Hostel charge, Cost of Instruments or computer which is essential for the completion of the course.

  • Max loan Amount:

For studies in India, the maximum loan amount can be Rs. 10 Lakhs and for studies in Abroad, the amount can be up to Rs. 20 Lakhs.

  • Margin Amount:

The Margin of the loan will depend on the amount of the loan borrowed from the Bank. Up to Rs. 4 lakhs, the Margin is Nil. In case of the loan above of Rs. 4 lakhs for study in India the margin will be 5% and for study in Abroad, the Margin will be 15%.

  • Processing fee:

There is no processing charge required for this scheme.

  • Collateral:

For loans above Rs. 7.5 lakhs, co-obligation of parents and Tangible collateral security equivalent to the full value of the loan is required.

For loan below of Rs. 7.5 lakhs, only co-obligation of parents is required.

  • Loan tenure/Repayment:

The Repayment period will be of 180 EMI, i.e. of 15 years after the completion Moratorium period and it applies to all the categories of loan.

  • Moratorium Period:

The Moratorium Period for the loan is the course period + 1 year after the completion of the course, and it is applicable for all the categories.

  1. UCO Premier Educational Loan Scheme:

This scheme is mainly availed by those students who are going to admitted for in the institutes eligible under the scheme which offer full-time as well part-time Degree or Diploma course. In these institutes, admissions are based on Entrance test or Percentage of marks.

  • Eligibility:

The student must be a citizen of India.

The institute in which the student is taking admission must be in top-150 universities according to http://www.webometrics.info/en (in case of study abroad).

  • Rate of interest:

The rate of interest will be MCLR of 1 year + 1.15% for all the categories of the scheme.

  • Expense Covered:

All expenses which are essential for the completion of the course will be covered under this scheme.

  • Max loan Amount:

The Amount of loan for study in India can be of Rs. 30 lakhs, 20 lakhs, and 15 lakhs for institutes of List A, B, and C respectively. The list is prescribed by the bank itself.

For study at foreign in the top-150 universities, the amount of loan can be Rs. 30 lakhs.

  • Margin Amount:

There is no Margin Amount for a loan up to Rs. 4 lakhs.

For loan above Rs. 4 lakhs the Margin Amount is 5% of the total expense.

  • Processing fee:

There is no processing charge included in the scheme.

  • Collateral:

For the loan above of Rs. 15 lakhs tangible collateral security equivalent to full value is required along with co-obligation of parents.

  • Loan tenure/Repayment:

The Repayment period of the loan can a maximum of 180 EMIs, i.e. of 15 years.

  1. UCO Super Premier Educational Loan Scheme:

This scheme is basically designed to provide financial support to the students who secured admission in the following eight premier institutes mentioned below:

        1. Indian Institute of Management, Indore
        2. Indian Institute of Management, Ahmedabad
        3. Indian Institute of Management, Lucknow
        4. Indian Institute of Management, Kozhikode
        5. Xavier Labour Relation Institute, Jamshedpur
        6. Indian School of Business, Hyderabad
        7. Indian Institute of Management, Bangalore
        8. Indian Institute of Management, Kolkata
  • Eligibility:

All the Indian students are eligible to apply for the loan under this scheme. The candidates should be getting admission in regular full-time Degree or Diploma courses in the above-mentioned institutes.

  • Rate of interest:

The rate of interest will be only the MCLR of 1 year.

  • Expense Covered:

All the essential expenses required for the completion of the course like Tuition fee, Hostel charges, Library charges and many more will be covered under this scheme.

  • Max loan Amount:

The maximum loan amount can be of Rs. 30 lakhs.

  • Margin Amount:

There is no Margin Amount under this scheme.

  • Processing fee:

The UCO Bank doesn’t charge any processing fee for the approval of loan under this scheme.

  • Loan tenure/Repayment:

The Repayment period of the loan under this scheme can a maximum of 180 EMIs, i.e. of 15 years.

  • Moratorium Period:

The Moratorium period of the loan under this scheme is the course period + 1 year after the completion of the study.

  1. UCO Skill Loan:

According to this scheme the loan will be only provided to the individuals who intend to take admission in any Skill Development Program like Courses run by Industrial Training Institutes (ITIs), Polytechnics, training partners affiliated to National Skill Development Corporation (NSDC), and many more.

  • Eligibility:

The candidate must be a citizen of India and there is no age limit for borrowing the loan under this scheme.

  • Rate of interest:

The rate of interest for this type of loan is MCLR + 1.5% p.a. and Simple Interest will be applicable during the Moratorium period.

  • Expense Covered:

This covers all the expenses which are mandatory for the completion of the course like course fee, cost of instruments, and other charges.

  • Max loan Amount:

The amount of the loan should be in between Rs. 50,000 and Rs. 1,50,000.

  • Margin Amount:

There is no margin amount under this scheme of Education loan.

  • Processing fee:

The Bank doesn’t charge a single rupees as Processing fee.

  • Collateral:

No collateral security or third-party guarantee is required in this case.

  • Loan tenure/Repayment:

The Repayment period for the loan below Rs. 50,000 is up to 3 years.

If the Quantum amount of the loan is Rs. 50,000 to Rs. 1,00,000 then the Repayment period is up to 5 years.

In case of a loan of more than Rs. 1,00,000 the Repayment period is up to 7 years.

  • Moratorium Period:

The Moratorium period is of 6 months for a course of duration up to 1 year and it is for 12 months for any course of more than 1 year.

Loan Without Collateral:

The UCO Super Premier Loan Scheme and UCO Skill Loan don’t require any kind of Collateral security or third-party guarantee.

Rate of Interest:

The base rate charged by UCO Bank ranges from 7.35% to 7.95% and it depends on the reset frequency of the loan.

The interest rate charged per annum range from 9.1% to 10.35% (depending upon the scheme and category of Loan).

How to apply for an Education loan:

The students or their parents can apply for the education loan either through the online or offline process:

Anyone can apply for the loan by following the online process mentioned below:

  • Step 1: Visit the official website of UCO Bank.
  • Step 2: Select the tab named Education loan.
  • Step 3: Click on apply now.
  • Step 4: fill the necessary details asked in the form.
  • Step 5: Upload the important document required.
  • Step 6: Verify all the details once and then click on submit.
  • Step 7: Now visit the nearest UCO Bank branch for further formalities and final approval.

OR

The applicants can also directly visit the nearest Branch of UCO Bank. After that, the assistant will guide you about the requirement of necessary documents and the Bank staff will also tell about the best suitable scheme available.

The loan will be approved only after the verification of all the documents and the loan amount will be directly paid to the institution by the bank as per the requirement.

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