UCO Bank Education Loan
Last Updated : April 27, 2020, 1 p.m.
UCO Bank, a renowned public sector bank in India, offers customized education loans to students wanting to pursue higher studies in India or abroad. The loan amount will depend on your university or educational institution fee structure as well as the expenses involved during the course duration. Your loan would be disbursed directly to the institution in stages as per the semester. Read further to know UCO Bank Education Loan in detail.
UCO Bank Education Loan for Inland or Abroad Studies
Whether you want to pursue graduation, post-graduation, technical or professional courses in India or abroad, UCO Bank helps you complete these courses with its education loan. Every individual whose age is eligible for graduation or postgraduate courses with 10+2 completion can apply for this loan after securing admission by cracking an entrance exam or obtaining the required marks in the qualifying examination.
| Particulars | Details |
|---|---|
| Loan Quantum | INR 10 Lakh to 20 Lakh |
| Interest Rate | 7.30% - 9.70% |
| Tenure | 15 Years |
| Processing Fee | NIL |
UCO Premier Educational Loan Scheme
If you secure admission to the premier institution in India or abroad for technical or professional courses, you can apply for the loan. The loan quantum is up to INR 30 lakh and based on the category of the institution. You can borrow funds as per your institution as the bank has divided it into different categories.
| Category | Name of the Institution | Loan Quantum |
|---|---|---|
| A |
| INR 30 Lakh |
| B |
| INR 20 Lakh |
| C |
| INR 15 Lakh |
UCO Bank provides you an education loan at an interest rate of 9.10% per annum. For loans above INR 4 lakh, there is a 5% margin on your loan. With the scholarship and assistantship, you can pay the margin money. The loan can be paid over 15 years with a 1-year repayment holiday after the course period.
UCO Bank Super Premier Education Loan
If the students have secured admission to select educational institutions in India, they can borrow up to INR 30 lakh without having to provide any security for the same. And the institutions included in this scheme are.
- Indian Institute of Management, Ahmedabad
- Indian Institute of Management, Bangalore
- Indian Institute of Management, Kolkata
- Indian Institute of Management, Indore
- Indian Institute of Management, Lucknow
- Indian Institute of Management, Kozhikhode
- Xavier Labour Relation Institute, Jamshedpur
- Indian School of Business, Hyderabad
UCO Bank offers you this loan at an interest rate based on the 1-year MCLR of the bank and a spread of 1.15% over the same. After adding all, the rate comes as 9.10%. There is no margin and processing fee on your education loan. The loan can be paid in equated monthly installments (EMI) for up to 15 years.
UCO Bank Skill Loan
You can get this loan for courses of Industrial Training Institutes (ITIs) or polytechnics for skill development courses under the National Skill Qualification Framework (NSQF). The loan quantum is not high because the course duration is less compared to regular courses and fee structure is affordable. You can borrow from INR 5,000 to 1.5 lakh from the bank to finance your course. And you can repay the loan over a maximum of 7 years. The interest rate on this loan is the prevailing 1-year MCLR + 1.50%. Presently, the 1-year MCLR of the bank stands at 7.95%, and if you add the spread of 1.50%, the eventual rate will come as 9.45%.The moratorium period could be 6-12 months based on your course duration.
As the scheme is under Credit guarantee coverage by NCGTC, you don’t need to provide any type of asset to get the loan. And a nominal fee of 0.50% of your outstanding amount will be paid by the bank.
Documents for UCO Education Loan
During the loan procedure, you require a list of documents to submit to the bank for the loan approval. And those documents contain the qualification details and ID proof of both the student and the co-borrower. But the income proof obligation is sought only for co-borrowers, which could be the parent or guardian of the student. Look at the documents applicable to UCO bank Education Loan.
KYC Proof:
- Aadhaar Card
- Voter ID Card
- Driving license
- PAN Card ( for co-borrower)
- Passport
Income Proof:
- Salary Slip or Certificate
- Bank Statement
- ITR Report
- TDS certificate
- Form 16
Academic Proof:
- Admission Letter
- Fee Structure
- 10+2 Certificate or Marksheet
- Course details
Asset Proof:
- Property papers in case of land, house, flat, etc.
- FD receipt
- Insurance policy status
Apply for UCO Bank Education Loan
To apply for the education loan, students just need to visit the bank branch and do the formalities. Fill the loan application form and submit the passport size photograph of yours and co-applicant. After that, you just need to wait for the loan sanction and its confirmation from the bank. There is no processing fee levied by UCO Bank for the education loan.
You can do the same via the Vidya Lakshmi portal by applying for a UCO Bank education loan. Just visit the website and select the bank to apply for the loan online from the official Vidya Lakshmi portal.
UCO Bank Education Loan Payment
To pay the borrowed amount and interest over it you can use the following banking services, otherwise, there would be a 2% penalty on your due EMI.
- Electronic Clearing Service (ECS): You can pay EMI from any of your savings or current account so that the payment is made before the due date. The EMI is automatically debited from your account when you use the service.
- Post Dated Cheque: Submit cheque to the bank branch so your EMI would debit from your account on or before the EMI due date. This is the offline method of EMI payment for the education loan to avoid penalty interest.
So, apply for a UCO Bank education loan to solve your financial problems related to higher studies and secure your future with it.
