UCO Bank Premier Education Loan

UCO Premier Education Loan Scheme (Studying in Premier Institutes in India and Abroad)

The UCO Premier Education Loan helps meritorious and deserving students pursue higher education in India or abroad in premier institutes. The maximum loan amount for this loan is Rs 30 lakh for studying at premier institutes in India and abroad. However, the actual ceiling for loans for studying in India is capped based on the bank’s categorisation of institutes into three lists, namely List A, List B and List C.

Features of UCO Premier Education Loan

Why this Loan?

• The loan is meant for you if you have gained admission into a premier institute in India or abroad
• The bank disburses the UCO Bank Premier Education Loan as a series of payments over the required number of terms or years to pay the fees or other approved charges
• The maximum loan amount for studying in India as well as abroad is Rs. 30 lakh

Loan Amount

• The maximum loan amount is Rs. 30 lakh for Indian institutes in List A, Rs. 20 lakh for institutes in List B and Rs. 15 lakh for institutes in List C. Check out the list of institutes and categorisation on the bank’s website. The maximum loan amount for foreign institutes is capped at Rs. 30 lakh

Interest

• The interest rate for this loan is the sum of the Repo Rate linked UCO Float Rate, which is currently 6.90% and an additional margin or spread of 1.55%. This makes the effective interest rate 8.45%

Repayment

• The loan needs to be repaid in 15 years in equated monthly instalments (EMIs) after moratorium ends
• Repayment moratorium is for the course duration and an additional grace period of 12 months

Security Needed

• Studying in List A Institutes in India: No collateral security is required but parents must be co-borrowers for loans up to Rs. 20 lakh. For loans above Rs. 20 lakh, parents must be co-borrowers and tangible collateral of full value must be submitted
• Studying in List B Institutes in India: No collateral security is required but parents must be co-borrowers for loans up to Rs. 15 lakh. For loans above Rs. 15 lakh up to Rs. 20 lakh, parents must be co-borrowers and tangible collateral of full value must be submitted
• Studying in List C Institutes in India: No collateral security is required but parents must be co-borrowers for loans up to Rs. 10 lakh. For loans above Rs. 10 lakh up to Rs. 15 lakh, parents must be co-borrowers and tangible collateral of full value must be submitted
• Studying Abroad: No collateral security is required but parents must be co-borrowers for loans up to Rs. 15 lakh. For loans above Rs. 15 lakh, parents must be co-borrowers and tangible collateral matching the loan amount must be submitted

Eligibility

• The borrower should be an Indian national
• The student must have secured admission in one of the premier institutes in India. For foreign study, the student must have secured admission in one of the world’s top 150 universities
• The loan comes with an age limit. For general candidates, it is 38 years and for SC or ST students, it is 40 years

Eligible Courses

• Studying in India: You can apply for this loan to pursue higher education courses offered by institutes and designated branches specified by UCO Bank in this list
• Studying Abroad: The student must have secured admission in one of the World’s Top 150 universities as per Webometrics (www.webometrics.info/en) as on the date of loan application into Post Graduate Degree, Post Graduate Diploma, Doctoral and Post-Doctoral courses in technical, medicine, management and law streams

Borrower Contribution to Total Cost (Margin Money)

• Loans up to Rs. 4 lakh: No margin money is needed
• Loans Above Rs. 4 lakh: UCO Bank takes a 5% margin for loans above Rs. 4 lakh

Note: Margin money refers to the amount the borrower contributes to the overall amount required. Suppose a course costs Rs. 40 lakh in which case the borrower will have to pay 5% of Rs. 40 lakh which is Rs. 2 lakh. The bank will cover the rest.

Processing and Other Charges

• There are no processing charges for this loan

Uses of the Loan

• The loan amount can be used to pay any fees or other charges that are a part of the standard tuition, hostel or any other institution-approved cost that are necessary to complete the course
• The loan can also be met to cover any travel expenses, study tours and so on

Other Features to Know

• The loan is disbursed directly to the college, bookseller or publisher, computer seller, and so on and not to the applicant
• The bank may ask for the submission of the student’s progress report at regular intervals during the course
• The bank offers Group Life Insurance Cover Scheme for Educational Loan Borrowers. This insurance covers the outstanding loan in case of accidental or natural death of the borrower

Documents Needed

• Application Form duly filled and signed by applicant and/or guarantor along with details of applicant and/or guarantor and family
• A declaration/ affidavit from the borrower confirming that, no educational loans have been availed from other banks
• Two Passport Size Photographs of student, applicant and/or guarantor
• Photocopy of PAN Card of the student that needs to be submitted at the time of application or during the course period
• Personal Identification Proofs (Any One): Electoral I-Card, Passport, Driving License, PAN Card or Aadhaar Card
• Residential Address Proof (Any One): Electricity Bill, Landline Telephone Bill, Electoral or Voter ID Card or Passport
• Admission Letter, Course Details and Prospectus as proof of admission
• Fee Details with Demand of Fee by the Institution
• All Proofs of Past Academic Record including Mark Sheets and Certificates
• For the co-borrower, documents such as age, ID, signature, address, employment/business/income proofs are required

Reference Facts

• UCO Bank Website: www.ucobank.com and www.ucobanking.com (net banking)
• Headquarters: Kolkata, West Bengal
• Call Centre Toll-Free Number: 1800 274 0123